News

February 12, 2009

Drill, Define, Mine: Silver Lake Resources Has Done Things By The Book, And Now The Profits Are Rolling In

By Our Man in Oz

Oh, what a treat for Minesite’s Man in Oz to discover a company that is doing everything it promised it would do - boosting production and profits, thinking about dividends, and, just when everyone else is sacking staff, creating a new role for a chief financial officer. He’s needed to handle a burgeoning bank balance. Naturally, the focus of the business is gold, that “barbaric relic” which has made fools of so many of its critics, from the British Prime Minister down. Or is that up? In any case... Silver Lake Resources is the discovery. A late-2007 float on the Australian Securities Exchange, Silver Lake suffered at the hands of investors who sold it down over 2008. But interest is now returning as the word creeps into the market that there are still companies around which under-promise and over-deliver – just like there used to be in the good old days.

Over the past two weeks interest in Silver Lake has blossomed. The company’s shares have risen from the A20 cents level that they were trading at in late January to around A33 cents now. That, for the true believers, is a 65 per cent gain in the space of a few weeks. In fact, since the company’s shares hit an all-time low of A13 cents on 21st November, less than three months ago, Silver Lake has been one of the stars on the steadily reviving Australian market. The A20 cents it has put on since...