New Risk • Jun 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 22
First half 2024 earnings released: EPS: AU$0.053 (vs AU$0.016 loss in 1H 2023) First half 2024 results: EPS: AU$0.053 (up from AU$0.016 loss in 1H 2023). Revenue: AU$374.4m (up 28% from 1H 2023). Net income: AU$49.7m (up AU$64.5m from 1H 2023). Profit margin: 13% (up from net loss in 1H 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to AU$1.07, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 12x in the Metals and Mining industry in Australia. Total loss to shareholders of 30% over the past three years. Aankondiging • Sep 27
Silver Lake Resources Limited, Annual General Meeting, Nov 24, 2023 Silver Lake Resources Limited, Annual General Meeting, Nov 24, 2023. Aankondiging • Sep 19
Silver Lake Resources Limited (ASX:SLR) acquired 11% stake in Red 5 Limited (ASX:RED). Silver Lake Resources Limited (ASX:SLR) acquired 11% stake in Red 5 Limited (ASX:RED) on September 18, 2023.Silver Lake Resources Limited (ASX:SLR) completed the acquisition of 11% stake in Red 5 Limited (ASX:RED) on September 18, 2023. Reported Earnings • Aug 24
Full year 2023 earnings released: EPS: AU$0.033 (vs AU$0.086 in FY 2022) Full year 2023 results: EPS: AU$0.033 (down from AU$0.086 in FY 2022). Revenue: AU$719.6m (up 13% from FY 2022). Net income: AU$30.8m (down 60% from FY 2022). Profit margin: 4.3% (down from 12% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 2 years compared to a 2.3% growth forecast for the Metals and Mining industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to AU$1.12, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Metals and Mining industry in Australia. Total loss to shareholders of 50% over the past three years. Aankondiging • May 17
Silver Lake Shelves Investor Meetings over $656 Million St Barbara Takeover Silver Lake Resources Limited (ASX:SLR) has cancelled investor meetings this week about its $656 million bid for gold miner St Barbara Limited (ASX:SBM), fuelling suggestions that it could be about to walk away from the target. Royal Bank of Canada was arranging meetings with Silver Lake investors for this week, with various executives of the company in Australia this month for the Macquarie Australia Conference that was held recently. Sources close to Silver Lake played down the cancellation of the meetings, saying there was no clarity on the status of the deal. However, some have interpreted the move as a signal that the company has cooled on the target. Raleigh Finlayson’s Genesis Minerals Limited (ASX:GMD) told the market on May 15, 2023 that it would accelerate an earlier agreed deferred payment and add an extra five million of its own shares to the offer, adding up to about $6.2 million. Previously, Genesis Minerals was offering a further 52.2 million shares to St Barbara, but only when its Tower Hill deposit produces its first ore. Aankondiging • May 06
Silver Lake Lobs Late Bid for St Barbara Gold Silver Lake Resources Limited (ASX:SLR) has launched a dramatic late intervention into St Barbara Limited (ASX:SBM)'s friendly asset sale deal with Raleigh Finlayson's Genesis Minerals, saying it has unsuccessfully been pitching a better proposal to the St Barbara board. Silver Lake went public with its offer on May 04, 2023, saying it had offered a deal worth $732m to acquire the struggling gold producer's West Australian gold assets, including $326m cash and 327.1 million of its own shares. The WA miner says it believes its offer is superior to that of Genesis, offering a 28% premium to the upfront value of the Genesis bid, which includes $370m cash and $170m worth of its shares, and a 14% premium to the full offer, which includes another $60m contingent scrip payment in exchange for St Barbara's Leonora assets. Silver Lake says the St Barbara board has so far refused to engage with its offer, and it claims to have the support of the struggling producer's two biggest shareholders - L1 Capital and Baker Steel Capital Managers, representing 9.3% and 8.6% of the St Barbara register -respectively - to hold talks over the bid. Under the Silver Lake proposal, St Barbara shareholders would emerge with 26% of its stock, the company said. Silver Lakes' cash offer is below that of Genesis, and the amount of scrip on offer would force the commissioning of an independent expert review, potentially slowing the sale of St Barbara's Leonora assets at a time when the company is struggling for cash. In a statement to the ASX on May 04, 2023, St Barbara said its board remained convinced the Genesis bid offered the best value to its shareholders, saying the Silver Lake premium was only 9% above that of its rival when a $5.4m break fee on the Genesis deal was included in its price, and pointing to the faster closure of the Genesis deal. "Even if the required mutual due diligence could be completed within two weeks, Silver Lake has indicated that expected completion of a transaction would occur in mid/late August. This contrasts with the Genesis transaction, which is expected to complete on or around June 30, 2023," St Barbara said. St Barbara also said its shareholders would benefit from the issue of Genesis shares given Genesis brings its own Leonora assets to the district consolidation play. "Accordingly, St Barbara will not be further engaging with Silver Lake in respect of the non-binding, indicative and conditional proposal," the company said. Genesis said its board and management had worked with St Barbara for more than a year to work ways to make the most of their combined assets in the Leonora region, and the deal offered value to both sets of shareholders. Silver Lake shares closed down 3c at $1.21 on May 04, 2023, with St Barbara up 5c, or 7.8%, at 69c and Genesis down 6.5c at $1.29. Reported Earnings • Feb 22
First half 2023 earnings released: AU$0.016 loss per share (vs AU$0.05 profit in 1H 2022) First half 2023 results: AU$0.016 loss per share (down from AU$0.05 profit in 1H 2022). Revenue: AU$292.6m (down 4.9% from 1H 2022). Net loss: AU$14.8m (down 133% from profit in 1H 2022). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Recent Insider Transactions • Dec 10
MD & Director recently sold AU$968k worth of stock On the 6th of December, Luke Tonkin sold around 740k shares on-market at roughly AU$1.31 per share. This transaction amounted to 49% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Luke has been a net seller over the last 12 months, reducing personal holdings by AU$1.3m. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improved over the past week After last week's 18% share price gain to AU$1.31, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 9x in the Metals and Mining industry in Australia. Total returns to shareholders of 23% over the past three years. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improved over the past week After last week's 16% share price gain to AU$1.18, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 8x in the Metals and Mining industry in Australia. Total returns to shareholders of 25% over the past three years. Recent Insider Transactions • Sep 09
MD & Director recently sold AU$360k worth of stock On the 6th of September, Luke Tonkin sold around 290k shares on-market at roughly AU$1.24 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Luke's only on-market trade for the last 12 months. Reported Earnings • Aug 30
Full year 2022 earnings released: EPS: AU$0.086 (vs AU$0.11 in FY 2021) Full year 2022 results: EPS: AU$0.086 (down from AU$0.11 in FY 2021). Revenue: AU$634.6m (up 6.1% from FY 2021). Net income: AU$77.7m (down 21% from FY 2021). Profit margin: 12% (down from 16% in FY 2021). Over the next year, revenue is forecast to grow 15%, compared to a 81,520% growth forecast for the Metals and Mining industry in Australia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment deteriorated over the past week After last week's 16% share price decline to AU$1.36, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 8x in the Metals and Mining industry in Australia. Total returns to shareholders of 9.2% over the past three years. Reported Earnings • Feb 23
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: AU$0.05 (down from AU$0.075 in 1H 2021). Revenue: AU$307.6m (down 2.8% from 1H 2021). Net income: AU$44.5m (down 32% from 1H 2021). Profit margin: 14% (down from 21% in 1H 2021). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 6.1%, compared to a 742% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 38% per year. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improved over the past week After last week's 16% share price gain to AU$1.81, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 10x in the Metals and Mining industry in Australia. Total returns to shareholders of 149% over the past three years. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment deteriorated over the past week After last week's 20% share price decline to AU$1.49, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Metals and Mining industry in Australia. Total returns to shareholders of 172% over the past three years. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improved over the past week After last week's 19% share price gain to AU$1.82, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Metals and Mining industry in Australia. Total returns to shareholders of 278% over the past three years. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improved over the past week After last week's 16% share price gain to AU$1.63, the stock is trading at a trailing P/E ratio of 5x, up from the previous P/E ratio of 4.3x. This compares to an average P/E of 12x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 359%. Is New 90 Day High Low • Feb 26
New 90-day low: AU$1.35 The company is down 25% from its price of AU$1.80 on 27 November 2020. The Australian market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$6.14 per share. Is New 90 Day High Low • Feb 04
New 90-day low: AU$1.54 The company is down 31% from its price of AU$2.23 on 06 November 2020. The Australian market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$6.14 per share. Is New 90 Day High Low • Jan 15
New 90-day low: AU$1.68 The company is down 29% from its price of AU$2.37 on 16 October 2020. The Australian market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$7.09 per share. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment deteriorated over the past week After last week's 15% share price decline to AU$1.74, the stock is trading at a trailing P/E ratio of 5.6x, down from the previous P/E ratio of 6.6x. This compares to an average P/E of 14x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 314%. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 16% share price gain to AU$2.05, the stock is trading at a trailing P/E ratio of 6.6x, up from the previous P/E ratio of 5.7x. This compares to an average P/E of 13x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 439%. Is New 90 Day High Low • Nov 06
New 90-day low: AU$2.08 The company is down 18% from its price of AU$2.53 on 07 August 2020. The Australian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is down 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$6.44 per share. 