SLR -0.49%: the gold miner announced 1H results today, though this period was largely overshadowed by plans to merge with Red 5 (RED) in a deal announced earlier this month. Revenue was a slight beat for the half, however, EBITDA of $157.2m was ~10% below expectations on higher corporate & exploration costs. Corporate costs were driven by two pieces of M&A activity in the failed bid for Gwalia and the new deal with Red 5.
- While we were frustrated with the terms SLR shareholders received for the deal, we now think that is more than priced in. The merger adds Silver Lake’s strong balance sheet with Red 5’s strong asset base and long-term mine life.
MM is bullish SLR
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