Stratex Share Discussion Threads

[sicilian_kan] 20/10/2016 22:20

Have posted this on the other board before but worth a refresh:

Marcus Engelbrecht was CFO at Oceana Gold between 2009 and 2011. Their production figures were 250,000oz/yr to 300,000oz/yr.

He got a promotion to CEO at Archipelago Resources between 2013 and 2015. Their production figures were over 140,000oz/yr. Also at Archipelago, he introduced a dividend scheme (which were to be at least 10% of operating cash flows for a given period, however the company got bought out later that year, shortly after he left).

Now he is CEO at Stratex, who have a minuscule 8,000oz/yr (20% of 40k, rising to 45%), and a pile of poor exploration targets.

Do we really think Marcus Engelbrecht came to Stratex for that? Not at all. We are told by Chris Hall there will be a portfolio review (about time!) and 1 or 2 near production acquisitions to achieve Altinepe v2 on improved terms and with greater control for Stratex. This is the right strategy - one that should have been implemented years ago. I had no faith that Bob could do this. I do think that Engelbrecht has the right talents though.

Clearly they need cash for acquisitions.

If I were Marcus Engelbrecht, I would think of Stratex as a startup with around £2.5m of cash, a valuable asset that can be sold [Altintepe] for decent money £10m+ and further assets that can be sold or licensed out for some small change [Dalafin, Pandora, GRL etc].

Convert those into cash and the £8m market cap appears tiny, They could easily convert Stratex into something with c£15m in cash and double the share price; and that is without the future speculation based upon what he could achieve by reinvesting in a project with real potential.

Maybe a pipe dream from me, but what I do know is that Engelbrecht has not come here to indulge more shareholders money in unproven speculative geo-fantasy drilling or just to wait for Altintepe monies to come in.

Under Bob, the company was a clear steer clear.

I believe that the current share price under clearly very talented new management is a very attractive entry point and have started accumulating more than punt money under 2p.

[georgesorrow] 20/10/2016 18:36

The £1,750 is some nominal monthly retainer for bits of ongoing support here and there; the meat in the annoucement is that GLR will be outsourcing project management and mining technical services from STI as and when they need them. If this is a formal arrangement, then it is very significant from GLR's point of view, and its RNS is just being echoed by STI.

[romeike] 20/10/2016 17:21

Yeah at first I read £1,750 daily fee, my brain couldn't cope with the pointlessness of reporting this monthly fee of under 2k. They probably spend more on biscuits. I'd love to know what "technical services" actually constitutes. If it includes mining/geology consultancy then it raises the question why is it GLR get this so cheap when Stratex shareholders are paying through the nose in fees for the same services from hangers-on, cough, I mean, esteemed non-execs & former directors.

[greedfear] 20/10/2016 15:23

This can only be a material RNS if nothing is coming in otherwise.
So it's very telling. :)

[greedfear] 20/10/2016 15:21

Don't think so. Think it will be all about changing the brand of coffee or that cellotape can really stick on a scissor.

[exbiz] 20/10/2016 15:04

There you go, I knew it wouldn't be long before the big bucks started rolling in ! All the doubters proved wrong.

But seriously was it worth the expense of an rns fee, what next will they be releasing an rns when they get a new cleaner at Eastleigh or the window cleaner gets a rise.

[goldenshare888] 20/10/2016 14:11

This Turkey is being fattened up for sure!

LOL

[tailor1] 20/10/2016 14:09

when will be get news on how much we are making, our net costs

[danieldruff2] 20/10/2016 11:46

Sounds like there is one STI graduate geologist crunching data in a software program for GRL and the cost has been passed to GRL, difficult to otherwise explain such a paltry sum!

[steve1905] 20/10/2016 11:33

1750 a month coming in (paid from their own money). It's this sort of financial acumen that has earned Stratex such credibility in the city

[goldenshare888] 20/10/2016 07:45

Yes, I think they may be hoping for a BIG one!

:))

[shortarm] 20/10/2016 07:32

Must be something at GRL with the continuous interest and support!?

[laptop15] 19/10/2016 17:37

Cheers for sharing Tadtech, all sounds very interesting!! Can't wait for November could be the catalyst we need to get this beast moving :)) also might bring more awareness of stratex!

[charles clore] 19/10/2016 17:36

2p by xmas!

[greedfear] 19/10/2016 17:29

Next year 20p! Minimum!

[goldenshare888] 19/10/2016 17:03

Looks to me like this TURKEY could take off before Christmas! :)))

Are we coming to the end/pennant of a BULL FLAG formation here?!

Calling you chartists?

Fantasists with predictions of 20p next year also welcome!

LOL

:)))

[tadtech] 19/10/2016 14:19

Attended a presentation in London last night and had the opportunity to speak to the Chief Operating Officer of a company with significant mining interests in Turkey. The fellow was familiar with Stratex.

I asked a number of questions concerning matters Stratex and, in particular, about cash distribution from a operating mine. I was informed that it is normal for there to be either a annual or bi-annual dividend payment once all cost/forward costs have been agreed.

My conclusion therefore is that it is not unusual for Stratex not to have received a payment so far but one is certainly imminent. Given the mine started producing in November last year it would make sense for this November to be a key month. Stratex have a presentation on November 3rd.

I also discussed the matter of mine closure costs, thankfully it seems, for a open pit mine, these are not excessive and can represent only circa 5% to 10% of the initial setting up cost. In the case on Altentepe that would be $2m to $4m.

The fellow re-iterated, what we all know already, that Turkey is a very low cost address and he felt that AISC should range no higher than $650oz for open pit. If so that leaves a very high margin for Bahar/Stratex

I believe Stratex will soon receive a very healthy 1st dividend from the mine which may surprise to the upside.

DYOR etc

[charles clore] 19/10/2016 00:02

exbiz - this video makes the point quite well -

[exbiz] 18/10/2016 23:54

CC one day the paper scam will be exposed for exactly what it is. Only in the murky world of the City could they value paper at the same price as gold and investors will accept it and not only that prefer it at a ration of over 100:1 Still can't convince my missus to accept a paper eternity ring for Xmas though.

[punkfeelinglucky] 18/10/2016 22:05

For the record guys I'm still holding.

[charles clore] 18/10/2016 17:34

greedfear - I am sure you are aware that 40% of annual production was funny gold, or paper contracts purporting to be actually worth something when quite blatantly they are worth nothing at all because the whole paper market is a complete myth. It's a complete mystery how the world allows this farce to continue. Methinks time drawing near for someone to tell the emperor he ain't wearin nowt!

[greedfear] 18/10/2016 16:12

Jeezzz missed that. 40% of ANNUAL gold PRODUCTION being sold only LAST WEEK ??

Seeking Alpha:

"The selling of gold we saw last week was another desperate attack by the BIS and some central banks, together with the bullion banks, to manipulate the gold market lower. We saw over 40% of annual production of gold being sold last week which is 1,000 tons. The physical market continues to be strong which I will discuss further on."

[juju44] 18/10/2016 15:09

Wow , we have life

[tadtech] 18/10/2016 14:44

There will be an update in November for sure, well that is what I have been led to believe. I also believe the matter of cash distribution from the mine will also be concluded soon.

Remember Stratex will be attending, only their 2nd presentation this year, on November 3rd. I would expect the new CEO to be present and actually do the presentation.

I think the very fact the new CEO has decided to move to the UK, taking on this position says it all. I remain convinced Stratex will be a much changed company shortly + I also expect to see more board changes.

This company needs a clear out, needs to re-focus, that is what I understand the new CEO is evaluating right now.

It does not take much to move the shares, one whiff of news on a half decent cash payment, the mine has probably generated circa $50m by now, will be enough to achieve a re-rate IMO.