Stratex Share Discussion Threads

[greedfear] 02/12/2016 16:24

If Marcus is such a great believer in directors holding share stakes than why hasn't he been buying? Or does he think getting 6,000,000 free options is like he's bought some shares? Talk is cheap.

[greedfear] 02/12/2016 16:14

The personal interviews have a rather different tune than the one broadcasted recently. If all is well and exciting, why no public update, why no Q report? Gives me reason to believe people are -in a private conversation- told what they would like to hear or they turned what was told into what they would like to here. Reading between the lines: there's trouble in Turkey (as simple as that).

[charles clore] 02/12/2016 12:25

George - in the Q2 report for Altintepe it says 'H1-2016 sales of gold and silver generated total revenues of US$32.73 million'. Somewhere else I think a podcast by Bob shortly after that, that the Altintepe Madencelik bank account stood at over $20m. That's where my figures come from. No maths involved just extrapolation assuming the mine produced similarly in the second half the bank account should hold enough to pay of Bahar's capital costs. I'm not saying they will but they could.

[georgesorrow] 02/12/2016 12:09

Charles I'd like to see your arithmetic. If they realise a profit of $500/oz and produce 40k ozs that's free cash of $20m (less additional capital expenditure this year), with 80% to Bahar that's <$16m. Mine constuction cost was fixed at $39m.

I can only assume you are taking all-in mining costs at zero.

[jimbowen30] 02/12/2016 11:19

Sorry guys I actually didn't ask about the second half production/Q3! My view is that production will be nearer 40k than 30k, but obviously the main focus is when cash starts getting distributed

[charles clore] 02/12/2016 11:10

steve - that has me intrigued too! from 19800 oz in the first half to just on target of 30k oz for the full year would represent a dramatic drop off in production in the second half and yet according to Tad's feedback Marcus is saying production is going very well. Something doesn't add up there so I am very keen to see those figures and hope there may be a strategic element of surprise involved. The optimist in me says they are going to inform the market of over 40k oz produced in 2016. In the absence of bad news which would be reportable to the market I can only assume 40k oz will likely be quite adjacent to the final figure.

This would, of course, not only send the share price into orbit but would also mean that Altintepe Madencelik will have more than enough in the kitty to repay Bahar their mine construction outlay. Assuming that is done, at that point going forward, Stratex would be entitled to 45% of profits arising from mining operations at Altintepe.

[steve1905] 02/12/2016 10:27

Did anyone ask about the web investor presentation which showed expected 30k ozs production for the full year? That would suggest a marked slow down during 2nd half of year.

[juju44] 02/12/2016 10:05

200 quids worth of sales knocked it over the edge

[blobby] 02/12/2016 10:02

Tad and Jim thank you from me as well.

What was the story about when / if we will get a 3rd quarter production update? I'd be amazed if you did not ask. I have politely e-mailed the company about this but no response for several days.

Also is there a story about replying to e-mails from shareholders now that Claire is on maternity leave?

[juju44] 02/12/2016 09:45

Last buy was 4 days ago - hardly encouraging

[exbiz] 02/12/2016 08:17

Tad and Jim thank you kindly for attending the presentation and reporting back. Just arrived back in the UK last night after a nice break where I reflected on my investment in STI and decided that the best way to look at it was as a £40k write off and to forget about it. Your reports offer reason for renewed enthusiasm and hopefully 2017 could finally be our year. I may even attend a couple of STI presentations again myself next year now that the wet lettuce and creepy Chris are out the door. Some great posts yesterday all round making the board informative and enjoyable to read.

[shavian] 01/12/2016 22:29

Bond yields have been artificially compressed by QE. A JPM strategist described them as a 'coiled spring'. Trouble is, that the collapse in bond prices will be caused by rising interest rates (watch this space next week - the Fed's December raise is hard-baked in) will cause a flight TO the dollar, which will not be initially good for gold, and nor will the fear of inflation, because it's unlikely to rise very far. However, when Mr Market realises that interest rtes are not goingthrough the roof, and all the threats of instability remain, gold should then start its long rise. How's that for a numpty economic theory?

[corguv] 01/12/2016 22:04

The Bond market is huge and extreme Bond market prices and low even negative yields are clearly an accident waiting to happen.

[juju44] 01/12/2016 21:23

Jim , JPM are reputed to have amassed the biggest hoard of silver ever. They bought at manipulated low prices from the punters. They didnt buy it to see the price go down so when it suits them they will take it up again with the same power as when they took it down.
Corrupt but smart guys . When they take it up I want to be there . Similar story for gold

[jimbowen30] 01/12/2016 21:12

Juju - millionaire dollar question is the timing. Personally, I believe they yanks will lose control of the gold price in time and it will then rocket

[juju44] 01/12/2016 21:10

I also believe it will turn but only when they turn it

[jimbowen30] 01/12/2016 20:45

Charles/juju - No problem . I should have waved goodbye to CH.

The highlight of the show was a presentation from Grant Williams who writes Things that make you hmmmm and is an adviser to Vulpes investment management in Singapore. It was literally one of the best presentations I have heard. The gist of it was that whilst everyone is assuming things will be good under Trump, don't jump to conclusions. He sees a scenario where the Trump infrastructure spending, inflation and rising debt pushes yields on US Treasuries up. China is lowering their exposure to Treasuries and we are likely to see an abundant supply over the next ten years. Rising yields will led to a huge issue with US debt payments. China is also likely to start trading oil is yuan, which is a game changer. All this leads to downward pressure on the dollar and is very bullish for gold long term....I know you think the U.S. gangsters control the price juju, but it will turn.

[juju44] 01/12/2016 20:33

Thanks Jim - dont worry about walking past CH - yesterdays man

[jimbowen30] 01/12/2016 20:04

I will reiterate what Tadtech has said above, but don't want to repeat everything.

Marcus is completely aware that cashflow is king in the current market and made that point several times to me. He came across well and has 20 years at BHP, so knows his stuff.

My understanding is the previous management were rather too hasty in announcing cash distributions from the Altintepe JV. They knew the importance of cash and no doubt wanted to placate shareholders. However, Marcus made it clear that he wants to extend the mine life/plan and finish negotiations before cash is paid out from the JV. Juju - understand your frustrations but I genuinely don't see this is an issue. What I did find interesting is that Bahar are also very keen to receive funds from the Altintepe JV too. So both companies seem to be working together. I did press him on timescales but he wasn't able to say, although it should be early next year.

In terms of the other projects, he is doing a thorough review of all. Dalafin seems interesting and they have a huge land package. Marcus really rates the geologist team out in Senegal and they've done quite a bit of exploration work over a wide area but are now likely to focus on specific areas. It's possible a partner will come in on the project.

There is value in Stratex and I made it clear that shareholders felt management change was needed. I did walk past Christopher Hall but couldn't be bothered to talk to him as I'm just a lowly private investor. Then again there were far more bigger fish to talk to than him.

[juju44] 01/12/2016 19:44

Thanks Tad although the incomplete "negotiations " doesnt sit easy with me

[tadtech] 01/12/2016 18:03

Had a great 40 minute chat with Stratex at Mines & Money.

Very very positive vibes, the mine is performing exceptionally well, no problems with partner Bahar. There will be a statement but only once negotiations are complete.

Marcus is on the case re cash distribution - expects to see progress soon. Bob too laid back. Marcus more hard nosed.

The company will be more focused, main aim to deliver shareholder value.

Key drivers, Altintepe No1 - strong confidence the mine will have a life past 7 years.

Thani-Stratex, will be drilling again in early January. Stratex very confident their 30% stake will deliver value.

Goldstone, watch this space, very confident that it will deliver value, recent M&A activity in the area, issues with illegal mining has not effected Goldstone. Emma Priestly working with local community to ensure no issues on ground. Aim to get JORC resource up - then more value realizing options available.

Dalafin under review, looking for partners who will provide funding.

Marcus has been put in place to deliver shareholder value, more hard nosed and with business acumen. Money will be well managed.

Was told it is likely new directors will be brought into the company with focus to deliver value, seek opportunities. Seems the old brigade are all on the way out in due course.

Marcus has now moved to the UK, has been here 1 week, a believer that Directors should hold share stakes.

It was suggested in 6 months Stratex will be a different company, stated the Proactive event was too early for Marcus. PR will be improved.

Lots to look forward to, shareholders need one final tranche of patience IMO.

[youngharry2] 01/12/2016 16:58

Still a few days left for CH to give Bahar a helping hand...

[romeike] 01/12/2016 16:46

I am looking forward to the Q3 update

[juju44] 01/12/2016 16:23

He probably forgot that one was needed

[charles clore] 01/12/2016 15:21

What contract?