Stratex Share Discussion Threads

[observer007] 07/1/2017 07:47

Been buying more over the last month.

Think lots going on in the background - comforted by the mine doing well comments coming from meetings with investors.

Share prices in sector over last 3-4 months not good, many lower but signs this is reversing at last, both AAU and MARL moving again after long stagnation.

New CEO has good track record of delivery of shareholder value.

[juju44] 06/1/2017 22:15

Not much point in going over this stuff yet again so I will refrain from joining in . I will give Marcus a time to prove if he is any more competent than the posse of losers that he joined - we will see .. and I hope he makes it

[charles clore] 06/1/2017 18:32

Harry - how does that add to the debate?

[youngharry2] 06/1/2017 17:10

Bahar 55% Stratex 45% says all you need to know

[exbiz] 06/1/2017 17:10

I'll not disagree with you Blobby or Charles as we're all just guessing as there has been no significant news now for over a year now when the company announced initial production at Altintepe. Hence all the discussions on this bb seem to be those that we've all had a hundred or more times regrettably.

[blobby] 06/1/2017 16:45

Tad please can you clarify your post above which seems ambiguous to me. You said
“Confidence was extremely high the mine exceeded its annual target in early December.”

When did you hear this and from whom?

Is the target you refer to 30,000 oz of production in 2016? I'm just checking as Stratex have a habit of publishing sales and not production or the other way around.

When you heard this:

Was it before December, so you were expecting that the target figure would be met in early December and hence for the full year it should be a maximum of 10% over e.g. 33,000 oz?

Or

Was it then early December and the person saying this was just saying they expected the annual target would be exceeded (by any amount)?

[charles clore] 06/1/2017 16:40

gf - really? I hope it helped lol

[greedfear] 06/1/2017 16:38

I watched a movie in the theater yesterday: La la land. I can recommend it.

[charles clore] 06/1/2017 16:32

exbiz - you may think they have been at loggerheads but perhaps not. It would have been difficult and irresponsible to attempt to extrapolate future costs with less than a year of production under their belts. Many things can happen in a year to collect data, form opinions, make plans, assess future costs and not least, measure cash flow. Yes, perhaps it would have been ok to allow a small distribution of cash at mid-year. However it didn't happen and although painful for shareholders I believe the path chosen by the partnership will ultimately prove to be... the right one.

[exbiz] 06/1/2017 16:26

If the relationship between the jv partners is good then why the cessation of quarterly production figures with no guidance as to why ??

[exbiz] 06/1/2017 16:21

Blobby, Charles there have been ongoing negotiations for 12 months now and the companies are clearly at loggerheads or otherwise this situation of non-resolution to the issue of cash distribution would have been resolved a long time ago. The fact that neither partner is prepared to stand down on their bargaining position would suggest to me that the relationship is not good, nay fractious. This is not meant as a point of contention by me but a clear observation. I have never been in negotiation with anyone in my business for anything like 12 months but can state that any discussions or negotiations that have been protracted have never been completely harmonious and certainly both parties have not been in complete agreement otherwise resolution is always swift. Remember Bob said last January that discussions on cash distribution would be resolved when he visited the site within the fortnight, even though Marcus has been in place for a few months now and still no resolution has led to cash distribution.

[greedfear] 06/1/2017 16:13

There's cash. Together we're in charge. You want cash, I want cash. Nothing stopping us from distributing some (certainly not expenditures to be expected over a couple of years). But we're supposed to believe there's a problem here? We want to, but we can't because of payments to be made years from now (meanwhile operating a cash producing gold mine?) ?

That just doesn't make sense.

[greedfear] 06/1/2017 16:05

"jimbowen306 Jan '17 - 14:26 - 13269 of 13275 0 0
blobby,

I am literally quoting Marcus word for word at mines and money when he said 'Bahar are as desperate for the cash to be distributed as Stratex are. He also mentioned the importance of cashflow multiple times and he knows it's key in the current. Arnet environment."

If M truly believes Bahar must be desparate for the cash too he must be a very naive man.
(and anyone else believing that)

[tadtech] 06/1/2017 15:46

Quote from a director at Mines & Money in early December

'The mine is doing very well indeed'

Implied by Marcus (the new CEO) at the presentation 3rd November when asked by the Proactive representative, the reply is on the record and I would expect him to keep to his own timescale.

Give me 2 to 3 months to conclude discussions with the JV partner concerning cash distribution and future expenditure plans for the mine.



I am expecting these matters to be resolved by the end of this month. Confidence was extremely high the mine exceeded its annual target in early December. It was pointed out that closure costs and future mine expansion etc were not 'vast sums' of money verses future expected revenues.

My take is that AISC will remain well under $650oz once all the costs are confirmed.

I would not be surprised to see some buyers moving in over the next few weeks ahead of news.

[charles clore] 06/1/2017 15:45

Ah blobby - so the key word here is 'sales' then. They sold the 2015 Nov - Dec production in 2016, lumped it all together with the H1 sales and called it 'total project revenues since start of production'. I get it now and that makes sense, thanks!

[blobby] 06/1/2017 15:39

Charles,

"How they made that much cash from H1 production of c.19.5k oz is beyond my comprehension"

I managed to work this one out in the summer after much digging, you'll have to search back through this bb to get the full details. Basically sales are delayed from production. Production itself is a complicated sum as it is not defined as gold poured rather the gold processed and loaded onto the leach pads, the amount of which can only be estimated at first. Also not all production figures have been published e.g. 2015 production (this is bad behaviour I know).

[charles clore] 06/1/2017 15:16

I actually believe both Stratex and Bahar are singing from the same hymn sheet and would like the cash distribution issue to reach a conclusion as soon as possible.

From the Q2 Altintepe update 'H1-2016 sales of gold and silver generated total revenues of US$32.73 million and at 30(th) June 2016, total project revenues since start of production (announcement dated 6 November 2016) stood at US$33.39 million'

How they made that much cash from H1 production of c.19.5k oz is beyond my comprehension but there it is in black and white. What it does mean is the mine is very profitable and if those figures are correct they should be throwing off cash by the bucket load when it comes to the time to distribute. Even if they drilled Altintepe like Corguv's Swiss cheese and bought the most expensive crushers and processors they couldn't use up all that cash. So I think they must soon start sharing it out.

[jimbowen30] 06/1/2017 15:11

Blobby,

Agree there is NO evidence to support that view. It would be good to have an official RNS from Stratex and I'm sure we won't have to wait too long.

[blobby] 06/1/2017 14:32

jim,

Exbiz is suggesting that this "would point to a very fractious relationship" but I can't follow his logic on this. I would say that if both Stratex and Bahar are equally "desperate" for the cash to be distributed then I would say that they should be working nicely together to achieve this?

[jimbowen30] 06/1/2017 14:26

blobby,

I am literally quoting Marcus word for word at mines and money when he said 'Bahar are as desperate for the cash to be distributed as Stratex are. He also mentioned the importance of cashflow multiple times and he knows it's key in the current. Arnet environment.

[shortarm] 06/1/2017 14:08

And the largest trade for a while!

[novicetrade68] 06/1/2017 13:44

501k bought at 2p which is nice to see.

[blobby] 06/1/2017 13:36

exbiz,

I don't see any evidence for the following statements above:

"the two partners have huge differences of opinion as to the entitlement of the cash distribution"

"With posters here suggesting that Bahar are just as desperate to receive their share as we are it would point to a very fractious relationship"

If there is some hard evidence of this then please point me at it.

What we do know is that Bob and Christopher kept banging on about the 20% - 45% return levels and how Bahar were funding everything initially. I'm sure this kept a lot of investors interested which is probably why they kept saying it. They failed to mention cash for closure costs or likely requirements for further capital. Now that we are all impatiently waiting but it does not mean that there is something wrong, just that things are taking longer than we were led to believe.

How many other AIM mining companies talk up their prospects and downplay the likely timescales?

[exbiz] 06/1/2017 13:06

3p did you not read my message Shortarm?? I have other investments with better management teams and far better records on delivery than here, when these reach 3p I'll dilute my holding here, which will hopefully be sooner rather than later.