Sierra Rutile Share Discussion Threads

[nonic] 13/1/2014 10:45

Don't forget what SRX sold the whole of Q1 2013 for...........$2500/tonne. The costs in the recent update were$600+SRX were forecasting output of200,000/annum in a couple of yearsI'm not the only one who can work that out

[bossman1978] 12/1/2014 19:35

Let's hope so. A nice take over would be nice, but at what price??

[nonic] 09/1/2014 13:13

Donk:What it says to me is that the 'predator/vulture' company has made a silly or at least unacceptable offer and SRX have almost thrown the door open to invite more offers. 130,000 tonnes this year at 900 dollars/tonne profit if the selling price per tonne is $1500ish is encouraging and the management prob don't want a hostile offer. Just a guess as I said it seemed an odd thing to do.

[donk4] 09/1/2014 09:49

Nonic - that information would come from due diligencce but I take your point.

Might there be a dividend if the talks break down or a satisfactory offer is nit negotiated to satisfy e.g. Pala?

[scrutable] 09/1/2014 08:04

the outperforming Q4 Production results today annualised, already point to 144kT/pa, a further 20% rise during the year ahead, just begun, despite the more modest guidance of 131mT just published by the BOD.

This management forecasts cautiously, grows continuously at an impressive rate, efficiently and robustly, on economical and carefully optimised capex, and has firmly established itself as one of the 2/3 reliable, current, leaders in the world of rutile(TiO2 - white pigment) mining.

With news today of a further 50kT sales contract added to the 30kT already residually in place for Q1 (as at Nov 20th) SRX can already point to visible, record H1 financial results to come at end June 2014.

[nonic] 09/1/2014 08:03

So SRX have not quite achieved their stated target of 125,000 tonnes in the year- but not too far off(-4%) not too bad......

What I do find a wee bit strange is that they have included total operating costs per tonne............

So anyone who has knowledge of current world prices knows exactly what the profit levels are and therefore how much SRX should be valued at.

Its almost as if they have put a "for sale" notice up outside the front door

I know they are already in negotiations but........

The more the merrier!!

nonic

[bossman1978] 07/1/2014 18:25

Some blue today!

[bossman1978] 26/11/2013 18:50

Do we think the Chinese have an eye on this company?Anyone know about the special divi?

[russman] 19/11/2013 19:08

"in discussions with potentially interested parties". This implies that Pala are not buying the minorities out & the company is trying to get an auction started.

[corbine] 19/11/2013 12:54

whos been merging with who?

[corbine] 19/11/2013 12:46

advfn-your humour is priceless :-)
dunking donuts

[corbine] 19/11/2013 12:45

though one broker suggested the shares could yet go higher still.
According to Sanlam, major shareholders in Sierra Rutile believe the company's valuation is significantly above the current level, even double or higher.
"We have said previously that Sierra Rutile represents the best heavy mineral play on the London Stock Exchange, although we recognise the lack of liquidity means only a few investors can be involved.
"Sierra Rutile produces possibly the best rutile product globally and any potential acquirer will be looking to take advantage of the current cyclical low point in the commodity's price."
Pala Investments is the majority shareholder, with a 54.4% stake at the end of 2012, though a group of institutions also has almost 40%.
Sierra Rutile's core product is rutile, one of a group of titanium dioxide minerals (TiO2), predominantly used in the manufacture of white pigment in the global paint, plastics and paper industries due to their particularly high brightness and opacity characteristics.
Sanlam adds that the shares reached a high of 81p in August 2012 and said it would be "very surprised" if an offer was accepted below that: £1 or more is more likely in the broker's opinion.
[...]

[corbine] 19/11/2013 09:15

if you check the presentation..
insight. trawl back through old rns for the appointment of the keiser for the agribusiness studies. large micro farming fragmented industry-needs to be modernised? huge potential- green gold agribusiness. the rare earths were announced a few years back, never been developed. im recalling 2 per cent was found in tailings, 30 years of tailed stockpiles? from memory? the current plan? was ramping up towards 250,000 tonnes per annum of rutile, thats without the zircon and ilmenite productions. historically dupont and others had legacy contracts. why? the purity of the grade, unlike the toxic craap from far east.
srx has largest NATURAL rutile deposit in world:-)

[brechin] 19/11/2013 08:41

The possible price will depend on who is doing the buying. If Pala is simply buying the rump, then do not expect a high price. If it is a third party then clearly 100p+ is possible. The company is certainly worth 120p or more but the essence of takeovers is to pay only what you can get away with.

So, a range of 80p -120p would appear to be about what I would expect.

[the count of monte_cristo] 19/11/2013 08:36

Thanks Corbine - in regards the Agribusiness, could you refresh my memory again? What are they up to here and how are they progressing.

So essentially what are you actually saying, that the value is much larger? Or that they wont be sold?

[corbine] 19/11/2013 08:28

christo-even if pala offload the co- will mnsr sisay stay? theres a massive rare earth value untapped as of yet. the agribusiness studies and early projects havent yet come to fruition. the co hasnt yet ramped upto 250kt per annum, jorc needs increasing mine life needs further increasing......etc etc
jmo

[the count of monte_cristo] 19/11/2013 08:05

If a bid does come, it will be interesting to see what they offer, usually they are around the 50-100% above the trading price, so that would equate to 80-100p IMHO.

[the count of monte_cristo] 19/11/2013 07:44

Wonder of it is the Chinese who are interested? Trying to get there hands on one of the, if not THE, largest Rutile deposits on the planet.

[corbine] 19/11/2013 07:15

more to it than meets the eye tho tim. the plans arent all in full swing yet, the rare earth, the agribus, green gold fruition, the jorc upgrade and resource/reserves extensions, the annual production was for 250,000 tonnes. and gov wants a word with sisay and hes away at the presentation.
:-))
rutile/zircon and ilmenite price futures?

[granitetim] 19/11/2013 07:13

the directors hold a hell of a lot and no lo-ball offer would be accepted.
imho

[corbine] 19/11/2013 07:05

offer rns..

[bossman1978] 18/10/2013 18:09

When do we think we would get our special dividend? End of the year?

[russman] 26/9/2013 21:36

Very positive PR exercise. Market share & Comparatives were very interesting.

[brechin] 26/9/2013 11:54

Excellent presentation being given today by John Sisay about this top class company.

For investors, the most interesting new piece of information is the projection of a potential dividend from strong cash flows which would give the shares a yield of 25% at the current price!

Even if the share price rose by 150%, it would still yield 10%.

Money for old rope INMHO