Stratex Share Discussion Threads

[blobby] 25/8/2016 19:03

Charles, I tried that but can not access the reports. There is:

30 June 2016 Northland

and

8 June 2016 Beaufort Securities

Are these the ones you mean? And if so do they answer any of the questions above?

[charles clore] 25/8/2016 17:01

blobby - not certain if he still does tbh.

exbiz - chin up old chap I'm sure it will come good :)

By the way blobby, this broker note info may be enough but I think you can subscribe and see more detail.

[exbiz] 25/8/2016 16:55

Yes, but phase 2 & 3 have always been known for a number of years now and future drilling always anticipated, plus they surely knew that at some stage the mine would need closing and have associated costs to facilitate. But to be honest I almost don't care any more, after all the let downs and disappointments I'm entirely apathetic to the whole charade that is STI, STI EA (ThaniStratex) and STI WA.

[blobby] 25/8/2016 16:50

Charles,

Is Bob still lecturing? I'd hope he was busy enough full time at Stratex without extra work. I'm sure we pay him more than enough for his undivided attention.

[charles clore] 25/8/2016 16:45

exbiz - Bob lectures on mining at Imperial College and as such would be a complete laughing stock if it was discovered that he signed off on the FS without addressing the costs mentioned in 12137. I agree with blobby that they probably were addressed but things have moved on and we as shareholders have not been included in the loop. However, we ARE ONLY shareholders after all. The board is in control don't worry - they wouldn't want to trouble our inexperienced heads with such matters, would they? Haha!

[blobby] 25/8/2016 16:28

It seems clear that Stratex need to update the market. This is a really good opportunity to promote the company with some very interesting information and the next few weeks are a great time to do this IMO.

* What is Phase 2 (or what might it be depending on possible outcomes of drilling)?

* What are the capital requirements of Phase 2? How much capital has already being poured into this.

* What are the closure costs and when do they need to be funded?

* What is the possible time frame for the start of return of capital / cash?

* Are Stratex or the joint venture company now hedging the prices of gold and diesel to minimise risk?

I expect I could think of a load more questions as well.

[sicilian_kan] 25/8/2016 15:48

Such that shareholders don't even know roughly how much STI will receive and when from Altintepe

[And even on it being paid out, they don't know how shareholders will benefit if any proceeds are just ploughed into more exploration duds]

[charles clore] 25/8/2016 15:47

SK - so how did you think subsequent phase developments would be funded in tandem with phase 1 production? Did you think they would leave the development of phase 2 until the end of phase 1?

[sicilian_kan] 25/8/2016 15:43

Phrasing unintended - still trying to get to the bottom of this as are most here too.

Perhaps better to say STI is only entitled to 20%, however the money available for that 20% is eaten into massively by funding closure costs, Phase 2 costs, new clay circuit, expanded leach pads etc. AND these are costs that either should have been built into earlier estimates or which might not have originally been thought to have been incurred by most shareholders until the 45% stage.

[blobby] 25/8/2016 15:05

Just for fun… here are some thoughts on a possible scenario for the cash being generated at Altintepe. Please note that any figures below are just examples and I’ve made all sorts of assumptions that may not be correct.

Net cash generated per oz $700.

Closure cost for phase 1 (110,000 oz) at $100 per oz = $11 million

Phase 1 capital costs were $39 million so let’s say Phase 2 capital costs are $20 million. (note: I don’t know what phase 2 is, let alone what it may cost).

So the joint venture company will have to generate $31 million before anything can be returned at the 80/20 rate. If sales are at 40,000 p.a. and they generate $700 per oz of cash flow then there will be just over a year before anything can start to be returned as cash.

It should be noted that profits are being generated now even if they are not cash at this stage.

[shortarm] 25/8/2016 14:47

Hehe, yes - I'm sure in was in intended too :-D

[punkfeelinglucky] 25/8/2016 14:37

SK, I believe short arm is correct. Money gets distributed from free cash flow. so that is what will be split 80/20 Your phrasing (unintended Im sure) makes it sound like sti will nearly have to pump cash into altintepe which is the opposite of the truth.

[charles clore] 25/8/2016 14:26

SK - isn't that what I just said?

[shortarm] 25/8/2016 14:11

Nice try SK!The JV company does the work Nd holds many millions at the moment...When it's spent some the money gets distributed...You're trying all the time :-)

[sicilian_kan] 25/8/2016 13:59

Both parties will be funding it and Stratex will be funding 45% of the future development but with only 20% of the net cash flow at the moment...

[charles clore] 25/8/2016 12:48

blobby - If Stratex intends to remain as part of the Altintepe jv I would be inclined to assume that all mine development costs going forward will be split in the ratio 55:45..

[blobby] 25/8/2016 12:12

juju, Stratex have given some indication of the things that are involved in this issue. For example:

- Construction of Phase II leach pad is underway with completion anticipated during November 2016; and

- Assessment of longer-term life-of-mine (beyond Phase 1) production planning continues.

So from this you can see that some of the cash is already being spent on phase II work. I presume that both partners are required to fund this, but I agree it could be a lot clearer and Stratex could tell us how much capital is now committed for Phase II and over what time-frame.

Also it looks like they don't yet have a clear plan for all the development as they are still drilling resources and doing tests.

[juju44] 25/8/2016 10:41

not good enough Charlie . They have a duty to us sufferers with regard to lousy SP

[charles clore] 25/8/2016 10:22

juju - when they have calculated the ongoing costs Altintepe Madencilik will make a decision as to how much will be split 80:20. I imagine they probably already have a fair sized bank balance :)

[corguv] 24/8/2016 14:15

Logically keep rolling over the two week forward over and over again - then something or even clarity will eventually happen

[romeike] 24/8/2016 14:05

Events will pick up in about two weeks or so, right now no one cares about anything other than if the beer is cool yet.

[blobby] 23/8/2016 20:51

Thanks Charles. It looks like this is still holiday season with the number of posts and trading activity. I'll try to do my own research on potential newsflow.