Stratex Share Discussion Threads

[shoggoth] 03/11/2016 06:53

Charles yes the clay circuit. Bahar were supposed to recoup their development costs from 80% of the net proceeds. But they included the capital costs of the clay circuit as an operating cost. This seemed like an unfair sleight I hand to me. So even though it is set out in black and white stratex is not free carried at all.

This behaviour happens more often than you might think in JVs where the senior partner controls the operations. Bahar can sit it out in the knowledge that their junior partner has no other income and when the cash has run out can take them over.

Feel free to discredit this theory with your reasoning. So far we are 12 months into a 34 month mine life and have received almost zero.

[observer007] 02/11/2016 19:02

Why do people continue to use this out of date thread when Tadtech created a new one?

Surely given the new CEO, the new optimism, it would be better to move here from now on..........

[charles clore] 02/11/2016 18:20

Certainly no unexpected costs as far as I am concerned. Oh you mean the clay circuit? Yes that was unplanned but Bahar quickly dealt with that and put production straight back on track. The thing people dont seem to understand is that Bahar has an even bigger incentive than Stratex to reach agreement over development and mine closure costs - 39 million reasons!

[flavio_monteiro] 02/11/2016 17:33

Can you copy and past please Shoggoth as I have read EVERY word of every announcement for the last year...Thanks in anticipation!

[shoggoth] 02/11/2016 17:30

It is self explanatory if you have been reading the company's statements for her last 12 months.

[flavio_monteiro] 02/11/2016 17:24

shoggoth, Can your explain your statement "The evidence is that there have been unexpected costs arising and the explanations have not been convincing" as I don't see any unconvincing unexpected costs!

[shoggoth] 02/11/2016 17:19

I am not sure Bahar can be trusted. The evidence is that there have been unexpected costs arising and the explanations have not been convincing. Bahar don't have to play fairly, they are still within the law as they control the operation and hence get to call the shots. It is a rational decision for them to maximise income even if it is to stratexs disadvantage.

[charles clore] 02/11/2016 16:21

greedfear - Asking whether a respected mining company can be trusted is not grounds to suppose that they can't be. Do you have any reason to suppose that they are not trustworthy? Can you name just one instance where a foreign partner has been 'diddled' by their Turkish jv mining partner?

I have confidence in Bahar because: a) The jv agreement is written in the form of a contract which is enforceable by law and b) Stratex would have carried out due diligence before engaging Bahar as a partner.

[greedfear] 02/11/2016 16:12

And what can be done against it if not? Do you trust the judicial system over there?

[greedfear] 02/11/2016 16:02

Charles can our partner be trusted? Don't know. Do you?

[flavio_monteiro] 02/11/2016 12:48

Exbiz, Funny, markets used to look forward to earning 18 months in the future...Times have changed..we could soon be trading on a Market Cap of 2-3!

[charles clore] 02/11/2016 12:44

exbiz - hear hear.

Alternatively, if anyone can put forward a case for Stratex receiving nothing from Altintepe I would like to hear it. The agreement leaves us receiving cash under the following condition reiterated in the Interim results to 30th June published on 10th August 2016.:

...The board of Altıntepe Madencilik is currently considering the longer-term future of the Mine and the optimum means to provide for, or fund, future capital expenditure, including a provision for ultimate closure and restoration, which was always to be financed out of cash flow. Once the longer term planning of the Mine has been fully evaluated and costed, to allow an estimate of distributable cash flow, distribution of net cash can be initiated on the accelerated payback basis of 80% to Bahar and 20% to Stratex until Bahar's pre-production costs are repaid. Thereafter, net cash distributions will be made 55% to Bahar and 45% to Stratex...

[exbiz] 02/11/2016 12:15

Tad we're not chronically undervalued at the moment as we have no income despite having a mine in production for the best part of a year now BUT the minute we start to receive income from Altintepe the story changes and we become pitifully undervalued and perhaps this will change very soon, hence the upsurge in interest in this old dog. Marcus seems to have brought interest to Stratex and we are now looked upon as a more serious investment opportunity than we have up until now. There seems to be a heck of a lot more belief that he can run this as a profitable business. There was an awful lot of criticism aimed at so called stale bulls up until recently but it's good to see that we are all more in agreement now that this must first and foremost be run as a successful business and not a geologists ego trip. Now if we can all make a few quid it'll make the long, long wait worthwhile.

[romeike] 02/11/2016 12:10

I suspect many were holding despite the management rather than because of it

[longshanks] 02/11/2016 11:07

Don't forget the very real prospect that we could soon have Trumponomics in action with the US back on the gold standard as one of his earlier pledges.

[greedfear] 02/11/2016 10:41

LOL! What a pathetic POS this is!

[flavio_monteiro] 02/11/2016 10:36

I am looking for earning of £5M this years and Stratex on a PE of 2!!!!

[observer007] 02/11/2016 10:31

The new CEO is a businessman, he will clear the dead wood and cut costs, he is a fond believer of dividends also.

Whilst costs have been cut they need further pruning, cash from Altentepe could soon reach £5m+ per annum, once Stratex move to 45%. that money needs to be passed to shareholders by way of dividend.

I want to see Hall go, he is not a friend of the private shareholder, he has refused to buy shares in Stratex also, he is a PR disaster.

[steve1905] 02/11/2016 09:51

Maybe the court case was delayed with the purge of the Judiciary in Turkey. It's only the best part of two years

[tadtech] 02/11/2016 09:47

I suspect the market is starting to wake up to the chronic undervaluation here, still circa £10m market cap for a low cost gold producer. The gold price is moving up again and so will Stratex's revenues.

Not sure if we will get an RNS tomorrow ahead of the presentation but I hope so. I still think Stratex will get a cash injection of £2.5m to £3m imminently.

The CEO has lit the blue touch paper and I wholly expect the re-rate to continue. The stock is extremely tightly held.

[charles clore] 02/11/2016 09:42

blobby and exbiz - good points. blobby - I think new shareholders are more likely to be attracted to a miner with less exploration costs than the spendaholic that Bob and Co. turned the company into in latter years.

[exbiz] 02/11/2016 09:35

Erm and the resolution finally to the court case would be good.

[blobby] 02/11/2016 09:33

Many new CEOs will issue all the bad news that they can find as a first action, clearing the decks and avoiding any blame for past mistakes. Who knows what Bob might not have been telling us over the last few years or what things Marcus thinks are bad where Bob thought they were OK. I think we should be prepared for some bad news as well as any change in strategy.

Most shareholders will have been happy with Bob's old strategy at some point in time (otherwise they would be less likely to be shareholders). If the strategy or emphasis changes it is possible that many shareholders will not agree straight away. I'd say it is likely that Stratex will be doing less exploration in future for example. In this case there could be some churn as some existing holders sell out.

[danieldruff2] 02/11/2016 09:16

Not forgetting results from the extension drilling, I suspect they need those numbers in as well.

[charles clore] 02/11/2016 09:14

tailor1 - yes agreed we have been disappointed over the past 4 years but as Flavio points out, with the new CEO we have a new beginning. I would not be surprised if we had approximately $40m in sales so far and I would estimate we are pretty close to the 30k oz annual production target by now. Once the mine development budget and closure plan are finalised then Altintepe Madencilik will begin distributing profits.