Stratex Share Discussion Threads

[shortarm] 06/1/2017 12:59

Exbiz, if there are so many better options what on earth are you waiting for??!!??!!??

[exbiz] 06/1/2017 12:42

The fact that discussions about cash distribution from Altintepe have now been ongoing for almost 12 months with no sign of settlement demonstrates that 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 indeed, which would lead to serious problems over an extended mine life of 6-8 years. With the share price at a quite ridiculous level for a gold PRODUCER the wider market clearly see this the same way and are clearly quite incredulous that a gold producer can't even receive even the slightest income from the gold that has been produced and sold for well over a year now. Together with Marcus' presentation statement that only "Once the mine achieves profitability, capital repayment and cash distribution will occur" the short term outlook does not look so certain. While it would be nice to think that an share price of 5p could be achieved I fear that the flood of holders that will exit here should the share price rise to anywhere near 4p would certainly curtail the rise. I for one will drop a million at circa 3p as there are far, far better investment options out there and STI over many, many years now have talked themselves up at presentations and failed their investors at every single juncture. The company are incommunicado and have been since Marcus took over and have shown no progress either. All the talk of directors aligning themselves with shareholders was also exactly that, just talk.

[jimbowen30] 06/1/2017 12:24

Blobby,
You are 100% correct - that is my deal. This is exactly what Marcus said at mines and money, early last month. The silence is not ideal but I don't think we will have more than a couple of months before it is all finalised. Sadly, amongst all this we are losing sight that the mine life is likely to be extended to around 8 years and ultimately increases the value of Stratex.

[blobby] 06/1/2017 12:18

jimbowen,

You said:

"The delay is because both parties need to finalise the precise terms of the deal."

Which is close to my view on this, except that I don't think it is the terms of a deal being finalised but the plans for the mine going forward (perhaps that is your deal?). Before declaring a dividend the company needs to allocate the right amount of money to a fund the costs of mine closure and ensure there is enough cash to cover any capital required for expansion to the next mining phases.

These calculations may well be affected by results of further drilling and analysis taking place. It also may be that although a pot of cash is building rapidly it is not yet significantly more than the likely capital requirements for the next phases of mining.

[charles clore] 06/1/2017 11:48

biggles - until a couple of years ago Stratex was basically an explorer specialising in turnkey projects, with mixed success. They did a deal with a Turkish miner, Bahar, on their Altintepe project. Initially entitled to 20% of profits they will become a full 45% partner when the $39m construction costs have been recouped by Bahar. Incidentally, Altintepe gold mine produced 19.5koz in the first 6 months of operation. As to the future of Altintepe if you read back reports you will find estimates of up to 8 years mine life but this will ultimately depend on successful extension drilling.

Other assets in the Stratex portfolio are shown in this latest presentation

[bigglesbingham] 06/1/2017 11:17

Charles I recognise you from AAU, I'm contemplating investing here but my concern is the longevity of the company beyond the 6 years mine life you suggest. Is there anything else in the pipeline which they have been exploring with half decent results??

[jimbowen30] 06/1/2017 10:43

CC I agree 100%

[charles clore] 06/1/2017 10:31

Juju - I do agree it would be at the very least polite to inform shareholders exactly what is happening. Even if he cant tell us there and then he should be able to outline the circumstances and current progress towards a resolution. We know there is great value stored in Altintepe but are being held down to ridiculously low share price levels by all this nonsense and it is high time the management became more transparent. I have written to the company about Altintepe but as yet have only received a holding letter reply. I will let you know when I hear anything further.

[jimbowen30] 06/1/2017 10:23

Juju
It's not Bahar's money - they want the cash as much as Stratex do. The delay is because both parties need to finalise the precise terms of the deal. Bob jumped the gun, but it shouldn't be long before we get an update. I agree it's frustrating and Stratex will stay massively undervalued until we have an update. Imo fair value would be at least 5p

[juju44] 06/1/2017 10:01

OK Charlie but the delay suggest Bahar do not see the contract the way STI see it and they will call the shots . If Marcus doesnt communicate on the issue soon I will have him put in the home with Bob . Its all so ridiculous

[charles clore] 06/1/2017 09:52

Juju please, it is not Bahars money. Anyrhing and everthing earned from Altintepe belongs to the joint venture and is held in the Altintepe Madencelik joint venture bank account.

[juju44] 06/1/2017 09:48

Not crazy if Bahar wont pay up what we peeps believe we are entitled to .

[charles clore] 06/1/2017 09:44

Yes Flavio its crazy isnt it?

[flavio_monteiro] 06/1/2017 08:18

Charles, that puts Sti on a PE of 2 and possibly a PE of 1 for 2018 when Bahar have paid off their loan?

[novicetrade68] 05/1/2017 20:40

So with expensive Bob and Christopher gone, in theory there should not be any further dilution if the $4m can cover wages and one or two (or perhaps three) exploration projects. In that respect STI is unlike many other AIM tiddlers as it doesn't have a billion+ shares in issue. I hope Marcus will be wise where he spends excess monies with a view to add real value.

[flavio_monteiro] 05/1/2017 19:14

Thanks Charles, that's for the 6 months, what are you expecting for the full year?

[greedfear] 05/1/2017 19:11

One of the most active boards I'm following and yet one of the greatest underperforming (and boring) shares.

[charles clore] 05/1/2017 19:09

Flavio - note 4 of the Interim report

[flavio_monteiro] 05/1/2017 18:56

Blobby....I cannot find cash distribution on a RNS. Can you copy and paste?

[greedfear] 05/1/2017 17:27

Profit is an opinion, cash is fact.

[blobby] 05/1/2017 16:56

Charles, dd,

We have been given some idea of the profits at Altintepe. If you look at the interim results you will see "Company’s share of profits from production at the Altıntepe Mine which amount to £1.6 million"

[charles clore] 05/1/2017 14:25

vosene - I have a feeling Bahar will recoup their mine construction costs within the current production year. A modest rise in the pog would help enormously...

[danieldruff2] 05/1/2017 14:17

b) I had a more optimistic view until the latest presentation which wasn't prepared to budge beyond 30koz
c) Yes but that's the period when STI will be mostly earning 20% unfortunately.

[charles clore] 05/1/2017 14:09

vosene

a) True but total costs are as yet unknown. However the AISC figure for H1 2016 was $560/oz but this will turn out a bit higher due to mine closure costs so perhaps $575/oz.
b) Produced ounces at H1 stood at 19.5koz despite some problems and the installation of a new clay circuit. Incidentally, the new clay circuit increased the production rate of the crusher circuit by 40% in Q2-2016 compared to Q1-2016; And you think only 10.5-15.5k will be produced in H2?
c) I seem to remember that about 90% of the target resource for the first 40 months - is actually oxide.
d) you could be right on that, we will have to see.