Stratex Share Discussion Threads

[jimbowen30] 13/6/2018 16:34

LOL the next trail of destruction is Crusader Resources!

[dogwalker] 13/6/2018 15:07

That's what Engelbrecht wanted to do in Brazil wasn't it Glib?

[glibgibon] 13/6/2018 14:01

I would estimate that we are about 8 years away from TSR producing gold. I am not sure what they intend to do with this early stage project they have bought into, but think it take even longer.

What ever happened to investing in near-term projects and generating income from which to grow the company?

[tournesol] 13/6/2018 10:02

Peter Addison is still in the Chair. He was instrumental in wasting STI's scant resources on the half baked Crusader proposition and supported the then CEO in what was obviously an (at very best) delusional project. He ignored the surge of shareholder dissent and when a last minute rescue attempt was made by Hall and Foord, he found a legal loophole to sabotage it. Instead of accepting Hall and Foord back onto the board and backing their coherent strategy he dug in his heels and threw his toys out of the pram. He is now presiding over the end stage of this company. The last remaining drops of juice are being squeezed into the cups of the management team. They can probably extract another year or two of salaries that are out of all proportion to the size of the company and its lamentable track record.

[tournesol] 13/6/2018 09:45

Incidentally, if anyone is interested in looking back at 40+ analysts' reports from 2006 to 2015 they can be retrieved from Stratex's website. You have to know where to look for them - they do not show up in the visible links or in the sitemap, but the following link will reach the first one:-

www.stratexinternational.com/wp-content/uploads/2018/02/analystFile-1.pdf

To get the next one just add one to the last digit - ie …..File-2.pdf; File-3.pdf; etc.

The sequence goes all the way to 43.

I would hazard a guess that the cost to Stratex of commissioning reports from non-independent analysts, communicating with independent analysts and posting these 40+ reports onto their website is pretty close to the million they have just raised by massive dilution.

That's a rather amusing thought.

[tournesol] 13/6/2018 09:31

The home page of the Stratex website says:-

"..Since listing in 2006, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver, as well as 186,000 tonnes of copper…"

What it doesn't explain is how, given the success of which it boasts, has it gone from a market cap that peaked (I think) at about £40 million down to a derisory £2.5 million. That's a reduction of 95%.

How on earth is that possible?

I could forgive them if they had not discovered anything at all. After all it is in the nature of exploration activities that most will fail. That's not even bad luck, it's just par for the course. But for a company to discover millions of ounces of gold and silver and thousands of tons of copper AND END UP WITH NOTHING TO SHOW FOR IT - that is incompetence of a very high order indeed. It is not the roll of the dice that is the problem here, it's the role of the dicey (management).

[jimbowen30] 13/6/2018 09:27

juju you're being too kind. Mismanagement is an understatement sadly.

[observer007] 13/6/2018 09:26

Been following events from afar, it looks like a new management team has been put in place, new CEO and CFO.

The placing was a necessary evil to get into the new project, it will be interesting who took up the shares, to raise £1.15m in current market conditions is pretty good, more-so given the recent turbulent times at the company, the sector has been weak this year.

The takers of the placing stock will want a return on their investment, is this the bottom one asks? There should be lots of news ahead, if the drilling at Dalafin starts to deliver decent grades value could return quickly.

What about the Thani-Stratex IPO is that still on? If so another value driver.

Post placing market cap £3.5m & cash balances of £2.4m.

[steve1905] 13/6/2018 09:24

George, Oksut was 'deal of the year', Altintepe was the death knell of this once promising outfit. The full scale of that scandalous sell out will never be known.

[shortarm] 13/6/2018 09:03

It's not fifty percent dilution is it George......But let's not argue about it eh

[georgesorrow] 13/6/2018 08:52

33% of ENLARGED share capital, 50% of of existing capital. 50% dilution to raise £1m is pretty incredible. It's a long way from the Altintepe 'Deal of the Year' for those with long memories.

[shortarm] 13/6/2018 08:21

34% new shares apparently

[tournesol] 13/6/2018 07:45

The dwindling share price has reduced the market cap to a paltry £2.5 million, so the fund raising represents almost 50% dilution.

That is not a business. It's a hobby.

It's worth less than many houses in the South East.

No way can it justify paying £700k a year to its inept management team to manage its vanishingly microscopic level of activity.

[jimbowen30] 12/6/2018 16:18

Rom shame management didn't get a one way ticket!

[romeike] 12/6/2018 15:39

Now now, Novice, Bob and team take great pride in having downgraded to economy once or twice, presumably to get on a busy flight to ensure they were flying in business hours and not during their personal time.

[novicetrade68] 12/6/2018 13:46

It would of course be hilarious if it turns out there won't be any takers in the proposed placing, so hopefully the first class tickets to Cameroon haven't been booked yet.

[novicetrade68] 12/6/2018 13:44

Great summary, I think that's exactly how that gravy train moves.

Then of course Tim 'hit the ground running' Livesey also has to start talking up their new pet, frequently and consistently, so further funding can be secured.

And this new exciting prospect in Cameroon, 'which the team at Stratex carefully reviewed', is probably just on the back of an old business card good old Bob Foster still had in his wallet.

[tournesol] 12/6/2018 13:22

It is entirely accurate to say that the fund raising will allow salaries to be paid to the management team for another 18 months.

Consider the facts. I have a million pounds in the bank. I have a project in Cameroon that needs a million. I have a management team that gets paid £700k per year.

I can either use my limited resources to advance the project or to pay the management. I can't do both.

If I raise an extra million then I can do both. I can tell the numpties who subscribe that their money is being spent on the project, but the real truth of the matter is that I already have enough for the project but I want to continue paying salaries as well. The fund raising will enable me to use my existing resources to pay management for another year and a half.

It doesn't mean anything to say that existing money pays the wages and new money pays for the project. Neither is hypothecated or ring fenced. Both old and new money go into the pot and both the project and the wages come out of the pot.

Without the fund raise, they can't take on the project and pay the wages. Ergo the fund raise allows the wages to be paid.

QED

[geotrav] 12/6/2018 10:26

Raise is to fund new projects... read the release