Weekly Market cap update May 29 2015 Stratmin Global's market cap is now £6.9m Below it's peers market caps, most of them won't be producing any graphite for at least 1-2 years and have no off-take deal or full finance in place! Canada Focus Graphite.......£17m Mason Graphite.......£24m Northern Graphite....£19m Alabama Resources.£14m US Energizer Resources..£20m Australia Talga Resources....£30m Triton Minerals......£60m Valence Industries..£27m Magnis Resources...£36m Kibaran Resources..£17m Western Mining Network..£43m From the point of view of longer termers – I doubt that long termers are going to accept anything less than an equal seat at the graphite table and a paltry valuation of 7 million. There is still no logical reason for Graphite producer STGR to be valued 2 to 10 times less than its closest non-producing peers. The share price/market cap will reflect all this soon enough, even it is in a few months time. The new CEO will bring in a new investor base. So no, you are not missing something...the market has. It's quite exciting to think 11p-50p will be around the peer price for this company and ahead of the production news flow too. How long will it take for that 100-800% peer imbalance to be erased? Days, weeks? As always DYOR
RE: Brett Boynton
He arrives wanting to hit the ground running. What he wants is nothing less than what you would expect him to want. Let us hope he isnt another AIM man that promises more than he delivers. AIM is full of those. Personally I will wait until his "honeymoon"arrival period is over and start to judge him after 6-12 months in the job. He certainly has experience and contacts that Stratmin needs but lets see him walk the walk and deliver. Incidentally its not that difficult to cut production costs once production is on the increase. What he should be able to do though is ease the path to getting further finance for expension when needed.
apologies if already posted: http://www.shareprophets.com/views/12463/new-stratmin-boss-going-for-growth
how did you calculate / where do you glean our b/e point in terms of t/ month from ?
So our Brett is planning on getting us to produce 1000 tons per month, when break even on current standings are approx 300 tpm and he ain't stopping there either, he's cutting production costs, expanding the plant and attracting specialist investors. I like the man already.
RE: New Stratmin Boss going for gro..
According to Boynton, ‘that will not in itself be a company maker,’ and he argues ‘we shall need to explore and expand the tenements there to expand the resource and obtain finance for a larger plant.’ Madagascar has experienced previous political upheavals, but its geology provides a soft-rock, clay environment, which he argues should help Stratmin cut production costs from $500 to $700 a tonne now to ‘between $300 and $350 a tonne’, against target contract sale prices of $1,000 a tonne or more. Boasting of the technical team of exploration geologists, process engineers and sales experts he has built in Sydney, Boynton suggests he can help Stratmin turn itself into the platform ‘for a much bigger operation’. Citing keen interest in graphite from Australian and other investors, he says ‘we are keen to attract specialist resource investors, so that, when opportunities for corporate deals come up, we can take them. ‘All the pieces are there,’ declares Boynton. The shares, despite the obvious risks, offer speculative potential.
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