Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Most small gold producers and explorers have taken one hell of a knock with substantial share price falls and it will be the quality of management that saves the day. In the case of Stratex it is no different except that we have an experienced management team that is forward looking. Marcus has made it quite clear that debt funding will be required and it will be down to the experience of the team to achieve that aim with the minimum of dilution and to be producing in the shortest time possible. What would have happened if Stratex had not of sold and they would still not have received their money? surely they would have run out of cash and then where would we be?
Stratex cash is but a drop in the Ocean of Cash probably $100 Million plus required by Crusader to have any hope of developing any cash flow and in the process see Stratex shareholders diluted out of existence. Crusader is already clawing loans out of Stratex to try to keep going Englebrecht by any measure agreed to sell Altintepe too cheap and by any measure overvalued Crusader. Now Stratex share price plums new all time lows it has halved in value under Englebrecht in a short time that is what the market thinks clearly about Englebrecht and the grossly overvalued Crusader deal. Crusader posters pose there case here but it is not Stratex shareholders interests that they are promoting.
I think you have called the wrong shots on Stratex to such an extent that you have joined with others who have the same opinions and it may just be that in two years time you will realise the errors you have made. I am going to increase my stake previous to the vote on the basis that if you and your brigade of followers are in the majority and wins the day then I shall benefit however, should you all be wrong and the board wins the day then again I believe that I shall benefit, put quite simply heads I win and tails I win. I can not remember when a situation like this existed if ever!
Stratex say they hope to produce a bankable feasibility study within 6 months. Crusader produced a feasibility study not long ago which was reduced from the 2014 one due to the reduction in gold prices. This was based on 2M tonnes of ore being processed per year, giving the mine a 12 year life, which I calculate would generate approx $80m per annum before costs. Many mines face delays due to permitting issues but Borborema is in the final stages of permitting having already been granted their operating licence and are awaiting an alteration licence. The have water and power at the site already. Jurnena is not at such and advanced stage but is probably not much more than a year behind. TSR are still to complete a Preliminary Economic Assessments (as far as I can see from their site). By the time they get around to mining (and possibly an IPO), the Crusader mines could already be operational for a few years.
Marcus Englebrecht has crashed Stratex share price to yet another all time low. Crusader posters are desperate for Stratex cash which is already disappearing in loans to Crusader. Wake up to reality.
I think the latest RNS from Stratex is very welcome and informative and hopefully put the doubters at rest as the board is very confident that they can be productive on very short time lines.
reports that Crusader Resources Limited ("Crusader") (ASX:CAS) has, following the amendment to the Scheme Implementation Deed (Announcement date 28th September) , submitted the draft Scheme Booklet to the Australian Securities and Investments Commission ("ASIC") for review. ASIC's review of the Scheme Booklet will be followed by a first Court hearing, expected to occur in mid-October. It is anticipated that following the orders of the Court made at the first hearing, the Scheme Booklet will be dispatched to Crusader shareholders in late October. It is anticipated that Stratex will also publish an AIM Admission Document and notice of general meeting relating to the proposed acquisition of Crusader at this time.
Altintepe has been in production for a year before Marcus became CEO and we had received nothing from Bahar. Our interest in ThaniStratex had fallen from 40% to 32.4% (now UP to 30.1% from previous 29.5%). It could have been years before Stratex saw anything from Altintepe so I can�t really fault him for taking a $3.5m profit for the mine ($2m was for services related to mine operation by the geological team). Still not sure if the Crusader deal is better than throwing our money at ThaniStratex. It doesn�t look like they are going to do an IPO now and will be focussing on more drilling. With Hall and Foord on the Board at Thani Stratex I can imagine what they will want to spend our money on.
17/09/2015 -Cold commissioning of Altintepe complete 06/11/2015 -First Gold pour at Altintepe. Expected to deliver minimum of 30k oz gold per annum over 34 months. Bahar to receive 80% of net free cash flow to recover costs ($39m). Stratex investment in Altintepe is $1.5m 25/02/2016 -Thani Stratex secures $1.25m funding reducing Stratex�s holding from 40% to 38.4% 08/03/2016 -Up to end December 2015, 608oz gold has been produced at Altintepe. Full commercial production expected at end of March with quarterly reporting provided. First cash flow to Stratex anticipated once targeted production level has been achieved. 18/04/2016 -Sales up to 16 March stood at 12,280oz. Total revenues generated $14.3m. Mine development schedule being optimized to evaluate requirements for working and development capital. Stratex received reimbursement of costs of $190k 19/04/2016 -ThaniStratex raises $2m. Stratex�s holding is diluted from 38.4% to 32.4% 11/08/2016 -Altintepe H1-2016 sales of gold and silver generated total revenues of $32.73m. At 30 June 2016, total project revenues since start of production stood at $33.39m. Contracted mining cost with Bahar was $450/oz. Total operating costs less closure and working capital costs estimated to be $560/oz. �Once the longer term planning of the Mine has been fully evaluated and provision made for future capital requirements, including eventual mine closure, distribution of net cash can be initiated on the agreed accelerated payback basis�. 01/09/2016 -Marcus Engelbrecht appointed as new CEO. Issued with 6m share options with an exercise price of 1.78p 25/11/2016 -Christopher Hall to retire with effect from 31 December 2016. Peter Addison to replace him. 27/02/2017 -Estimated production for the financial year ended 31 December 2016 is 35.8 koz gold and 41.6 koz silver, generating total revenues for the mine in excess of US$45m. Stratex has yet to receive a cash distribution from Bahar. 19/04/2017 -Highly constructive discussions with Bahar have taken place over the last month. 24/04/2017 -Sale of Altintepe for $8m (after taxes and costs). {Of which $2m was owed to Stratex for work done} 18/05/2017 -Proposed acquisition of Crusader. 19/05/2017 -Further funding at ThaniStratex � Stratex contributing $390k. Stratex's initial share was 40%. Various fundraising exercises and shares issued by TSR had diluted Stratex's interest to 30.4%, and a recent issue of shares in lieu of fees has diluted Stratex's interest further to 29.5%. Stratex's share of TSR's loss for the year ended 31 December 2016 was £160,615 and as at 31 December 2016, Stratex's investment in TSR was held in the Company's balance sheet at a carrying value of £5.8m. Holding is now 30.1%
Firstly I have never claimed to be a hugely experienced investor as I am only an experienced investor secondly, I do not write rubbish! It matters not one jot who put up the money it is the wording of the agreement that counts and if one just looks at all the complaints about Stratex not receiving their share of the revenues previous to the Crusader proposed transaction you will maybe understand the problem that Stratex had. Thirdly with the knowledge you claim to possess may I respectfully suggest you contact Stratex and offer your good self for a position on the board as it sounds like with the knowledge you possess you could be an asset to the company.
The facts are : At Altintepe our partner Bahar : Free Carried Stratex through Altintepe development and mine production spending over $40million of which Stratex 45% owner contributed nothing. At the point of production Stratex/Marcus Decided they needed cash immediately and Bahar again obliged without delay or quibble and paid out £6million to Stratex. Practically every Stratex shareholder on all BB and Anglo Gold, Teck Resources etc say the sold price was low too low. Except now Marcus:Stratex now say it was 'good'. There is no evidence at all that Bahar were other than honourable on the contrary. Secondly, Crusader is desperate with no cashflow and requiring immediate funds which they are already taking from Stratex Altintepe proceeds. Thirdly Crusader requires huge additional funding $100 million or more to develop any cash flow and Stratex shareholders will be diluted out of existence. Fourthly practically every Stratex shareholder on all BB and Stratex major shareholders including Anglo Gold an Teck all are against the Crusader deal and by any sensible measure the deal greatly overvalued Criusader and Undervalued Stratex. Your post is nonsense Able and rather silly for such a hugely experienced investor.
In Zanado did kubla Khan a stately pleasure dome decree that no revenues be paid to Stratex and they were not! Who do we have to blame for that? not the current CEO! However, if you look at the original deal it could not have been watertight as the Stratex partners reneged on the deal as I believe was always their intention and, that begs the question if Stratex had tried to legally receive their share what would we have been left with on conclusion? not a lot I suspect! As far as other companies go they would not be in possession of the same information as Stratex and therefore are not able to ascertain the true value of Crusader. With the facts in the possession of Stratex they were able to evaluate and determine the likely net worth to Stratex and, accordingly pitch their first offer in order to start negotiations. Companies fail due to lack of due diligence and carelessness witch has been the case here.
Able' s post defies all the very clear evidence 1. That Stratex sold Altintepe far below market value. 2. That the deal with Crusader undervalues Stratex Cash and Assets and grossly overvalued Crusader. As for Able being a highly experienced investor perhaps Stratex largest and highly respected international mining companies who are against the Crusader deal : Anglo Gold, Teck Resources, Antofagasta etc know what the facts very well and better than a Crusader shareholder Able who is desperate to find cash to keep that company in business for a few more months.
Having listened to the presentations by Stratex and calling on my 50 years experience of successfully playing the market I will go as far as to say most of the comments that I have read on this board is highly questionable and lacking in understanding of the boards motives. The latest presentation underlines the boards experience and determination to achieve cash flow in the shortest time frame and anyone that wishes to be critical first study the presentation and logic demonstrated and, only then fire your bullets if you possess the business experience. Please just remember there are investors that rely on your comments to judge the situation.
Stratex Board have no shame announcing a new directors' incentive scheme. Unless the shareholders vote them out along with the Crusader deal, forget your investment in Stratex and write off the cash. It is being grossly and indecently melted away day by day.
There's Englebrecht, surrounded by his highly experienced management team, supported by top-level financial and commercial colleagues at Board level ... it's like they collectively have no clue on how to run a business! Maybe he just thinks he's in a Stratex version of 'Brewster's Millions', but the fella didn't even have the foresight to run his latest brain fart past his major shareholders, so what chance for the poor PI fodder on here?! I'm only glad I didn't put much in here, but if you're so sure this polished turd is going to work Marcus, how about you prove your commitment by putting a load of your own money in ... or is your own confidence in the success of your plan about as limited as my own and many of your shareholders here?!!
Totally agree Botrot have been an investor for many years and it is not just the bad feeling but the bad stench eminating from the Board of Stratex. Shareholder value is being destroyed. Altintepe sold cheap and the cash generated sunk into a hulking hole at Crudader. Disgusted.
We had �6million at the end of June. With the money being poured into crusader and a loss-making business, we have probably spent almost 30% of that already. I have a very bad feeling about all this.
Well lets hope your Peter Gyllenhammar is a bit more successful here - I see he reported a 12.16 percent passive stake in Diana Containerships Inc as of 12th July earlier this year when it was worth 75.60p and just a couple of months on and a reverse stock split, they're worth less than a penny now and dropping ... still!
Been wanting to get a few of these for some time . Now peter G has dipped his toe in I will be following
Englebrecht seems determined to destroy any shareholder value. After overseeing the great gold robbery at Altintepe and securing peanuts for our prize income generating mine, the guy doesn't think let's make use of this cash and buy in to some proper near to production mines, but instead wastes all the cash in the giant stool that is Crusader, which as I've said before, you just can't polish or roll in glitter. Talk about out of the frying pan and in to the fire! I just can't see shareholder value here. Englebrecht and the rest of the board should fall on their swords - an absolute shambles.
Peter Gyllenhammar 3.11% Interesting chap. http://www.iii.co.uk/news-opinion/richard-beddard/peter-gyllenhammar-story Has a third party joined the battle? Thoughts please?
Got it - its the £40m and A or B. Market Cap must be £40m post merger (currently STI=£5.75m & CAS=£17.41m) AND Have either: A projected cash flow within 3 years of £8m (within I assume the first 6 years) Or the Company maintains for 6 months, within 3 years of Marcus being made CEO (September 2016), a market Cap of £80m Thanks Romeike - head still stuffed with this cold.
Glib, you've completely missed the point that the does not have to get to anything like a market cap of £80 MIL. Part two of the LTIP only requires the company to have an on paper valuation of £40 mil if I recall correctly, the value he can argue the company is "worth" post merger.
So he is getting options now and more options that are performance related. The LTIP (long term incentive plan) requires him to achieve the results of my last post - if I have the sums right. I have a cold so it might be a bit of a mess. So if the Crusader deal went ahead and he met those market cap values then he would be able to buy shares at 1.745p The current company incentive (EMI) is giving him just under £200k of options at 1.745p. This would mean the SP would need to increase by 27% before he would buy those shares. I don't see this happening before financing for the mine is secured. I guess we'll be drip-fed info from each camp throughout the week.