Member Info for daramuda

Might there be a seller in the market Mikehoward? I cannot think of any other reason.

Many thanks for that link. I had forgotten about Master Investor on Seeking Alpha. He raises an interesting point in that mined but not sold rutile. He also echos Gibraltar's point that SRX is for the future. The outstanding issue is what will Pala engineer if anything and is there any weight in the Sisay comment on proactive that the company intends to move to the full market. If it does the free shares must amount to 25% and thus there would imo have to be an issue. And if so at what price and how will they get it to that price?

Yes Gibraltar but I cannot see Pala achieving the kind of prices that you were advocating in 2015 on that prognosis. However it seems to me that there is a compelling argument to say that with Pala's input and decent management, a third party will see that with costs even lower with Gangama coming on stream and with a cyclical rise in rutile sale prices not so far in the distance and profits to follow, this would be a good time to make an offer for the company. Whether such an offer will be in the bands bandied about by you in 2015 may not be easy to predict or achieve. I would not be surprised to see an offer coming at two times Pala's investment which I put at between 15 and 18 pence thus 30 to 36 pence with a premium on top of that say an offer of 45 pence per share.

The loss of $9.4million is equivalent in simple terms to $75 per tonne which can be made up either by costs savings or an increase in sale price using the mined product as the yardstick. The $75/t is part eradicated in 2016 by the estimated cost price per tonne reducing to £590/t or a saving of $24/t compared to 2015. If the cost went as low as $540/t as a possibility advances by the CEO the resulting difference would be $1 (one)/t The other way to look at with a sales price of $775/t an increase of $75/t would do the trick. In other words the company should go into profit this year. Finally regarding the $44million cost of Gangama $24million was paid in 2015 (see under projects). As I said earlier Numis have lifted their target. The shares have to be a buy imo.

Numis have upped their target from 35 pence per share to 40 pence per share.

Good to hear from you. How do you think that they are going to release value?

Gibraltar - you have for over a year stated that in your view a take out of Pala's position is round the corner. So far nothing has happened which leads me to assume that either no third party is currently interested or the other iis cannot agree with Pala what they would accept to sell their stock. If that is the position then the only route for investors to see any value is for the company to urgently work to increase profits and declare a dividend thus giving an income return which in turn would support an increase in the share price. It is pretty obvious to me and I suspect others that the company with Pala's assistance has done wonders to turn the company around. A look at presentations shows tremendous equipment, a well run company and we all know that the prime asset of the amount of high quality rutile would in normal circumstances justify a higher share price if there were more free shares on the market. Numis appear to have had zero effect to justify their appointment. Something has to happen.

this is the first time that I have seen SRX give notice of when they intend to publish their results but that could be down to a change in chairmanship. I have been investing for many years and several of the companies in which i have invested during hat time have given such a notice. At least the board did not this year dish out cheap options for themselves.

but they always release their annual results towards the end of March and it is only the 23rd today. I think (although in fairness you accept it) you are wide of the mark. The fact is that for one reason or another the shareholders are not seeing any delivery of value.

and one must not forget that there is every chance that an application has been made for a listing on Nasdaq. There is a tight timetable for what happens with such an application. I am very impressed with today's news.

Up to Home now to decide whether or not to recommend the sbry bid. Not done and dusted yet.

A very large turnover of stock today. I wonder if news is expected.

I do not know if peeps have missed this morning's announcement but Michael Barton has left Pala plus stood down as chairman of SRL. The new non-exec chairman is not a Pala man. Does this mean that SRL will develop form hereon in under its own steam so to speak and will Pala still be looking for an exit (although we know that that is their normal modus operandi)?

Good to hear from you. I hope your health is bearing up. Patience pro tem. Full year results towards the end of March and an update on Gangama and whether on track to be commissioned in Q2. Perhaps we will see the beginning of Gibraltar's drive by Pala for a sale. The market has been awful. There are plenty of doom mongers out there but life and trade goes on and SRL has a high quality large rutile deposit.

Just said exactly the same to the other half. Sit it out. Cannot see Home shareholders benefitting from any growth from the owner of stores abroad and beds.

Whilst there is nothing really new in today's presentation a friend of mine bumped into a director of Pala at Indaba and told him that Pala regard SRL as a fine company. He put the sp down to the cr*p market. As far as the presentation is concerned Gangama seems to be still on course,

I tried to access the note yesterday evening without success. They were appointed a joint broker about seven months ago; it has taken them long enough!!

A point that might support Gibraltar's first alternative is that both Gemcom and Norcast in which Pala took stakes and then invested their expertise, were taken private by Pala reaching agreement with other shareholders and then relisted via an IPO. Whichever route Pala take they need the co-operation of the three remaining iis as to a take out price price. Between them they hold a lot of shares.

ricky - your theory in my view does not take into account the three institutional holders. If you look at the Pala website and look at the section in which they advance their past success you will see that they invest in a company, turn around the company and then sell their investment. SRL is a different company compared to that in which Pala invested in 2011. What we do know is that without Gangama SRL was at record production in Q4 2015. Gangama come on stream in Q2 2016. SRL have al ready contracted to sell 80% of targetted production. That prompts two questions. First does that 80% of production include projected Gangama production in Qs 3 and 4 and second at what price has the 80% been contracted for. Gibraltar is no probably right in that Pala will look to sell. A question which needs an answer which only time will tell to give us will Rutile sales prices increase this year. I also do not think that the company will have plenty of surplus cash if the board's intention is to pay down the cost of building the Gangama plant. At least unlike so many other miners both large and small, SRL does not have a great deal of debt. Further the directors have not gorged themselves and management with cheap options. We will have to be patient.

A short but good snippet in Saturday's market report in the Daily Mail.