Member Info for daramuda

13th November for possibly top dog. I hope that he can find some time to get our sp up.

corbs - the outcome was that Pala won in the lower court. Whilst there was talk by Bradken that they would appeal all I could find was an appeal on an interlocutory point but the three judges in the Appeal court could not fault the judgment of the lower court judge. I hope that helps. PS - peculiar that flurry of buys in just over 30 minutes this morning.

Gangama dry mine Q2 2016 followed in time by Sembehun dry mine - both lower capital intensive mines. I have stated before that I thought that the Q3 2015 report smacked of understatement. On those figures one could have been talking about 140k for the year and not towards the higher end of 120k-130k if of course the company wanted it. You still need a market into which to sell it. This could be a company where Vlad sees a large return but is he interested in an alternative of a dividend return instead of a capital return (If need be). I cannot work John Sisay out - just a manager or something more?

Good morning/afternoon. This is almost exactly what Sisay and I discussed after the formalities at this year's agm. I did report it on LSE shortly after the agm in early July. At the 2014 agm he was talking to me about his wish to get a main listing for liquidity reasons. I very much agree with you that fundamentally srx is worth very much more than it is priced at present and that is possibly the reason why the parties could not agree terms back in 2013/14. The price has moved forward today with various small buys. It may well be that there is news afoot. You sound quite perky today. I hope that your health is holding up. Nice chatting albeit via posts!!

Obviously a cash take out would be best. All I did was suggest that there could be an alternative but if a company were to offer shares or a shares alternative how can I say whether that company would be listed on the main exchange or AIM? Also I cannot comment about price any ore than what I have said before. As you say time will tell. My personal feeling is that the shares (and the company) are undervalued but as Gibraltar states there is little liquidity so not much is likely until there is a corporate event e.g. a take out; and there Pala hold the whip hand. I am sure that the likes of Lister would like a higher price than say 17.5 pence per share. Markets are however fickle.

One point to clarify is that the stranglehold mentioned more than once is through Pala's ownership of 55%, the ownership of another large % by the iis leaving very few shares that are "free". Therefore liquidity is limited. If there is a buyout it will take one of two route. Say Glencore were to be the buyer (I hasten to say that is unlikely) then either Glencore would offer X shares in Glencore for each share in SRX or more likely cash for the company. If cash and it amounts to an average of 50 pence pre share that would be 50 pence for each of your shares. Similarly if 85 pence then 85 pence ps. I hope that helps.

Havesomefun - it has all been said before. It is best to do your own research which takes time but gives you a grounding on the market, the area in which you are investing and the individual stock within that area. Pala have 55% of this company. There are three institutions (iis) who are invested - I leave it to you to research that detail on the company's website. What Gibraltar stated today was that despite 70k buys the price did not move but I can tell you (again it was open to you to research this) that I did a dummy trade and electronically you could not buy more than 10k electronically. Pala are turnaround merchants and if you research SRX by trawling through the RNSs on UK wire (Integrate), and follow the announcements you will see how SRX has developed since Pala invested. SRX is a different company because of Pala's assistance. In my view all that the ceo Sisay is is a manager doing what Pala suggest. Pala however usually sell out when they have done their job. I do not agree with one suggestion by Gibraltar that Pala will take SRX private and then do an IPO (research what that means) but then I could be wrong on that score. If however I am right another route could be to ask the iis what they would accept from a third party buyer and organise a purchaser to acquire the company at an acceptable price. Pala often get 3X their investment. Gibraltar has agreed with me that Pala's average price is about 15 pence ps. 3X would be 45 pence but I reckon that that is an undervalue and they might get more but who knows? So I am hanging about since something has to happen for Pala to get a return. The only other route that I can think of is that Pala wait for the company to be in the position to declare a dividend and then see this as an income earner and then look for a third party to buy the company knowing that there is a company of declaring a dividend. I have not re-researched whether there are any tax losses. What seems to have been the recent position is that when the share price drops to 17.5 pence in come Pala and /or directors or associates of Pala. Watch also for possible grant of share options - money for old rope for the likes of Sisay.

It could also be a good time to stick a few more away whilst the price is stagnant.

Not s any as that but he holds over 1 million shares from memory. His average is certainly high. May be about 50 pence.

Somehow I do not think that the likes of Pala (common SRX directors) nor Lister would be happy with 19-20 pence.

Good day corbine; I cannot think of anything save price. If that is correct it is another factor to put into the melting pot. The share price before the announcement was around 60 pence. The former chairman was a buyer up to and above 50 pence. At that stage on that basis perhaps the board were asking too rich an amount. But then the price of rutile came back. All speculation on my part. On another point there is an updated broker rating from Investec. A buy with target 32 pence. As Gibraltar says - it is down to the three remaining iis and especially M & G who have just under 20%.

I agree with you. If you have, like Greggs, issued shares of 100 million as against say billions in Tesco, Sainsbury and Morrison, if there are positive or negative trading statements the price with the company with less shares lands up with accentuated share movements up or down. Gibraltar is right when he says that there are few free float shares in issue but within those limited number of shares, trading will still take place. So we might not have 100 million free float shares in issue but there are certainly some and if a demand for the stock increases and supply dries up then the simple question of supply against demand will have the effect if the shares are in demand to move the price up exponentially. Simple supply and demand. But I have developed a growing suspicion of Pala and what is happening with the share price. It is all too incestuous. The fact is that the company is much more valuable than the current market cap and I really do hope that the likes of M & G who hold just short of 20% recognise that and will not allow themselves to be taken out without recognising fair value. Gibraltar could be right and there could be a surprise bid but only imo if a prior deal has been done with the likes of M & G who would be happy to take X pence per share. I only hope that if that occurs the price is nearer a pound per share than where we are at present. I don't like being roasted.

Then it is back to what the three remaining iis will accept for their stock.

I worked out that the average that Pala have paid for their stock since and including 2011 is 15 pence. The normal return that they seek is three times the investment. Gibraltar who has four million plus shares in the company agrees with that observation. That means that if Pala want out they will be looking for 45 pence. But do they or do they want this as an investment i.e. are they looking for a return via the growth of the company and the declaration of a dividend?

not necessarily. They are Y trades and could be off market deals reached between a willing seller and willing buyer. Then the deal goes through the market. Study the prices carefully.

We should be lucky. Their expert analysts last recommended that the price would go to £1.50. So £1.85 is a bonus. Next time GS will possibly move to £2.20.

One Pala man for another Pala man. Michael Barton chairman said "....as we continue to realise the full potential of Sierra Rutile's world class asset." I hope that the word "we" means all shareholders and not just Pala.

cont As far as I am aware Sisay's preparation for and his future application to be nominated has been delayed for a while but not abandoned so it will occur at some time but sooner rather than later. Pala would need a replacement. So would Pala prefer to find a purchaser and follow their normal modus operandi and sell out? That then brings us back to the remaining three institutions. What would they want per share? and what of the way in which this company has developed over the past four years. I think that we need to keep focus on your original argument about those iis which is a very sound argument and Pala's intentions again a point that you have raised several times.

It is little more than 6 months ago that you were mentioning that you thought that the endgame was upon us and that Pala would be organising a purchaser. You estimated take out price was £1 - £1.25 and the main plank in your argument that a good price would be sought was that there were four institutions who would not sell their shares cheaply. We then had the fall in price to the 17.5 pence level in April this year and in came Pala and directors of SRX and if I recall others connected who took up a great deal of shares. I could not tell where the shares came from? No one commented - either the board by an RNS nor any posters here or elsewhere. That is until the annual report was released when I noticed that Investec no longer appeared as having an interest of 3% or more so QED one then knew where that stock had come from in April. Whether Investec notified the company or not (in my view it is highly likely that they did) it was open to the company to use a device to ask major holders what there share holding status was. Thus a competent board who wanted to know the answer would have found out and it is crystal clear that in preparing the annual report for the year ending 31.12.14 they would have known. I leave you and other posters to draw conclusions. So your base of four institutions have become three. For what it is worth I think that whilst we do not know for certain whether Investec sold all their shares in April, I personally think that the 400k that you mention is possibly part of Investec's holding. That leaves the other three institutions. You have more recently and not so long ago revised your take out price to below £1-£1.25. I may be in error but I think 85 to 95 pence per share and now your bracket has fallen to 45 to 85 pence per share. My holding of a quarter of a million shares pall into relative insignificance compared to your 4 million plus but I do not grumble. I read todays Q3 figures as understated. SRX is a very different company to that which was in existence prior to Pala's initial investment in 2011. The success is undoubtedly due to Pala's advice and the delivery of Pala's plan by Pala representatives with Sisay's local management. So we have a company where in 2011 Pala were prepared to go to 30 pence a share to acquire the company admittedly at a time when the price of rutile was on the increase but at a time prior to the dry mines being constructed etc. Yes the price of rutile has come back but there is evidence that that has stabilised and is again moving ahead albeit slowly. So it is back to two questions. Firstly my point which is that whilst I cannot find historical evidence of Pala owning a company outright their speciality being to turn a company round and sell out that view has retracted slightly since they have a manager in place in the form of Sisay and call pull the strings with an outright purchase. However Sisay aspires to the presidency. to

But you have not given a view on who might be selling for the stock to become available. Logic determines that Pala and their directors together with the SRX directors want a profit, What we can tell is that both Pala from their April purchases and now Lister think that 17.5 pence is that SRX is undervalued. So the stock is cheap.