Would someone be kind enough to put the latest rns into plain english for me?
Real nice intersections from Pandora today. Good stuff!
So this is what was hinted at in the final results. Making STI a gold producer ASAP by acquisition. Crusader 100% owns Juruena, which is a 1.3 M oz deposit. With 500k oz of historical production since the 1980s. This could be just the fast track to production that STI needs. Then they have the 100% owned Borborema project. 1.6 M oz and the resource "remains open in all directions." STI has historically championed joint venture projects... and look where that got us. With these 100% owned projects, and the old guard fading into the background, we have a new STI with a new strategy and new deposits. Bring it on I say.
Getting out of turkey would seem to be a wise move at this point. It's just a massive shame and a crushing blow to long term holders that it happened just when Altintepe is pouring gold.
Abysmal price.
"As per the terms of the Joint Venture agreement (Press Release dated 6th December 2011) partner company Bahar Madencilik will recover its pre-production costs (including US$39 million construction costs) " So with $45m revenues, the question is, how close is Bahar to being completely paid off?
Is this just Bob's departure....
Been wondering the same thing. News on the way?
Quote from presentation at today's AGM "Stratex to receive 20% of free cash flow, moving to 45% once Bahar have recovered costs. First payment pending." Can't wait to see what that first payment actually is. Any idea when we'll see it?
M20ASH: I agree with your numbers. As I posted earlier, I have STI earning ~10m while the costs are paid off, then getting 1-2m per month after that depending on the price of gold of course.
Here is that press release from 2011 "All construction and other costs up until first gold production, including all capital items, will be borne 100% by Bahar. "Thereafter Bahar will recover all past expenditures via an accelerated payback scheme whereby Bahar will receive 80% of net cash generation from gold production (after operating costs and underlying royalties have been deducted) and Stratex will receive 20%." And Stratex will receive 20% It's clear, the 20% is not split.
The RNS reads: "from 80% of the net free cash flow; thereafter the net proceeds will be distributed 55% Bahar, 45% Stratex" I take that to mean that the split is 80-20 until Bahar are paid off, thereafter the split is 55:45. But what you're doing is splitting the remaining 20% again at 55:45. Can someone clarify? I think the wording could have been clearer if the 20% was being split again.
Has anyone else run the numbers? Using the current operating cost, gold price and production. Bahar should make back its 39 million by month 20-21. In which time STI will have made ~10 mil. This can be brought down to 12-15 months by ramping up production to 60,000 oz/yr, reducing production cost slightly and using the current gold price sitting at ~1200 $/oz After Bahar gets their 39 million, we stand to make ~1 mil per month. Happy days.
They're obviously dying to make the gold pour announcement. Nice update, I can wait a little while longer.
I don't remember a morning like this in years for sti.