RE: hindsight1 Mar 2016 19:37
Some fair comment Researchit. It is not hindsight though - Statex had a business plan but broke it and undertook extensive and costly drilling themselves rather than JVing Black Rock and Dalafin, the result of management's decision was very negative for Stratex and one of the prime reasons for the destruction of the valuable cash balance of £17m.
Secondly the cut back in 2015 was due to the horrendous overspend noted above. They started the year constrained by a reduced cash balance with
high overheads, admin, directors' costs to cover. Thus I find it disingenuous for the management to claim that they are now being prudent when in fact it was forced on themselves by their own extravagance and will full overspending.
The result was that projects were starved of cash with little progress or news flow for the past year.
Stratex management with BIG ideas have built themselves a top heavy 'GROUP' covering far flung
regions stretching from Turkey through the Rift and into Tanzania and across West Africa. As if Stratex was some major company and not a struggling minnow. This may fill the directors with excitement but is extremely unwieldy, costly to manage and not
beneficial to the long suffering shareholders.
You mention Thani Stratex initial interest in starting again at Black Rock but thus far they have been unable to raise interest or cash for that God forsaken place which is not surprising given the pathetic results from extensive drilling with a meter here and there otherwise dust.
Oksut is gone, the last bit the 1% NSR flogged off to
give management cash to buy more time and cover more overheads. But I do not belittle Oksut it is an important project rapidly progressing under the management of a first class company Centerra. Sadly Stratex have no longer any part of it.
Altintepe is now the single project left to support the
high costs of the 'Group' in order to achieve that it needs to come up with some production figures in which Stratex initially has a 20% share until Bahar recover $39 million costs. We need to hear the outcome of the Court Case and understand the possibilities Mine extension and possible Mine life.
This cannot be taken for granted.
Beyond that there is the ongoing worrisome references to acquisitions in West Africa and the
employment of another Director to achieve this.
Thus I have little confidence that Stratex BOD has
ended it's profligate ways.
Cash conservation and returns for shareholders have never been the motivation of this BOD imo
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