Member Info for Rickylfc5

I am no great chartist but I noticed that the 50 day moving average is moving towards the 200 MA - if they cross it usually means that Chartists see this as a buy signal - looks positive and may coincide with good news re Gangama starting production

I was a little disappointed with the results - there was approx $4.5m of one off (I hope). provisions and an increased royalty payment of $4m which accounts for the loss. (Cash generation was decent though) The outlook still looks good with higher production and lower costs and potentially higher selling prices.

For the second half of 2015 72,000 tons of Rutile at $130 Margin plus some Zircon sales less $6million in overhead gives a pre finance cost profit of about $3.5m. Cash flow of a further $10m For 2016 I expect 140,000 tons (improved margin due to Gagama) of $150 giving a pre interest profit of $10m and approx $25m cash flow from operations 2017 could be very good (if Rutile prices gain just a little)

I don't think there is a proper market for SRX shares (around 95% of share are in the hands of II's or PI's who are holding long term) - so the current price is not a realistic representation. I do think the Q4 results will be decent (slight worry that the results will be bad and they are throwing out positive news about expansion projects to counteract) My view is that the opportunity for profitable expansion will be realised in the share price at some point followed by a potential business sale.

Dara - all they have to do is let the other II know that they are on a share buy back plan to increase the SP (surely they wouldn't sell to upset the strategy) it's easier to justify a selling price nearer to £1 when the SP is creeping up through a planned buy back

There are currently about 50 million shares in free float (and probably a lot less when you consider Gib and many others won't sell until the price is substantially higher) so if the company wants a much higher SP why don't they use a chunk of their forthcoming cash flow to buy them up - at the current SP it would only take £8m to buy the lot!!

V Good RNS - Q4 production represents an annual run rate of 150,000 tonnes - before they add in Gangama!! I'm surprised they can't give 2016 guidance when 80% is pre sold This will generate a lot of cash over the next few years Dressed for sale

Sierra Rutile with a Market Cap of £80m is expecting to throw off between £20m and £50m a year in cash !!!!!!!

Interesting diverse views on this stock - it still looks to me that the Company is being 'dressed for sale' in the coming 12 months. If you look at the Gangama expansion presentation :- http://www.sierra-rutile.com/uploads/gangamacorporatepresentation[0].pdf The presentation is about 8 months old and two things stand out - Firstly that Marketing are confident of selling the addition volume and secondly on page 16 the project will result in $70m of free cash flow rising to over $100m in the second phase - this surely makes SRX a saleable proposition?? - doesn't it??

Gib - thanks for your reaponse - if only we could have sold at 80p first and bought back 4 times as many now !! but that's just hindsight. I share your thought for next year and would be ecstatic with anything approaching the figures you mention.

Corbs - thanks for that - it feels like a long haul already!! Good luck with your investments going forward

Gib - I have about 500k of these and missed out on the pre Ebola high if 85p ish - how do you see it playing out? My personal view is that the SP should start to rise in the second half of next year as the extra Rutile volume comes to fruition and (hopefully) prices firm a bit - any thoughts??

Sorry - wrong board

There is no immediate need to fund raise - they need to talk (and influence) the SP up over the coming months so that any share issue achieved the maximum result - selling the Co is a better option for us shareholders - at the right price

How could they possibly move to another market when there is only 25m shares in PI hands of which Gib / Directors and a few others hold a big chunk - so how would they work it without a fundamental change in structure. Maybe Pala and others want to cash in and sell the lot on a float (effectively an IPO) ???

Add Gib and NineD and Corb and Me and there is f all left - just scraps - something has to happen soon - pi55 up in London if we get over £1 anybody??

Gib - I hold 400k of share - if there is little or no liquidity then can't we drive the price up quite quickly with buy orders??

The trading day seems to start with a few sells which initially depresses the price - this then reverses towards the end of the trading day and the SP goes North - strange but welcome

I'm gradually adding spread bets on SRX through IG - they seem to be going through OK

I think its worth remembering that an offer becomes compulsory when 90% of shareholders accept the price etc - therefore Pala will have to get the other institutions on side before they can have any offer succeed. Also, SRX and PALA have incentivised the board with share options which will need to be considered when any offer is made - they won't want to Pi55 off the management when they are working in such difficult local conditions