# SRL - Straits Resources



## Gurgler (10 April 2007)

Was a little surprised that this stock didn't have a thread already. It's a an mineral exploration, development and mining company involved in production of copper, gold and coal over three locations: Tritton mine in NSW, Whin Creek cooper mine in WA and Mt Muro gold mine in Indonesia - all wholly owned.

It seems to be starting to recover from a difficult 12 months. In January, FN Arena wrote about it thus:
*Worst May Be Over For Straits Resources
FN Arena News - January 19 2007 

By Chris Shaw

From a share price of more than $4.50 in the middle of last year it has been a downward slide to levels close to $3.00 in recent months for copper producer Straits Resources (SRL), but Austock Securities suggests this offers a chance for investors to reassess the company's prospects.*

As of today, it is now at $3.83 heading upwards - see attached chart. I'll be keeping an eye on it.


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## doogie_goes_off (20 April 2007)

Dividend news may have been a little dissapointing for some, seems to be stadily traded but no real upward support, maybe capped by Au price? I think they have good diversity - a secret to success when oversupply hits a particular commodity.


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## Gurgler (7 May 2007)

Now in Trading Halt - wonder why? Any suggestions?

Interesting that the recent move over $4 in the past fortnight has been sustained. Note the kick two days before the pre-Straits Asia ann on May 4. Insider knowledge   ?


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## Col Lector (20 June 2007)

Straits is bennefitting big-time from its exposure to the increasing coal price and its substantial increase in coal tonnage; also antimony/gold in new england coming on stream later this year...to add to existing Au production from Muro in Indonesia. Add also approval pending for salt project in WA; AND increasing copper production (albeit largely & lowly hedged in current year).
A breakout even??? Tentatively I do think so. Kennas?


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## lazyfish (10 July 2007)

Hi Guys, just happen to see this. Btw I am new here so hello everyone 

Wise-owl.com "Stock of the week": Straits Resources Ltd
July 9, 2007
Tim Morris, Wise Owl analyst

Stock: Straits Resources
Code: SRL
Recommendation: BUY

Strong performances by BHP and RIO have occupied much of the spotlight at the big end of town recently, as their stock prices have finally started to surge. However, Straits Resources (SRL), a recent entrant into the ASX 200 index that hasn’t received much attention, also has the potential to deliver strong returns.

SRL is emerging as a real force in the resources industry. Its principal activities involve the production and sale of copper and coal, and exploration. Straits controls and operates the Whim Creek and Tritton Copper operations in Australia, and the Mt Muro Gold Mine and Sebuku Coal mine in Indonesia.

Increasing production numbers combined with favourable hedging contracts commencing in the near future, will result in SRL generating significantly more cash flow. Strong earnings are forecast for 2007, 2008 and 2009.


SRL’s core project, the Sebuku Mine, has been performing well with 834,000 tonnes of coal produced in the March quarter, keeping in line with the 4m tonnes forecast for the full year. Construction is underway at the site to further improve on this number and we should see this take effect in 2008.

This year is going to be a very busy one for Straits with a number of production and exploration activities to come on line. Record production numbers are expected at Sebuku and there will be a ramping up of activities with the new installations and purchase of washplants in the UK. Mining costs are forecast to be lower, so cashflows should improve.

At Salt Creek, an infill drilling programme has commenced, while at the New Central Kalimantan Coal Tenement, field exploration is underway with results expected in the next few months.

Besides the prospect of the company not delivering on its production forecasts, one of the key risks remains its exploration activities, which have the potential to burn a lot of cash and discover nothing. However, such risks are a given throughout the industry, and we remain confident in the company.

The ingredients for a share price rise, increasing cashflow, and news flow to the market, are all present.

The strong Australian dollar may impact SRL’s overall financial performance but with hedging contracts in place, this should be mitigated. The new hedging contracts for SRL’s products are favourable compared to last year’s, and should therefore flow through to this years financial performance.

Wise-owl.com currently has a buy recommendation on Straits Resources Ltd. 

Source: http://www.compareshares.com.au/wise5.php


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## Col Lector (8 October 2007)

A conspiracy theory...can anyone else see some interesting possibilities...?*AMCI Investments Pty Ltd became a substantial holder in Straits Resources Ltd on October 5 with 15 million shares (7.7pc). *
Thats a $72 mill initial investment 
The question being...just who are AMCI Investments Pty Ltd?
And what are their intentions regarding SRL??

Hans Mende is a director of AMCI Investments and a shareholder of its ultimate parent company, AMCI International AG. A major global player with a coal focus.
He is also the same Mr Mende associated with the Pallinghurst bid for ConsMin (CSM).
These guys are active... they have recently offoaded $600m of coal assets to CRVD; floated/taken a sizeable stake in Whitehaven Coal Ltd; increased its interest in Gloucester Coal Ltd Oct 4 from 7.9 million (10pc) to 10.6 million shares (13.1pc). & then forked out $75mill on 7.7% of SRL, the next day!
Very active! Are these moves by AMCI actually strategic preparations for AMCI's promised "contributions" to the Pallinghurst CSM consortium. If so, what does AMCI's sudden $75 mill investment in SRL entail for SRL, Pallinghurst & its sp going forward??
Pure speculation of course..be warned


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## Col Lector (8 October 2007)

And then there's Lake Torren's JV to add a bit more spice to the SRL mix... 
From The Age...SRL earning 70%
*Kroombit and Lake Torrens projects fire up interest in Argonaut Resources*Barry Fitzgerald
October 8, 2007

GARIMPEIRO has previously described Argonaut Resources as a three-trick pony in that if it wasn't to get some sharemarket applause for its gold/copper interests in Laos, then it would for its Kroombit zinc/copper project in central Queensland, or its copper/gold hunt at its Lake Torrens prospect in South Australia.

While Garimpeiro always thought that it would be Laos that would be exciting, it's actually been Kroombit and Lake Torrens that have fired up interest in the stock. So much so that it rose 15.5¢ or 54 per cent last week to close at 44¢ on Friday.

Laos might yet overtake the other two. But for the moment at least, it is the prospect of near-term production from Kroombit after some strong confirming drilling results (nine metres at 7.1 per cent zinc), and the high-risk but big-time potential of Lake Torrens that the punters are interested in.

By mid-November the group should be somewhere near a compliant resource estimate for Kroombit, which in itself would go a long way to justifying the group's $59 million market capitalisation.

Final approval from SA's Primary Industries and Resources for Argonaut and its funding partner, Straits Resources, to start drilling on exploration licence 3195 at Lake Torrens isn't hurting either.

Fifty kilometres from Teck Cominco's Carapateena copper/gold discovery and 75 kilometres from BHP Billiton's Olympic Dam monster, the prospect contains the sort of magnetic and gravity anomalies that get explorers for so-called iron oxide copper gold (IOCG) deposits excited.

What's more, WMC — now part of BHP and the group that discovered Olympic Dam — punched some holes into the property and intersected what Argonaut says was "intense magnetite and haematite alteration typical of Olympic Dam and Carapateena".

A racier interpretation of it all comes courtesy of the New Zealand tip-sheet, "Ten Bagger Quarterly".

It makes the claim that Argonaut has about a 20 per cent chance of finding the next Olympic Dam, and an 80 per cent chance of hitting significant copper and gold mineralisation.

It added that if "all dreams come true" and Argonaut hits an IOCG, the shares will be a 75-100 bagger. And if it fails, the downside is modest given the company's other projects. No argument with that last bit but the 20 per cent:80 per cent prediction is utter crap.


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## gfresh (8 October 2007)

I believe that investing in Straits may be a good bet to mitigate much of the risk of ARE, with the safety of not being a 'nothing' if no significant results are found at Torrens. 

The fact that SRL holds 70% rights to Argonauts Torrens tenement, means that if ARE hits the jackpot, SRL will be the ones mining the stuff, and making the majority of possibly billions of dollars. Seeing as Straits is also forecast for an improved EPS next year, means that even if no success at Torrens, still not a bad stock to hold onto. 

Share buy back is also being undertaken at the moment, allowing you to get in for fair discount of $4.70 on current shareprice, if you own SRL before this Friday. Worth investigating if you are keen.


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## Col Lector (8 October 2007)

It's SRL's diversity of income/projects that makes it attractive. Particularly that it has within its suite of projects a number that have huge upside potential eg, The Lake Torrens Project. Coal has been a major plus recently, but Strait's exposure to gold&antimony is often overlooked...
*Muro producing with expl upside;
*Yandan - stunning Au drill results but barely rates a mention.
&
* Hillgrove NSW starts production this quarter & will add significant revenue...initial annual prod estimates of 10000t antimony (currently $USD5570/t with cash cost ~ $2000/t) and 20000oz Au.


> The Hillgrove Gold Project, located near Armidale, New South Wales, was purchased by Straits in March 2004. Since that time Straits has been pursuing an aggressive development plan, encompassing additional resource definition, metallurgical testwork and design and mine planning, which culminated in the completion of a Development Plan in late 2005. In June 2006 Straits announced that formal board approval had been given for the Stage 1 development of the Hillgrove antimony/gold mine in NSW. Straits have commenced construction of a demonstration process plant capable of achieving initial mine production rates of approximately 10,000 tonnes per annum of antimony metal and 20,000 ounces of gold (equivalent to 90,000 Au ounces of total production output). In addition tungsten will be produced as a by-product. The initial capital expenditure of the Hillgrove Mine is forecast at approximately A$30 million, which includes process plant expenditure of A$15m and pre-production underground development. Forecast cash costs over the first five years of the Hillgrove operation are A$0.97/lb antimony produced after gold by-product credits. These cash costs exclude any by-product revenue from tungsten which could be significant. .


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## Col Lector (26 October 2007)

Now, thats a chart! Maybe even a breakout candidate. Plenty of activity recently lots of small players but also some large parcels being accumulated & offloaded by substantial holders/directors. Somethings cooking.....


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## michael_selway (29 October 2007)

Col Lector said:


> It's SRL's diversity of income/projects that makes it attractive. Particularly that it has within its suite of projects a number that have huge upside potential eg, The Lake Torrens Project. Coal has been a major plus recently, but Strait's exposure to gold&antimony is often overlooked...
> *Muro producing with expl upside;
> *Yandan - stunning Au drill results but barely rates a mention.
> &
> * Hillgrove NSW starts production this quarter & will add significant revenue...initial annual prod estimates of 10000t antimony (currently $USD5570/t with cash cost ~ $2000/t) and 20000oz Au.




Hi does anyone know the mine life of SRL?

*Earnings and Dividends Forecast (cents per share) 
2006 2007 2008 2009 
EPS 19.3 22.7 50.9 85.9 
DPS 10.0 8.0 10.0 13.5 *

http://www.theaustralian.news.com.au/story/0,25197,22662673-18261,00.html

thx

MS


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## countryboy (10 November 2007)

i keep looking at this stock..Lake Torrens has me interested.I'll throw this up for general comcumption and please feel free to shoot me down in flames,BHP have signaled what many commentators have been saying that the resources sector is about to move into a period of consolidation with its takeover of RIO, Plenty of talk about other targets such Zinifex and the OX. im looking at mid cap miners that may fill the bill for aquisition. anyone think straits fits that category? for me their are 2 upsides Im almost prepared to gamble on..... 1 most mid cap miners will be gobbled up in the next 24 months and..... 2 lake torrens reveals its potential

any comments ?


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## doogie_goes_off (29 November 2007)

A nice 37c rise thus far today. Someone must have re-assessed the fundamentals of this one. They certainly are a soild mid-cap producer.


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## ormond (28 January 2008)

SRL could be in for a good day tomorrow due to Straits asia resources up 9% today[SRL -55%]
Coal supply problems in china will help asx coal companys over the next few months.
Also lake torrens drilling results due soon which could be the icing on the cake.
Any one else on this co.
cheers ormond


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## aleckara (13 October 2008)

Just wondering if there are any particular reasons why this stock has plummented from its highs other than the credit crunch business.

It seems like they have a significant junior coal production. I'm new to the coal game.


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## cruise61 (16 October 2008)

aleckara said:


> Just wondering if there are any particular reasons why this stock has plummented from its highs other than the credit crunch business.
> 
> It seems like they have a significant junior coal production. I'm new to the coal game.




Try again 

Hi Alec , i just  think its the whole recession thing driving this one down .

Sadely USA fails we all feel the brunt

SRL did have its highest ever profit in the first half 126.3 mil so that isnt to be sneezed at 

They aquired 33% of RIM whom own 80% of MCM

An earlier report stated Straits holds a portfolio of mining investments, development projects and exploration ground for copper, gold and coal, in Australia, Indonesia, Brunei, and now Madagascar

Seems to be alot of shares exchanging going on but thats normal.

Certainly could be one to watch when the hard times are over

I wouldnt pannick yet they are growing and investing so that is a good sign


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## oldblue (16 October 2008)

Hi Alec.

Have a look at recent announcements on the company website.
They have a fairly complex corporate structure and plans to simplify this by a de-merger were scrapped recently. This has contributed to the weakness in the SP, IMO.


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## aleckara (16 October 2008)

Thanks everyone,

Will keep away from this one for now. Not until the dust settles will I consider it.

I look at their profit of 125mil in their report is "gross profit". Afterwards it doesn't look so pleasing. A minority interest whoever that is seems to be taking all the profits and leaving the shareholders with a loss.

Maybe that's just a quick glance. Better opportunities elsewhere right now IMO.


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## YOUNG_TRADER (16 October 2008)

Funnily enough Straits has been one of my trades over the last few days,

Coal is one of the few commodities yet to show weakness ...... yet, fundamentally it is an energy bulk ie like oil or gas rather than a building bulk such as aluminium or iron ore

It is very very cheap on forward P/Es and such, however for now is just a trade for me as on any given day it can just nose dive (look at RIO down 15% today eeekkkk)


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## cruise61 (16 October 2008)

aleckara said:


> Thanks everyone,
> 
> Will keep away from this one for now. Not until the dust settles will I consider it.
> 
> ...




Wish i had 125ml gross profit ,thats a pretty good profit.

Company has good cash flow and assets over 1.04 bil

Sure there net was only 6.0 mil after all out but they did do some aquiring of good stock.

and yes coal is still good price .

I think they are a strong company with good assets .


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## aleckara (16 October 2008)

cruise61 said:


> Wish i had 125ml gross profit ,thats a pretty good profit.
> 
> Company has good cash flow and assets over 1.04 bil
> 
> ...




Strong company maybe. Good assets probably. Seeing a cent from those assets? Nope!

This minority interest is getting preference over ordinary shareholders (refer to annual report). What I would like to know is why? Couldn't find the info.


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## YOUNG_TRADER (16 October 2008)

aleckara said:


> Strong company maybe. Good assets probably. Seeing a cent from those assets? Nope!
> 
> This minority interest is getting preference over ordinary shareholders (refer to annual report). What I would like to know is why? Couldn't find the info.




ummm what Minority interest?

The big cash generator is the coal division other wise known as Straits Asia Resources 

SRL holds basically 50% of Straits Asia, now heres the interesting part, Straits Asia have 1Billion shares, so that means SRL holds 500m SARL

SRL has about 250M shares, so basically in theory SRL's share price should be 2x SARL + a premium for the Aussie assets they have

Last I checked SARL was at 95c = an implied value of $1.90 to SRL + a more for its Aussie assets

As with everything not trading anywhere near NPV or fair value

Here's some good research starting points

Straits http://www.straits.com.au

Straits broker reports (BEWARE THESE ARE MARCH 08 ie pre crunch) http://www.straits.com.au/default.asp?V_DOC_ID=848

Straits Asia http://www.straitsasia.com


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## aleckara (16 October 2008)

YOUNG_TRADER said:


> ummm what Minority interest?
> 
> The big cash generator is the coal division other wise known as Straits Asia Resources
> 
> ...




That's the thing I guess. 
Profit attributable to minority interest 31,023,000 - straight from the annual report.

Leaving the holders of SRL with a 5,995,000 loss.

Overall profit 25,028,000.

Seems like whoever this minority is is taking up more than a majority of the pie. Maybe I've misinterpreted the statements. I welcome any corrections.

Youngtrader - owning the shares is no good if you are not getting any of the profits.


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## YOUNG_TRADER (16 October 2008)

aleckara said:


> Youngtrader - owning the shares is no good if you are not getting any of the profits.




Well I'm pretty sure buying around 95c and selling at $1.35 is profitable

I'm not sure what you mean with minority interest or not getting profits,

I'll have a look later, busy at the moment on RIO and BHP


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## cruise61 (16 October 2008)

aleckara said:


> That's the thing I guess.
> Profit attributable to minority interest 31,023,000 - straight from the annual report.
> 
> Leaving the holders of SRL with a 5,995,000 loss.
> ...




Look at page 12 of finacial report shows 4.6mil paid to shareholders and 4.2 mil paid to minority shareholders.

This would of been for the div paid of 2c on 28/05/08

No div was paid from the annual report due to economic circustances and to allow contined cash flow and free funds for further aquisitions.

Smart move considering the times  

This is a very young company but they do seem to be growing in the right direction.

Main drop in share price is i believe is due to global conditions but i believe once all settles SRL will grow and continue to profit and this will benefit all shareholders. 

This is why i have increased my SRL portfolio at this price.

Let the ride continue


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## cruise61 (17 October 2008)

Some latest reading from around the word in relation to coal at this time.

http://money.cnn.com/news/newsfeeds/articles/djf500/200810161043DOWJONESDJONLINE000754_FORTUNE5.htm

http://www.marketwatch.com/news/sto...C595B8-F840-44FB-93B1-8BAF62020B0E}&dist=hppr

http://www.theaustralian.news.com.au/business/story/0,28124,24507893-643,00.html

Yes coal prices have gone down slightly but demand still seems to be there and REGARDLESS OF ALL  China will need it.

Higher fuel and electricty prices mean Coal is becoming a more viable resourse daily.

When this slump is over which we all hope is soon Chinas coal requirements will rapidly grow.

Question is will we ba able to keep up with demand ?


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## cruise61 (17 October 2008)

More interesting reading on company forcasting sept 1 , you will see shares were sitting at 5.59 and rising just prior to the global collapse.

SARL have just refinanced to expand.

Things are certainly on the up here.

http://news.smh.com.au/business/straits-tips-record-output-in-2008-2009-20080901-46o2.html

Shares are starting to increase again to reflect the growth and forcast but they still have a long way to go before they are at the 6.00 just prior to the crash 

This could be a good ride


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## cruise61 (18 October 2008)

Just keeps getting better 

STOCK DASHBOARD: October 17, 2008

Straits Resources Ltd

Closing Price: $1.45

Price change from previous trading day: 33.0%

Relative Strength (6 months percentile rank): 5.4

Market capitalisation: $338 million

Turnover volume: 6,515,094.0

Volume Index (1 is average): 3.7

Turnover value: $8 million

Turnover period: 6 months

Value of $1,000 invested 1 year ago: $254

Source: www.BuySellTips.com


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## stockGURU (18 October 2008)

cruise61 said:


> Just keeps getting better
> 
> Value of $1,000 invested 1 year ago: $254




Are you serious? 

A company that has a share price that is 25% of what it was a year ago 'Just keeps getting better'?

Don't tell me, you hold, right? 

If you believe SRL just keeps getting better, how about explaining in detail why instead of just cutting and pasting details of the day's trading from another website?

Here's a 12month chart for some perspective:


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## cruise61 (18 October 2008)

stockGURU said:


> Are you serious?
> 
> A company that has a share price that is 25% of what it was a year ago 'Just keeps getting better'?
> 
> ...




First off i cut and paste because it gives readers a broader aspect of the company and its shares without going just on my comments .

Next have a close look at your cut and pasted chart SRL decline started sept 2nd the day the us stock crashed and just like every other stock it has plumeted since then apart from today when some people woke up and realised value .

As for a year ago the 25% look at your  cut and pasted chart  apart from the crash its stock was steadily rising . go back 6 weeks when this crash all started its price was 5.89 and rising.

As for me owning shares ,of course i do thats why im here , and trust me i dont give money away for nothing , well not since i was married last anyways .

Let me guess you dont hold and didnt get on the wagon today to and enjoy the 33% rise , gee wonder if your a rio man 

I see it i research it i like it i buy it i support it


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## stockGURU (18 October 2008)

cruise61 said:


> First off i cut and paste because it gives readers a broader aspect of the company and its shares without going just on my comments .
> 
> Next have a close look at your cut and pasted chart SRL decline started sept 2nd the day the us stock crashed and just like every other stock it has plumeted since then apart from today when some people woke up and realised value .
> 
> ...




You're right, I'm not a holder. Perhaps I have a little more objectivity because of that. I can certainly see through your ramping. You are obviously here to contribute a sales pitch, not any serious analysis.

What makes SRL worth anything more than it is now? Why should we expect the share price to rise from here? What was the cause of the 33% rise today?

How about providing those reading this thread with some more detail instead of just a self interested sales pitch? If you are just here to ramp there are plenty of other forums where you can do that and be welcomed with open arms. This forum is not one of them.


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## cruise61 (18 October 2008)

stockGURU said:


> You're right, I'm not a holder. Perhaps I have a little more objectivity because of that. I can certainly see through your ramping. You are obviously here to contribute a sales pitch, not any serious analysis.
> 
> What makes SRL worth anything more than it is now? Why should we expect the share price to rise from here? What was the cause of the 33% rise today?
> 
> How about providing those reading this thread with some more detail instead of just a self interested sales pitch? If you are just here to ramp there are plenty of other forums where you can do that and be welcomed with open arms. This forum is not one of them.




showing a companies good points or bad is not ramping or down ramping ,it is providing non biased research in an aim to help shareholders umderstand movements in a price.

I have provided more than enough research as to why the price is increasing ,please feel free to provide your research rather than a graph as to why it wont increase.

Why are we here?? certainly not to talk about the weather


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## cruise61 (22 October 2008)

Quaterly report just out all looking good for next quarter.

Seems all on schedule with all % up exp gold and silver.

Pity report came out after market closed 

Bit late out to help todays market though 

But tommorows another day


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## Sean K (1 December 2008)

Yet another WAY below NTA. Probably the largest differencial in the market. Next maybe BRM. 

Market's factoring MASSIVE slides in the demnd and price of some materials.

Will it be that bad? 

If not, some of these are going for a song. 

Nice chart. 

I note some goose on HC ramping this as the buy of the century at $1.10. lol

*Straits Resources*

PERTH-BASED Straits Resources (SRL) has been beaten up terribly in recent months, along with the rest of the diversified mining sector.

But at least the group and its 47 per cent owned Straits Asia, unlike a big chunk of the sector, has put its refinancing issues behind with Straits Asia's debt facility deal with Standard Chartered Bank.

Not that it has shown up in SRL's share price just yet. It was again looking friendless on Friday at 77 ¢ a share, down 2 ¢ on the day.

It does have a friend in Euroz analyst Greg Chessell. He believes Euroz continues to be at the low market valuations on both Straits Asia (a two-mine Indonesian coal producer) and SRL. In the case of SRL, at say 70 ¢ a share, its market cap of $163 million is a whopping discount on the $320 million market value on its stake in Straits Asia.

In Chessell's view, SRL's investment in Straits Asia is worth more like $630 million or $2.70 an SRL share. And then there are SRL's other net assets of $160 million, or 70 ¢ a share.


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## Sean K (4 December 2008)

Heads up, SRL reviewing it's stake in Straits Asia after some interest shown.

Might cause some interest by the market. Or not..

*Strategic Review*

The Board of Directors of Straits Resources Limited ( Straits Resources ) (ASX: SRL) has received a number of unsolicited expressions of interest in respect of its 47.1% shareholding in Straits Asia Resources Limited ( Straits Asia ) (SGX-ST: SAR). Straits Resources has also noted the sustained period during which the value of its interest in Straits Asia has not been appropriately reflected in the market capitalisation of Straits Resources on the ASX. In light of these matters, Straits Resources has decided to conduct a strategic review in relation to its shareholding in Straits Asia to determine if there is an appropriate proposal that is in the interests of its shareholders. The Board notes that whilst several approaches have been received, the completion of the strategic review may not result in a specific transaction or proposal being implemented.


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## Sean K (6 December 2008)

Well, I've placed my bet on heads.

Head em up Straits!!!

Maybe a run of 10 heads in a row would be nice!!! 

STRAITS RESOURCES TO CONDUCT STRATEGIC REVIEW

Singapore - 4 December 2008, the Board of Straits Asia would like to announce that its major shareholder, Straits Resources Limited (“Straits Resources”), which owns 514.7 million shares of Straits Asia (approximately 47% of the issued shares), has informed the Company that it intends to conduct a strategic review in relation to its shareholding.

This strategic review has been prompted by the receipt of unsolicited approaches from several parties in relation to the acquisition of Straits Resources’ ownership in the Company. Straits Resources has also noted the sustained period during which the value of its interest in Straits Asia and its other assets have not been appropriately reflected in the market capitalization of Straits Resources on the Australian Securities Exchange.

Having regard to the size and strategic nature of Straits Resources’ shareholding, Straits Asia and Straits Resources have agreed that Straits Asia will be fully engaged in the strategic review with the expectation
that this will best serve the interests of all Straits Asia shareholders.

There is no assurance that the completion of the strategic review will result in a specific transaction or proposal. Straits Asia and Straits Resources will keep shareholders informed of all material developments during this period and there is no need for shareholders to take any action in relation to this announcement at this point in time. Macquarie Capital Advisers and Standard Chartered Bank have been appointed to advise the Company. 

In closing, the Board of Straits Asia notes that following the recently successful refinancing of debt facilities the Company’s financial position remains sound. Further, the Company’s coal producing operations are performing to plan and the Company continues to benefit from its coal offtake agreements which are generally set at favourable prices with premium customers.




kennas said:


> In the case of SRL, at say 70 ¢ a share, its market cap of $163 million is a whopping discount on the $320 million market value on its stake in Straits Asia.
> 
> In Chessell's view, SRL's investment in Straits Asia is worth more like $630 million or $2.70 an SRL share. And then there are SRL's other net assets of $160 million, or 70 ¢ a share.


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## Sean K (12 December 2008)

Hey kennas, this is going OK since the bottom, and looks a little rounded to me. Coming up against some significant resistance at $1.00. Perhaps the news about the sale of Straits Asia will send it through, or back to the crap farm. Nice chatting to you. kennas :


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## J.B.Nimble (12 December 2008)

kennas said:


> Hey kennas, this is going OK since the bottom, and looks a little rounded to me. Coming up against some significant resistance at $1.00. Perhaps the news about the sale of Straits Asia will send it through, or back to the crap farm. Nice chatting to you. kennas :




I reckon you're right, though even if they hold on to it I feel this should give one of the better and earlier recoveries. I got in to this at the bottom of the previous dip and in a not too nimble moment I managed to miss my profit take at 1.50. I've promised myself I will do better, much better this time


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## Sean K (6 January 2009)

First close above $1.00 resistance, but it could be short lived. No outstanding breakout, but could be seeing the first signs of upward movement. 

Haven't heard much on the Straights Asia sale for a while....


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## J.B.Nimble (6 January 2009)

kennas said:


> First close above $1.00 resistance, but it could be short lived. No outstanding breakout, but could be seeing the first signs of upward movement.
> 
> Haven't heard much on the Straights Asia sale for a while....




They really ought to be moving up in price considering the moves we are seeing elsewhere in the coal sector - unfortunately the diversified tag sees the coal interests heavily discounted. 

I'm of two minds on the SARL sale. It would be nice for a quick profit that we/they could churn in to other opportunities but at the same time there is a nice story of a significant coal company emerging here. The Sebuku Western Leases scoping study was the latest good reading in that story. Could be a good hold.


----------



## Sean K (12 January 2009)

kennas said:


> First close above $1.00 resistance, but it could be short lived. No outstanding breakout, but could be seeing the first signs of upward movement.
> 
> Haven't heard much on the Straights Asia sale for a while....





J.B.Nimble said:


> They really ought to be moving up in price considering the moves we are seeing elsewhere in the coal sector - unfortunately the diversified tag sees the coal interests heavily discounted.
> 
> I'm of two minds on the SARL sale. It would be nice for a quick profit that we/they could churn in to other opportunities but at the same time there is a nice story of a significant coal company emerging here. The Sebuku Western Leases scoping study was the latest good reading in that story. Could be a good hold.



Yes, could have done better during the dead cat, but still not bad if you picked the bottom and traded it.

Agree on the diversified comments, but perhaps even the copper jump aided a little.

All seems tied to the coal though imo.

$1.00 broken and looks to be forming as support after consolidation. I'm not sure what my next buy trigger is. Maybe bouncing off this $1.00 area, or breaking through $1.20 ish last high. 

One of a few great opportunities the past 2 months.


----------



## Lachlan6 (12 January 2009)

SRL is tarting to look a little weak in the short term. It is tracing out a smaller degree A, B, C corrective move. Larger picture the stock seems to have traced out 3 waves to the downside and looking at the sharp wave (2), the larger (4) should be a choppy affair. Another alternative to my count is a running triangle or running flat into the wave (4), but we will see how the stock traces out this corrective move and label it accordingly. Bottom line is once this (4) is eventually complete, the stock should thrust lower again in the wave (5).


----------



## J.B.Nimble (13 January 2009)

kennas said:


> Agree on the diversified comments, but perhaps even the copper jump aided a little.
> 
> All seems tied to the coal though imo.




I think you could be right on the copper jump - the copper is almost irrelevant to their past profitability and was not a huge part of their forecast growth and yet it seems to weigh heavily on punters minds. I have been treating this as a pure coal play and if the rest turns out to have some value it's a bonus...  I would love to see them resurrect the SARL ASX listing proposal, with a partial in specie distribution and just retain a few SARL shares to sell to cover near term working capital requirements.


----------



## kam75 (13 January 2009)

This came up in my 30 day breakout scan yesterday.  It may have closed a number of days consecutively above the 1.00 level but it's gonna have to show me more volume increase to get me interested.  Once it clears 1.50, it should be up and away.


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## Sean K (23 February 2009)

Fallen back under 90c along with the market weakness which makes it start to look cheap on the numbers again.

234m on issue @ 90 = $210m mc.

They have $286m in the group piggy bank so their projects are valued at ...... minus $76m, LOL.

No news on the proposals put forward regarding Straits Asia. I wonder if selling it off is going to give the stock a boost, or what? 

Any further weakness looks like further opportunity to me.


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## enigmatic (23 February 2009)

Hey Kennas was just wondering were your source was concerning the amount of cash they have and another question how much debt do they have


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## Sean K (23 February 2009)

enigmatic said:


> Hey Kennas was just wondering were your source was concerning the amount of cash they have and another question how much debt do they have



Their last activity report. Pg 11

*Cash*
At the end of December 2008, the Straits Group cash resources totalled A$286 million. This comprised A$24 million for the Group s operations in Australia, A$244 million cash resources within the Straits Asia Group and A$18
million attributable to the Straits Group s other activities.

*Debt*
Straits is currently reviewing its long term debt financing requirements. In the interim the Company has rolled A$50 million of debt facilities (drawn to A$48 million at 30 December 2008) provided by the ANZ and Macquarie banks to a maturity date of 31 March 2009.


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## enigmatic (23 February 2009)

Considering there long term debt and there current account balance and with the mkt cap Undilluted at 194mil this is looking like one of those no brainers again, is there anything outstanding which would of caused the price to drop more then 90% in the last year. (other then the Financial crisis)


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## Sean K (23 February 2009)

The overall sell off could just be fear. $8.00 to 90c in a couple of months is a bit much. Or, market is right, and this is where the value of it's assets are going. Not sure on what price SARL is on the Singapore exchange, must check, but perhaps the value of Straights Asia has fallen through the floor. Check the previous page for some numbers that YT did some time ago on implied value from SARL. Seems too cheap to be true doesn't it.


----------



## J.B.Nimble (24 February 2009)

kennas said:


> The overall sell off could just be fear. $8.00 to 90c in a couple of months is a bit much. Or, market is right, and this is where the value of it's assets are going. Not sure on what price SARL is on the Singapore exchange, must check, but perhaps the value of Straights Asia has fallen through the floor. Check the previous page for some numbers that YT did some time ago on implied value from SARL. Seems too cheap to be true doesn't it.




Too cheap to be true indeed...
SARL mc = 1.092bill shares x  0.765 SGD/share = 392mill SGD= 392 mill AUD...
Cash (excluding SARL) = 24mill + 18mill AUD, and debt = 48mill AUD. Nett debt = 6mill AUD 

SRL = 233mill shares, so.... SARL+nett debt = 386mill = 1.66 /share. Compare this with today's 0.88/share. 

And this is before we attribute some value to the 2 copper mines, one gold mine, one antimony/gold mine, coal exploration interests in Brunei and Madagascar, etc etc 

Extraordinary... :shake:


----------



## Sean K (7 March 2009)

I wonder if Felix are one of the companies sniffing around Straights Asia?

Would seem to make some sence for them to bolt them on?

*Felix Resources sizes up Asian coal assets *
March 07, 2009 
Article from:  The Australian 

FELIX Resources is eyeing energy coal assets in India and Indonesia after last month shelving talks on selling itself to another company.

"Indonesia and India are the two areas we are having a look at," managing director Brian Flannery said. 

The Brisbane company, which exports to Korea and Japan, was talking to "large groups" in India that wanted to build new power stations, he said. 

Indonesia is the biggest exporter of energy coal. 

India is planning to build nine 4000MW power stations to double coal-fired electricity production by 2017, according to Australia's commodity forecaster. Prices for the fuel rose to a record last year because of demand from Asia, boosting Felix's profit threefold to $166 million and taking cash on hand to $340 million last month. 

"If you take the bet that there is going to be a rapid increase in energy demand in India, which would be the case, India is your first choice to develop supply, with Indonesia probably a close second," ANZ senior commodity strategist Mark Pervan said.


----------



## shag (8 March 2009)

Its called thermal coal, not energy coal. can't reporters get the basics right. all coal is used for energy, just some are better for using as coking coal, ie less contaniments and they add some elements to the reaction.
i've never seen a coal that doesnt burnt and put out plenty of 'energy'.


----------



## J.B.Nimble (8 March 2009)

kennas said:


> I wonder if Felix are one of the companies sniffing around Straights Asia?
> 
> Would seem to make some sence for them to bolt them on?




Not sure... FLX are in a nett cash position of just over 300mill. Current mc of SARL is around 800mill with SRL's 47% stake being just under 400mill. Could they grab SRL's stake without making a full take over offer? If they went for the lot what sort of takeover premium would they need to offer? Would they want to take on debt to take on the lot.

My guess is that FLX will be looking at something smaller, distressed, or in an earlier stage of development. in short, anything that doesn't require taking on debt...


----------



## Sean K (18 March 2009)

Not a breakout yet, probably, but definately potential breakout material. A bit more volume and EOD above 1.25 maybe the trick.


----------



## Sean K (23 March 2009)

SRL trading halt with the Strategic Review regarding Straits Asia to be released during the day. Interesting to say the least. I am guessing that they will say that they are keeping the asset, as I can't find any other trading halt for any other company that may be involved in a buy out. I was actually hoping for an offer that would put $200-300m in SRL's pocket which would put a different spin on the company, and hopefully make the market re-rate them. Fingers crossed the market likes whatever drops out!


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## Sean K (23 March 2009)

kennas said:


> SRL trading halt with the Strategic Review regarding Straits Asia to be released during the day.



No idea what this really means...


The total cash consideration of up to US$335m (approximately A$500m, equivalent to approximately A$2.14 per SRL share) comprises an upfront completion payment of US$220m and a performance payment of up to US$115m payable post completion. The performance payment relates to certain matters in connection with reserve upgrades in relation to the mine located on Sebuku Island, South Kalimantan, Indonesia controlled and operated by SAR or as otherwise agreed between PTT and SRL. The performance payment is expected to be realised during 2009.

The Board of Directors of SRL is currently reviewing the funding requirements of SRL going forward and its strategy with respect to the use of the Transaction proceeds. Whilst it is expected that an appropriate level of cash will be retained to fund future growth opportunities and for general working capital purposes, it is envisaged that a portion of the Transaction proceeds will be returned to SRL shareholders. In the near term approximately one fifth of the total consideration received by SRL in relation to the Transaction will be returned to shareholders via two separate instalments. The Board of Directors will provide an update on any proposed return of capital to Shareholders at the appropriate time.


No record date that I could find, but assume before the halt.

Does it mean the sp should be $2.14 ish at this point?

Probably not considering the disconnect to date. This will probably be ignored.


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## Sean K (23 March 2009)

kennas said:


> No idea what this really means...



Looks like it's going to open up around 1.28 ish, so still well under the implied value of just the sale of 60% of SARL.

Bamboozelling.


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## Sainter (23 March 2009)

That price might be that which was matched before the TH. It is possible all bids will be purged before it recommences trading, I'd say tomorrow. I'm betting an open above $1.50, poss closer to $2.
I hold a few SRL (have done so for years)


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## Sean K (24 March 2009)

Sainter said:


> That price might be that which was matched before the TH. It is possible all bids will be purged before it recommences trading, I'd say tomorrow. I'm betting an open above $1.50, poss closer to $2.
> I hold a few SRL (have done so for years)



$2 would be nice, as I'm holding quite a few, but the depth doesn't look like it's a chance. Maybe will be purged. Whatever, the numbers they are receiving for 60% look pretty impressive and will allow punters to put a better figure on the company overall. Certainly NO value placed on any of their assets at the moment which has been confounding. Should be a bit of a stag profit on the open whatever the case, not sure if I'll hold everything or take the money to the bar...


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## Sean K (24 March 2009)

234 on issue at $1.15 mc is $270m ish.

They've just sold 60% of their Asia investment for $485m.

So, just on that cash settlement their sp could be $485 / 234 = $2.07.

That is only on the Asia sale value and does not include their remaining investment in Asia, plus all their cash in the bank, nor their other projects.

So, perhaps the $2 call isn't too outlandish.

In the media:


*Straits Resources sits pretty on coal sale *
March 24, 2009 

STRAITS Resources says it is well-placed for acquisition opportunities.

It had just sold a stake in its coal assets to Thailand's PTT International Company for $US335 million ($485.79 million).

The transaction will give PTT International a 28.26 per cent interest in Straits' Singapore-listed coal subsidiary Straits Asia Resources, which operates two thermal coal mines in Indonesia. 

The base and precious metals miner had been reviewing its 47.1 per cent holding in Straits Asia since receiving a number of unsolicited expressions of interest for the stake in late 2008. 

Straits CEO Milan Jerkovic said yesterday the part-sale would provide the company with the funds to pursue potential acquisitions, particularly in precious metals, copper or bulk commodities. 

"Straits will be well-placed to look at attractive acquisitions at a low point in the cycle," Mr Jerkovic told reporters on a conference call. "While we don't have anything specific in mind, copper and precious metals are probably the initial areas that we'll look at." 

Mr Jerkovic said the company was looking at other uses for the funds, including a distribution to shareholders and the repayment of debt facilities.


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## Sean K (24 March 2009)

Hi kennas, me again... how's things? I was just checking cash backing to add on to the current value of the deal, plus cash, and it looks like about $1.65 to add on to the $2.07 as part of the Asia sale. So, total value is $3.72. This makes their mines and development projects and remaining investment in Asia valued at negative $2.57. I say again, NEGATIVE $2.57. Thanks for listening. Serious face off and I will now go back to my regular bamboozled and bewildered look. Cheers, kennas


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## J.B.Nimble (24 March 2009)

Yes your calculations are correct Kennas. The deal reveals the cash and residual stake in SBI to have a value of approx 800mill AUD. That is 3.70 per share.

Now asuming you attribute some value to Whim copper, Tritton copper, Muro gold, Hillgrove antimony/gold you could be looking at values in excess of 4.00/share, even in these challenging times. Now, how value translates to movement in share price is anyone's guess but starting point would have to be sp greater than nett cash and that should put it over 2.40 in the very immediate future.

FWIW, I think it is an extremely smart deal - reveals the value, retains some exposure to the upside in these assets, gives a massive boost to the balance sheet, thereby creating the opportunity to go looking for opportunity...


----------



## prawn_86 (24 March 2009)

Up 20% at the moment. Perhaps the news will filter through throughout the day

Im watching this with interest, but dont have any spare cash.

The only reason i can think of for it being so far under intrinsic value is the market doesnt fully understand all the things it owns, or that its sceptical of the sale going through...

Who knows


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## Kremmen (24 March 2009)

I sold SRL years ago at something under $1. When I looked at them about a week ago and thought the current price has to be way too low, I should have acted upon that evaluation!

This is a crazy market. I would point out the example of PGL, which is about to embark upon buying back 60% of its own shares because its share price late last year had dropped to not much more than half of its cash in the bank! (When you can buy $1.10 in cash for 60c, you know the market is not behaving rationally.)


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## Sainter (24 March 2009)

Well my $1.50-$2.00 call was way off. Given my recent, less than stellar performance in the market, at least I can say I'm consistent! One to continue to sit and hold I suppose-the embedded value is just too high relative to the shareprice.


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## Sean K (25 March 2009)

Kremmen said:


> (When you can buy $1.10 in cash for 60c, you know the market is not behaving rationally.)



Yes, at a strange point in the market. Two years ago people were paying millions for nothing but an EPL.



Sainter said:


> Well my $1.50-$2.00 call was way off. Given my recent, less than stellar performance in the market, at least I can say I'm consistent! One to continue to sit and hold I suppose-the embedded value is just too high relative to the shareprice.



It's a fair call Sainter, but would have been unlikely to jump like that on the open. The market has been generally aware of the disconnect in the sp and NTA.

Personally, I'm happy to hold while there's such a massive disconnect, and await the risk money to flow back in to the market. Hopefully, it's his side of 5 years away..


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## nomore4s (25 March 2009)

Sainter said:


> Well my $1.50-$2.00 call was way off. Given my recent, less than stellar performance in the market, at least I can say I'm consistent! One to continue to sit and hold I suppose-the embedded value is just too high relative to the shareprice.




A bit like that football team you follow :

Chart wise todays action is ok imo, strong break above resistance like that with a huge gap up always leads to a bit of profit taking. The gap looks like it will be filled now and then I think we will see some strong upward movement.

SRL has built a very solid base now since Oct 08. I will look to buy more if the gap is filled (or nearly filled) and we see a positive close around the $1.20 area and will buy my last parcel on a break of $1.60.

A close under $1 is a serious red flag and under 80c is somewhat bearish.


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## Sean K (25 March 2009)

Since the market doesn't like funnymentals (mostly) we should be looking at the technicalities perhaps.

Looks to have formed a bottom as discussed and there was a triangley wedgy thing that has broken up. Now we need to look for support and higher lows and highs. Really need $1.20 to hold and then that $1.50 to be broken to be confident in a medium term upward movement and longer term upward potential. Otherwise, we're just twiddling our willies. 

Holding my willy, waiting for an upward movement...


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## Kremmen (25 March 2009)

kennas said:


> there was a triangley wedgy thing that has broken up.




That's the best thing about discussions here: The highly accurate use of technical terminology. 

Looks like it's creeping above the $1.30 mark on good volume.


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## Sean K (25 March 2009)

Kremmen said:


> That's the best thing about discussions here: The highly accurate use of technical terminology.



Yes, love wedgies!! 

I'm anticipating consolidation here between the high and low of the gap / last candle, above previous resistance at $1.20. Well, it's what I would like to see anyway... Then, to take an agressive stance get set for the break up, or more conservatively wait for the break through $1.50. Stops as required... But hey, who knows what skeleton drops out of the closset tomorrow...

I'm halting my own discussion of fundamentals of this stock because it seems funnymentals matter little in this environment.


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## nomore4s (25 March 2009)

Fundamentals still matter Kennas it just takes a bit longer to play out in this environment thats all.

Alot of spec money seems to becoming back into the markets. Alot of smaller caps are starting to move again. Is it just a coincidence that YT is back as well?:
ESG, MEL, MPO, LOD etc etc


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## Sean K (3 April 2009)

nomore4s said:


> Fundamentals still matter Kennas it just takes a bit longer to play out in this environment thats all.



Well, lets hope the funnys are transferred into some decent sp movement soon. Has moved a little I suppose, up 100% is or so from the low, but I anticipate a break through $1.50 to create quite a wave. Surf board waxed up. LOL


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## J.B.Nimble (3 April 2009)

kennas said:


> Well, lets hope the funnys are transferred into some decent sp movement soon. Has moved a little I suppose, up 100% is or so from the low, but I anticipate a break through $1.50 to create quite a wave. Surf board waxed up. LOL




I'm feeling quite positive about the last couple of days movement. I was surprised that so many were so keen to take profit so early but I think Wednesday's turn up is the beginning of our upward haul towards at least the level of cash backing. Copper price increases are giving us a bit of a tail wind now as previously the market was rating the copper assets as worse than worthless -Tritton is actually not too bad...


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## J.B.Nimble (6 April 2009)

Ceasing to be Substantial shareholder notice today - AMCI Investments having sold an average of about 830,000 per day for the last couple of weeks - almost a third of the average daily turnover. That flow soon to dry up? 
Another 5% up today.


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## michael_selway (6 April 2009)

J.B.Nimble said:


> Ceasing to be Substantial shareholder notice today - AMCI Investments having sold an average of about 830,000 per day for the last couple of weeks - almost a third of the average daily turnover. That flow soon to dry up?
> Another 5% up today.




Yeah not bad






*Earnings and Dividends Forecast (cents per share) 
2008 2009 2010 2011 
EPS 4.6 26.3 20.0 30.9 
DPS 4.0 3.0 2.5 3.3 *

thx

MS


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## Sean K (12 April 2009)

Cu is on the rise (for the second) and I am wondering what price Cu needs to be at for Tritton to be economical and have the lights turned back on.

I've looked back through the previous anns but can't find a number.

Anyone else?

It would seem to me that if Cu continues to recover a bit and stabilise then sentiment towards SRL might change a tad. Of course, they have many other projects, but I'm guessing short term Coal and Copper has been the cause of the decimation and continued lack of support.


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## kbxk508 (12 April 2009)

kennas said:


> Cu is on the rise (for the second) and I am wondering what price Cu needs to be at for Tritton to be economical and have the lights turned back on.
> 
> I've looked back through the previous anns but can't find a number.




from their latest annual report, average unit cost for 6 months to 30 Jun 2008 was US$1.57 per pound (currently its US$2.06 per pound)



> During the first quarter of 2008 the Tritton mine also suffered from low grade stopes and production congestion ... As a result of these changes and restrictions, the mine was only able to produce 8,372 tonnes of copper in concentrate for the six month period to June 2008. ...
> 
> Increased cash costs for the six months to June 2008 followed on from the lower production performance giving an average unit cost of US$1.57 per pound.




kbxk508


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## J.B.Nimble (13 April 2009)

kbxk508 said:


> from their latest annual report, average unit cost for 6 months to 30 Jun 2008 was US$1.57 per pound (currently its US$2.06 per pound)
> 
> 
> 
> kbxk508




More recently than that the quarterly report for the Dec quarter indicates 6,540 T at 1.21 USD/lb. This was a 20% increase in output over the previous quarter.The output at Tritton was being expanded to 35,000 T/yr but this was hlated due to the GFC. As I understand it they had done the work on the processing plant but stopped the underground development for the extra output. You would expect that costs would probably have reduced further since the Dec quarter and with copper coming back the suspended capacity expansion could be back in the offing. As far as I know Tritton is still producing. 

The other one to watch is Hillgrove. Certainly some pain felt with a difficult ramp up but if the process problems are as simple as an upgrade of filtration then there could be a nice turnaround there.


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## Sean K (14 April 2009)

Just broken through the $1.40 speed bump, hopefully it hold eod and forms a platform around there for the attack on the Great Wall of $1.50.


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## skc (14 April 2009)

Missed the fill this morning 

Definitely agree with the great wall of $1.5. That's why I am not going to chase this one. I might as well just place a limit order above the high of yesterday, hoping for a close of this morning's gap.


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## jonojpsg (15 April 2009)

Looks like it is making a run at the Great Wall today!  Wait and see whether it can keep it's head above that level by EOD, but looking promising


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## Sean K (15 April 2009)

jonojpsg said:


> Looks like it is making a run at the Great Wall today!  Wait and see whether it can keep it's head above that level by EOD, but looking promising



Needs a weekly close above 1.50 I reckon for confirmation. Has spiked up through a couple of times and then dropped back. Fingers crossed.

I'm shaking my head over why I didn't put grandmas kidneys on back under $1.00...


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## Sean K (20 April 2009)

kennas said:


> Needs a weekly close above 1.50 I reckon for confirmation. Has spiked up through a couple of times and then dropped back. Fingers crossed.



We've seen that and it's opened up well above $1.60. Anyone else consider this significant? I'd actually like to see some consolidation soon above the $1.50 mark. Need to clear out some short term traders and develop a new bunch of holders with higher targets. It's been an awesome run since the 80s..

Cash backing still well above this of course.


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## MACCA350 (20 April 2009)

I baught a bunch in October, currently 9% ahead..........nice to see them gaining ground 
In hindsight I should've averaged down when they hit the lows in Nov, but they will be a good earner as they continue to recover.

cheers


----------



## CapnBirdseye (20 April 2009)

Bought in to this one a few weeks ago and it is doing well.  I am getting a little twitchy now and have tightened my stops.  I am planning to keep hold.

Its broken a fairly significant resistance at about 1.55.  Will probably go sideways a while with some profit-taking before hopefully continuing on the up.


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## Sean K (22 April 2009)

CapnBirdseye said:


> Its broken a fairly significant resistance at about 1.55.  Will probably go sideways a while with some profit-taking before hopefully continuing on the up.



Was a nice break up and if the market hadn't have dived so sharply probably should have continued on. Looks like stops been triggered yesterday as opposed to panic selling, or even profit taking. Plenty of buying support indicated by the recovery. With markets looking to correct significantly perhaps, I doubt it can maintain above $1.50, will probably correct with the general market - if it does... Found a bit of resistance at the $1.60 mark there...


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## Sean K (28 April 2009)

Held ok above $1.50.

In trading halt today which wil be the announcement of settlement with PTT for the Straits Asia stake.

Well, hopefully it's still going through....

From the PTT agreement presentation:


*Consistent with its strategy, SRL is to form a strategic alliance with the PTT Group of companies (PTT) to establish a global coal vehicle*

• PTT is acquiring a 60% stake in SRL’s wholly owned subsidiary, Straits Bulk & Industrial (SBI) which holds:
• 47.1% interest in SGX listed Straits Asia Resources (SAR)
• Sakoa coal exploration interests in Madagascar
• Brunei coal exploration interests
• Yannarie solar salt project1
• A coal team headed by Martin Purvis, that has been responsible for SRL’s success and growth in coal, will transfer to SBI
• Co-investment Shareholders Agreement will align and govern the interests of the joint venture vehicle
• Total consideration of US$335m (US$220m upfront / US$115m performance payment)
• *Settlement scheduled for April 2009*


----------



## craigj (28 April 2009)

how long is the trading halt for

when is the announcement

i bought in recently and now looking to get out


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## Kremmen (28 April 2009)

craigj said:


> how long is the trading halt for
> 
> when is the announcement




The halt is until the earlier of Thursday's start of trade or the announcement being made. (You could just look it up on asx.com.au)


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## Sean K (29 April 2009)

This is no different to the original plan, right?




*DJ PTT International To Proceed With Straits Asia Resources Buy*
29/04/2009 09:15AM AEST  

SINGAPORE (Dow Jones)--Thailand's PTT International Co. said Wednesday it will proceed with its offer to buy Straits Asia Resources Ltd. (AJ1.SG) as it has completed the acquisition of a 60% stake in Straits Bulk & Industrial Ltd. 

In March, PTT International had offered to buy Straits Asia for S$0.807 a share after it completes a deal to buy Straits Bulk & Industrial for up to US$335 million from Australia based Straits Resources Ltd. (SRL.AU). 

PTT International's offer to buy Straits Asia becomes mandatory as the Thai company would have had effective control of the Singapore-listed company, in which Straits Bulk & Industrial owns a 47.1% stake. 

"The offeror (PTT International) does not intend to revise the offer price," Straits Asia said in a filing to the Singapore Exchange Wednesday. 

PTT international's offer values Straits Asia at S$881.8 million (US$581.6 million). 

Straits Asia, which sought a suspension of trading in shares Tuesday, operates two mines in Indonesia and has a 80% interest in a coking coal exploration concession there. It also owns a marine engineering, construction and barging business. 

PTT International is a wholly-owned unit of PTT Public Co., majority-owned by the Thai Ministry of Finance.


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## Sean K (29 April 2009)

Same plan.

Lets hope the last point here rings true.


The strategic co-investment alliance between SRL and PTT will deliver the following benefits:

Achieves SRL s vision to establish a global coal vehicle with the financial capability to actively pursue opportunities in the thermal coal sector;

Introduces a motivated and financially capable major shareholder to support Straits Asia Resources Limited s (SGX: SAR) future growth and development;

Realises significant value for a portion of SRL s coal assets whilst providing SRL with continuing economic interest and management influence;

Reweights SRL s portfolio across bulk commodities, precious metals, base metals and other investments, diversifying SRL s exposure to commodity price, country and approval risks;

Strengthens SRL s financial position to pursue strategic acquisitions in the resources sector at a low point in the cycle;

Provides the opportunity for a return of capital to SRL shareholders; and

Facilitates a potential re-rating of the SRL share price as a result of unlocking the value disconnect between SRL s market capitalisation and the implied value of the 47.1% stake in SAR.


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## nomore4s (29 April 2009)

All looking good atm for SRL. Will be interesting how the market reacts today and in the next few weeks.

Kennas I also noticed they are going to -



> As previously foreshadowed, SRL expects to return approximately
> one fifth of the total consideration received by SRL from the Transaction to Shareholders.




As a very quick estimate that would be about $60mil or about 25c per share - is this correct? I'm not very good with FA - I have been buying based on the chart action.


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## Sean K (29 April 2009)

nomore4s said:


> As a very quick estimate that would be about $60mil or about 25c per share - is this correct? I'm not very good with FA - I have been buying based on the chart action.



$60 ish mil yes. They have about 230m on issue I think, so around 25c, yes. Golly, can that be right?


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## nomore4s (29 April 2009)

kennas said:


> $60 ish mil yes. They have about 230m on issue I think, so around 25c, yes. Golly, can that be right?




lol, that's exactly what I was thinking when I was working it out, not a bad little bonus.

From a T/A point of view SRL needs to break and hold above $1.60.


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## Sean K (29 April 2009)

nomore4s said:


> lol, that's exactly what I was thinking when I was working it out, not a bad little bonus.
> 
> From a T/A point of view SRL needs to break and hold above $1.60.



Staying around 1.60 would be good, but I think 1.50 is new support. But what's a few cents. If this area firms as a new base, next long term resistance is at 3.00. Not a target, but there's no real technical barriers to get there imo.


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## Sean K (1 May 2009)

nomore4s said:


> From a T/A point of view SRL needs to break and hold above $1.60.






kennas said:


> Staying around 1.60 would be good, but I think 1.50 is new support. But what's a few cents. If this area firms as a new base, next long term resistance is at 3.00. Not a target, but there's no real technical barriers to get there imo.



Just starting to crack $1.60 but intraday.

However, $1.50 looks like it's confirmed support now. Look at the action in the green circle.

I have to keep saying this however, the market needs to have a decent break. It's run up too much imo and the further it goes, the harder the next leg down may be. That will take everything with it.


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## J.B.Nimble (2 May 2009)

kennas said:


> Just starting to crack $1.60 but intraday.
> 
> However, $1.50 looks like it's confirmed support now. Look at the action in the green circle.
> 
> I have to keep saying this however, the market needs to have a decent break. It's run up too much imo and the further it goes, the harder the next leg down may be. That will take everything with it.




There may be another down leg but I suspect it will be with a lot less panic in the resources sector next time. The mortally wounded have been well and truly identified now. Most of the weak hands are gone and now down legs are just trading oppportunities imo. With SRL sitting on such a big discount to cash there is a huge comfort factor here even if the trading opportunity is missed. And lets face it this one is for investors rather than a traders play - a classic hare and the tortoise story.


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## nomore4s (2 May 2009)

J.B.Nimble said:


> And lets face it this one is for investors rather than a traders play - a classic hare and the tortoise story.




I'm not sure about that, this has provided some very good swing tradiing set ups imo. Also from 90c-$1.60 in about 3-4months is hardly a tortoise.

The way SRL has built a base and is "stepping" up is very bullish imo.


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## Sean K (2 May 2009)

nomore4s said:


> I'm not sure about that, this has provided some very good swing tradiing set ups imo. Also from 90c-$1.60 in about 3-4months is hardly a tortoise.
> 
> The way SRL has built a base and is "stepping" up is very bullish imo.



Has been a hare for the past 2 months but was definately turtle material from Oct to March. I entered this at 90 and 80 ish cents during that time and just sat on it trusting the funnymentals, then added on the breaks up on TA. Great time to have been in the market the past 4 months. I'm still cautious however. Long term, the printing of money to save crap businesses will come back to bite. Hard.


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## Kremmen (4 May 2009)

It's headed off past $1.70. Highest $1.75 so far today, on decent volume. Rising 6-8c/day looks really good.


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## Kremmen (13 May 2009)

The figures from the latest investor presentation today:

Ord shares: 234m
Conv notes: 55m ($79.8m)

Cash 30/04: $296m (+ $34m Varomet)
Debt 30/04: $79m (+ 86m Varomet)
Tranche 2 payment to come: $157m
Dividend to come: $117m (30c/share + 20c/share)
Cash available post dividends: $336m (= $1.44/share)


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## MACCA350 (13 May 2009)

Kremmen said:


> The figures from the latest investor presentation today:
> 
> Ord shares: 234m
> Conv notes: 55m ($79.8m)
> ...



Nice, that would be over 30% return on my buy in price
I wasn't expecting a dividend from SRL as there's no previous dividends shown on their ASX page.

They look healthy to me, maybe I should pick up some more

cheers


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## prawn_86 (13 May 2009)

Yep at these prices a 50c div is 29% yield. Plus they are only trading at 30c above cash backing after a div that size.

Although they have said they are only considering it, nothing concrete at the moment.

Hmmm.... do i, dont i?


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## Sean K (14 May 2009)

The market finally looks like it's toppling over to me.

The economic news out last night was no worse than any other night the past few months, but the punters decided it was too bad. lol. It was just time for a correction that's all. 

SRL has had a great run, but it will fall with the rest of the market, and here are some pretty blue lines to make technical decisions over.

My breakout line was at $1.50 ish, which hopefully is support. If the market completely crumbles to further lows, then forget that.


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## jman2007 (15 May 2009)

kennas said:


> SRL has had a great run, but it will fall with the rest of the market, and here are some pretty blue lines to make technical decisions over.
> 
> My breakout line was at $1.50 ish, which hopefully is support. If the market completely crumbles to further lows, then forget that.




I agree,

I have been watching SRL with interest for some time, since it started its run from about 1.20'ish actually. I picked up a medium-sized package just before close yesterday, DOW was up marginally overnight but I get the feeling I'll need to watch this stock carefully. Like you said, if it falls through 1.50 I will be out.


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## Sean K (25 May 2009)

jman2007 said:


> Like you said, if it falls through 1.50 I will be out.



Some more S&R appearing here, which is slightly alingned to the overall market. There's some H&Serish pattern appearing in a few stocks and represented in the XAO. Need the support to hold, or things look ordinary for the short term. Downward volume doesn't look troubling here. For me, a break of $1.60 is concerning, and like you $1.50 is keep powder dry.


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## Sean K (29 May 2009)

The H&S is still on the cards. Fingers crossed she holds up.

What's the current cash backing?

It was about $2.50 ish I thought.

Surely limited downside if that's the case, but it did fall 60c or something previously ....


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## happytown (1 June 2009)

ann out, straits grants option to finders resources to purchase the whim creek sx-ew plant any time between 01/10/09 - 31/12/09 for $5M (plus gst) in finders shares (plus 724,638 shares as option fee)

fnd shares currently .355 (approx $250,000 option fee)

cheers


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## Sainter (2 June 2009)

And what it also signifies is that they have no plans for SX-EW processes anytime soon. After Giri, Nifty and Whim Crk, they had developed a good knowledge of that process, but they are walking away from it. At least they are selling it to a company in which they will have a decent shareholding, so they have not fully lost touch with it I suppose.


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## jman2007 (6 June 2009)

kennas said:


> The H&S is still on the cards. Fingers crossed she holds up.
> 
> What's the current cash backing?
> 
> ...




Tbh I can't see SRL rising to its former glory as an $8 stock, although I would be happy if we saw $2.50 by the end of the calendar year. Probably the main reason I was drawn to them was their superior cash position, and the potential for a divy payment through the PTT deal.

The non-coal assets look to be a little average to say the least, it's difficult to see how Hilgrove and Tritton will turn into major cash-cows for the company given the delays, bottlenecks with the mining and cost blowouts. Still, they look to be important operations for the company to maintain a presence in Australia.

I think cash backing p/s is about AUS $1.25, probably a reasonable case for their assets being currently undervalued in the market in that case.


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## Sean K (11 June 2009)

jman2007 said:


> Tbh I can't see SRL rising to its former glory as an $8 stock,



No, looked to be overdone there in hindsight. There were a few running too far away during the bubble. It may come down to what they do with their balance sheet. What assets are they going to pick up to further grow the company. I suppose they've been waiting to see how the market unfolds but on the other hand may have missed some good opportunities. Check out BRM, SRL! You need some IO in the portfolio and it's cheap as chips!! Maybe PRU for some gold!!! lol Maybe there'll be another chance when the market finally corrects back again?

Lots of things happening on the chart. The potential H&S identified earlier didn't activate and it's continued to hold support lines. Some minor horizontal support at $1.75 now and with the uptrend line makes it pretty strong. After that $1.60 which I see as critical. Moving down from here to that area puts a potential double top in play. The intraday selling over the past week isn't comforting and with the market due for a pull back some day. On the other hand 'stronger forever!' TH


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## Sean K (12 June 2009)

Finished very strongly today at $1.95 up through the top of the potential double top, so that might be off the cards. Not completely out of the woods, but probably unlikely now which is good. Longer term chart and check all the resistance between here and $4.80. Zip!! Nada! Not saying it's going to run back to there, there's just no technical barriers at this point. More will unfold on the way of course.


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## jman2007 (12 June 2009)

There was some very strong buying today, what was especially pleasing imo was that the intraday selloff around $1.90 didn't occur, like you mentioned above kennas. So perhaps the day traders have finished playing games with this stock for now? A strong night on the DOW could potentially see us looking at a $2 finish for the week. Yes I can't help but think that a few golden opportunities may have slipped through their fingers, look at CFE picking up the assets of the defunct CopperCo for a pittance! On the other hand, the downside for SRL should be limited by our friend, aka cash


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## Kremmen (12 June 2009)

Straits Minerals has just paid $3.5m for 10m shares of ADU, so they can fund gold exploration in Ghana.


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## J.B.Nimble (12 June 2009)

Considering SRL was well and truly derisked with the partial sale of the coal assets it has been remarkably slow to return to a more reasonable value. It has been a real opportunity cost holding these while others have tripled and more in the time that it took SRL to put on 50 or 60%, but finally patience seems to be being rewarded. Still trading at a significant discount to cash and asset backing, but not for much longer I hope...


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## jman2007 (12 June 2009)

J.B.Nimble said:


> Considering SRL was well and truly derisked with the partial sale of the coal assets it has been remarkably slow to return to a more reasonable value. It has been a real opportunity cost holding these while others have tripled and more in the time that it took SRL to put on 50 or 60%, but finally patience seems to be being rewarded. Still trading at a significant discount to cash and asset backing, but not for much longer I hope...




Tbh J.B I'm not sure that the market has entirely come to terms with understanding what SRL is all about, or myself for that matter! The key to unlocking its potential value may come in SRL acquiring a substansial stake in a up and coming project, or picking up a defunct operation at a firesale price. As I said previously, the non-coal assets look pretty ordinary, and realising their true value may be difficult task for SRL.

The ADU option is an interesting one, I remember having a look at that mob a long time ago, but for some reason or other they didn't fit the bill for me. I wouldn't really call it taking a strategic stake, more of a "dip the toe in" to test the temperature, but an interesting choice nonetheless.


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## Sean K (18 June 2009)

HUH!!



WTF are SRL doing with these handmeouts to junior crappo companies who obviously can't convince a bank to led them money?

You are not an investment bank SRL, you are a miner!!!!

Or, WTF!!!!

(Wonder who is old mates with an SRL board member)

AND, Saracen only just did a bloody raising!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


*Equity Raising*

The Directors advise that the Company has requested the Australian Securities Exchange (ASX) to grant a halt on the trading of the Company’s securities prior to the commencement of trading today.

The trading halt was requested pending the outcome of a placement of ordinary shares in Saracen (Placement) to institutional/sophisticated investors. The trading halt is requested until the earlier of the outcome of the Placement is announced to the ASX and the commencement of trading on Monday 22 June 2009.

The Company expects to raise no less than A$20 million from this placement. The Directors are also pleased to advise that Straits Resources Limited has agreed to subscribe for approximately A$3 million worth of ordinary shares, or approximately 5 percent of the Company’s post-placement issued capital.


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## Kremmen (18 June 2009)

kennas said:


> WTF are SRL doing with these handmeouts to junior crappo companies who obviously can't convince a bank to led them money?




That's not necessarily fair. As things have been recently, plenty of good companies can't convince a bank to lend them money. Of course, you may be right, but SAR looks like it might have prospects.

SAR has had a pretty stable price recently, nearish its year high. They claim they will be a gold producer by Mar qtr 2010, with costs of A$640/oz. Presumably SRL will get a good discount on their placement, so it may be a good investment.


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## jman2007 (28 June 2009)

Interesting aticle in 'The Australian' business section from a few days ago about SRL, it might help shed a bit of light on where SRL might be heading over the next couple of years... if the title of the article "Cashed-up miner gets the gold bug" is anything to go by 

http://www.theaustralian.news.com.au/business/story/0,,25667734-18261,00.html


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## Sean K (29 June 2009)

I'm happy for them to buy some quality gold assets, but I think buying 5% of this and 5% of that will just keep them under the radar and undervalued. Why not just buy the whole operation and be known as a gold miner instead of an investor. I've seen too many companies with part ownership in projects trade well under NTA and never be fully valued. I hope they're not trying to turn themselves into an LST. So, SRL, go and buy AZM with 1m oz au for about $40m, and then PRU with 7m oz au for about $400m, and I'll be happy.


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## oldblue (29 June 2009)

Yes, it can be a bit of a worry when a cashed up company starts taking minority interests in others. It might indicate a lack of focus on the main game and/or indecision about what to do with the cash.

What is the general view of the calibre and track record of the SRL board and management?


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## jman2007 (30 June 2009)

kennas said:


> I'm happy for them to buy some quality gold assets, but I think buying 5% of this and 5% of that will just keep them under the radar and undervalued. Why not just buy the whole operation and be known as a gold miner instead of an investor. I've seen too many companies with part ownership in projects trade well under NTA and never be fully valued. I hope they're not trying to turn themselves into an LST. So, SRL, go and buy AZM with 1m oz au for about $40m, and then PRU with 7m oz au for about $400m, and I'll be happy.




Yeah fair points kennas

I didn't know SRL had such a large stake in Goldminco, who essentially look to be just a little tiddler poking around somewhere in NSW in the Lachlan Fold Belt, and are also listed on the TSX for some reason. Can't really see the synergy between the two right now. That article notes that SRL have long flown under the radar of the market, although "dull" may be a little unfair on them. Although if this is the best they can do, it suggests they'd maybe be better of returning monies to shareholders as a special divvy. Although I have to say SRL was the standout perfomer amongst my portfolio today, healthy volume and a strong close too.


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## Kremmen (30 June 2009)

oldblue said:


> What is the general view of the calibre and track record of the SRL board and management?




For better or worse, I judge companies by what I know, which is IT. Based on my own experience with SRL in 2003 (yes, I was a shareholder back then and am again now), they seemed to be children trying to play with the adults.

When I pointed out that the main navigation buttons on the web site didn't work on standards-compliant browsers, I was told that the web site was not done by their IT department and that they had no plans to fix it. It had been done by "a consulting group on a personal request by the CEO", which, given how crappy it was, I took to mean an unemployed relative of the CEO.

Their web site is certainly much better now, but still looks unprofessional under the skin. (e.g. All of the styles are embedded in every single page, instead of being included from a single file, which was one of the main points of CSS.)

I think the main hope is that their assets are of sufficient value that one of the big miners decides to make a takeover bid sometime.


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## Sean K (30 June 2009)

Kremmen said:


> For better or worse, I judge companies by what I know, which is IT. Based on my own experience with SRL in 2003 (yes, I was a shareholder back then and am again now), they seemed to be children trying to play with the adults.
> 
> ...
> 
> ...



 I judge companies on their website too, and I just happened to be having a brouse through it to check the status of the Tritton Copper project.

They tell me this:



> Development of the new declines started in late 2007 and both are scheduled to commence production of ore in late 2008.


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## Sean K (30 June 2009)

I thought this was about to fall over and had the parachute donned, but it's had a remarkable 3 days. Early today, yes, but looks to be pursued for some reason. Touching $2.20 intraday. Will be interesting to see how she continues. As I've said before, nothing really technically stopping it for some time.


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## Garpal Gumnut (5 July 2009)

kennas said:


> I thought this was about to fall over and had the parachute donned, but it's had a remarkable 3 days. Early today, yes, but looks to be pursued for some reason. Touching $2.20 intraday. Will be interesting to see how she continues. As I've said before, nothing really technically stopping it for some time.




I'd agree Kennas, 

A nice looking chart with room for an upward move , slow but sure. and the volume ain't bad either.

gg.


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## Kremmen (9 July 2009)

Plunged to 1.865 just now. So, the question then is whether this is a buying opportunity, or the start of a downward trend.


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## Sean K (9 July 2009)

I'm still confused by the cash on hand and market cap, pre and post sell and dividend. It seems to be anything from $1.40 to $2.50. 

During this correction or capitulation to new lows, these companies must be watched to be picked up out of the rubble. 

Soon, you might get their cash backing at the price of a share, plus their assets and investments for free. Just like what was available a few months ago. This may sound quite insane (being half invested), but I am really looking forward to the next capitulation to take advantage of it.


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## skc (9 July 2009)

kennas said:


> I'm still confused by the cash on hand and market cap, pre and post sell and dividend. It seems to be anything from $1.40 to $2.50.
> 
> During this correction or capitulation to new lows, these companies must be watched to be picked up out of the rubble.
> 
> Soon, you might get their cash backing at the price of a share, plus their assets and investments for free. Just like what was available a few months ago. This may sound quite insane (being half invested), but I am really looking forward to the next capitulation to take advantage of it.




Just make sure you take all other parts of the capital structure into account so shares are fully diluted.

I recently did a quick exercise on another share. It had a relatively small convertible bond issue, but the conversion price was so low that it would actually add 40% to the shares on issue. This killed the cash backing per share calculations and basically act like a poison pill for takeovers.


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## Kremmen (9 July 2009)

This evening's news: RMI will not participate in cash call in Three Rivers joint venture with SRL. As a result, their share of the venture will drop from 30% to 15.73%.

If the Three Rivers project has value, then SRL's increased return from it should be a good thing. (Unless RMI failed to pay because it's not working out, rather than because of lack of funds.)


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## Sean K (30 July 2009)

I'm not sure what is driving this right now, but I don't care. 

They have a bunch of projects, none of which excite me, and some investments in some things that excite me even less, but they have a massive cash reserve which just says 'buy me'. Well, it did at 90c anyway, which is where I had a 'dabble'. 

There's a bunch of resource stocks that hit a bottom a few months ago and were amazing opportunities. Up 100-300%.

Wish I had have taken them all.


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## jman2007 (30 July 2009)

kennas said:


> I'm not sure what is driving this right now, but I don't care.
> 
> They have a bunch of projects, none of which excite me, and some investments in some things that excite me even less, but they have a massive cash reserve which just says 'buy me'. Well, it did at 90c anyway, which is where I had a 'dabble'.
> 
> ...




Well you picked this one pretty good kennas

I pretty much agree with your sentiment, their assets don't look to be setting the world on fire by any stretch of the imagination. They're due the final installment from the Straits Asia transaction during the next quarter I believe, that's going to give them one hell of a war chest to play with. Not sure what the techy stuff on the chart is called, but it looks to me like a pattern of "higher highs" and "lower lows" is being set. Other than that I don't care either!


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## J.B.Nimble (31 July 2009)

Well there goes the little bit of resistance we were seeing at 2.20 - three bounces but finally we're through. A nice looking chart...


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## jman2007 (31 July 2009)

J.B.Nimble said:


> Well there goes the little bit of resistance we were seeing at 2.20 - three bounces but finally we're through. A nice looking chart...




Yes have to agree,

Looking pretty good chart wise, let's hope SRL continues to set higher highs. Don't seem to recall any mention of a potential divvy in the Quarterly, anyone else able to shed any light on this?


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## J.B.Nimble (1 August 2009)

jman2007 said:


> Yes have to agree,
> 
> Looking pretty good chart wise, let's hope SRL continues to set higher highs. Don't seem to recall any mention of a potential divvy in the Quarterly, anyone else able to shed any light on this?




No specific mention. I'm guessing the special divvy will be held until such time as they have decided upon and undertaken a significant strategic investment. Any divvy from operations is probably going to have to wait until Straits Asia have reported. 

Performance of the non-coal assets is disappointing with the exception of Tritton, which is starting to look very good with cash costs of US0.93/lb copper. Sorting out Hillgrove looks to be a tricky exercise that will eventually reward our patience. Mt Muro is the troubling one - seeming to flip between marginally profitable, marginally loss making and their plans seem to flop with these flips. The Muro story makes interesting reading looking back over previous quarterlies. Perhaps the new deposits they refer to will be the catalyst for sustained profitable performance. I'll give 'em full marks for persistence on this one...


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## Sean K (2 August 2009)

I don't know how they are mining Whim Creek and Mt Muro. With cash costs around US$2.50 ave for the Cu and US$1000 Au, they must be wondering themselves. Serious questions need to be asked of the projects long term viability really. Unless Cu and Au double. No mention about hedging or what they are actually selling the product for. I thought that might be nice to know..

So, a litte home calculations:

Stated group sales revenue of US$64,491,000 (excludes GfE/Magon)

Total costs (excluding Hilgrove cause they give no cash costs?)

Triton	Whim	Mt Muro	    
6010	1455	64373	
0.93	4.27	1106	
5,589	6,212	71,196,538  

Total $71,208,340

So they seem to be losing about $6m on these.

At Mt Muro they're planning on producing 68k Au equiv at US$620 an ounce next FY. Still a bit high really...

I'm not sure about their investments in explorers either. Goldmenco looks like a turkey. Grades are too low, and so far low tonnage. Malachite is a dog, and should be let loose. Their $3m donation to Saracen to keep them from folding has 'old mates' written all over it. Same with the Adamus hand me out. Maybe I'm being a bit skeptical there. I'm not sure why they ever mention the Torrens Project in their presentations, nothing going on there. I've gone back to 2005 and haven't found an announcement regarding it. 

Lets hope they make some cunning decisions on all that cash earning 2% in the bank. If they leave it too much later they might get to buy at the top of the cycle...

And where the hell is that dividend?


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## doogie_goes_off (2 August 2009)

I have/had a mate working at Hillgrove, he reckons management have no idea and they just paddled into the wave at the right time, could well be set for a wipeout. Very sound analysis Kennas, always appreciated. With 248M in the bank they should be doing some strategic investment or they should take some advice from Chopper Read (aka Franklin) and hand over their f***ing cash.


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## Sean K (3 August 2009)

Well, just continues to go, following the market mostly I suppose.

Copper running helps I suppose. That can't just keep going straight up can it? I imagine when it corrects SRL may too. 

What's coal doing? I imagine a floor has been found there too. 

Break up through the 1 month $2.20 line seems to be following through, early in the day though.


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## shag (3 August 2009)

coal and iron ore r both great for aus. not sure about srl but ok prices times massive quantities equals damn flash in this environment.
im sure theres stockpiling of coal occuring too, to help support it.
these countries will remember how tight supply got pre crash.


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## J.B.Nimble (18 August 2009)

Late announcement yesterday - almost missed it - rezoning of the forested areas at Sebuku. With the reserve upgrade that flows form this it looks like the second installment of the PTT deal is in the bag...


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## Sean K (18 August 2009)

J.B.Nimble said:


> Late announcement yesterday - almost missed it - rezoning of the forested areas at Sebuku. With the reserve upgrade that flows form this it looks like the second installment of the PTT deal is in the bag...



What sort of upgrade are we looking at JBN?

Still trending up but the inevitable correction will take it's toll of course.

A little triangle forming here, but the next strong move must be down, right? Been saying that for some time....

I rate the outperformance in this to the Cu bounce. Been a nice bounce. Bear bounce?


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## Sean K (18 August 2009)

Nice way to get the sp to bounce. Close a mine. lol

They should close all their Australian operations and they might go up 50%. 

Very disappointed in their reporting of Hillgrove. As I mentioned in an earlier post, they didn't fully disclose operating costs, and obviously for a reason! They should not have got away with that. 

What are they going to next non disclose?


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## Sean K (20 August 2009)

OK, so now they've sold Whim Creek for $8m plus another $3m if it ever goes back to mining. Not in cash mind you which might be of value, but simply shares in the company they are selling it to: Venture Resources (VXR).

WtheF sell it for shares in the company that now own it!!!! 

I've taken profits, almost free carried, so I almost don't care, but this is getting weirder and weirder. 

VXR have some other interesting projects (Liberty-Lindee) but nothing of significance to my mind. For a company of their balance sheet and ready cash why are they playing around with 5% here and 10% there of these juniors of no real significance? 

And as for VXR buying Whip Creek, it's a turkey!!! Opex was killing it.


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## Sean K (21 August 2009)

Rightfully smashed down yesterday, but bought well off the lows which is encouraging. Why, I'm not sure. It really is a confounding strategic decision. Sell the entire project for then a 19% stake in the company, which is a 2 bit turkey.

Maybe it's just good to get rid of Whim Creek and concentrate on other projects. Patersons had it worth minus 2c a share to them on their DCF in April. lol

Looks like their strategy is to turn themselves into simply a listed investment company along the lines of LST. And we know how successful they were. Traded under NTA their entire existance. 

Patersons valuation is at $3.05
Macquarie $2.50

Maybe it's almost run it's course as a significantly undervalued company.

Oh, and just a recap on their great investment into Adamus Resources on 12 June. They bought 10m shares at 35c in a private placement worth $3.5m that gave them 6% of the company. Then on 10 Aug Adamus announce a placement of 115m shares at 35c to fund development, almost doubling their shares on issue. This has diluted Straits 10m shares to just 3% of the company. ADU last traded 33c. What the hell are they doing here?


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## nomore4s (21 August 2009)

kennas said:


> Oh, and just a recap on their great investment into Adamus Resources on 12 June. They bought 10m shares at 35c in a private placement worth $3.5m that gave them 6% of the company. Then on 10 Aug Adamus announce a placement of 115m shares at 35c to fund development, almost doubling their shares on issue. This has diluted Straits 10m shares to just 3% of the company. ADU last traded 33c. What the hell are they doing here?




I don't think they really know what to do with all the money they have. They appear to be just blowing it on 2 bit companies. I'm actually pretty close to exiting my final parcel, they've had a great run but the lack of direction is starting to worry me.


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## Sean K (21 August 2009)

nomore4s said:


> I don't think they really know what to do with all the money they have. They appear to be just blowing it on 2 bit companies. I'm actually pretty close to exiting my final parcel, they've had a great run but the lack of direction is starting to worry me.



The fundamentals were compelling to me a few months ago. Now, not so much. Time to just play by the chart maybe. Still in a clear uptrend, although that dip down just through it yesterday would have shaken a few stops by the look. Has been supported well on dips.


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## Sean K (28 August 2009)

Looks to have broken down. Was respecting that uptrend till yesterday which happened to coincide with horizontal support. It tried hard to hold on, but couldn't do it. 

Looking forward to see what other 2 bit minnow they waste some more cash on.


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## MACCA350 (31 August 2009)

SRL has declared an unfranked final dividend payment of 30c per share..........that's over 14% of the current share price

Record date is 9th of September!!
Payment date is 21st September

cheers


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## fureien (31 August 2009)

Thats my birthday! 09/ 09/ 09. no joke lol Might just buy in for the sake of that lol.

Isnt the market sp meant to move up usually when they announce dividends? why did it drop down....


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## Kremmen (1 September 2009)

fureien said:


> Isnt the market sp meant to move up usually when they announce dividends? why did it drop down....




Well, they did announce that they'd be making a 30-50c dividend payment as part of the sale of part of the asian subsidiary, so the only thing we didn't know was exactly when it would be.


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## Sean K (1 September 2009)

Kremmen said:


> Well, they did announce that they'd be making a 30-50c dividend payment as part of the sale of part of the asian subsidiary, so the only thing we didn't know was exactly when it would be.



I think I recall that it was going to be a 30c divie initially, and then a further 20c when the final cash payment was delivered.

What you will probably find is the sp drop by the divie amount when it is delivered. So, be prepared for a decent drop on the payment date.

I've got no idea what they are doing strategically here. 

They eventually lost money this year, but were buying small stakes into other companies. Surely their priority should be to conserve capital when they knew they were going to lose money. Maybe I'm missing the strategic significance of owning 5% of this and 3% of that....


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## Sean K (25 September 2009)

SRL have just thrown away a few more million to increase their stake in Goldminco to 66%, a gold exploration turkey gobbling in the Lachlan Ford Belt. While Goldminco might be lucky to hit something in the future, so far they have nada, and why SRL are bothering is confounding. Their projects have some mineralisation but the grades are so low they will never be mined. This company seems to have no direction.


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## Loose (1 October 2009)

See above for how I feel about these guys. Massive potential with minimal direction. I think you've nailed it Kennas but unfortunately I'll have to hold this one and flick it when it's closer to cost.


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## jman2007 (1 October 2009)

I'm out for the time being @ $1.64. 

No real incentive to keep holding, as I do not believe they have demonstrated any clear decision making (other then shutting a mine down! ) in the last 2 months. Pretty much a break-even stock for me in the end, but at least I get the divvy. I wonder how much lower this could go?


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## Kremmen (8 October 2009)

kennas said:


> SRL have just thrown away a few more million to increase their stake in Goldminco to 66%, a gold exploration turkey gobbling in the Lachlan Ford Belt. While Goldminco might be lucky to hit something in the future, so far they have nada, and why SRL are bothering is confounding. Their projects have some mineralisation but the grades are so low they will never be mined. This company seems to have no direction.




With the current gold price at record levels, maybe they are hoping for crumby grades to become commercially viable?

SRL up 6% per day for the past 2 days.


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## Sean K (8 October 2009)

Kremmen said:


> With the current gold price at record levels, maybe they are hoping for crumby grades to become commercially viable?
> 
> SRL up 6% per day for the past 2 days.



You think low tonnage sub 1% grade underground gold mining in Australia will be viable? 

How do you account for the fall in SRL from 2.50 to 1.50 while gold moved towards record highs? 

Maybe there's a reason....somewhere out there


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## jman2007 (10 October 2009)

kennas said:


> You think low tonnage sub 1% grade underground gold mining in Australia will be viable?
> 
> How do you account for the fall in SRL from 2.50 to 1.50 while gold moved towards record highs?
> 
> Maybe there's a reason....somewhere out there




Yes it is looking a little wobbly isn't it? I don't understand why they aren't talking to or informing the market about what they're up to???  Totally bizarre trading over the last 4 days, glad to have unloaded for the time being, the unwary could have taken a real bath if they weren't careful with this one recently.


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## dingaling (12 October 2009)

Wished i had read this thread before splashing $10k on shares at $1.62ea

Just have to sit and wait it out


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## dingaling (13 October 2009)

newsstore.smh.com.au/apps/previewDocument.ac?docID=GCA00997902DGO

Sounds promising. I might hold on for abit longer.


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## white_goodman (15 October 2009)

technically it looks very attractive to me... nice bit of support at 1.50-1.60.

I would post a chart but I'm at work, so will tonight


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## Sean K (24 November 2009)

Tritton exploration drilling:

'Excellent' results out.

Extending known mineralisation 'significantly'.

19m@.92% Cu
3m@3.3
24m@.81.....

Actually, these aren't very good at all...



Are they kidding?


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## Sean K (16 March 2010)

SRL starting to look oversold again, but sum of parts. I've lost track of NTA after the coal breakup but they were supposed to be worth $2.50 or something just on the cash component about 6 months ago. 

Anyone keeping scores here?

They are really just turning into a LIC I feel, which always seem to trade under NTA.


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## JTLP (16 March 2010)

Did they end up paying out that Divi from the cash allocation?

Are they intending on paying on a regular divi?

What happened to the gold project?

A lot of questions here...does seem like a bit of an LIC...SP is looking rather weak with the way the market has been over the last few months though? 

Maybe because they don't really do anything?


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## Sean K (16 March 2010)

JTLP said:


> Did they end up paying out that Divi from the cash allocation?



I was sent a pile of cash from the first installment but had to pay about 50% tax on it because of an admin blunder. Not sure what happened with the rest. Was easy money in retrospect.

As far as the rest of their projects, way off the radar.


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## Sean K (1 May 2010)

It would behove members to check out the NTA of Straits and what their current MC is. I believe it is getting into significant under true valuation territory like it was during the GFC. 

I will do my best to find the time, but I think their investments and cash backing are way above their current MC which is a no brainer short term arb trade.

There was a comment in the Fin in regard to this this weekend. Can't post it because they make you pay for their on line stuff.

Would be great if someone could add some substantiation to this with some facts and figures.

Cheers.


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## ormond (2 May 2010)

kennas said:


> It would behove members to check out the NTA of Straits and what their current MC is. I believe it is getting into significant under true valuation territory like it was during the GFC.
> 
> I will do my best to find the time, but I think their investments and cash backing are way above their current MC which is a no brainer short term arb trade.
> 
> ...




Article in  'The Australian' the other day.

Straits Resources (SRL) $1.30

PSST . . . want a profitable copper mine for free, with some change left over? That's the conundrum of Straits, given its $330m market cap falls well short of the value of its cash and investments, let alone its own assets.

As of March 31 Straits held cash of $220m and an investment in Indonesian coal producer Straits Asia Resources, worth $340m. Straits also has $43m invested in other listed companies, which adds up to a theoretical worth of $603m. On the other side of the ledger, Straits has an $80m convertible note and a $50m trade finance facility.

Conservatively, that leaves at least $100m on the table. Then there is Straits' own Tritton copper mine in NSW, its Mt Muro gold mine in Indonesia and its mothballed Hillgrove antimony turf.

We're not pretending these are all top-notch assets, but given they're "free" they don't need to be. Speculative buy


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## zerolimit (24 May 2010)

just read on SMH 


that argonaut analysts looking a safe portfolio blah blah


"Straits Resources (SRL) was included on the basis it trades at a 40 per cent discount to net tangible asset backing."


would be interested to know what the actual NTA is

i do not hold SRL (yet)


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## Sean K (24 May 2010)

zerolimit said:


> "Straits Resources (SRL) was included on the basis it trades at a 40 per cent discount to net tangible asset backing."
> 
> 
> would be interested to know what the actual NTA is



You could have read the post above yours.



> Article in 'The Australian' the other day.
> 
> Straits Resources (SRL) $1.30
> 
> ...




$330 MC, with $603m MC less debt facilities of $130m = $473m.

So, on that valuation, they are trading $143m below NTA.

Then add in all the property and plant etc they own...

They may be trading at such a discount for a reason (I think their Australian projects are crap) but this is definately one to watch if the market capitulates just on the coal investments.


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## Kremmen (16 June 2010)

Huge movement all of a sudden on SRL. Up 10c today, after rises for the previous 3 days as well. Maybe there's news we don't know, or maybe it's just herd mentality?


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## explod (16 June 2010)

Kremmen said:


> Huge movement all of a sudden on SRL. Up 10c today, after rises for the previous 3 days as well. Maybe there's news we don't know, or maybe it's just herd mentality?




It made a particularly good technical breakout yesterday on the 6 month daily chart from the high of 180 in Jan of this year.  A break above 150 is the next target and clearing that may see it rise to the 160 area where there is a lot of overhead resistance if you look at the 12 month daily.   As you say, with only a 50% rise in volume may well be just day traders and could puff out tomorrow.


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## Sean K (4 July 2010)

Can anyone else confirm the current stats on SRL.

255m shares on issue at $1.28 = $326m mc.

Indirect holding in SARL is worth about $321m.

So, just on that level, their mines are worth just $5m.

But wait, there's more.

They have $263m in cash and invstments.



So, not including their mines, they are trading $260m under NTA, or about $1.00 ish per share.

Is this no brainer territory?


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## JTLP (4 July 2010)

kennas said:


> Can anyone else confirm the current stats on SRL.
> 
> 255m shares on issue at $1.28 = $326m mc.
> 
> ...




Think back to your Brockman day's Kennas :

I'd just be watching the markets at present...long term stock market is a weighting machine or whatever the saying is!

The thing with BRM and SRL is that BRM were on there way to doing something and had a stockpile of cash. SRL just remind me on an investment fund but as a Miner/Energy Co. Kind of like that dud MLM


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## Sean K (24 July 2010)

JTLP said:


> Think back to your Brockman day's Kennas :
> 
> I'd just be watching the markets at present...long term stock market is a weighting machine or whatever the saying is!
> 
> The thing with BRM and SRL is that BRM were on there way to doing something and had a stockpile of cash. SRL just remind me on an investment fund but as a Miner/Energy Co. Kind of like that dud MLM



Yeh, this is no Brockman, or even a Giralia. 

But, it was dramatically oversold last time and is again. Jst sentiment and logic not in step at the moment.

At $1.38 at the moment, looks like a couple of higher highs and lows, but like eerything else at the mercy of the overall market sentiment.


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## Sean K (29 July 2010)

Looks to have bottomed, for the minute.

From their quarterly out today:



> *CORPORATE*• Hillgrove antimony gold mine‐discussions continue
> with interested parties.
> • At the end of June 2010, the Straits Group cash and
> investments (excluding SARL) totalled A$251 million.
> ...




So, NTA around $600m.

MC at todays price of $1.44 is $367m.

No brainer a few posts ago...

Higher highs and lows still going on but not yet through the Great Wall of China resistance across $1.45-1.50 ish.


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## Boggo (19 August 2010)

Will it or won't it.

Its trying to get over the line, a significant area of resistance.
.


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## Boggo (31 August 2010)

SRL is now in the zone depicted on the chart above.
Signs of a potential turnaround in its news today and a 5c unfranked dividend in three weeks you give it the momentum to break through.

Just my


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## Sean K (6 September 2010)

Fundamentally was way undervalued and now showing clear break through $1.50 and the downward tend also. Couldn't see it get back to $7.00 from here could we? Hasn't recovered like most other copper, coal stocks really. Probably because Triton is crap, but if Cu keeps going may recover a bit more. Still fundamentally well under NTA.


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## Boggo (14 September 2010)

A follow up to my earlier post, SRL seems to be doing nicely now since it got through that area of resistance.

(click to expand)


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## Boggo (20 September 2010)

Sold today at 178.5, it goes ex tomorrow with no franking credit.

May consider buying it back when it drops below 173, it will probably go well below that as stops are triggered that haven't been adjusted for the dividend.

Should be worth seeing just as an exercise


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## skc (20 September 2010)

Boggo said:


> Sold today at 178.5, it goes ex tomorrow with no franking credit.
> 
> May consider buying it back when it drops below 173, it will probably go well below that as stops are triggered that haven't been adjusted for the dividend.
> 
> Should be worth seeing just as an exercise




I have been playing around with some dividend stripping recently. I found that in general, the fall in share price is less than the dividend drop off. Any franking credits will be cream on top. 

This is particularly true for stocks that are in prominent uptrends. It is also true for many stocks that have relatively low liquidity. My suspicion is that some retail investors forgot to pull / adjust their bid price on ex-div dates.

This observation however is based only on this most recent dividend season, and the overall market has been strong throughout the last month or so.

Will be interesting to see how SRL go tomorrow. 

Fundamentally SRL is still trading well below NTA, most of which is holding in the Singaporian listed Straits Asia - but that may not have any bearing on how it fare tomorrow.


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## skc (21 September 2010)

skc said:


> I have been playing around with some dividend stripping recently. I found that in general, the fall in share price is less than the dividend drop off. Any franking credits will be cream on top.
> 
> This is particularly true for stocks that are in prominent uptrends. It is also true for many stocks that have relatively low liquidity. My suspicion is that some retail investors forgot to pull / adjust their bid price on ex-div dates.
> 
> ...




Free 5c dividend as the stock opened at $1.78 - unchanged from yesterday. 

Price now fallen back to $1.74 which is probably the fair ex-div price.


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## Boggo (21 September 2010)

skc, did you buy or do you hold SRL.
It's looking ok at the moment, I placed the funds in SMX as its had a clean break above $6.50 this morning.


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## skc (21 September 2010)

Boggo said:


> skc, did you buy or do you hold SRL.
> It's looking ok at the moment, I placed the funds in SMX as its had a clean break above $6.50 this morning.




I hold some from a few months back. I bought some yesterday and sold that parcel this morning and essentially stripped the dividend. Wanted to buy it back today but my buy order is not likely to get filled. I will prob just hold onto my original parcel and see enter on further pull back.

SMX is looking decent. Although on a down day its liquidity can be quite low. I was tempted to short SMX (as part of a pairs trade) but since you are long I will probably not pull the trigger . The long leg would have been OKN or DWS.


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## Boggo (21 September 2010)

skc said:


> SMX is looking decent. Although on a down day its liquidity can be quite low. I was tempted to short SMX (as part of a pairs trade) but since you are long I will probably not pull the trigger . The long leg would have been OKN or DWS.




On testing my Metastock signals only 37.72% of them are successful, the "eyeball the results" procedure improves that enormously.

So, because I am long, in theory there is a 62% chance of a short working


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## skc (21 September 2010)

Boggo said:


> On testing my Metastock signals only 37.72% of them are successful, the "eyeball the results" procedure improves that enormously.
> 
> So, because I am long, in theory there is a 62% chance of a short working




Haha. SMX can easily pull back to retest $6.5 before sprinting ahead. And that's a 3% move - the sort of margin I am playing with. So as long as it doesn't hit your stop we could both make profit. So some poor 3rd person can be the loser 

Back to SRL.

I am quite happy to hold while keeping watch on Straits Asia chart instead - the buffer between current price and SRL's asset is still very large.


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## takestock (23 September 2010)

I've just sold my SRL shares and I am happy.I had been sitting or rather sweating on this company to move up!
I've had a terrible time trying to decide what to do.Sell and take the loss or wait?It seemed that the company was not only taking a pummelling from within but also from outside economic events.
I had also tried averaging and it did help but I considered it more luck rather than skill.
I managed to "getaway" with a couple of hundred dollars profit.
I'm now going to take a little rest from the market


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## breaker (23 September 2010)

SRL
went up today on good volumes
weekly and monthly charts all heading north
EMAs look pretty sweet 
me thinks you may kick yourself in the near future


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## Boggo (23 September 2010)

takestock said:


> I've just sold my SRL shares and I am happy.
> 
> I had also tried averaging and it did help but I considered it more luck rather than skill.




In my opinion averaging only works when the stock is continuing in the direction you want it to go.
Sounds like you got out of sync with this stock but you are out and happy, don't forget there is a dividend coming your way too.



breaker said:


> SRL
> went up today on good volumes
> weekly and monthly charts all heading north
> EMAs look pretty sweet




I sold on Monday, expected a bigger drop after it went ex dividend, in hindsight I should have stayed in as I had bought in on the break above 1.50, it does look strong at the moment.


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## takestock (23 September 2010)

breaker said:


> SRL
> went up today on good volumes
> weekly and monthly charts all heading north
> EMAs look pretty sweet
> me thinks you may kick yourself in the near future




You may well be right however I just had enough of this company.I felt like I was stuck behind a slow driver on the right-hand lane and staring at the same tail lights,waiting for the person to increase speed(or me to overtake). 
The EMAs do look good but at this present time I'm not going chance a mudslide or something else to happen to one of it's mines and kick the company in the guts....again!
If people decide to buy SRL ....go for it ,the charts appear favourable.


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## Sean K (1 November 2010)

From their quarterly:

● At the end of September 2010, the Straits Group cash and investments (excluding SARL) totalled A$218 million.

● At the end of September 2010, SRL’s indirect holding in Straits Asia had a market value of A$356 million.


Total cash and investments: $574m

Shares on issue 255m @ $1.87 = $476m MC.

Then, throw in an operating copper mine and a gold mine....


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## mgm1a (4 November 2010)

Kennas - book value maybe but what about net profits were losses 2007, 2008, 2009 and 2010

Heres a shares that is mining all the hot stuff - gold, coal, copper silver but it doesn't make a buck (op losses 24m) but two directors still get $6m additional for the year in loans for shares under an exec share scheme?????!!!!

These 2 directors loan balances total $21m! - they must be hanging out for  a t/o bid so they can clear them at a profit as they don't seem to manage profits operationally

I trawled through the 2009 ann report, hard going and couldn't get my head around valuing it, so your're probably as close as anyone


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## skc (4 November 2010)

mgm1a said:


> Kennas - book value maybe but what about net profits were losses 2007, 2008, 2009 and 2010
> 
> Heres a shares that is mining all the hot stuff - gold, coal, copper silver but it doesn't make a buck (op losses 24m) but two directors still get $6m additional for the year in loans for shares under an exec share scheme?????!!!!
> 
> ...




I think the play on SRL is completely different...

The truth is, SRL Asia is a listed company on Singapore and can be readily valued. Same with cash (for obvious reasons).

According to Kennas' numbers there is 38c upside in the share price on those two assets alone. You don't need any valuation on the other assets (as long as they are not negative value) to realise that SRL is for some reason trading at a large discount to something very tangible...

I hold and will continue to do so until that gap is closed (via SRL going up or SRL Asia going down).


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## Sean K (4 November 2010)

skc said:


> I think the play on SRL is completely different...
> 
> The truth is, SRL Asia is a listed company on Singapore and can be readily valued. Same with cash (for obvious reasons).
> 
> ...



I put no value whatsoever on Triton and Mt Muro, they are crap. As soon as it's close to it's NTA it's probably not worth holding imo. Management haven't got a clue on this one, how they ever turned it into such a big company is beyond me.


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## Sean K (11 November 2010)

kennas said:


> I put no value whatsoever on Triton and Mt Muro, they are crap..



Looks like SRL are going to sell their only real assets in the coal to Asia and rename themselves as a metal explorer/miner.

Initially this is a very good idea as it will definately unlock the cash and investment value to shareholders. 

However, what you're left with is a down right turkey with the key assets being Mt Muro and Tritton. While they are trying to realise the value of the non coal assets to shareholders, I think what they'll be left with is what they are currently rated as. Dirt.


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## skc (11 November 2010)

kennas said:


> Looks like SRL are going to sell their only real assets in the coal to Asia and rename themselves as a metal explorer/miner.
> 
> Initially this is a very good idea as it will definately unlock the cash and investment value to shareholders.
> 
> However, what you're left with is a down right turkey with the key assets being Mt Muro and Tritton. While they are trying to realise the value of the non coal assets to shareholders, I think what they'll be left with is what they are currently rated as. Dirt.




When the announcement came out I didn't have time to read in detail, but glanced that the full value of coal investments are realised...with slight premium to share price of SAR. So sold half my holding at the close.

$1.72 for the coal co implying a value of 49c for the metals co based on today's close at $2.21. Whereas the metal assets have been valued at some *minus* 20c few months ago. Copper and gold are both sexy at the moment so may be metal co will have some value... if only perceived value.

Will see what happens tomorrow but probably trail a very tight stop. The original reason for holding is no longer there.

Entry was $1.355 on 9 July + 10c dividend along the way... so not a bad trade (a fundamental trade that worked!). Thanks Kennas for the alert back on 4 July. 

My shout if you are ever in Brisbane. :bier:


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## Sean K (11 November 2010)

skc said:


> My shout if you are ever in Brisbane. :bier:



 I'll do that!

I'm probably being a bit negative on their non coal stuff. They are actually producing, they just need to get the opex fully under control and the commodities to keep running.


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## ParleVouFrancois (11 November 2010)

It looks to be an alright deal for SRL holders, there's nothing worse than sitting in an undervalued company with management not bothering to eliminate the disconnect between value and price. With the difference between the value and price slowly decreasing it shows that progress hsa been made, and this demerger is part of that progress to value their assets properly, I don't hold shares but it's nice to see that some companies out there still look after shareholders when the NTA is so high compared to price.


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