SRK - Strike Resources

[simonb]

up 40c in the last month....

Do people think it will drop substantially after the uranium spin off?

 

[Darryn]

Up to 2.12 and it keeps on going. I think the main strong point about SRK is its iron ore, hence it shouldnt drop after the sin off. However on the other hand the market always over reacts, so it could pull back a little.

 

[Darryn]

Very good news out today.

 

[simonb]

and today.... Peruvian drilling results in. Drilling targets exceed expectations.

 

[kransky]

todays ann:

Iron ore project in Peru

21 drill hole results include:

hole# Intercept Grade
*32... 108m.... 62%
33... 80m...... 60%
35... 114m.... 63%
37... 84m..... 61%
40... 82m..... 63%
41.... 28m..... 61%
*42... 154m.... 62%
44... 90m..... 62%
45... 48m.... 60%
50.... 44m.... 60%
51.... 51m.... 59%

*hole ended in mineralisation

And these are very shallow with intercepts starting at 18m,86m,6m,18m,0m,32m,16m,24m,2m,28m,34m.. etc

Total strike length is ~2km with each ore body 150-400m wide.

60M shares traded. closed at $2.74
cap = 164M

 

[56gsa]

the numbers on this appear a bit crazy - a 768 MT iron ore resource, and looking for 1.2 bn MT.... and MC of only $164m -- what is the market missing - does the altitude of the resources impact likelihood of mining? is Peru an issue? it all looks dirt cheap / cheap dirt

the U-spin off conditions look attractive for SRK holders of 5000 shares or more @ 6 march:
. min $2000 in Alara which has a number of prospects with Bigrlyi South enough to attract interest imo
. also has bonus loyalty option 3 months after listing (@ 1c for 25c option June09)
. in-specie distribution back to SRK holders 6 mths after listing (at approx 1 Alara to every 4 SRK)

will be topping up i think....

 

[Halba]

Its a landlocked resource.

Capex will be about over 800mil to 1.5bil for this op.

Needs to build slurry pipeline/upgrade rail just like FMG.

If FMG can do it anyone can.

 

[Tubbles]

Newspaper article WA business news

Strike, Orion spin-off Uranium assets in $6m IPO
19-February-07 by Edited announcement

Perth-based investment company Orion Equities Ltd (formerly Central Exchange) and resources explorer Strike Resources Ltd have announced plans to spin-off their uranium assets in a $6 million IPO.

The new company, Alara Uranium Ltd, will sell 24 million shares at 25 cents each to raise $6 million, allowing for $4 million in oversubscriptions.

Strike will receive 28.2 million shares at an IPO price of 25 cents in exchange for its uranium tenements in the Northern Territory, Western Australia and Peru.

Strike shareholders holding over 5,000 shares will receive a priority entitlements to subscribe for up to 16 million shares on a pro-rata basis, with a further entitlement for 6 million shares if the company accepts oversubscriptions.

This would equating to a one for four entitlement (three for eight with oversubscriptions) for shareholders.

Assuming full oversubscription, Strike could hold up to 36 per cent of Alara's total issued share capital. Strike intends to return 16 million Alara shares to Strike shareholders within six months of listing.

Orion, which holds a 25 per cent interest in certain Strike uranium tenements through its subsidiary Hume Mining NL, will receive 6.25 million shares in Alara as a result, as well as a priority entitlement to subscribe for up to 2 million shares.

The IPO will leave Orion holding 7.76 per cent of Alara if it does not take up its priority entitlement, with 10.25 per cent if it does.

I am a current holder of this stock

 

[Halba]

Forget the u spinoff, the iron ore drill results were superb.

1300m tonnes of iron ore..next FMG?

 

[Darryn]

Share trading just below $2.00. One month ago it was trading at $2.75. Fundamentals are still exactly the same.
Seemed to not have recovered after the correction. In my opinion $2.00 is a bargain price for this stock, however the market obviously doesn't think so, hence such low volume recently.
Any thoughts as to why SRK is not recovering as of yet?

 

[Darryn]

Starting to look more promising today, some large trades of 300000 earlier this morning. I think it might be on its on its path to recovery. (In my opinion only)

 

[Halba]

WOW. Am feeling better that this is recovering in line with other iron ore companies. Bout time Darryn. I guess its just us two on this stock. Cheers have a good one.

 

[Darryn]

I guess so Halba, nice to see my paper losses dissapearing! I topped up with some options @ 1.65 recently. I reckon it should recover in the next few months - well at least I hope so. Good luck to you

 

[Halba]

Yep in this case averaging down would work, coz the size of the resource means it'll come good at some point.

 

[56gsa]

this has come from 20c a year ago so retracement not unexpected - also looks like a bounce off the 61.8% level - any EWers want to comment on chart?

i think there was a bit of a run on this prior to u-spin off record date (6 march) as well... by the way - havne't seen any dates on this yet - does anyone know when the applications will be sent / close etc?

 

[Darryn]

Alara prospectus at http://www.alarauranium.com.au/

 

[Halba]

Is the priority application form mailed out yet? I haven't received my app in the mail..anyone have?

 

[Darryn]

I have not received mine either, I'm sure it will come in post real soon.

 

[the barry]

I have not received mine either, I'm sure it will come in post real soon.

Announcement today saying they will be sent out later this week. Do you think this will be succesful/ over subscribed? I bought the 5000 shares for the priority entitlement. Interested on thoughts.

 

[Dutchy3]

What a great TA stock .... Big White new air coming up? Signaling a resumption of the uptrend ... ?