SRK - Strike Resources

[56gsa]

Alara uranium float closes 8 May - listing 22 May as AUQ - the Bigrlyi deposit perhaps of most interest just near EME's deposit.

(i) Pampacolca (Peru) - Uranium
(ii) Bigrlyi South (Northern Territory) - Uranium
(iii) Mt James (Gascoyne, Western Australia) – Uranium
(iv) Mt Lawrence Wells (East Murchison, Western Australia) - Uranium
(v) Canning Well (Pilbara, Western Australia) – Uranium and Gold

In specie distribution of 16 m AUQ shares to SRK holders in next 6 months

Results from iron ore drilling due May and June/July - last results showed large intersects of high grade ore near to surface - trying to establish a JORC for target mineralisation in two areas over 1bt iron ore

enough to keep the interest going over the next few months

chart looks good with all indicators heading in the right direction - like the recent bounce off a slightly higher support (1.95) than longer term one (1.85) - fibonacci levels work well with this from 32c low last year, and suggest a target of $3.25, with importants levels @ 2.35 and 2.70 which equate nicely with chart resistance levels

mkt cap approx $200m

... and for a laugh have a read of the last ann re directors interest - look at what they put for value/consideration - good to see a sense of humour

enjoy

 

[Punter]

Alara uranium float closes 8 May - listing 22 May as AUQ - the Bigrlyi deposit perhaps of most interest just near EME's deposit.

(i) Pampacolca (Peru) - Uranium
(ii) Bigrlyi South (Northern Territory) - Uranium
(iii) Mt James (Gascoyne, Western Australia) – Uranium
(iv) Mt Lawrence Wells (East Murchison, Western Australia) - Uranium
(v) Canning Well (Pilbara, Western Australia) – Uranium and Gold

In specie distribution of 16 m AUQ shares to SRK holders in next 6 months

Results from iron ore drilling due May and June/July - last results showed large intersects of high grade ore near to surface - trying to establish a JORC for target mineralisation in two areas over 1bt iron ore

enough to keep the interest going over the next few months

chart looks good with all indicators heading in the right direction - like the recent bounce off a slightly higher support (1.95) than longer term one (1.85) - fibonacci levels work well with this from 32c low last year, and suggest a target of $3.25, with importants levels @ 2.35 and 2.70 which equate nicely with chart resistance levels

mkt cap approx $200m

... and for a laugh have a read of the last ann re directors interest - look at what they put for value/consideration - good to see a sense of humour

enjoy

hahaha I notice that...is the transfer for Victor's son/daughter?

SRK 1bt of iron ore , thats gotta be something special isn't it?

Surprised by the lack of interest on this forum, but 56gsa got to hand it to you for this timely marketing of the stock..

Hmm $200m mkt cap, i pulled up FMG's mkt cap the other day, its over 6 billion

Peru is a mining friendly country(apart from recent strikes) so should help

Looks like it might break new highs on timely release of drill results. MArket sentiment for iron ore is good. FMG,RIO,BHP all recording cycle/new highs...

 

[56gsa]

hahaha I notice that...is the transfer for Victor's son/daughter?

i was thinking fiance?! but no idea of victors family situation - could be his mother !?

 

[56gsa]

trading halt today -- possibly may's drilling results on iron deposits? ( i can't open ann so not sure if theres anything more in that?)

 

[rhen]

Doing some further research on SRK before posting and thanking Kennas for his astute observations on their most recent announcement, I came across this article:http://www.news.com.au/heraldsun/story/0,21985,22100680-664,00.html
which, in part, says:
An initial statement about JORC reserves at its Apurimac project in Peru noted that "based on an iron ore price of approximately A$55 a tonne, the in situ value of 172 million tonnes of iron ore at this grade is approximately equal to $A9.5 billion."
That statement had no sooner hit the ASX wires than it was followed by a "clarification", explaining that it may not be quite that simple.
This value did not take into account "further evaluation and test work that will be undertaken to determine the economic recoverability of the mineral resource." etc etc
Well, Fully Frank with John Beveridge writing for the Herald Sun, try being more faithful to the language...(and I quote)
In Situ Value represents a quantity of "Mineral Resources" multiplied by current Market Price of the resource (e.g. gold price, silver price, etc.). This is a hypothetical value of resources held by the Company underground. Extraction costs are not factored in.
Had the company referred to Frontier Value??:
Frontier Value (often referred to as Mine Asset Value) is calculated for only those company projects that have a completed feasibility or pre-feasibility studies. It represents in situ value of these projects less costs that are expected to be incurred in the extraction process. This calculation does not take into account capital costs of putting a mine into operation and the fact that it takes many years to extract a resource.
The company had not.
So what is the point of the article? Someone trying to talk down the asset??
I find this article condescending and insulting to investors. If one does not know what in situ value means and that there are other costs in extracting the ore, ..., then one should not invest in such companies.
Based on the facts as I interpret them, I purchsed some SRK shares and options.

 

[dj_420]

No one has posted on SRK for quite a while. Anyone still holding?

I like the iron ore play with these guys and considering market cap around 250 million IMO this makes it a very cheap iron ore play.

 

[rhen]

No one has posted on SRK for quite a while. Anyone still holding?

I like the iron ore play with these guys and considering market cap around 250 million IMO this makes it a very cheap iron ore play.

G'day DJ

Naturally, I'm still hanging in there.
Today's chart I believe to be positive. Though I can't say the same about the NMSA nor the NSDA.
GT Financial sounds positive on this sector in its most recent report.
All things being equal, the chart promises short term gains to me (but the keyword of course is "promises"!!)

have a great day,
rhen




Steffi Graf (1969-) U.S. tennis player

"You can have a certain arrogance, and I think that's fine, but what you should never lose is the respect for the others."

 

[jonojpsg]

Still not much talk about this one - read a recent ASX speeding ticket response which said they were in talks with third parties that would value them "substantially" greater than their current MC @ $2.38 per share.

Given their SP is $2.40 at the mo, this might well be one to jump on for a short term gain. Even if they don't sell up, their iron ore resource (JORC inferred of 172m tonnes) and aiming to set up a 42m tonne per year operation over the next three years sets them up to rival some of the bigger iron ore cos. Certainly worth a look.

I hold (CFD anyway)

 

[jonojpsg]

Just interested to see what others think about SRK looking at selling their major asset? If the deal goes ahead they will have almost double their current MC in cash but not much else going for them.

Obviously they could give some or all of the money back to shareholders but this would leave them with not much to exist for.

In the latter case, I would be quite happy to take $4 per share,which is about what it is worth

 

[Kaizen]

I sold a few today but still a few left.

It is hard to calculate the valuation as we need to know how much tax they will pay or if it is a scrip bid... Good result though.

 

[hookon]

Any one else really disappointed in the announcement & share price response.

Does it really take a two day trade halt plus a weekend to respond to media speculation?

Did they think the deal was going to be done but didn't?

Or are they shopping for a better price? Stating the price of sale is shorly an attempt to attract another party or up the price or make the party pay that price.

Does anyone else feel that it is also a cheap price?

Paydirt magazine says Strike was looking to have 600mt by Sept 2008.

With a fully diluted share issue of approx. 100million & sale price of US$450million AUS$514million according to one website. That would put it in the $5 mark on sale.

Yet only hit $3.10 & is back to $2.60-$2.70. I know its not signed off on but it shorly gives a market value to go off. I also know fair value is not always represented by share price.
But why not in this case? Even if it were not to proceed it would give a current value of the company which the share price should represent imo.

So has the deal started to fall through?

Geezer thought it was done deal about two weeks ago. Things not falling ino place as they should.

Lets hope this gets done sooner rather than later.

Also Prefeasabilty study due out as well. Are they withholding this due to sale?

Also resource upgrade due March/April. Is this maybe not as good as hoped or better? Are they selling with this included?

Need some clarification from SRK.

Feel free to respond & correct me.

 

[kransky]

SRK is great either way. if it doesnt go through then they will have 600Mt soon... with mcap of 213M

if the sales does go through then they will be cashed up majorly and will be able to tackle the other tenaments they have in peru. Apparently they have plenty..

with 500M in the bank they will be able to afford to develop a big project with no more raisings...

looks good to me.. holding

 

[arae]

Capital gains tax paid on the deal would be 30% in Peru if I'm not mistaken.

The latest offer made was US$650 million. Strike have a 68% stake which equates to US$442 million

US$442 million/92 x 100

= AU$480 million

AU$480 million x 70%

= AU$336 million

AU$336 million/ 86 500 000 shares

value per share = $3.89

 

[Kaizen]

Capital gains tax paid on the deal would be 30% in Peru if I'm not mistaken.

The latest offer made was US$650 million. Strike have a 68% stake which equates to US$442 million

US$442 million/92 x 100

= AU$480 million

AU$480 million x 70%

= AU$336 million

AU$336 million/ 86 500 000 shares

value per share = $3.89

Don't forget the options they have on issue + if the options are issued they will receive cash and some have a high strike price. They also need to pay some money to get up to owning 68% of the project. I think they have an option to buy up to 68%

 

[kransky]

its more complicated than that i reckon..

what if you hold an asset longer than 12 months...
what about costs incurred in developing the asset...

just when you think this one is going to submit to some sheeple selling.. buyers come in and snap up the bargains..

 

[hookon]

its more complicated than that i reckon..

what if you hold an asset longer than 12 months...
what about costs incurred in developing the asset...

just when you think this one is going to submit to some sheeple selling.. buyers come in and snap up the bargains..

I agree. In australia you would take off the cost of the asset on sale for your CGT.

Don't know about 12 month discount
a) If taxed in Peru the 12 month discount is an australian tax rule
b) If taxed in Australia a company is not eligible for the discount

Either way i believe there is an over estimate by previous thread on CGT Payable.

What do people think of the delays in announcing anything? Two day trade halt to talk about media speculation. Then nothing. Is deal falling through?

Where is the PFS due out in March as per UBS iron ore presentation?
Where is resources upgrade due in april?

Are they holding these off so only the purchaser knows?

 

[crisstoff]

I brought a few of these today as they appeal for various reasons.


- Great grades from their Peru Projects and Paulsens East in W.Aust.
- Have a resource of 172Mt @ 62.28% - Apurimac. They have a 68% interest.
- An updated resource is due for Apurimac as well as a Pre- FS.
- Aim to bring Paulsens East into production early 2009 - and Stage 1 (2Mtpa)at Apurimac in 2009.
- Historical estimates show large potential 1.2billion t+ -

Resource estimates from surface mapping and sampling by Peruvian
Ministry of Energy and Mines (1974) and Takahashi Trading (1961):

Deposit 1
Apurimac
~730 Mt.
62- 66% Fe.

Deposit 2
Cuzco
~500 – 650 Mt.
64%+ Fe.


Now the concerns I have which I wish to research throughly before buying more are;

- Management. The recent and still possible sale of the Peru Fe Projects. I cannot understand why you would sell it considering the potential.
- JV partner.
- CAPEX for Stage 2 and 3.
- Community negoiations for access and future plans for surry pipeline....


Any comments would be appreciated, especially regarding management

 

[Sean K]

Trading Halt.

Looks like they're going to take up the option to increase their stake in the Peruvian projects.

 

[56gsa]

interested to see this pop up again - if announcement excites market chart suggests it could be heading for blue sky... ?? on the weekly struggling to close above $2.70 which has been a fib level since last year - if the $2.10 / $2.70 channel is bouncing between 38/61fib levels then could be headed for $3.70?

all will be revealed...

 

[hookon]

I brought a few of these today as they appeal for various reasons.


- Great grades from their Peru Projects and Paulsens East in W.Aust.
- Have a resource of 172Mt @ 62.28% - Apurimac. They have a 68% interest.
- An updated resource is due for Apurimac as well as a Pre- FS.
- Aim to bring Paulsens East into production early 2009 - and Stage 1 (2Mtpa)at Apurimac in 2009.
- Historical estimates show large potential 1.2billion t+ -

Resource estimates from surface mapping and sampling by Peruvian
Ministry of Energy and Mines (1974) and Takahashi Trading (1961):

Deposit 1
Apurimac
~730 Mt.
62- 66% Fe.

Deposit 2
Cuzco
~500 – 650 Mt.
64%+ Fe.


Now the concerns I have which I wish to research throughly before buying more are;

- Management. The recent and still possible sale of the Peru Fe Projects. I cannot understand why you would sell it considering the potential.
- JV partner.
- CAPEX for Stage 2 and 3.
- Community negoiations for access and future plans for surry pipeline....


Any comments would be appreciated, especially regarding management

Management are a mistery. Some people like some don't.

I was very unhappy with PFS delays & the company making Resource upgrades due in Sept have every chance of being delayed going on the short history that i know.

They have however secured there 68% early which seems to be smart even though it has caused issues with other holders better solved now.

I am not strong on management myself. The sale announcements are strange @ the least.

I believe the same company who was looking @ buying could be a potential investor instead, as proposed in the announcment hence no further news.

If you haven't bought any extra yet now is a premium time.

PFS due very very shortly. Resource upgrade of major size due Sept & Price has dropped big time on legal issues. I have read these are to last 6 months but SRK has strong position.

Believe sale was a good fall back as at the time only have small resource but potentail outways sale now.

Only thing is Aussie hate anything foreign. If they don't know it they don't go it.

Good luck with your choice