SRK - Strike Resources

[peter2]

Update on SRK as it appeared in my HVBB weekly scan.

The haul road to the highway for the Paulsens East IO project is almost complete. SRK will then be able to get their IO to Port Hedland for export. Did you notice that LEL shares have spiked higher.

 

[greggles]

SRK up 18.18% today to 11c on no news. I think the market is finally waking up to the value here. SRK has, in my opinion, been oversold. Delays and a falling iron ore price has seen SRK sold off hard.

I suspect we will see a strong recovery once China opens up again and demand for iron ore starts to improve.

 

[peter2]

SRK have paused iron ore shipments due to the rising costs and decreasing margin. IMO today's price rally is due to the rising price of SRK's investment in LEL (lithium). Notwithstanding LEL, other iron ore producers also went higher today.

 

[greggles]

SRK have paused iron ore shipments due to the rising costs and decreasing margin. IMO today's price rally is due to the rising price of SRK's investment in LEL (lithium). Notwithstanding LEL, other iron ore producers also went higher today.

Thanks for filling in some blanks there. I was following SRK early last year but it slipped off my radar this year due to the sell off. I will go through recent announcements and bring myself up to speed.

 

[peter2]

Strike Resources Ltd. (SRK) has three main business activities.
1. Developing its Paulsens East iron ore project (WA) . SRK has already shipped 66t of ~62% lump DSO and is planning to increase this to ~1.8Mt pa out of Port of Asburton (Onslow). Ashburton is closer than the Port Hedland port and allows transport cost savings once complete.

2. Iron ore project in Peru that has shipped some DSO product.

3. 43% holding in LEL that has the Solaroz Lithium Brine project in Argentina and a graphite project in Qld.

Worth considering for many reasons.
(i) Rising IO price (now >$120t) making it more profitable to export IO.
(ii) Recent cap raise (0.08) completed to pay for development of it's WA IO project.
(iii) Marine environmental works approvals for Port of Ashburton operations.
(iv) Current price of SRK seems to be at a low near 0.09. Worth considering as a speculative position only as it's easier to trade the tier 1 IO exporters (FMG, MIN, CIA, GRR, MGX) for a quicker buck while the price of IO is rallying.