SRL - Straits Resources

[Sean K]

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?

 

[Sean K]

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?

 

[Sean K]

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.

 

[Sean K]

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?

 

[nomore4s]

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.

 

[Sean K]

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.

 

[Sean K]

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.

 

[MACCA350]

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

 

[fureien]

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....

 

[Kremmen]

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.

 

[Sean K]

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....

 

[Sean K]

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.

 

[Loose]

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.

 

[jman2007]

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?

 

[Kremmen]

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.

 

[Sean K]

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

 

[jman2007]

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.

 

[dingaling]

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

Just have to sit and wait it out

 

[dingaling]

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

Sounds promising. I might hold on for abit longer.

 

[white_goodman]

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