Big picture - Why invest in Stratex International plc
Stratex International plc Snapshot
Focused on the exploration and development of gold and high-value base-metal deposits, AIM-quoted Stratex International is active in Turkey and Senegal and has strategic interests in East Africa and Ghana. In the eight years since listing, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver.
The Company has a successful record in forming joint venture partnerships with both local private companies and major international mining companies, including Antofagasta, Centerra and Teck in Turkey, and Thani Ashanti in East Africa. The Company has also attracted an impressive line-up of cornerstone investors, namely AngloGold Ashanti, Teck and BlackRock Investment Management.
The completion of the sale of its interest in the Öksüt gold project in Turkey in December 2012 for US$20 million cash (plus a further US$20 million as a 1% NSR royalty from production, anticipated Q2-2017) and the additional sales of 45 per cent and 51 per cent of its Inlice and Muratdere projects respectively, has enabled the Company to develop despite challenging market conditions. Cash flow from production at its 45 per cent-owned Altintepe gold project in Turkey will provide further development capital for the company from Q4-2015.
The Company's strategy is utilising these funds to maximise returns for investors. The two key objectives are (i) a commitment to progressing majority-owned projects towards economic evaluation and development, and (ii) to take advantage of quality opportunities arising in the smaller exploration company sector.
The Company’s unconventional approach to risk is redefining the path to exploration success and the Board has already been presented with a number of opportunities to acquire assets from other companies that are finding financing via the equity markets challenging. Selective investment could transform a discovery into a resource, or an early stage resource into a project which has clear economic potential.
Stratex is well-funded relative to the majority of its peers and the Board remains focused on significant growth as it moves towards a sustainable cash flow from operations. The Company is well placed to move from a successful explorer to a strategic player.
Chief Executive Officer
Marcus has over 30 years’ experience in the global mining industry; at Board level and as managing director of a London-listed company.
Marcus commenced his career in 1976 with a firm of Chartered Accountants in South Africa and from 1985 he spent 20 years in various roles at BHP Billiton, including Chief Financial Officer of the group’s Diamond and Speciality Products division. After a short period of time co-running a financial services consultancy, he re-entered the mining industry in 2009 as Chief Financial Officer for OceanaGold Corporation, an Australian-based gold company listed on the ASX, TSX and NZX.
Between 2011 and 2013, Marcus was managing Director and CEO of Archipelago Resources plc, formerly an AIM-quoted, Singapore-based gold company with a producing mine in Indonesia, a turnover of c. US$200m and annualised gold production of 150 koz. During his tenure, Marcus successfully took the company from construction to production.
Marcus currently serves as a non-executive Director of Xanadu Mines, an Australian-quoted exploration company.
Christopher Hall BSc, MSc, CEng
Christopher Hall has over 40 years of wide ranging experience in the mining sector. After graduating in geology, Christopher worked in exploration and as a mine geologist with Consolidated Goldfields in Australia, before returning to the UK to take an M.Sc. in Mining and Exploration Geology. This was followed by periods as a mining analyst with stockbroker Messel & Co, in the investment and mining divisions of Anglo American associate Charter Consolidated where he was involved in the acquisition and management of tin, tungsten, coal and quarrying companies, and in specialist resources fund management with Touche Remnant. He helped to establish European Mining Finance, an international mining finance and investment company, which was the first resource company to list on AIM, and served as the company's CEO from 1991-97. After leaving EMF he worked as a consultant, spending three years managing the UK office of international mining consultants Behre Dolbear, before joining Grant Thornton LLP in 2005 as their in-house mining adviser, principally assisting the Capital Markets team with clients listed on London Stock Exchange and the AIM market.He has been a director of numerous private and listed companies and has been on the Stratex Board since 2008; initially as Non-Executive Director and then as Non-Executive Director from January 2011. His experience enables him to make a contribution across the whole spectrum of technical, financial and corporate aspects of the mining business.
Chief Financial Officer
Perry Ashwood qualified as a Chartered Accountant in 1971, training with Spain Brothers & Co. and KPMG. Shortly after qualifying he spent five years with British Oxygen Ltd in their Corporate Office before moving to Rank Xerox Ltd in 1978. Perry was with Xerox for 20 years and held various positions ranging from Group Chief Accountant to Finance Director, Central & Eastern Europe. During his time with Xerox, he held both technical accounting roles, including involvement in internal controls and audit, and operational roles with extensive involvement in: Turkey; Egypt; India and Russia. He also spent three years on assignment in the USA at corporate headquarters as Manager, Xerox Business Arrangements where his major focus was on acquisitions, divestments and joint ventures. He joined Intermec International Inc in 1998 as Finance Director, Europe, Middle East & Africa before becoming an independent consultant in 2000 taking on various interim roles with small to medium sized businesses.
Emma Priestley- BEng, CEng, CRICS
Emma has a background in mining and financial services having worked with mining companies and consultants, IMC Mackay & Schnellmann, investment bank CSFB, advisers VSA Resources, Ambrian Partners, where she worked as corporate broker and adviser, and most recently as an executive director of Lonrho Plc until its successful takeover. Emma is a graduate of Camborne School of Mines, is a chartered Mining Engineer and Chartered Mineral Surveyor.
Independent Non-Executive Director
Peter Addison qualified as a solicitor in 1966 and practiced in the City of London, originally with Linklaters & Paines and subsequently with Norton Rose, specialising in company and commercial law. In 1982, he became a director of English Trust, a corporate advisory bank, and for some twenty years was involved in providing corporate finance advice to a wide range of public companies in the UK and Ireland on all aspects of their businesses. He is currently non-executive chairman of SiRViS IT plc, a UK company.
Chris Worcester BSc, MBA
Independent Non-Executive Director
Chris began his City career in 1993 at Barclays de Zoete Wedd, where he worked in the metals and mining project finance team. In 2000, he joined the Royal Bank of Scotland as Director and Head of Financial Modelling and Analysis, leaving in 2002 to join WestLB Capital Markets, the international investment banking division of WestLB, where he established and managed the global metals and mining team until 2007. Since then Chris has been actively involved in securing funding and investment for resource companies through private, specialist corporate finance company Stone Arch Financial and, more recently, Green Road Capital. For more than a decade Chris has lectured regularly on corporate valuation as part of the MSc in Metals and Energy Finance programme at the Imperial College, London. He has a BSc in Chemistry and an MBA in Finance.
Bahri Yildiz BSc, FGS, CGeol
General Manager Turkey
Bahri Yildiz is a Turkish national with an industrial career spanning more than 30 years dedicated to mineral exploration and mining geology throughout Turkey. A geology graduate of the Middle East Technical University, Bahri commenced his career in 1980 with the government's General Directorate of Mineral Research and Exploration (MTA) where he spent ten years managing a wide range of projects relating to exploration for precious and base metals. This was followed by three years as Exploration Manager with Turkish company Yurttaslar Madencilik before he joined Dardanel Madencilik, the Turkish subsidiary of major Canadian mining company Inco Ltd in 1992 as Senior Geologist. During his final four years with Dardanel he was Exploration Manager and responsible for generating and supervising a wide range of exploration programmes throughout Turkey. Following closure of the Turkish office in 2003 he became an independent consultant before joining Stratex in April 2005.
General Manager West Africa
Issouf Ouedraogo graduated from the Faculty of Sciences and Technology at the University of Ouagadougou, Burkina Faso, where he obtained a Master’s degree in Applied Geology in 1995. Following graduation he joined AngloGold Ashanti, eventually becoming Chief Geologist for Siguiri Gold Mine in Guinea and then Exploration Superintendent for the Geita Gold Mine in Tanzania.
Issouf joined Gold Fields as Exploration Manager for DRC in 2008 before relocating to Accra in 2009 as Regional Geologist, responsible for generating projects in frontier gold camps throughout Africa. At this time he was also acting Country Manager for Gold Fields in Guinea and more recently was their JV Manager for Ethiopia. He joined Stratex in June 2013.
Claire Bay MGeol, FGS, CGeol, EurGeol
Group Manager - Corporate and Project Development
A Chartered geologist with eight years’ experience in the resources sector, Claire joined Stratex in 2007 and has been instrumental in supporting and managing the group at all levels from project to senior corporate. In addition to managing the Company’s corporate and investor-based activities, Claire is heavily involved in data review and interpretation and project generation.
John Cole-Baker BSc, MSc, DIC, MICE, CEng
Director, Stratex West Africa
John graduated in Civil engineering from Queen's University, Belfast, and subsequently earned a Master's degree at Imperial College, London. With over 40 years of experience, John has been involved in infrastructure and mining development projects, at various levels up to Project Director, as well as restructuring projects in Africa, Europe, the Former Soviet Union, the Middle East, and the Indian sub-continent. Since the 1990's, John has been Director of a number of consultancy companies including CSA Group Ltd, IMC Ltd, and Mackay & Schnellmann Ltd, and prior to that was the Managing Director of the exploration company BUMINCO. John has had significant involvement in advising governments and restructuring government institutions in a number of countries across Africa, the Middle East, and Asia. His understanding of the minerals industry and its investment criteria has resulted in his appointment as an advisor to UNCTAD. He is fluent in French and has a good working knowledge of Spanish.
Shareholder Number of Shares Held at 23rd March 2016
AngloGold Ashanti 53,710,219 11.49%
BlackRock Investment Management 38,936,821 8.33%
Teck Resources Limited 35,727,487 7.65%
Orion Trust Limited 26,469,925 5.66%
G. P. (Jersey) Limited 20,000,000 4.28%
Antofagasta 10,362,694 2.22%
Thani Emirates Resources 10,263,013 2.20%
Stratex International Plc
Tel: +44 (0) 207 830 9650
Fax: +44 (0) 207 830 9651
Grant Thornton UK LLP
30 Finsbury Square
Hannam and Partners
2 Park Street
Auditors and Reporting Accountants
1 Westferry Circus
Solicitors to the Company
2 Stone Buildings
Share Registrars Limited
Suite E, First Floor
9 Lion and Lamb Yard
Solicitors to the Company
Boğaz Sokak 7/8