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Stratex International PLC seeking to grow via acquisitions

Shares in precious metals firm Stratex International PLC nudged higher as it said it continued to seek growth through acquisitions and narrowed its loss in the year gone.
Stratex International PLC seeking to grow via acquisitions
"We have an outstanding record of exploration success; an ability to turn that success into cash; an aversion to equity issues to finance overheads; a virtually carried 45% interest in a producing gold mine, and a healthy cash balance," said Hall..

Shares in precious metals firm Stratex International PLC (LON:STI) nudged higher as it said it continued to seek growth through acquisitions and narrowed its loss in the year gone.

The constrained junior mining sector played into the hands of firms like Stratex, said chairman Christopher Hall.

"We have an outstanding record of exploration success; an ability to turn that success into cash; an aversion to equity issues to finance overheads; a virtually carried 45% interest in a producing gold mine, and a healthy cash balance," he said.

Particularly, the group is looking at West Africa for an acquisition, he told investors.

The firm reported a 20% reduction in admin costs to £2.1mln showing efforts made, and it ended the year with cash of £4.1mln, aided by the sale of the Őksűt royalty, which generated £3mln of cash.

Pre-tax profit for the year was £790,00, reduced from a loss of £2.5mln in the 2014 year.

Its gold joint venture at Altintepe in Turkey, where it has a 45% interest, should achieve full commercial production by the end of the month and the firm noted its financial investment in the mine so far was less than US$2mln

Partner Bahar has financed the entire operation, to the tune of more than US$40mln and Stratex remains confident that we will see a recurrent cash flow in the current year.

"We continue to seek to reduce overheads and are making progress with this in Turkey, Senegal and with Goldstone. Production at Altıntepe is expected to develop into cash flow and the Board and management are redoubling efforts to find a new project which will increase and diversify our cash flow," concluded Hall.

Stratex shares added 2.82% to stand at 1.825p.

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September 01 2016

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