Copper Strike (ASX: CSE) holds a stake of 11 million Syrah Resources' (ASX: SYR) shares which based on yesterday's closing SYR price of $2.80 values the investment at $30.8 million.
Adding interest to Copper Strike, the company has issued capital of around 107 million shares, and based on its last traded price of $0.18 - its market cap. sits at $19 million.
This valuation is more than a 50% discount to the SYR stake, plus Copper Strike had $1.5 million in cash at the end of 2013, further increasing the under-valuation of the company.
Earlier today SYR requested a trading halt pending an offtake agreement for the Balama Graphite and Vanadium Project in Mozambique, with CSE following suit and also requesting a halt pending the outcome.
SYR is rapidly progressing its core Balama project into production.
The halt will remain in place until the opening of trade on Monday 10th March 2014, or earlier if an announcement is made to the market.
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