Daily Mining Monitor
In the news:
• Pelham Investments Limited ('Pelham') has acquired 236,264,884 shares in the capital of the Company from Renaissance Financial Holdings Limited ('Renaissance')
• Believes transaction price was 3p ps
• Pelham now holds 19.6 % of the issued share capital in the Company and Renaissance are no longer a shareholder.
Sirius Minerals (SXX LN, MCap: £308M, 23p) has released the Preliminary Coring Results for Plc SM11A.
In this news:
• Intersection from the deflection SM11A successfully cored through the shelf seam of polyhalite at mine site
• 41.6 metres of 86% polyhalite (including 27.3 metres at 93%) intersected within a total length of 57.2 metres
• Independent geologists SRK have confirmed they expect the results of SM11 and SM11A will support the upgrading of a significant portion of the Inferred Resource to the Indicated category.
This is a positive results for Siruis. The hole is actually a deflection from SM11 and the mineralisation can be correlated between the two. As a result SRK expects will enable the upgrading of a significant portion of the current Inferred Resource to the Indicated Resource category. However, these are preliminary results and the upgrade won’t occur until the chemical assays are received in May with the resource upgrade expected in June.
The Financial Results Include:
• Profit for the year before tax of £9,696,795, including profits of £11,693,918 from the sale of Öksüt and £1,057,488 from the sale of 51% of Muratdere
• Cash balances at the end of the year were £4,718,448, excluding cash of US$20M from the sale of Öksüt, which was received shortly after the year end
• Announced yesterday that Stratex to receive a further US$3.7M from the sale of its 45% interest in Inlice.
This has been a breakthrough year for Stratex, flying in the face of its peers culminating in the sale of Muratdere, Öksüt and as announced yesterday Inlice. We have critised the Company in the past entering into JV’s too early, especially on its East Africa Portfolio. However, this was really a function of the position the Company was in at the time, with a large portfolio and limited cash to develop them. This has now changed and the Company’s current cash position distinguishes it from its former peers and has allowed it to redefine its strategy. Whilst it will remain an exploration company (having already discovered over 2.2Moz gold and 7.9Moz of silver) it will now have the flexibility to retain control of its exploration projects and add more value via resource definition and economic studies. Secondly it can now acquire new opportunities, which are arising in the market where there is limited appetite to fund early stage exploration and where a modest investment by Stratex could add considerable value. We believe Stratex is in a very strong position and post Öksüt and Inlice it is trading just over cash looks undervalued with such a strong exploration portfolio.