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Northland Capital Partners View on the City PHSC, Stratex International

PHSC plc (LON:PHSC) – CORP: Change of adviser

Market Cap: £3.1m; Current Price: 24p

Appoints Northland Capital Partners as Nomad

PHSC plc, a provider of health, safety, hygiene and environmental consultancy services and security solutions to the public and private sectors has appointed Northland Capital Partners as its Nominated Advisor.

Stratex International (LON:STI) – BUY*: FY15 results

Market Cap: £8.3m; Current Price: 1.8p; Target Price: 6.6p (from 6.9p)

LBT reduces to £0.8m

LBT reduced to £0.8m in FY15 from £2.6m in FY14, due to reduced corporate overheads, £2.8m received (net) from sale of the Öksüt royalty and £1.4m loss for equity investments, associated with a write off in Thani Stratex Resources.

Net cash totalled £4.1m in FY15 from £4.7m in FY14.

Forecasts updated following FY15 results and yesterday’s Altintepe update. As a result, we have downgraded our price target to 6.6p from 6.9p. BUY rating maintained.

NORTHLAND CAPITAL PARTNERS VIEW: During 2015 Stratex International transitioned from developer to producer at its 45%-owned Altintepe Gold Project, a major milestone for the Company that will see the business begin to generate regular stable cash flow during 2016. The Company also generated £3m from the sale of its 1% NSR at the Öksüt Gold Project, further strengthening the Company’s cash position. Stratex is continuing to look at potential acquisitions and is in a strong position with a significant cash balance and additional cash generation while most other juniors in the sector are struggling financially.

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