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Stratex starts busy year with strong cash

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Stratex International (LON:STI) has lots on this year and starts from a strong cash position, it told investors, updating on activities in Turkey and East and West Africa.

Chairman Christopher Hall said: "Stratex's prospect generator business model saw the US$27 million of cash resulting from monetisation in 2012 put to good use in 2013."

During the year, the group completed a 33,000 metre drilling programme on the Dalafin project in Senegal; began a second phase diamond and RC (reverse circulation) programme, currently underway; carried out follow-up drilling at Blackrock and Megenta in Ethiopia and made its first strategic investment in Tembo Gold Corporation based on the excellent prospectivity and proximity of the firm's ground holdings to the 14mln ounce (Moz) Bulyhanlulu gold mine in Tanzania.

"We start 2014 with a strong cash balance - approximately £10 million - and are increasingly confident of future operating cash flow from our 45% owned Altintepe gold mine in Turkey given the relatively short, six month construction period once we have received the final outstanding permits," said Hall.

Exploration, he added, will be focused on the Dalafin project in Senegal, where Stratex hold a 75% interest.

"We expect to release further results in the next few weeks from what is an exciting multi-target project. Results are also awaited from phase two drilling at Megenta. Elsewhere in East Africa we expect to see some activity in Djibouti where the Oklila project holds the strongest, yet untested, potential in our Rift Valley programme.

"In Turkey, our partner Lodos is working towards completion of a feasibility study on the Muratdere copper-gold porphyry and we should also see the results of our more closely focused drill programme at Tembo in the first half of the year.

"Management continues to maximise benefit for minimum expenditure and to conserve cash pending the start of cash-flow from Altıntepe. We have solid finances, highly prospective projects and excellent teams in each of our three operating hubs and we look forward to an exciting year of building more value for shareholders."

Shares gained 6.06% to stand at 4.375p.

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Price: 0.52 GBX

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