Oh dear. Oh dear. Another AIM debacle involving Chinese funny money. This time it is Stratmin (STGR). Its cunning plan was to do an RTO of Signature Gold and to fund that deal with a £5 million investment from Axel Management Group Pty Ltd. What could possibly go wrong?
Graphite play Stratmin Global Resources (STGR) has clinched a £2 million farm-in agreement with Aussie-listed explorer Bass Metals for its Loharano graphite mine in eastern Madagascar, which chief executive officer Brett Boynton argues ‘will be pivotal,’ despite an unenthusiastic response from AIM punters. Under the deal, Bass is taking a 25% stake in Graphmada Mauritius, the holding company owning Loharano, with an option to take its holding to 35% by mid-December.
Life has not been easy for AIM listed Stratmin (STGR) but top mining analyst Roger Bade has flagged up a new dark cloud hanging over the entire Graphite sector. The great man writes:
As the self-congratulatory celebration of AIM’s twentieth birthday reaches a crescendo, the odd share trades (just coincidence we are sure) continue unabated. This morning, in a perfectly timed manner, we found out why StratMin Global Resources’ (STGR) share price mysteriously jumped 19% in the last hour and a half of trading yesterday. This morning, the company announced a strategic partnership with India’s Tirupati Carbons & Chemicals Group. What is brilliant about this example is that we’ve been here before with StratMin. Better yet, I reported the last time well-timed traders got their hands on StratMin’s price sensitive information to the FCA.
Brett Boynton, the corporate financier chosen to head ambitious graphite play Stratmin Global Resources (STGR) has pleased investors in this recently lacklustre AIM performer by committing himself to a cost-cutting expansion drive to double projected output from the company’s flagship Lohorano project in Madagascar within two years, while seeking out deal opportunities to expand the company further.
Manoli Yannaghas, entrepreneurial managing director of emerging graphite producer Stratmin Global Resources (STGR), has set his sights on taking the AIM-quoted company towards monthly production of 250 to 300 tons from its Loharano project in eastern Madagascar during the first half of this year, after a chapter of delays. He says Stratmin, which sold 48 tons of the stuff in December, would break into positive cash flow at 300 tons a month, with an expected selling price of $1,000 (£657) a ton for large flake graphite and anticipated costs of $700 a ton, which would fall to $500 and below as Loharano’s output increased.
In late October Stratmin (STGR) stated that after a placing then that there would be no need for another placing. On Monday it announced that it had raised £900,000 at 4.75p in an oversubscribed placing.
Graphite production and exploration in Madagascar-focused, StratMin (STGR) has updated on performance in a holiday-shortened December and emphasised that its “confidence at the operational level has grown significantly over the last few months”.
Company A on AIM issues good news. The shares go up as private investors buy. Company A then issues shares at a sharp discount to a bunch of coked up City spivs who forward sell and flip the rest post placing so making a quick killing. It is coke and hookers all round in the Square Mile and the poor private investors are back on the cabbage soup. It seems a familiar tale and so after its shares spiked on an offtake deal (great news)…. Stratmin (STGR) duly raised £800,000 at 7p. Bastards. Or maybe not.
Following its announcing it has entered into an offtake agreement and rebound in share price last week, shares in StratMin Global Resources (LSE:STGR) got a second boost on the back of a further positive announcement. Two in a week – it all helps!
Broker Northland acts for Stratmin Global (STGR) so this is not impartial but it has published a detailed note on the stock after the signing of a major offtake deal yesterday. It reckons that the shares (now 8.1p) are worth 19.3p, that they trade on a 2015 PE of 9, falling to 1.5, and it has upgraded its stance from hold to buy. Analyst Dr Ryan Long writes:
AIM listed StratMin Global Resources (STGR) last week announced a 40 tonnes sales contract with a new customer - an “established European graphite trading house”, with delivery of the order expected to be “within August”. But there is more…
StratMin Global Resources (STGR) has announced “extremely encouraging” exploration results showing the presence of previously unidentified graphite mineralisation adjacent to its producing deposit.
This morning Stratmin Global Resources (STGR) announced these “positive exploration results” at its Loharano property in Madagascar. For shareholders in Stratmin the discovery of new “unidentified graphite mineralisation adjacent to its producing deposit” is undoubtedly very good and welcome news. But I am perplexed by the share price trading yesterday.
StratMin Global Resources (STGR) has announced that it has signed a sales contract with an established US-based graphite trading company and that “now sales channels are being secured, production will be fine-tuned and increased to meet demand and maximise profitability”.
Manoli Yannaghas, onetime debt recovery expert and former operations chief at the now-unloved Red Rock Resources (RRR), is celebrating his first year as managing director of graphite play Stratmin Global Resources (STGR). The company is on the cusp of the long-awaited move to commercial production in the south-east African island state of Madagascar. This could prove the catalyst for a positive move higher from this beleaguered stock.
Normally brokers’ research can be described as being similar to toilet paper. That is to say it is always thrown away in the end. The only difference is that toilet paper has one practical use before disposal. We demonstrated this in a statistical manner earlier today HERE. But
On May 6th Stratmin (STGR) announced that its Lohorano plant in Madagascar had produced 107 tonnes of large flake ( i.e. high quality) graphite in April – and that was managed in just 21 days since output started on the 9th. There is more good news on the way...
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