News

September 11, 2008

Stratex’s Share Price Weakness Obscures A Fundamentally Strong Position In Turkey

By Alastair Ford

Bob Foster of Stratex International gets on the phone for a quick chat, following an upgrade to the in-house resource numbers for his company’s lead project at Altintepe in Turkey. It might be just a fancy, but you can almost hear the exasperation in his voice. Bob isn’t one to shy away from market updates. Indeed Stratex has a fairly good track record of keeping the market well informed about developments on all of its properties in Turkey, from the Teck Cominco-funded drilling at Konya, to new resource updates at Altintepe, to the ongoing hunt for porphyry systems in and around Doganbey. The company has continuous dialogue with major shareholders, and if the Stratex website is slightly out of date, well, you can always catch the latest news on Minesite.

But Bob presents a single salient fact about Stratex, one that serves to illustrate how meagre the rewards for all the effort Stratex puts into communicating its successes can be. Subtract Stratex’s £4.1 million cash in the bank from the company’s current £7.9 million market capitalisation, says Bob, and then divide that total by the number of ounces the company has to its name so far, and you come out with the eye-watering fact that the market attributes a value of between US$5.00 to US$6.00...