News

June 03, 2010

There Should Be Plenty Of Newsflow From Stratex’s Gold Projects In Turkey And Ethiopia During The Second Half Of The Year

By Alastair Ford

“The excitement levels are multifold”, says Bob Foster, chief executive of Stratex. “We’ve got so many balls in the air.” The balls in question include a gold project in Turkey from which first gold is likely to be poured next year, two exploration joint ventures funded respectively by Centerra and Teck, also in Turkey, and the potential opening up of a whole new gold district in Ethiopia. Add into that mix a bank balance that stands at a healthy £2.5 million, with a further US$1 million due from a pending VAT rebate, and the picture that emerges is of a well-funded junior with near-term production, longer term development potential, and blue sky opportunities in Ethiopia. There’s also the strength of the management in Bob himself, a long-time participant in the mining space, and chairman David Hall, ex Anglo, with plenty of corporate experience of his own in the junior sector. Between them, they have built, at the helm of Stratex, a successful track record of pulling majors into joint venture partnerships. And the skillset involved in brokering such deals may yet be exercised again before the year is out. All-in-all it’s a pretty attractive package.

The only slight downside to the picture is the share price, which, although it’s risen by 50 per cent to just over 3.5p during the last 12 months, is still a long way off the highs of 10p and above that shareholders consistently enjoyed during 2007. Anyone who bought into back then might yet have to wait a little while to see a return. But the portents for a re-rating of some description are good.

Funded by Stratex’s Turkish joint venture partner NTF, Inlice looks set fair for production by...