There is much history here and the varying dates of entry for investors is key to their hopes and expectations
When I first invested in MTR the company (as an investment co) was active in a wide spectrum of metals( including copper, lead, zinc, silver and gold).Once the fortunate discovery of T3 by the MOD/MTR JV was made in the Kalahari Copperbelt, copper understandably became a significant focus for the company. However, this did not prevent investments in other good potential projects some more risky than others (the Thai lead/silver mines being one such high risk legacyinvestment).
Many early investors were fortunate to meet the highly skilled geos Julian Hanna & Terry Grammer who were obviously passionate about the potential treasure trove of copper sittling under the Kalahari bush and many of us bought into the company on just those credentials. But this project was always just one string to MTR’s bow so I don’t blame the company for continuing their business investing in other projects and juniors. Some worked, some didn’t (e.g PAM realised a £725k profit while the legacy Thai JV sadly lost £731k)
The vital point is that junior mining and exploration is a phenomenally high risk gamble for retail investors who often hold scant knowledge of the practical details of exploration.The board haven't recklessly entered investments, but had a team scrutinising and choosing each one from a host of potential projects. Unfortunately Covid and Putin's invasion of Ukraine have heavily impacted the natural resource sector. There are a host of unforeseen events that can hamper any project at any time.
Southern Gold had promise. Terry Grammer whole heartedly endorsed the project. Covid came along and stopped most exploration.It’s very early days forthe offspring Iondrive but we shall see what fate will bring.
On 21 April 2017 Sprott Capital Partners bought into MTR at 3p during the £4.85m placementshowing real confidence in existing projects. Sprott (Exploration Capital Partners) held just over 10m shares and the then president and CEO of Sprott, Rick Rule, personally bought 6m with his RIBO Trust. All at 3p old money.Rick Rule bought a network of expertise and HNWI to MTR and has always been an active and wise cornerstone shareholder in the company. MMc now knows him very well and they have great respect for each others integrity. Businesswise, RR is a very important contact for SRT. We LTH have learned that it’s better to have the Sprott family inside of the tent doing their thing rather than have them outside. They are all highly skilled at money making. One day I hope they can help their SRT investment sprout wings.
Any deal SRT are working on will have been scrutinised with the wealth of experience that the SRT Board have picked up over the years they have been at the helm. They will only make deals that they sincerely hope will benefit all shareholders alike. We retail investors have had a very difficult year with the ISA chaos so having plumbed those depths so I hope that we will one day achieve equal heights in share value. To invest in the then MTR or the now SRT is and has always been a calculated risk. Caveat Emptor.
SRT has to move with the times and find new ways to make money from the natural resource sector. I hope any new deal will widen its horizons.
(The ISA problem is still being wrestled with and may take a while to reach conclusion. Meanwhile it isn't difficult to use the services of Oz brokers if anyone wishes to trade. I am fortunate that I hold some of my SRT in a UK Jarvis ISA which I can still trade.)
SRT Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
(20min delay)