From SRK latest quarter report and half year report, SRK's financial position :
- Cash $38.9 millions, no debt. It is equivalent to $0.29 per SRK share.
- Loan to Apurimac Ferrum : USD $8.7 millions + USD $1.3 millions, totally about USD $10 millions
- SRK holds 44% of Apurimac+Cusco Iron Ore Projects in Peru, already spending $20 millions (?) in Exploration and evaluation.
- SRK holds 100% of Berau Thermal Coal in Indonesia.
The political situation in Peru is a concern. However, in a number of latest analysis (e.g. Bloomberg), new president Humala likely follows Brazil's model rather than that of Venezuela Chavez.
Even in the worst case scenario if Peru would nationalise or buy back Apurimac+Cusco Projects from SRK (SRK would get reimbursement as in the cases in other nations), SRK's value is still much higher than $0.29 per share due to its strong cash position and loan to AF. (SRK's cash alone is equivalent to $0.29 per share)
The market on Tues (07-June) seems to think the prices below $0.28 per share is a bargain, it is snapped up quickly.
From SRK latest quarter report and half year report, SRK's...
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