Australia's largest stock trading and investment forum Australia's #1 stock forum

BRV

0.00%

35.8¢ big river gold ltd

Mmm some strength coming into the buy side in harms way at .115...

First 6 Last

Share
Profile

Follow
andres

6,816 Posts.

1719

08/06/17

10:31

Post #: 25167831
Share

Originally posted by Tadtech ↑

As a Stratex shareholder I do not feel there is currently enough information out there to make an informed decision on this transaction. Many Stratex shareholders have averages above 3p (some 4p-5p) verses the current 1.4p, for these folk to just get their money back the new entity would need a valuation of £75m-£100m against the current value of Crusader of £25m.

Without the transaction Stratex would only need a valuation of £14m - £20m for that 3p-4p 'target' to be attained, a smaller deal or some form of modest corporate action may be considered a better bet by many holders in a rising gold equity sector.

As a Crusader shareholder I would want to know what level of dilution/debt the new entity will take on to deliver enhanced shareholder value, namely, to bring a project into production. You will get the opportunity of a London listing which should deliver significant volumes of shares traded and hopefully this would drive a re-rate, there are no guarantees. There may also be a share consolidation as 2.4 billion shares in issue is fairly rare on the AIM market these days.

I point out that an all paper offer does not normally deliver the share price uplift in the same way as a cash offer.

Since the transaction announcement the Stratex share price has plummeted to a 12 month low, investors are not happy to say the least.

Marcus Englebrecht was brought into Stratex to bring about change and deliver value but so far he has sold Stratex's main asset, a 45% stake in a newly producing 35k ounces per annum gold mine in Turkey for a derisory $8m and has now decided to dilute the hell out of Stratex's long suffering shareholders by doing a proposed transaction 'priced' near bottom of the Stratex 12 month trading range.

I think the boards of both companies need to deliver to shareholders a clear mission statement on the exact way forward.

These are my personal opinions and no advice is intended.

Expand

Mmm some strength coming into the buy side in harms way at .115 (Chix/ASX).......interesting.

CAS Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

MTL

Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus

NWH

NRW Holdings voted Wealth Within's hot stock tip

Super PITch gold sponsor RSM Australia: Can Diggers & Dealers 2024 be key to reinvigorating IPO activity?

KSN

Mineral Hill transition kicks off for Kingston, gold and silver ramp up to follow

AIZ

Air New Zealand ditches 2030 emissions targets – right as ASIC's Scope 3 reporting changes kick in for FY25

There are more pages in this discussion • 4 more messages in this thread...

First 6 Last

Add BRV (ASX) to my watchlist

Mmm some strength coming into the buy side in harms way at .115...

Top Stories

Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus

NRW Holdings voted Wealth Within's hot stock tip

Super PITch gold sponsor RSM Australia: Can Diggers & Dealers 2024 be key to reinvigorating IPO activity?

Mineral Hill transition kicks off for Kingston, gold and silver ramp up to follow

Air New Zealand ditches 2030 emissions targets – right as ASIC's Scope 3 reporting changes kick in for FY25

Featured News