monkey chomp at 99c

See today's announcement in terms of context. Looks pretty cheap to me now at uder a $. I now see little risk but no doubt she will fluctuate.

Yesterday, Straits Resources Ltd (ASX:SRL) reported to the ASX
that it reached agreement with its bankers to extend the maturity of its
existing $50 million debt facility until March 31.
Recently it announced the financial close of a $US300 million
debt facility by its Singapore-listed subsidiary, Straits Asia Resources,
with the Standard Bank of London.
Straits Resources is in the process of reviewing its long-term
debt requirements.
A Euroz research report points to a sharp fall in the company's
value which is now trading at about $150 million below the value of its
47 per cent stake in Straits Asia Resources.
Euroz's Greg Chessell says he is "staggered" by such a huge
arbitrage.
The terms of the arrangement with Standard Bank of London (SCB)
provide for a $US250 million term loan facility, repayable in two equal
instalments by May 2010, as well as a revolving working capital facility
of $US50 million.
In addition, Straits Asia will issue SCB with 35 million warrants
that may be converted to ordinary shares at any time prior to May 2010.
The debt facility has allowed the Indonesian thermal coal
producer to immediately retire the $US230 million debt owing as a result
of the acquisition of the 5Mtpa Jembayan coal operation and Sebuku
Northern leases settled in December 2007.
The debt was due for repayment by December 17, 2008.
Straits Asia's CEO, Richard Ong said, "This completion places our
balance sheet in an extremely strong and enviable position with over
$US100 million in cash or near cash and with a further $US50 million
still available under the revolving loan.
"The completion of the debt re-financing comes on the back of
expansion plans to increase production capacity to 11Mtpa by mid-2009, as
well as an 82 per cent increase in coal resources to 254Mt that was
announced to the market yesterday.
"We are targeting production in the range of 7-8 million tonnes
from Jembayan in 2009," Mr Ong added.
But investors should heed these remarks sent to the ASX on
November 20 from chief executive Milan Jerkovic, who said Straits was
reviewing whether to keep mining its Tritton copper mine in NSW amid a
dramatic drop in the world copper price.
He added that the mine is marginal due to a halving of copper
prices this year and said he was prepared to take tough decisions on the
mines future if conditions didn't improve.
"Nothing is imminent, but you've got to look at the costs of
these things and be prepared to make hard decisions," he said.
"We're not prepared to operate at a loss."

SHARE PRICE MOVEMENTS
*********************

Shares of Straits Resources yesterday rose 5c to 82c. Rolling
high for the year is $8.55 and low 62c. Dividend is 2c to yield 2.44 per
cent. Earnings per share is a negative 8.4c and p/e ratio minus 9.76. The
company has 232.9 million shares with a market cap of $190.9 million.
A day after Mr Jerkovic's statement, chairman Alan Good told
shareholders it was a period where the external economic environment has
deteriorated significantly due to the global credit crisis.
"While Straits Resources's business is fundamentally sound, no
resource company has been immune.
"Growth in both developed and developing countries is slowing
quickly and commodity prices are falling in line with decreasing demand.
"At Straits, the major focus of the group between April and
September this year was the proposed re-structuring of the company which
involved separating Straits coal assets from the remaining metals and
mining assets.
"This transaction had to be cancelled in late September due to
the credit crisis."
During 2008 Straits Asia Resources bedded down the Jembayan coal
mine in Indonesia which was purchased late in 2007, and in January
Straits purchased 35 per cent of a company which owns an 80 per cent
interest in a number of coal leases in Madagascar.
In addition Straits has also invested in a company with coal
opportunities in Brunei.
In Australia, Straits is completing the expansion to 35,000
tonnes of copper in concentrate at the Tritton mine, and in NSW the
Hillgrove antimony/gold mine is currently ramping up to full production.
Sebuku produced 1.96 million tonnes in the 6 months to June 2008,
a record for this period.
Infrastructure is being put in place to expand the operation by
2009, however Mr Good said the mine will only ramp up to this production
rate once approvals have been received to move the production forest
boundary.
The Hillgrove antimony, gold and tungsten project was officially
opened in September and is currently ramping up to a production rate of
10,000 tonnes of antimony metal, 20,000 oz of gold and 30 tonnes of
tungsten in concentrate.
"While it is difficult to predict what will happen in the future
it is clear that the mining industry must, and is adjusting to the
changing economic conditions," Mr Good said.
"Straits has moved quickly to cut non-essential costs and will
continue to look at ways of improving margins moving forward.
"While base metal prices have fallen significantly in $US terms,
the weakening $A has been of substantial benefit, and we are now
experiencing some relief in operating cost pressures through a reduction
in consumable costs.
"Of the range of commodities that Straits produces, thermal coal
and copper are considered to be two of the best commodities to be in for
the future and Straits is in an exceptional position to benefit from any
opportunities which may arise," he said.
In coal, Straits Asia has contracted to sell nine million tonnes
in calendar 2008 of which approximately 7.5 million has been shipped.
"Straits will continue to advance its exciting coal projects in
Madagascar and Brunei and will continue to explore both around its mine
sites as well as focusing on key exploration targets in South Australia
and the Lachlan fold belt of NSW through subsidiary Goldminco
Corporation," the chairman declared.

BACKGROUND
**********

Straits Resources Ltd listed on the Australian Stock Exchange on
July 8, 1994.
It is a diversified resources company focused on generating
strong and sustainable earnings from a balanced portfolio of resource
projects.
Based in Perth, the company has a management team with an
impressive track record of advancing resource projects through to full
production.
Straits controls and operates the Whim Creek copper operation in
WA, the Tritton copper operation and Hillgrove antimony/gold mines in
NSW, the Mt Muro gold mine in Indonesia and the Sebuku and Jembayan coal
mines in Indonesia owned by Straits Asia Resources.
In addition Straits holds an outstanding portfolio of mining
investments, development projects and exploration ground throughout
Australia, Indonesia, Madagascar and Brunei.
Straits also owns Gfe/Magontec, a European based speciality
metals business.