The Eritrean government has absolutely no money- and certainly not upfront money) to buy mining ventures. They pay some share out of profit, so companies get some of their money back that they pay to the govt. Unlike other Eritrean companies, the govt has not said it will buy into STB (I am not sure about the 10% govt ownership that applies naturally under their mining laws- it's not mentioned in the STB update), but merely have profit share, and STB isn't making any profit and still has to fund its own development.
As crazy as it sounds, the play for local holders (or would-be holders), is for the Duketon shares, imo. Not much will happen until the reduction in capital and ex-date, I don't *think* (could be wrong). The trading is thin on STB, the shares are few- and soon to be fewer).
I'd put money that China is watching the STB share price closely, and the Eritrean government, too. With the current market cap, and STB being loaded with cash (forgetting capex costs), I'd be amazed if the company isn't taken out sooner than later.
- Forums
- ASX - By Stock
- STB
- relentless selling
relentless selling, page-3
-
- There are more pages in this discussion • 48 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add STB (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online