Stratmin has turned a corner reckons Allenby Share 11:33 11 Sep...

Stratmin has turned a corner reckons Allenby
Share
11:33 11 Sep 2015
In the last 12 months, the company has worked hard to address the multiple legacy issues
http://www.*.co.uk/thumbs/upload/News/Image/2015_09/757z468_mine_ore_body.png
The mine ore body at Loharano in Madagascar
London’s only pure graphite miner, StratMin Global (LON:STGR), has turned a corner, according to broker Allenby Capital.

The natural flake graphite business listed on AIM in January 2013 and has seen its share price has fall by more 93% in the following 18 months since.

But in the last 12 months, the company has worked hard to address the multiple legacy issues encountered, the broker said.

“The company’s flagship operation, Loharano, has, we believe, at last moved into profitability and a cash flow positive position.”

Investor interest in the space is thought to be growing, as new applications for graphite come online.

“As one of the only listed plays globally that is producing graphite, we feel that the investment thesis for StratMin is based on three key items: it is a recovery play; it is a business that is enjoying first mover advantage; and it offers UK investors unique exposure to natural flake graphite production.”