BUY
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BuyBAO
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26 Jul 2014 16:37
Price at rating: 7.78, now:
After a root-and-branch overhaul of the mine, which employs 85, the problems of low recoveries and low-grade production, which resulted in a 60 per cent drop in the share price, have been dealt with, he explains.r r Full production is expected in 2016 along with a £5.6m operating profit.r r The latest exploration results at a neighbouring deposit could extend the current 10-year life of the mine, say analysts.r r Other factors in StratMin’s favour include the easy accessibility of Loharono’s surface ore lowering development costs, the relatively clean processes deployed that do not require chemicals to crush deposits, and trends among international traders to seek out consistent, reliable alternative sources beyond traditional ones such as China.r r “There is a lot of excitement around graphene, as a graphite producer we are definitely feeling the glow,“ says Yannaghas.r r According to the company Madagascar’s continued political uncertainty has not posed any challenges to its 40-year operating licence, and with a current market cap of around £8 million, “StratMin has yet to be rerated as a producer and we continue to believe it is significantly undervalued,†adds broker Northland Capital Partners.
Score: 88.75