🕐24.08.11 - 17:27 Uhr

STRATEX INTERNATIONAL: REVISED ALTINTEPE RESOURCE: FOX DAVIES BUY 9P, PRICE TARGET 12.5P




Stratex International (STI LN)
BUY Current Price: �0.09 Price Target: �0.125
Market Cap (M): �28.7 EV (M): �27.7
Revised Altintepe Resource
Event
Stratex announced a revised in-house resource estimation for its Alt�ntepe project.
Comment
The latest resource at Altintepe at a 0.2 g/t Au cut-off (including sulphide ore) has increased from 574 013 oz to 593 131 oz, an increase of 19 118 oz or 3.3%.

However the amount of oxide ounces, which is the important number when considering a heap leach operation, has been reduced from 472 koz to 336 koz, or -29%.

Encouraging preliminary metallurgical test work on the transitional material may help bridge this deficit.

We have input the new figures into our model, keeping the production target for Altintepe at Q1 2013, and this has not made a material difference to our overall valuation of the company.
We also consider NTFs decision not to earn into the Altintepe project by funding the feasibility study as a blow to Stratex.

NTF has been an active partner in the project since 2009 and has provided good local knowledge and mining technical expertise to the project.

However the good news is that Stratex has the possibility of negotiating with another strategic partner with perhaps improved terms.

It must be added that NTF continues to be active in the Inlice project.
Despite these setbacks, we still believe that Altintepe project remains viable as a small, heap leach operation, which if de-risked by the entry of another strategic partner will contribute cash flow to Stratexs exploration strategy. Recommendation We retain our Buy recommendation with an unchanged target price of 12.5 p per share. Download FoxDavies Stratex International Flashnote
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