Jump to content



Recommended Posts

  • Replies 127
  • Created
  • Last Reply

Top Posters In This Topic

QUOTE (snakeman @ Tuesday 16/08/05 10:39am)

I will be into SRL accidently through playing the TTT partial takeover and expecting a higher bid. However on researching, I am not unhappy to be holding SRL after the dust settles. Also SRL should be able to give TTT some additional financial weight for TTT's forward programme.


I found the following within an atricle with this link:



Patersons Securities resources analyst Hayden Bairstow said it would be good for the project for Straits to take control again.

"I think the mine needs more working capital and Straits taking control and having more than 50 per cent will allow them to use their own facilities to fund it," he said.

Mr Bairstow said he also believed the offer was a good deal for Tritton shareholders.

"They would have had to have done an equity raising otherwise and it would have been pretty dilutive," he said
Link to comment
Share on other sites

  • 3 weeks later...

Like snakeman, I'm still in. Topped up on SRL after conversion of half my TTT shares to make a more pleasant looking number.


Just going back over the last report by my broker, Euroz Securities, has on SRL (dated 30 August 2005 when SRL was $2.24 per share). Euroz put a valuation and price target on SRL of $2.65 per share which was an upgrade on their previous valuation of $2.00.


In the report, Euroz stated:

Straits are suggesting growth in Sebuku ore reserves may be forthcoming. This may lead to a further expansion in production. This led us to significantly increase our valuation, to $2.65/sh from $2.00/sh previously.

Investment Case:
Straits is only now about to enjoy the fruits of the higher coal prices that have been news in the market for the last 1.5yrs. The resultant earnings growth will be spectacular, a fourfold increase from June H to Dec H.
Straits is inexpensive, priced at 7x CYÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢05 NPAT and 4x CYÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢06 NPAT and at a 15% discount to our npv valuation of $2.65/sh.
Modest growth in Sebuku ore reserves and production is factored in to our valuation however we believe there is still upside to these estimates.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...