Following its announcing it has entered into an offtake agreement and rebound in share price last week, shares in StratMin Global Resources (LSE:STGR) got a second boost on the back of a further positive announcement. Two in a week – it all helps!
Broker Northland acts for Stratmin Global (STGR) so this is not impartial but it has published a detailed note on the stock after the signing of a major offtake deal yesterday. It reckons that the shares (now 8.1p) are worth 19.3p, that they trade on a 2015 PE of 9, falling to 1.5, and it has upgraded its stance from hold to buy. Analyst Dr Ryan Long writes:
AIM listed StratMin Global Resources (STGR) last week announced a 40 tonnes sales contract with a new customer - an “established European graphite trading house”, with delivery of the order expected to be “within August”. But there is more…
StratMin Global Resources (STGR) has announced “extremely encouraging” exploration results showing the presence of previously unidentified graphite mineralisation adjacent to its producing deposit.
This morning Stratmin Global Resources (STGR) announced these “positive exploration results” at its Loharano property in Madagascar. For shareholders in Stratmin the discovery of new “unidentified graphite mineralisation adjacent to its producing deposit” is undoubtedly very good and welcome news. But I am perplexed by the share price trading yesterday.
StratMin Global Resources (STGR) has announced that it has signed a sales contract with an established US-based graphite trading company and that “now sales channels are being secured, production will be fine-tuned and increased to meet demand and maximise profitability”.
Manoli Yannaghas, onetime debt recovery expert and former operations chief at the now-unloved Red Rock Resources (RRR), is celebrating his first year as managing director of graphite play Stratmin Global Resources (STGR). The company is on the cusp of the long-awaited move to commercial production in the south-east African island state of Madagascar. This could prove the catalyst for a positive move higher from this beleaguered stock.
Normally brokers’ research can be described as being similar to toilet paper. That is to say it is always thrown away in the end. The only difference is that toilet paper has one practical use before disposal. We demonstrated this in a statistical manner earlier today HERE. But
On May 6th Stratmin (STGR) announced that its Lohorano plant in Madagascar had produced 107 tonnes of large flake ( i.e. high quality) graphite in April – and that was managed in just 21 days since output started on the 9th. There is more good news on the way...
