IXR Resources, previously called Goldstream Mining, has always has a suite of world-class assets so its surprising that it has over the last 8 years that I have known the company, they have done very little with them. Part of the problem I think has to lie with the executives, and there seems to be some recognition of that because the board has had a reshuffle in recent times. I'm not aware of the problem, but I suspect that their JV partners did not have to meet financial commitments, so they placed a low priority on their projects. There has long been a complaint about South African companies tying up resources...maybe this was a contrived arrangement to do just that, a scheme that would satisfy those wanting 'Black Empowerment'. I dont know. Performance is what matters, and they haven't delivered. In a mining boom might we expect a better board?1. They have 39.5% stake in Uranex (UNX.ASX) - a uranium explorer
2. They have a 51% stake in Continental Nickel, a Toronto-listed company (TSX:CNI)
IXR has some 164mil shares on issue at 57c worth $93mil. The implication is that the company is trading at the value of its listed investments. The board makes the argument that these assets are worth more to shareholders in the IXR Group - clearly that is not the case since these listed securities are worth $85mil according to the latest presentation (check figures), so its great assets are worth $5-8mil. Mind you one of the stocks is vendor securities - so they can't be sold for 2 years (that would be newly listed Uranex). As you can see from the chart volatility IMX makes for great trading. I would be inclined to recommend it to investors as well at this point because of the low value places on the projects, and the fact that one is getting close to development.
-----------------------------------------
Andrew Sheldon www.sheldonthinks.com
No comments:
Post a Comment