Big picture - Why invest in Stratmin Global Resources PLC
Stratmin Global Resources PLC Snapshot
Stratmin is currently developing a 12,000-ton per annum large flake, high grade, graphite mine and processing facility in Madagascar with joint venture partners Tirupati Carbons and Chemicals Pvt Ltd, to fund a new, larger scale graphite production facility.
The Tirupati joint venture company has existing profitable graphite trading operations. The primary production under development is planned to be commissioned in the fourth quarter of 2017.
Tirupati (TMV) Joint Venture
Stratmin is spending US$1.5m to earn a minority interest in Tirupati Mauritius Ltd, a graphite trading business and the holding company for the Vatomaina graphite development in Madagascar. The Vatomaina project is held under a 40 year exploitation license granted in January 2016. An initial 12,000 tpa mine and plant design for the project are based on Tirupati’s existing Indian operations. Bulk material from Madagascar has been processed at Tirupati’s Indian operations to confirm engineering parameters. The sample concentrate produced was tested by customers in a range of applications and met all technical performance criteria. Comissioning of Vatomain is planned for the fourth quarter of 2017.
Bass Metals Ltd (ASX:BSM) Strategic Investment
Stratmin divested the Graphmada operations to joint venture partner Bass, in August 2016. The A$15.25 million consideration for Stratmin’s interest in Graphmada consisted of A$1.5 million in cash, 75 million Bass shares and follow on payments of up to a further A$15 million in equity and royalties subject to operational performance criteria being met. Bass is expanding the existing pilot plant at Graphmada’s Loharano site with an immediate 6,000 tpa target followed by the development of a new larger scale processing plant to further expand capacity. The divestment of Graphmada was structured to maintain a significant equity exposure to the project at the same time as enabling expansion to be financed from the lower cost Australian capital markets. Establishing a proxy project also enables Stratmin to apply a relative valuation to the Vatomaina project which is a critical component in attracting project finance.
Brett Boynton, CEO
Appointed in May 2015, Brett is the CEO of StratMin Global Resources. A former Corporate Financier, Brett has over 20 years’ experience as an investment banker in capital markets, mergers, acquisitions and private equity. More recently he has focused on project development within the resources industry and has funded and founded a number of Australian resource companies including DEI Ltd, Signature Gold Ltd and Tellus Holdings Ltd. He therefore brings considerable experience with public natural resource companies and an impressive list of contacts within the Industrial Minerals sector.
Mr Shishir Poddar, Technical Director
Shishir is the Managing Director of Tirupati, a privately owned, leading graphite mining and Production Company based in Ranchi, India. He is a second generation graphite entrepreneur with over twenty years operating experience in mining, processing and marketing graphite.
Zeg Choudhry, Non-Executive Director
Appointed to the Board of StratMin Global on 19 September 2016. Zeg is a member of both the audit committee and the remuneration comittee. Zeg is an experienced banker and fund manager and brings a wealth of market experience to the StratMin team. He will also provide the Company with a permanent Board presence in London at a critical time as the Company pursues new opportunities following the recent divestment of its core graphite operation in Madagascar.
As at 1 June 2016, the Company had been notified that the following were interested in 3% or more of the Company's share capital:
Shareholder % of StratMin shares held
Consolidated Resources Pte Ltd 10.31%
Viking Investments Limited 7.45%
Mrs Kesava Padmavathi 4.96%
Mrs Caryl Melissa Jane Pienaar 3.98%Total shares: 176,929,413.
Shares not in public hands: 24%
StratMin Global Resources Plc
30 Percy Street
Tel: +44 (0) 20 3691 6160
Company number: 5173250
Allenby Capital Limited
3 St Helen's Place
Tel: +44 (0) 20 3328 5656
2 Mill Street
Tel: +44 (0) 20 3137 1902
31 Harley Street
London, W1G 9QS
Tel: +44 (0) 20 7467 1700
Capita Registrars Limited
34 Beckenham Road
Kent, BR3 4TU
Tel: +44 (0)871 664 0300