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UPDATE - Stratex says 2015 holds great promise

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The claim alleges wrongdoing against Barrick Gold and its senior officers Aaron Regent, Jamie Sokalsky, Ammar Al-Joundi and Peter Kinver.

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AIM miner Stratex International (LON:STI) says 2015 holds great "promise" as it moves towards a sustainable income stream.

This year has seen the group progress on multiple fronts and at the Altintepe gold project in Turkey, its 45% stake is fully funded to production.

Construction of the mine is likely to be completed in the first quarter of 2015 and the firm expects income to start next year.

There is also a strong indication that Centerra will bring the Öksüt mine into production in 2016, which would see the start of the firm's capped 1% royalty.

At Muratdere, the copper gold project in Turkey, the feasibility study is imminent, while drilling results from Dalafin in Senegal are expected in the first quarter of 2015.

Here, Stratex has an 85% interest. The project has returned encouraging results and the firm reckons that continuing carefully focused investment at the site is justified.

Chairman Christopher Hall commented: "We believe we have invested prudently, to accelerate progress faster than with traditional exploration, and we are mindful of the need to minimise cash outflow pending the start of income.

"However, we do not think the market would be forgiving if we battened down the hatches and did nothing.

"There are many and varied, good-value opportunities out there. The key will be to survive, to develop and to build the foundations for strong growth when the market improves, which it will eventually.

"We look forward to the coming year with relatively strong finances, good prospects, experienced management and the determination to succeed.”

Broker Northland repeated its 'buy' stance on the shares, saying it believes the company valuation looks "very undemanding at these levels".

It noted that unseasonal heavy rain at Altintepe has interfered with the construction schedule and construction is expected to be completed in the first quarter next year rather than the fourth quarter of 2014.

"This is disappointing but delays often occur at this phase in the development of a mine and we believe it is more significant that the company will be moving to producer status early next year," it said.

The broker says it has made minor downgrades to its forecasts and lowered the price target to 7.4p from 7.7p previously to reflect the delay.

"Stratex will be visiting the site in January and will be able to provide a more detailed update then," it added.

Shares eased around 9% to 2.075p.

Quick facts: Oriole Resources PLC

Price: 0.52 GBX

LSE:ORR
Market: LSE
Market Cap: £3.65 m
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