Exactly 2 years ago the SP was 24cents! Today it's 1/16th of that at just 1.5cents! An incredible drop by any standard. Yet in many ways SRR is in a better position now than 24 months ago.
1) The JORC Mn (manganese)reserves and resource have almost doubled. 2) The grade of the reserves and resource has increases/improved by 10% to 22.4% Mn. 3) The Mn price is satisfactory and most importantly far more stable after some massive fluctuations post the GFC. 4) World production doesn't seem to be increasing despite IO usage going-up. Each ton of steel requires 6% Mn. 5) SRR majority shareholder Atlas Iron (ATO) is in a FAR stronger financial position than 24 months ago. Its grown its production substantially and is now a highly profitable outfit. This increases prospect of SRR being developed as Mn is a natural fit with an IO producer. 6) VERY importantly the political situation within Nambia continues to improve. The country has risen up the ranks of 'Transparency International' which measure issues such as corruption and other barriers facing business.
It's still a speccie share but I've taken a punt as prospects are looking good and the list above gives me a fair degree of confidence. Plus i haven't mentioned the 600lb gorilla. If strikes spread to the Mn mines in RSA (by far world's dominant producer) then all bets are off re Mn price. A massive gold mine in RSA with 6,000 employees is on cusp of closing due to ever rising costs of business. S. Africa is not a cheap or clean country for new investors, and country's mineral production (esp gold) is declining every year. Even Anglo have reduced their stake quite considerably these past few years. speccie buy. dyor.
SRR Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
