Stratmin Global Resources LSE:STGR

The company is unusual due to the fact its a newly listed AIM company that will be cash generative and holds an investment in the most exciting mineral resource across world markets being Graphite.

Stratmin holds a 15% interest in a newly completed graphite mine in Madagascar called Graphmada. The also have a convertible loan which will increase their stake to 20%aprox.

The mine will be capable of producing 12000tpa of large flake 93% pure graphite and this is expected to rise to 24000tpa in early 2013, Graphite at this quality sells at $2500tn.

The mine is managed by a South African company called OVM---


http://ovm.co.za/?projects/graphmada

The market cap of Stratmin is currently £4.5m with C£1m cash. Share price 5.15p.

The only comparable peers are Canadian and Australian listed and are years behind with market caps of many multiples whilst they are still at the conceptual stage.

I have had sight of this in house company presentation--------

STRATMIN GLOBAL RESOURCES PLC

COMPANY PRESENTATION
September 2012

Share Holders
Consolidated Minerals Pte Ltd (21.26%)
TD Direct Investing Nominees (13.24%)
Barclayshare Nominees Limited (6.41%)
Alpha Universal Management Ltd (4.82%)
Lawshare Nominees Limited (3.96%)
Hargreaves Lansdown (Nominees) (3.90%)

Near term production with test mining and trial production targeted to commence in Q3 2012

Completion of 12,000tpa graphite processing plant on track

Based on current market prices for high carbon, large flake graphite, estimated annual production to
produce $18M in gross annual revenue, over a minimum 20 year anticipated life of facility

Maiden JORC Resource Estimate targeted to be completed in September 2012

Loharano & Antsirabe Licence Areas
Graphmada holds 3 licences

40 year mining licence duration

80km from main Port of Toamasina

Off main highway with good access to infrastructure, no environmental issues, low elevation

Surface deposits, low overburden

High quality, crystalline flake graphite deposit

Loharano & Antsirabe Mines
Graphite Resource
Large Flake, high-purity crystalline graphite deposit

Other areas believed to contain equivalent size resource

Commenced work on maiden JORC mineral resource estimate

Low Strip Ratio, high purity composition

Large resource upside a key value driver

Loharano & Antsirabe Mines

Mining Licences
2 granted Mining Licenses in Loharano and Exploration License in Antsirabe

40 year mining license terms - renewable in 20 year increments

Easy access to road and port infrastructure

Loharano mine site 80km from main port of Madagascar Toamasina

Loharano & Antsirabe Mines
Production/Export
Plant commissioning to begin trial processing of graphite in 3Q 2012

Product to be transported by road to Toamasina Port

Product to be containerized for export

Target production of 12,000tpa of high quality >93% carbon, large flake graphite

First export shipment anticipated October/November 2012

Market Price
Market price for high quality, flake graphite is c. US $2000/t - $3000/t

Graphmada sees favourable demand dynamics accelerating and believes it is in an excellent position
to penetrate the flake graphite market characterised by high margins and limited competition

Summary
Company positioned to become significant, low-cost producer of high-purity flake graphite for
export to global market.

Experienced management and technical staff able to execute business model

Completion of 12,000tpa processing plant nearing completion and trial processing to commence Q3
2012

Based on current market prices for large flake, high carbon graphite, estimated annual production to
produce gross revenues of $18m from first location.

Strong underlying fundamentals and near term production visibility likely to accelerate separate
stock market listing of the business.

StratMin focusing on Graphmada and evaluating additional graphite opportunities.


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The info I stated regarding the 100% uplift in production came from the mine managers website OVM, this info was removed after two days on the instruction of Graphmada. Extract detailed below;

'One Vision has been involved in the Graphmada project for 2 years. The company designed the plant and will be the primary mine Management Company, responsible for delivering a saleable flake graphite of 93% graphitic carbon.

First stage dry and wet commissioning of a 40tph plant was completed on 21 September 2012 and testing with maximum capacity feed started on 24 September 2012. Plant upgrade (Stage 2) to double the throughput capacity is planned to commence early 2013, and preliminary design for the upgrade has been completed.'

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Valuations for Stratmin based on the information collated should be in the region of 50p+ on pe basis.

The unusual factor is the board of Stratmin (whose shareholders include a secretive Ukranian billionaire who runs the Consmin Empire) seem at present to want to keep the profile of Stratmin very low key, for reasons unknown but perhaps they are looking to increase personal positions and their stake in Graphmada without drawing undue attention from other parties.

On 5th Jan 2012 it was announced that Consmin PTE had taken a 21% stake. Consmin is a Singapore based provider of investment capital believed to be closely connected to Consolidated Minerals, a large multinational owned by Russian oligarch Gennady Boguljobov. It is believed that the concept of Stratmin was planned and orchestrated by Consmin/Consolidated from Q4 2011 onwards, and that in the future they will continue to provide financial support and technical/market expertise as needed to advance Stratmin's growth.

So in my opinion a very interesting share to feature, under the radar, sexy resource mineral, tiny mcap, cash generative and the odd Ukranian billionaire thrown in for good measure.