This isn’t complicated analysis.
We’re reviewing the second quarter financials for cash burn to make sure the ice cube isn’t melting too fast.
Star sold 600,000 Minera Alamos shares to increase cash on hand prior to quarter end. They sold another 1,071,500 MAI shares after June 30.
Star is still sitting on approximately 8-million Minera Alamos shares. The Keysbrook royalty will continue to produce cash, with an infusion coming before the end of the year. The bad news is the going concern warning and not using an auditor in what I can only assume is a cost-cutting move.
The parts are worth more than the whole, which is slowly bleeding out. Star management needs to sell the Copperstone stream as soon as possible to capture the value from this royalty consolidation cycle and return it to shareholders. Ideally that would be accompanied by a Minera Alamos stock dividend rather than selling more stock to keep STRR limping along. The next catalyst for Star will come from a Copperstone feasibility study and/or Jason Kosec telling a compelling story about the mine eventually producing 50,000+ ounces per year.
