STBY looks awesome.
Stansbury Holdings Corp.
Share Data?
O/S: 53M
Float: 26M of which 16.6M are held by long term investors.
Fully reporting company.
Stansbury Holdings Corp? business is essentially vermiculite. While this sounds dull and unexciting to the average OTCBB investor/trader who is used to the ?dot coms?, wireless, linux, China crazes, there is real value to this company.
To understand the value, one must understand vermiculite and its value?
What exactly is vermiculite and what are its uses?
Vermiculite is a mica-like mineral which exfoliates (expands or "pops" upon rapid heating) to produce an inert, low-density material with significant thermal qualities - it does not burn and provides excellent heat resistance.
Untreated vermiculite is commonly used as an active component of wall plasterboard.
The exfoliated product is used extensively as a lightweight aggregate in fireproofing, thermal insulation, acoustical plasters, horticultural growth media, and as a fertilizer carrier. A major use is in cementitious coatings used to protect structural steel in commercial buildings. Ground vermiculite is used as a filler for brake linings.
New uses for vermiculite include high performance automotive seals and catalytic converter mats, and high temperature coatings for woven glass and ceramic fiber products.
James R. Hindman wrote this info on vermiculite:
Vermiculite is the mineralogical name generally applied to a group of hydrated, trioctahedral ferromagnesian aluminum platty or micaceous silicate minerals. In microscopic particles the mineral is differentiated from montmorillonite by a higher Si:Al ratio of approximately 3:1 and a higher layer charges and higher cation exchange capacities. Commercial vermiculite, the vermiculite which is mined, beneficiated and discussed here, is an important industrial mineral which is formed by the alteration of macroscopic particles of biotite and iron-bearing phlogopite. In natural form it has the size and shape of mica, while possessing the ion exchangeable properties of zeolites and some clays.
Within the internal structure of vermiculite lie water molecules, which when rapidly heated to high temperature, transform into steam causing the vermiculite particles to increase in volume. This process of thermal exfoliation produces a lightweight product which finds use in various construction products, agriculture, horticulture, and other industrial applications. In exfoliated form it has the low density and biological inertness of expanded perlite, while maintaining a chemically active surface. Most of the uses of vermiculite are for the thermally exfoliated material. Trade names such as Strong-Lite and Zonolite are sometimes used to denote thermally exfoliated vermiculite and their related products.
In addition, the cation exchange potential of vermiculite and its layer-silicate structure are properties which can be used as the basis for numerous products including intumescent coatings and gaskets, inorganic films, and the treatment of nuclear and other toxic waste. When chemically and physically modified, it possesses some properties common to organoclays and synthetic compounds. In high purity concentrates and manufactured products, these properties can be altered and optimized in applications to produce superior performance.
More information regarding vermiculite and the remainder of the paper writen by Mr. Hindman can be found here: mcn.net
This is an excellent site regarding vermiculite: mcn.net
Valuation of vermiculite: the price of Vermiculite has increased 35% over the last 20 months. The United States is the world?s leading producer of vermiculite? Few companies in the U.S. are actively producing vermiculite. Most of the nation?s vermiculite comes from Virginia and Montana? Stansbury Holdings Corp owns two of the four mines in the western U.S. and are in process of doing a joint venture with Nevada Vermiculite LLC at Mica Peak in Nevada.
Valuations of these mines are as follows:
Hamilton: $35M with a NAV of $13M (the NAV being calculated by the purchase price)
Dillon: $4.6M (NAV-purchase price)
Mica Peak (undetermined)
This gives Stansbury Holdings Corp a minimim NAV of $17.6M with no significant debt?which gives a valuation of .33 a share (exactly where it is trading at the close on 10 April). This does not account for the value, if any, of the Mica Peak project.
The 3 Feb NR: Nevada Vermiculite is a 50% owner of International Vermiculite Limited, of which Stansbury is also a 50% owner. Nevada Vermiculite has arranged all necessary working capital for the exploration drilling program at Mica Peak. Under the terms of the International Vermiculite Operating Agreement, should the exploration program indicate the presence of commercial vermiculite, the project becomes an International Vermiculite operation.
The 13 March NR: Nevada Vermiculite Limited LLC, has awarded a contract to Hackworth Drilling of Elko, Nevada, to conduct exploratory drilling on its mining claims at Mica Peak, in southeastern Clark County, Nevada. Drilling is scheduled to commence on March 27.
Nevada Vermiculite is a 50% owner of International Vermiculite Limited, of which Stansbury is also a 50% owner. Nevada Vermiculite has arranged all necessary working capital for the exploration-drilling program at Mica Peak. Under the terms of the International Vermiculite Operating Agreement, should the exploration program indicate the presence of commercial vermiculite, the project becomes an International Vermiculite operation.
Stansbury Holdings Corporation is a natural resource holding company that owns the Dillon Vermiculite Project in Montana and is starting mining operations through International Vermiculite after extensive rehabilitation of the existing mill. The project is currently permitted for 30,000 tons per year. Proven and probable ore tonnage is reported at over 600,000 tons in the current permit area, sufficient to support a twenty year operation at the current permit level. Stansbury also owns the Hamilton Vermiculite Deposit near Hamilton, Montana, which has significant reserves in excess of 6,000,000 tons.
Summary: Based on just NAV, STBY is worth .33 a share. This is based on purchase price of the properties alone. Demand for vermiculite is increasing as is the price. It is easy to imagine the possible valuation of the company given success at Mica Peak combined with already productive Hamilton and Dillon sites. While the story is not about exciting new technology, the value is much greater and more tangible than many companies traded publicly on the OTCBB or NASDAQ small cap markets.
The company has a very informative and frequently updated web site at
stansburyholdings.com
STBY Stock Chart
STBY SEC Filings |
