TON ann for capital raising was obvious after recent cash flow and activity report. There was no surprise whatsoever.
TON managing director and technical director have hefty salary packages including bonuses. Therefore, money has to raised to pay for.
Secondly, this would not be a one-off capital raising. There would be more down the track.
Look at TON graphite deposit which is large and high grade but thinly layered underneath very high overburden and surrounded by weak rocks.
This means there would be many operational mining difficulties and high operational cost.
In my view, look at Lynas corporation- initial sp was $1.50 before plant in Malaysia and now it is 5.0c after plant installation.
Keep watching....
TON Price at posting:
39.5¢ Sentiment: None Disclosure: Not Held
