TTR (ASX) wots going on here???

Originally posted by Timnea ↑

Fair comment-the last couple of posts.

The company issued more shares at 15 cents recently, after the stock had previously run up to 30 cents, about 12 months ago. These 15 cents shares were issued after nickel production has finished and they were caught short with costs from the Burnakura JV.

Previously they have spent about $15 million (nickel profits) on Phillips River. Why pay dividends when you you need to go back to the markets, during an interium period when the company is not in production. Does not look good.

So what do investors do with TTR.

I am sure that Phillips river will get up. TTR have been around for 12 years and have previously been a gold miner and nickel miner. They have spent $15 million on Phillips River.It is by far their best prospect, with real quality. Their are dozens of gold exploration companies with caps not much smaller than TTR. The difference is-they will still be explorers(or gone) in 3 years. TTR have done it before and have a proven resource.

OK -should they need to raise that $25 million via issue of more script, we would still have a market cap of $50 million (at a SP of 15 cents) and very solid prospects of annual EBIT $25 million. (in accordance with their guidance). PE of 2.5 - no gearing.

At 15 cent or 16 cents - under this circumstance, you just pin the ears back and move as much of your portofio into this stock (for a 9 month period) as you can manage.

I recall MGX undertaking a 1 for 1 rights issue a few years ago. The stock when from 17 cents to 9 cents (no surprise there). It was on a next year PE of 2. The rest is history.

In making all these confident sounding comments about TTR - there is additiona company disclosure that I always look for. It is the environmental application which all companies have to present to DEH and other authorities. TTR's submission is no different to other start up mining projects. These environment submissions provide incredible additional disclosure.

TTR have the submission on their web site- and besides the fact the company is a proven mining company, this document does give a lot of assurance about Phillips River. Investors should read it.