another bullish call, page-10

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TeTeTe

2,304 Posts.

14/05/15

22:00

Post #: 15283291
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Originally posted by tcisboss ↑

without debt no project would get up. It's the type of debt and the ability to pay back, that can be the problem. Costs and falling commodity prices got the company punished. But now you take a rising commodity price and the ability to pay back quicker. Its all in costs fro 1.70 alb to 1.35 in about 6 weeks with grid connection and you have the ability to pay off quicker so debt is not the problem it was. Every 12 mil paid back puts 1.2 mil on the front end in interest savings. Coupled with 5 mil a quarter in savings on all in costs frees anothe 6.2 mil a quarter. You take this for 12 months and your quarter is 10 mil in front of where it was in the previous 12 months.
As I said debt is nothing if you can service it hence the sp down to where it was. Pay it back and make inroads a higher commodity price and it's a market darling.

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What makes you think that commodity prices have bottomed. They are still weak and could continue lower. Yes there is a small rise. But not enough to call victory yet. Only the strong with good cash and not a lot of debt will survive all this. TGS does not fit into this category. If it did it would not be where it is today. If you think that it is worthy investment material, then good luck. I don't and have every right to say so.

Last edited by TeTeTe: 14/05/15

TGS Price at posting: 7.9¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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another bullish call, page-10

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