Ann: Partially Underwritten Non-Renounceable Entitlement Offer, page-186

Hi guys,
I normally try to put up my thoughts on each announcement on the same day itself but might not be able to complete one today. I’ll do  a more detailed one tomorrow or on the weekend since there is no hurry.

Just some quick thoughts which struck me in the morning itself –

1) Sell off in past few months from 34 cents down was probably due to anticipated CR

2) CRs are inevitable for a company moving from explorer to producer. This won’t be the last one. There will be more as TON goes forward too....hopefully at a higher price, though

3) TON needs to work on insto support-  top priority for me. I’ve warned of this from the start

4) TON needs to work on cash management -  top priority for me. I’ve warned of this too from the start

5) Like many long termers, I love the management and believe they are doing their best. We have come a long way on most fronts and they have my 100% support. I think if management take up their own rights offer for their shareholding, it would send a very positive signal to the market and I hope they do so, as that will calm the market and shareholders.

6) Proactive investors has a nice article explaining positives of today’s announcement

7) Good support from GMP

8) CR was at around 16% discount to last price of 18.5 cents. Not that bad

9) Diluted market cap after today’s shares and options would still be very low. At 15 cents our diluted market cap would be AUD 80 million or so as per my initial calculations. So still very undervalued despite today’s CR. This is one of main positives for me.

10) I don’t normally listen to the BRR interviews but maybe, I might listen to this one before commenting in more detail

11) Many great comments from @insaf @saverio @toohug01 @Bobsa @Rat1973 @whisky49 etc today (among others) explaining different angles. It is better if I read them slowly before passing a more detailed comment

12) Free Options could be a great motivator for people to take up the rights

13) As @insaf says, share price could be pumped up later. That would be a positive now but could be risky later on. Insaf did a great job explaining all the pros and cons.

14) GMP might have incentive to pump up share price later too

15) Good news still to come like P66 resource, Ancuabe resource, Nicanda reserve etc.

16) Lastly keep in mind that none of us have crystal balls. We are positive on a  stock we own just like most shareholders are positive on a stock they own. We might not be right. There is no substitute for doing thorough research of your own. Don’t rely on me or anyone else as any of us could genuinely be wrong. All shares have an inherent risk of complete loss of capital. If share investing would be so easy, then we'd all be billionaires.

Cash management, insto support and broader macro risks (all main issues that I gave top priority from the start all the way back in March) continue to be main issues for me going forward. Resolving these issues is non negotiable, or IMO the market will punish TON. But TON IMO has great prospects IF and WHEN it resolves all these issues.
Cheers