A - Tiny market cap, unbelievable value for new investors as they start to form an orderly queue. Still very few people on board the company or understanding V economics. This is about to change as the commodity price surges and VRB's become mainstream solutions. Why I'm equally as happy to be buying at 50c, 5% of our ultra conservative NPV as I was at 25c.
B - Growing market cap will quickly become a self fulfilling reality that the only thing holding TMT back has been eliminated - disbelief. Too small to raise the funds... seemingly the only fear of the few actual sellers in the past fortnight. Accumulators played on this like a fiddle, offering up big parcels just off the money and further built their significant, tight holdings. As these offers shrivel up and the run commences who is there to meet the demand of new entries? I've said before that $50m is the minimum MC for any realistic miner, sitting under this the market doubt has been there... is this company for real?
In short - the run from $50 to $100m will be swift. With the only handbrake released we should be valued at a discount to NPV. I don't know the appropriate number but it sure as hell ain't 95%!
With DFS and a strong, well invested offtake partner, construction funds will be raised at perhaps a valuation of 50% of what we can expect to be a significantly improved NPV. $425m++ in 9 or 10 months. Binding offtake will be a huge catalyst to get there but I see disbelief, or the disappearance of it, as being an initial shift towards TMT being valued by the market based on it's fundamentals - i.e. a discount to future cashflow ($236m+ annual EBITDA commencing 2021)
TMT Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
