cash preservation needed

I have just analysed the quarterly reports for TRF/IFE to get a idea of where TRF stand excluding IFE.

My summary is as follows:

TRF has about $2.4millcash as at 30/09/08. This is after spending $1.3mill on exploration of which we got $751,000 paid to us by OZL.

However going forward TRF have estimated $1.2mill to spend next qtr. plus about $300k on admin. This quarter we will also have $1.4mill going to Robust for 19.9% stake in their company. This will leave TRF a negative balance of about $500k. On the inflow side we still have the option money to be counted in from those like me who converted to shares. This could be anything but I estimate maybe $500k with hope.

The company have said they will need to decrease exploration costs and that is why they will rummage through archives to get more Uranium data for Telephone Dam. So I will expect that by end of Dec we will still have $1mill, plus we have IFE money as back up, as they will have $6mill by 31/12/08.

It goes to show the difficulty a lot of juniors are going through with only a few mill in the bank.

That is why the projects on hand and management have to be really outstanding that sophisticated investors will be willing to take a punt that in a couple of years they backed a junior that multiplied their investment 20 fold.

For TRF when the smoke settles by say March next year I would expect that the Mawson, IFE, Robust and Telephone Dam results will be so outstanding, that Ian will have raised a considerable amount via a placement.

I am also sure that the USD will crumble soon and we will have a more positive sentiment towards commodities but for now it will be a gut wrenching wait till then.