trading halt, page-113

Greetings all

This trading halt and the resultant JORC to follow is the reason why we got involved in TON back in June 2012. Back then TON had just announced it was looking at graphite tenements right next door to SYR which has since established itself as the largest graphite high grade deposit in the world. Without blowing my own trumpet, success is that much sweeter playing in the underdog team and I would love to stick it up SYR when the JORC is released on Tuesday.

We fundamentally follow the fundamentals (and isn't that all the time?). Our initial motivation for getting involved in TON was to provide a means to pay off our mortgages sooner and TON so far proven to be the best horse in our stable by a long margin.

2 years is no where near long term for an investment when the investment plan is to be debt free. The ATO also have an incentive to hold on to your shares for more than 12 months after which any capital gain is effectively halved.

For us technical analysis does have its place but generally as a picture of where a stock has been. This circumstance is particularly relevant for junior explorers where SP movements are dictated by discoveries and market releases. TON caught the market by surprise on Friday by going into a trading halt.

2012 seems a long time ago in terms of share price and daily trading volume but really it is not a long time ago. Back in 2012 TON was nowhere near as popular on HC as it is today and placing a buy order on Commsec took many days to fill and was often the only transaction for a particular day. I also had to wait days for any responses to posts on HC. How I wish for those quieter days! It is worth noting that HC has quietened down a lot since June and July this year after the initial drill results came through from Nicanda Hill. But I suspect interest on HC will ramp up again next week and attract all and sundry.

The market since the GFC has been diabolical for junior explorers. However, the right company with the right project will get the funding and there have been fine examples of ASX explorers moving ahead but not many. TON is in that sweet spot right now. TON is a viable alternative in this flighty market.

The JORC to be released on Tuesday 21 October will be a defining moment for the company. There is no question about that.

The JORC on Tuesday, IMO, is bigger the Ben Hur. It will exceed management’s expectations. It will also exceed the market’s expectations and the SP will respond accordingly.

TON has for too long been in SYR’s shadow. SYR’s media coverage and publicity has been phenomenal – every mainstream newspaper from the AFR, the Australian, SHM, the Age has had full page cover stories - particularly this year with the Glencore takeover rumours. TON has been drilling quietly away in the background with not much media coverage at all. SYR has been reading and basking in their own publicity.

The market is not be expecting TON to be anywhere near SYR so I’d reckon we will be in for a pleasant surprise come Tuesday.

Please DYOR and good luck long term holders.