Thanks
@lateral5 Yeah, it would have sent a terrible message if we heard this on June 29th. I’m very pleased that they at least announced it much before the deadline.
I’ve expressed my concerns at the start of this thread. Now I’m more of a glass half full kind of person and just thought of stepping back and seeing the many positives we still have
What we had in March and earlier before all the good news
1) Very low market cap compared to immediate peer
2) Best mine life
3) Great purity of graphite
4) Good flake size and distribution
5) Management skin in the game
6) Funding agreement with Long State (interesting that they too are Hong Kong based) for obtaining funds if required
7) Top 20 shareholders owned 45% of company
8) Great management
9) Additional minerals like zinc, vanadium, etc. besides graphite
10) Lowest capital intensity among peers
We then went on to get many more positives after March
11) Strategic alliance with AMG
12) YXGC massive offtake
13) YXGC China JV
14) YXGC Mozambique JV
15) SQZG offtake
16) SQZG debt funding deal
17) SQZG equity funding deal
18) Expandable graphite announcement
19) Recent placement at 35 cents
20) Great results from Ancuabe
I’ll now try to look at some of the positives from the superb post by @toohug01
21) BB understands shareholder frustration. He did not make any excuses. I’m very glad to see that
22) BB is in Dubai. He still took the time to contact toohug promptly. Let us give the guy credit forthat.
23) BB is travelling to Germany, London and other countries – maybe something positive will come out like offtakes, funding, cornerstone instos, etc.
24) BB said that SQZG realized importance of Ancuabe. This might really be true if they are concerned with greater stake. Also, they might be waiting for DFS. Let us not get too carried away and realize that DFS is often a must for many companies before obtaining funding
25) BB will not be waiting for 6 months for definitive answers, will be pursuing other opportunities (including US, Europe, etc), will not be letting them take control – I’m glad to that. So long as we are proactive in diversifying our risk and looking out for other opportunities, that is good enough for me
26) BB wants to get into production as soon as possible – I’m most pleased to hear this. BB clearly understands that this is key
Conclusion
So to conclude, we do have a lot of positives. The main negative is that funding is delayed and if DFS turns out well, we might even get additional funding from SQZG in future. Definitely once DFS is out, our avenues for funding from other sources will also dramatically improve.
Maybe it is good that this happened as it is a good lesson for TON not to take anything for granted.
We are still in a great position overall. Many companies need to push out the DFS first to get funding and there is no reason why TON should be an exception. In the meantime, BB and team can continue to look for avenues for debt and equity funding, offtakes, selling the story to instos, etc.
Many thanks again to
@toohug01 for taking the initiative to contact BB and write that very well written post, and thanks to BB for the prompt response. Cheers
