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Gonzarella

1,211 Posts.

188

03/04/17

17:21

Post #: 23822886
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Originally posted by Wise_One ↑

I think some people are getting confused with the capital structure because the Mkt Cap & EV of this company in this position is so cheap.

There are only 25.1m shares on issue & of these only 21m are tradable - the others are restricted.

At current price of 28c:
Mkt Cap: 7m
EV : 3.5m (as they also have 3.5m in cash)

Now - the performance shares - the first batch are issued upon the resource reaching "Inferred" status & the next batch reaching "Indicated" status.

These terms "Inferred" & "Indicated" are part of the JORC 2012 code.

IMO The resource size will not be fully quantifiable on the release of these drilling results. These results will form the basis of the next round of "Infill" drilling campaign which will determine the full size / scale / scope of the JORC resource.

It is for this reason, these performance shares are irrelevant for the next couple of months as IMO the timeline for a fully compliant JORC resource would be June at the earliest.

Also note that if TMT has developed an Inferred 30mt V2O5 @ >0.8% grade & Indicated 20mt V2O5 @ >0.8% grade there would have been a re-rate of epic proportions which would easily absorb the additional 20m shares.

The bottom line is that for the next few months, there are only 21m tradable shares & should the assay results tomorrow / Tuesday reflect some holes that have >0.8% V2O5 then this stock will have an almighty re-rate!

If, by some miracle there is also a sprinkle of Cobalt thrown in there (Note AVL who shares the same resource found Cobalt in the same ground) then it will be one fun show to watch.

There were so many "nay Sayers" who had no faith in TMT delivering on the timeline they committed with comments like "they may receive the results end March, but will need 2 weeks to process" ... I guess they were proved wrong.

Congrats to TMT management for adheading to your prescribed timeline & showing the market you mean business! The next time a future date is spruiked by the company, I bet the market will stand up & notice!

I'm not a very good chartist, so I'm not even going to bother trying to point to levels in the chart apart from the bleeding obvious - being the 33.5c all time high. So beyond that, blue sky.

Bring on that report!

Expand

"There are only 25.1m shares on issue & of these only 21m are tradable - the others are restricted".

Looks even better Wise, if you consider what percentage of these tradables are in safe hands. Does anyone have or has anyone posted a list of the top 20?

Regardless, there are/will be fark all shares available to punters not already set. If anything above a reasonable result, this thing will fly and it won't even have to trade millions of shares to do so.

But if a reasonable result and it does trade millions......

Nothing like a tight, sticky register.

TMT Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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