Catalysts

Do your own research. I am not an analyst. I have been buying at around $0.40.
Positives to get us closer to the $1.50 target price (as per BridgeStreet report):
1) Formation of JV and contribution by YGH of the $130m: As per Jan 6 announcement, this is now imminent.

2) Revision of BFS (Q1): The December BridgeStreet expects:
- Lower capex, (positive impact to NPV).
- Lower revenues per tonne for zircon-in concentrate, but lower operating costs (uncertain impact on NPV).
- Significantly higher revenues per tonne for LTR ilmenite (higher opex, but likely positive impact to NPV).

3) Conclude project finance agreement (Q2): If Taurus and NAIF were willing to contribute debt funding before, I can’t see why they wouldn’t now as well, especially with ilmenite offtake from YGH. Obviously some risk remains.

4) Final investment decision (FID): In my opinion,this should be a formality. According to the company, the project is technically low risk, and with illmenite offtake in place, the commercial risk feels low.

The only negative that I see is the need for a capital raise. Current cash is around $13m but in all likelihood all of that will need to be spent to top up the $130m that YGH will provide in equity, in order to achieve the project equity of around $143m. Hopefully any CR is for a very small amount and is not done at mates rates. I hope any CR is done after FID (by that time the share price should be a lot higher).