A) TAS owns a big junk of EDEN ENERGY (EDE) ordinary shares and Options (EDEO). So the success of EDE contributes to the success of TAS
Correct, TAS owns 100% of the company Noble, which Noble owns 44.329% of EDE script and 44.537% of EDEO script. Currently those holdings are worth $177.8million.
B) TAS shares at 18.5 cents means their other holdings/activities are diluting their gains made by EDE, correct?
Confusing question in regards to holdings/activities and diluting being mentioned all in the same question. I'll explain.
Currently TAS holds these companies:
EDE as we have discussed already above
CNJ holdings of 25million or 9.2% script. Website says 19%(needs to be updated) and other users say 15% most due to quarterly announcements. Refer to these posts >
1st)
http://hotcopper.com.au/posts/17615014/
2nd)
http://hotcopper.com.au/posts/17615070/
3rd)
http://hotcopper.com.au/posts/17616165/
Activities:
Current TAS has activities in
Parkinson Dam and Lake Torrens. Nothing is happening with these mines as yet due to the global down turn in the metals and more so importantly TAS does not have the funding.
Refer to this info in the last quarterly. Note the red underline I have put.
View attachment 180816
In regards to diluting, the activities are not actually diluting the share price. Forum users are throwing around the word "diluting" as the asset investment TAS currently has, does not meet the share price market they wish to have.
Shareholders and the market are just very cautious. TAS has $177.8million in assets in EDE, another $700,000 in CNJ holdings and 2 mines that are currently lying idle you might say. So round figures lets say 178.5m in assets. Currently TAS market cap is only 69.75m or else fully diluted value of 84.1m (which is when all TASO options are converted to full shares)
So there is a down fall of 108mill or 93mill(FD) which is equivalent to an extra 0.390 or 0.471(FD) increase on top of the current share price to become even with assets value to market cap value.
I believe those red lines I placed under certain wordings in the announcement are making the TAS share price lag. In time when/if EDE do actually start producing a dividend, what percentage of the dividend will TAS holders get? Certainly not 100% as TAS being primary a mining company, those funds will no doubt be used to fire up the mines. Until shareholders are told what is going to happen the market is certainly going to be cautious and not be where people want/expect it to be.
C) So buying TAS shares means you will get some benefit from EDE SP increases, but whether that's a better proposition to buying EDE outright is the name of the game, correct?
TAS has only increased due to EDE, so yes TAS is certainly benefiting from EDE SP.
As stated in above paragraph, if/when EDE start to give out dividends, if you want 100% of the dividend EDE is your better choice. Long term, if the dividends used actually make the mines get up and start turning over a profit, TAS would be better off... maybe? But as nursery has stated a few times, the Solomons are more spec miners and have not had much past success.
People are jumping on TAS mostly cause they see the underlining assets value to market cap ratio way out of line and believe TAS is overnight just going to jump 150%. But I believe the above kinda scratches the surface on why it isn't.
I've always had my doubts on why in the past year with every major announcement TAS comes out normally in the very first paragraph with.... we own blah in EDE our assets are worth blah, we should be worth blah to every 1 share of EDE. There is an underlining issue here, no other company I've seen has done this in my trading career. I can only think the directors want it higher so the share price/value de-risks lending criteria, but who am I to know? But there is a reason behind it, we the shareholders/market are just yet to find out what it actually is.
(20min delay)