Megan, yes all about preservation of working capital until funding environment and opportunities improve. They have cut back spending and remaining staff are working on progressing the BFS.
You said -
"They now want you to believe the credit crunch is the reason they tripped."
I have not heard them lay any blame on their current position on the current economic environment. However, even "blind Freddie" knows funding for all mining projects has dried up.
Their current woes substantially stem to a large degree on the former chaiman (Colin McIntyre) and the then Boards decision to go in with brother (Extracts) Peter McIntyre's Burnakura project. This delayed Phillips River and chewed up working capital.
I won't go in to any further detail about how Extract left Tectonic out in the cold over Burnakura but lets say it cost Colin McIntrye his job. Business decisions based on family ties are dangerous.
You can thank Steve and some supportive associates (providing some of their own funds) for saving Tectonic from Administration.
I am glad they were able to offload the Burnakura and Tukabianna "assets" last year and at least retreive the working capital that has helped keep them afloat. They were also able to attract additional funding by attracting two new major investors and also farmed out 80% of RAV8 to Mincor. This enabled them to get back to work on the Phillips River project.
Megan again you said -
"Now wondering how big the christmas bonus was, and how far away the next salary review and share issue is."
It is there for all to see howmuch TTRs executives get paid and share options issued. TTRs payments are at the very very low end of industry rates and options recently issued are only really replacing expired ones. I am all in favour of staff options as incentives rather than paying higher wages or bonuses. To tell you the truth I would hate to see TTR lose Steve or Andy to better offers. I am sure they had opportunity to move on over the last couple of years. It shows their commitment to getting Phillips River up and running.
Really in the main you can only blame the TTR share price on sellng by minority investors and horrible market sentiment. Major share holders have in the main held firm.
Megan - the question you need to ask is - Does Phillips River have the potential to be a major mining project? If the answer is yes I suggest you take a break from being so cynical towards the current management, sit back and wait for better times.
All the best for Christmas and the New Year
TTR Price at posting:
1.9¢ Sentiment: LT Buy Disclosure: Held
