I bought into TRN as a way to gain exposure to the JV assets particularly the Elizabeth Creek copper Project.
TRN has historically traded at a significant discount to its 25% (long term equity holding in the Project).
The whole scheme (creating a JV then unwinding it) could be viewed cynically as planned & orchestrated by the Directors of COD & TRN for their benefit.
The COD offer & the valuation it supposedly is based upon is dated & simplistic IMO The 20cent implied value of the Offer is now 15Cents based on COD at $0.65
The valuation is/was a sham imo
If you look simplistically at the deal, disregarding value of other than Eliz Creek Projects, cash on hand and the $1.5Mill payment for COD to take the 75%interest ...... then TRN total equity should be valued at 1/3 rd of COD total equity value.
If you then follow that logic then TRN holders would receive 0.25 COD share for each TRN share held, given that there about the same number of shares on offer in each company.
THE SCHEME appears as a quick way for TRN Directors to get their OPTIONS IN THE MONEY
I will not sign over my shares until they consider an independent valuation approach or significantly increase the value of the offer, and i hope other TRN shareholders do not fold to the Directors deadline to accept the sham offer.
GLTNDSH (Good luck to non director shareholders)
PS what have our trusted Directors done with their Victorian Goldfield plans in the TRN float ? SFA springs to mind. Seems the Eliz Creek Project is not moving fast enough, so the strategy becomes "let's jump ship with as much loot as we can carry."
TRN Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
