TGS (ASX) Ann: Kipoi Expansion and Funding Update

Originally posted by leec ↑

Undaunted / Hotfire,

In fairness to them they stated in their Sept results report that: "Tiger will only pursue an expansion where a sustainable long term financing solution in place"

Hence why i said there is nothing new to this announcement.

They also said at the raising / acquisition announcement that: "As a result of the proposed loan facilities, the Board is reviewing the optimal SXEW expansion timetable."

That was code for the delaying commencement, but wanted to keep their options open.

Sometimes, I think we can get unreasonable in our criticism.

The main guys there have put their own money down and bought a million stock on market, they have got their rating and are chasing alternate financing facilities.

You can't blame them on the acquisition, or the building of Phase 1 and achieving nameplate.

The $aud and spot copper decline is outside their control, and in light of this they have taken a prudent decision to delay Phase 2. Canaccord G also highlighted in their recent research that they may put off expansion until this long term finance arrange was in place: "Tiger is currently completing an updated study on theexpansion to 50ktpa and has stated it will only pursue the expansion when a competitive long term financing facility is secured."

I think this next qtrs reporting is key. They need to show that at 25kt/pa or higher the SXEW is a cash machine. They need to show the costs starting to be driven down. So the game for the next few qtrs is meeting or exceeding guidance on production, and doing is at a declining cost / lb.

I have sent a query on whether the delay in Phase 2 includes the electrical infrastructure upgrade.

gltah

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leec...the opportunistic buy out of Gecamines, has only benefited Gecamines. Current holders have had to paid a high price for this vision.

I understand your reasoning, but I am still pissed with their execution, their timing and their clarity to detail.

Hopefully in the fullness of time, the rewards will come to bear.