Yes finance is the big “?” right now JawDropper. This whole project and company is dependant on cash being raised. Without finance there is no project and so, even if more and more small cap raises were undertaken (which may be the case in a month or so if no finance deal has been announcement) the SP would just go lower and lower and lower on dilution and holders giving up. With finance there is a project and hopefully a price re-rate.
Last quarter’s spend on development and evaluation of $3.5m is a lot, but is on par with what SYR was spending at the same time in early 2015 when it was looking to secure funds, get approvals, finalise offtakes and the like, which TON is doing right now. The difference is that SYR then raised hundreds of millions through new shares being issued. TON can’t really do that as there are too many shares on issue and or the price has been pushed down on ridiculously low volumes over the past 6 months. So debt finance is really needed.
At the very high spend of >$1m per month in addition to admin and corporate costs, that is significant and had better be paying people that know what they are doing for the purpose of getting finance. Unfortunately everyone is a bit peeved off as the quarterly lacked any detail on where the money has and the company is not doing a good job of keeping the market updated on this supposedly fast tracked development, instead just saying for the 3rd or 4th quarter in a row that are working on the “early works” like a dam. Doesn’t take long or costs much to dig a dam. If the money has been spent appropriately and is to secure finance, then finance could be in order shortly and the shares could rocket. That’s why I’m holding, although I do admit that I am getting more nervous by the day and still curse the Xmas present we were all sent.
TON Price at posting:
6.1¢ Sentiment: Buy Disclosure: Held
