Well, there are some other quite significant considerations here.
Alcoa are closing their Alumina refinery.
Panoramic Nickel are in receivership.
Core Lithium have suspended operations.
Look around, that's just the tip of the iceberg of mining companies either closing down or going broke. There is a huge number of mining companies just struggling to survive now, struggling to make ends meet.
With gold at over US$2,000 an ounce, TIE are making US$1,000 an ounce profit, this is literally UNHEARD of in this mining climate, they must be in the top 3% of mining companies worldwide making that percentage difference between production at the AISC and sale prices.
No Australian based gold projects are anywhere near TIE's margin, because of Australian wages and benefits, and fuel costs, and Australian inflation, and the cost of parts and repairs.
RED5 put out a good report today, but because of the high cost of mining in Australia they are not even making a quarter of TIE's percentage profit margin,. Even Pilbara Minerals cash reserve dipped this quarter by losing $300 million (they did pay a dividend though), but last year they were getting 4 times the price for their spodumene.
Tietto is in "very rare air" indeed.
Soon, with all the mining closures, it will be realized that almost no mining companies have this profit margin. Who will come a-calling then?
TIE should reach a market cap in 2024 that is double the current, I'm now predicting that when the current mining downturn around the world, and in Australia, finally hits home, and embeds itself in a few skulls, then TIE will be a hotly desired share, probably touching something like $1.30 during 2024.
Zhaojin saw this coming, and are probably hoovering up everything at 60 cents, realizing that it will lessen the number of shares they will have to acquire at a much larger price in order to get control. We should give them the boot.
As I've said, it looks like TIE is heading into "very rare air" indeed, given the current mining downturn, they are beginning to look like a mining stock that is a one in a thousand listed here.
Personally, I think Matt's determination to make this succeed, given a few things that went before, is highly commendable, almost heroic.
I'd like to see TIE get the heap leach project up and reach 250,000 ounce a year, and then I'd like to see them acquire another mine.
I think TIE are good miners, and good developers, even in difficult situations, they have the determination and skill to succeed.
It would be an absolute crying shame to see them not reach their full potential and compete with the likes of PRU and EVN and others. I really think this is possible with the team they have.
As for Zhaojin - they are joke, but maybe a dangerous one - thieves and scoundrels often are !!!
Gw
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