As you will all know, I am an avid supporter of TON and believe long term that they will prosper..... I do believe it is a good stock......
However.....The share price will certainly take a hit from this announcement. This is a poor announcement. Any change to the timing was going to bring out the shorters, and the timing could not be worse......
Recently there was a placement made for $14 million for: *The proceeds from the Placement will assist the Company continue with the rapid progression of the DFS at Nicanda Hill, with the aim of completing the study by the fourth quarter of 2015. *These funds will also enable Triton to commence the early works programs (subject to final approvals) which will helpthe Company fast track the construction of the plant of other facilitiesat Nicanda Hill. *Finally, these funds will allow Triton to complete an initial drilling programat the Ancuabe Project with the aim of defining further substantial graphite mineralisation to supplement the TMG products once Triton is in production.”
This latest announcement should have clearly explained the ramifications of this delay on funding future programs going forward. Does the company require more, that is, is the program as is, no further funding required, or will they need to cap in hand to other institutions or shareholders now that access to funds that could have occurred on signing the agreement are no longer available?
There needs to be a clear explanation of how they plan to progress with this change in terms of $$, program etc. Without this clarity pressure will be exerted on the SP. As slogger suggested, why not separate out the two projects........ this could have easily been done and would not have caused angst......
And no BB, a BRR interview will not help this now. Timelines need to be stuck by, not extended. First to market is a priority along with funding ASAP.....
I believe long term this will not effect the success of TON, however a weaker share price is going to happen in the short term. Not a good outcome for shareholders......
GLTA, a bumpy ride ahead at best. Unfortunately all the good work undertaken in the last few months will be forgotten...... Possibly good times to accumulate for those who want more at a lower price!!
TON Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
