They won't resume mining in October. To do so, they would have...

They won't resume mining in October. To do so, they would have needed to commit to the LOM plan back in July and the reality is it takes time to get contracts in place and get the wheels in motion... As an example - look at the monitor contract they entered into back in Q1 or so with monitors finally arrived on site in Q3 sometime.....

With that in mind, what they're saying is that some of the $18M will be used as working capital to keep the lights on between when the revenue will stop (end of year) and when it will start again (next year some time). The rest will hopefully be used to fix the HMS, pay for the removal of overburden and kick off mining again. Starting mining takes money and there's a delay in revenue. This raise should cover that. They may start mining operations again by Christmas but even if they do, any material they dig takes time to work through the SXEW circuit so there's definintely going to be a funding gap. So, in the context of a total disaster, I'm OK with the announcement. It's better than a knee-jerk CR and shows they are starting to link the financial strategy and operational strategy together.

As for Cobalt, I think we can forget that for at least another year or two. Trust is earned and right now the new management have a huge job showing they have the basic skill set to run an operating copper mine, let alone run out the ledger sheet out with cash they don't have on a new venture cobalt operation no matter how economic it is. $20M is just a step too far.

It's really hard to believe Tiger ended up in such a terrible position. Old management were so incompetent that they couldn't even get the LOM study right, such that we could resume mining as planned. I honestly thought the new LOM study was just a delay tactic as they didn't have enough money to pay for mining contractors (and maybe that's what it was), but it beggars belief to be honest. Those rubbish nonsense quarterlies last year were a sign.

Anyways.... Onwards and new management seem to have it far more together and if they can get the plant working, I'd probably back a CR. On that, retailers will almost certainly get a go as TGS will take (and need) all the loose capital they can get. Given the scale of the raise and project risk I would be surprised if it was underwritten and will have to wait and see. Also, for those wondering when we will start trading again - the answer is in today's release. Before June 2018.