It would indeed seem logical, that cost pressures have meant they are likely to see an increase in the CAPEX required, perhaps fuel prices too for the pre-strip?
I also wonder if as earlier, the debt facility will be reduced in size, though the exact reasons only the company know (for now hopefully).
At least the raising price is 22% higher than the last raising price done last year. Though not something to be overly pleased about I suppose. The company has done what I think most view as being very frustrating, by saying they are fully funded.
To be somewhat fair, the current enviroment for development, is almost unheard of in decades.... with inflation and shortages.
With the extra 100m shares, TIE will have approx 433m shares. At $0.50 a share, thats a MC of $416m. With perhaps $150m in cash after the raising (with development occuring). So some sunken capex is already front loaded. Debt facility will likely now be less than $100m USD. So, all things considered, I still view TIE as very undervalued, albiet, until we get more clarification on what the raising is for... We are due a resource/reserve update, so, this is timed for the Insto's to churn. I don't necceasirly begrudge them that, as they are basically supplying the capital to get this project built.
Nord, I do understand your view and caution, but at the same time, TIE has been providing some fairly healthy drill results, consistently.
I was really hoping TIE would prove to be another WAF. We just have to see.
TIE Price at posting:
58.5¢ Sentiment: Buy Disclosure: Held
