Not to rehash what's already been said but my 2 cents.
1. How refreshing is it to have no BS straight talk from management.. Clear, to the point. I really appreciated that.
2. Still making 20kt. That's better earnings than 32kt at $2.10 copper, and the macro view is still bullish with plenty of commentators looking beyond $3 now.
3. The suspension is appropriate for need to re engineer, price and arrange financing. Commissioning takes time and while we're disappointed not to be making 32kt it's not unusual to have issues.
4. We're losing $6.5m/mo of revenue right now in differed production. Assuming things get going by the end of the wet season - call it April - we're looking at $13m plus costs to fix it. That copper will be recovered in 16 years time or whatever which basically means it's lost value from the company. However, looking at forward earnings instead it's still very cheap. If things got fixed and copper went to $3 this value could be recovered in about 7 months. You just have to believe they can get up to 32kt.
Sky is not falling in and again, great to have some straight talking honesty...
TGS Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
