Yeatesy, sad to say but you could be on the money about the market wanting to see TGS show they can get on top of their operations.
There's often something on an annual basis going wrong either under or outside the control of the company. It isn't a litany of errors and management can't be held responsible for macro factors, metal prices, demand etc.
Added all together though, they compound into some uncertainty, which is a big turnoff for instos and many other investors. Why gamble on some uncertainty with TGS when there are safe punts elsewhere.
TGS maybe needs to operate at steady state production after the debottled plant comes fully on stream, meaning output of around an annualized 32,500 tonnes or more for at least a calendar quarter, or two.
That will show how costs pan out and actual profitability and send a strong signal to potential investors. Patience as always a must.
I reckon they can do it, but there are plenty of known unknowns, the tax refund for instance, and as we've maybe seen with TGS in the past unknown unknowns.
TGS get clear air, longs land a motzah.
TGS Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
