After seeing the posts that have bashed IFE/TRF (apart from a...

After seeing the posts that have bashed IFE/TRF (apart from a few visionary posters)I have to admit it made me think about my investment and do further research.

My personal view when I first saw the DFS was great numbers although conservative, and if you match it up with the Intersuise analysis it looks great.

Let's have a look at what we have.
Premium grade ore product of 10mil/t resource of which 5.8mill is measured reserve to give us 4.1m/t product within max depth of 65m. They can only go by the reserve when you do a DFS so when they calculate out over 4yrs then they can only forecast 1mtpa sales. However soon they will add to this a significant upside, to increase DSO as deeper resources (up to 120m) are proven.

The Intersuisse report concludes that IFE will have enough DSO sales in 3-4 years that will leave them cash flow positive (even after further exploration expenditure) of $120mill.

Then they believe that will allow IFE to get debt finance of $140mill with only a small amount of 20mil shares needed to be placed to give us $300mil to start stage 2 for a 4-6mill tonnes per year output.

The cashflow will come from FOB Sales of $125 less FOB costs of $72.40. Around $50 margin. The DFS have estimated $22 to freight it to China so all up costs of $95. However we will get instead current c&f sale price of $150 to $160. Once again $50 margin. I hope that clears up the costing for those that were confused with FOB and C&F. Of course at $50mill EBIT take out the 20% ($10mill)free carry to TRF.

So far the above is not pie in the sky scenario that cannot be achieved,with only 110 to 120mil shares issued by the time stage 2 is implemented. The EPS by then would have climbed from 40c in 2012 to $2

Everything in the DFS shows that their timeline now is most practical and achievable and it seems in hindsight their original timeline was way too optimistic. That is something management have to wear but the mining license application of 6 months is what the SA government have said is the max time, so I expect a little earlier than this.

However my main concern in all this, the biggest risk to all the above, comes down to one thing as an investor, finance of the project. Without it we end up like so many other explorers just continuously increasing resource with no production in sight for many years.

They raised $6mill via a placement with into's, towards the $28mill they need, only as it was the quickest by staying within the 15% issue of capital. Also it was done to reward and give every shareholder a chance to participate at the same price by raising the balance via share rights issue.

I can see the dangers if TRF and others don't take up the rights issue. We may collect say another few million dollars but not enough to get this project started. Right here the game is over and we are stuck in no man's land.

We need the whole capital amount requirements raised now to ensure this project can go ahead 100% and give the market confidence that it will happen.

TRF's intention is not to take up any more or if any, very little shares in IFE. After some research, I am extremely confident now that shareholders should take up their entitled shares as any shortfall WILL be taken up by a number of brokers and institutions who are hoping the majority of shareholders don't take up their share rights issue.

Regardless what has been said here by some posters, the interest is high enough from the big players to cover all the shortfall if needed. Even though it is not underwritten it does not mean they won't take up the shortfall fully.

I can assure you I will be taking up all shares i am entitled to at 75c. The risk/reward is too good now.