EPA update, page-54

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Danehill

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165

05/12/23

13:00

Post #: 71279016
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Originally posted by RhysT: ↑

I had another listen to the money minds podcast of whatever it is discussing the merger, and it's all the same logic that makes sense taken on it's own.
One orebody, one capex, no competition etc, absolutely that all makes sense.. I just struggle to believe that ANYONE thinking of contributing a few hundred million to ANY project can just look at projects that simply??

Because I think the important things should be the main points Troy has highlighted. Combining only adds a longer mine life, not higher production. Administration costs go up for the same yearly production. OPEX probably go up for the same yearly production if we are talking blending. Plus add the time and costs taken to complete an integration DFS.

I think to many commentators, and larger 'potential' sources of funds (who importsntly don't actually have skin in the game yet or are being asked to actually put money down yet) are simply giving this surface feedback analysis of combining 'making sense', 'logical'. Without actually analysing if it makes TMT or AVL any better than they are now. Isn't that important to them?

The real question anyone commentating on these two companies should be asking, is whether TMT's existing project ends up improved enough that it justifies several billion more shares, and actually makes it a more attractive balance sheet to invest in down the road?

But everyone is too lazy so we get 'merger is logical'.

Well what do they tell us in 2 years when our hand is out for funding but opex has blown out and we have a 50 year mine that needs 7+ years or more just to pay back?

Wise money wouldn't simply be saying 'come back when you merge and then we'll talk funding'... Seriously? They aren't looking any deeper into what's going on here than that?

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Whats the podcast name or link please Rhys so I can listen?

TMT Price at posting: 20.5¢ Sentiment: Buy Disclosure: Held
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