yesterday's announcement was nice but we already knew there was sufficient amount of the stuff to be mined
the updated DFS is what i'm waiting for, especially the expected operating costs...given all the paramaters i expect the results to be "robust" the question is how much and what is our implied break-even commodity price (tungsten - credits)
given the financial markets' turmoil atm some investors may factor in lower tungsten prices in the future and thus may be waiting for the DFS results...no other explanation because the SP should be at last double of what it is right now based on what we know IMO
management must also gain some credibility by adhering to the latest DFS timeframe given and by looking for new partner re financing the capital costs and off-take agreements
on the corporate side i was really happy for them to only raise small amount of money...this is exactly what i would expect from a company where management is confident to raise further funds at much higher prices [as opposed to say IVR which waited for its SP to go down 50% and THEN decided to raise 30% of its market cap]
the timing of yesterday's ann ex placement tells me that the company understands the marketing game too [of course it wasn't timed..:)]
THR is a niche commodity company with some obvious advantages: the reserve is known, permits given and the 2006(?) DFS just needs to be updated for new parameters, the costs are the only unknown and the DFS should dispel all doubts re these (i hope), why it's been taking so long is beyond me though and casts some doubts
but the company is valued like some wannabe explorer while it is much more advanced than that, once the mining costs and the NPVs of Molyhill are announced we will be able to judge with high probability the chance of the project being funded and developed and that should assign a lot bigger proportion of the expected NPV to the current SP [i hope this will be multiples]
on the TA front [which i'm not good at] i see a base forming and saw a lot of strength on some of the bad days last two weeks...yet the reversal yesterday tells me insiders consider the DFS still some time off [or Greece/Spain to collapse the markets or any other of the current shitty macro events] and we will see some more "accumulation days" ahead [which is fine by me as i want to get more lower]
my 2c worth
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