sign of confidence

I must admit that I was disappointed when I read the annoucement and looked at the share and options prices - a drop in price has that kind of impact.

However, I am starting to think that these guys believe they have something that is very valuable and they don't want to give it away for less than its worth.

Several metal exploration companies have had to give away half of their high IGV deposits at substantially discounted valuations to obtain project funding from the Chinese - Compass Resources and Havilah are two such examples (I own shares in both).

ARH which relisted this week, has negotiated a more innovative financing arrangement.

TRF has announced that it has received serious interest from overseas investors - the Chinesse and Japanese perhaps. There must be other Australian companies running the numbers over TRF as a take-over target.

So lets speculate why they have taken this approach:
* maintain control
* reap the reward of strong iron ore prices for many years to come
* hot IPO market at present - maximise value and funds obtained - will add value back to TRF for their remaining 50% plus the shares they will own in Iron Clad
* IPO reward for existing shareholders instead of giving it away to overseas entities
* confident about the additional 300 to 600M tonne potential or more - don't want to give it away too cheaply before it has been quantified
* separate management team to progress Iron Clad while it manages its other extensive assets
* it sounds to me like they believe their gold, copper, zinc and U assets are substantial if they are willing to take this approach

etc .... please feel free to add to the list


IMO, a true sign that we have a commercially savvy board and managment team looking after their / our interests. I think the market will respond positively once they understand more.