Depends. Troy has a powerful negotiation position because Investec's options are due in April 2019. No problem to take on $100m in debt if you are a 200k ounces producer. First step is to end speculation and get new drill results. Get Larken and Spearpoint Resources and Smarts pit extension. Extend the Investec loan so that Investec runs no risk of not getting paid. Then see how much leeway there is for exploration. Exploration funding should be equity based, so if extending the Investec loan gives Troy leeway for operations there is nothing wrong with one or two 3m capital raises per annum. Mind you I do not have the funds to participate, but with each capital raise und subsequent exploration program the pie will be larger. Management should do everyone (including themselves) a favor though: cut fees by e.g. 20%, put that amount in a prescheduled share purchase scheme and finally repair shareholder relations. Seems some investors still won't accept that the real reasons for John's very unfortunate share sales and timing. Make all directors + Gerry + Eric own some shares, try to extend the Investec loan and clear the path to capital raises once needed starting in early 2019. Timing will be very favorable too.
If I were Investec I would be very very interested in good relations and a new deal with Troy as there is a significant chance that Karouni could soon be of a scale that would imply dozens if not more than a hundred million dollars of development capital.
Step by step though. Nobody wants to get burned a second time.
TRY Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
