quick tty evaluation, page-32

Wow strong views - Gone Surfing! Whilst I think it is too early to say that TTY is “stuffed” yet, at best I think it is going to be a very long and hard road back for TTY – On the positive side, TTY’s infrastructure advantage (rail and port) and marketing relationship with Noble is very compelling, but where is the ore?. Brave Mr Simpson, who so impressed the erudite media present at Diggers, was much more cautious (honest) than MK, and acknowledged that TTY’s resource base and limited mine life is “not good enough”.

Let’s face it a 10mt resource @ 60.47 % is chicken feed, with a paltry 6Mt @ 61.3% in reserves (probable). That’s a mine life of 4-5 years. Hmmn

If they can start expanding the resource base then good on them, they should get sp recognition, but excuse me for feeling a little sceptical. With the exception of Consmin, the record of MK companies at delivering or exceeding expectations and promises aint good. Still TTY plans an $11 million exploration spend so let’s see what they come up with in the way of resources. They just might surprise.

I note since MK’s departure even the production ramp up has been down graded. As recently as its May Investor presentation, TTY was targeting 3mtpa by June 09. The latest guidance is now 2mt by Dec 08 and “2.5mpta by O9” (not sure if this means a rate of 2.5mtpa or total produced?). Could be that they are being overly conservative in order to create a world first and actually exceed expectations…

By the way, I loved Rims euphemistic description of MK as being “Out of favour at present”.. He is lucky to be “out of jail at present”. He is down and out for the count, finished. With a reputation like that, no-one will touch him with a barge pole...