I have to admit I was expecting the share price to quickly move past 25c once the TIVAN announcement was out. Most of us agree that the DFS is will be out soon, give or take a week or so. My guess is it'll be the first week in August and so far it's shaping up to be a cracker. The big elephant in the room is finance. I thought I'd share with all some snippets from the open briefing from PB in Feb 2015.
…Initial discussions with Hyundai were very encouraging, leading to an in-principle agreement for their support when we come to a development position. We remain in constant discussion and dialogue with WOOJIN and Hyundai on the project’s progress towards development.
...POSCO E&C came to TNG with a terrific proposal to build the mine and refinery in Malaysia. We are still in negotiation on the details, but it is appealing as POSCO can fund up to 60 per cent of the capital expenditure for the construction and design work awarded to them, to be repaid later from cash-flow. This provides some certainty to TNG when we consider sources and the structure of funding development. Following completion of the Feasibility Study, I expect further announcements with respect to POSCO E&C
… I would add that all these companies have expressed the ability to provide pre-production finance which has been included in the current agreements; again, these help to de-risk our production and development financing, as all of these agreements are bankable.
With WOOJIN a given (IMHO), big brother Hyundai wanting a secure supply for their products and POSCO wanting to get in on the action, I think we'll see money on the table shortly after the DFS from WOOJIN and Hyundai.
Let the good times roll!
TNG Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
