TAW

Wanted to open a discussion on what we think will get TAW re-rated outside of the macro Iron Ore market sentiment.

In my view, it is 3 things that I am still looking from TAW to really re-rate it. I believe each will move the share price significantly but together they make the company.
1) Confirmation of the DSO to kick the project off. Anything that helps confirm the DSO will be useful. Pitting, sampling and ultimately dropping some drill hole to firm up the DSO. (but we have to wait to the November and the end of the wet season for that)
2) Port Agreement with Wisco.. This will be an important milestone because it is the remaining unknown on Logistics.. TAWs staged logistics concept is very nice and the only open point was the cost/ton of moving ore through the Wisco port.
3) Financing clarity. Knowing how they will fund the (much lower in the case the DSO is firmed up) project from after the drill results are received to first ore out of port. There are a lot of options here (offtake financing arrangements, arrangements around opex type agreements with outsourcing companies or issuing more equity) and my least favored and in my opinion the most expensive is going back to shareholders for cash. But I think TAW mgmt knows this.

In terms of the MDA and Liberia relations from the announcements so far, I am personally very comfortable. Liberia itself is very stable, Ebola remains a risk but I think they are monitoring it carefully. From the calculations TAW has put forward on mining scenarios itself and give the above 3 are reasonable there should be a robust(profitable) project.

So in my opinion, if the above 3 points are addressed we have a game changer and I hope a major re-rating.

Interested in others opinion here?


Do Your Own Research. Not investment advice. Just my thoughts and opinions.