toe has gout

Not surprised to see the TOE shares getting smacked at all.
I am not a buyer until I see value. Value is the hard bit to work out.
I am told by friends in the U industry that Canadian companies are currently buying indicated resources for $8/lb in the ground. In Oz the value is closer to $5. On this basis with 20M lbs, then Toe current assets should be worth about $100M over 410M shares.

Toe said in the preamble to the NEL takeover that there would be $23M cash after the deal was done. The fine print which they didn't mention too much was the stamp duty costs on the transaction. They were coy on this beause at the time of the bid they were unsure of the cost and timing of the payment. Based on 5% then the company could be up for $15M in stamp duties to the WA government.
That greatly reduces cash.
Given that they are a very active explorer with no income, then the cash will run low and they will end up like just another explorer struggling to pay the bills.

Me thinks a placement is on the cards within next 6 months.

Will wait for the quarterly report in January for end December to see where they stand.

avoiding this one for a while.
cheers
omg