undervalued, page-4

Saw the TTY presentation at the Gold Coast in Sept this year these are my notes:

My thougts only DYOR

MCap $79m
Cash $1.4m
Shares 264m
Options 8m
Largest Noble Group 26%

Noble Group the largest holder are a commodity trader who provided significant debt funding to get the company out of the hole that its previous CEO dug. This debt has now been reduced to $36.5m and company expects to have it fully repaid in 12 months.

Production at this stage is to stay at 2mt per annum and company has a mine life expectancy to 2013. They are actively drilling into areas that they know contains ore and understand they need to get JORC on this.

In this regard they are aiming at having a JORC reserve sufficient to extend the mine life to 2016 by June 2011.
They have actively cut costs through more hands on management and by getting staff onside and engaged in the success of the company has increased production.

100% sold into the spot market and with Noble group marketing for them they have never had a problem selling although from time to time they have had to take lower prices.

Noble group is encouraging the company to make a significant acquisition within next 12 months and 2 / 3 smaller acquisitions.

Comment: Good presentation and Managing Director looks to have the goods. He has certainly turned the company around. Support of Noble Group is positive, however I wonder how the market will view further acquisitions as this is what got the company into trouble financially in the first place.