Hi BillroyThey still require another $160m or so before they are...

Hi Billroy

They still require another $160m or so before they are ready to mine. Much of their current cash will be spent on further drilling pre-feas, BFS etc.

If they use equity then there will be fairly significant dilution (the recent raising gave an indication of the discount required to get it away). They can try to tap debt markets but a requirement for hedging from bankers would restrict some of the upside.

They will need some sexy drill results or a very strong move in U3O8 pricing to get traction with this apparent overhang.

With OZL as a major holder they should have the financial muscle to get this to mining stage (assuming this fits OZL's wishes) but I don't see much chance of this becoming a multibagger from here. The lower the price goes the more interesting it becomes because I expect TOE to become range bound and there should be some good trading within this range on news, such as drill results and progression of the project.