For a few months you have sounded incredulous as to the state of the TRF share price. Here are a few possibilities�
1.For years announcements have highlighted TRF�s effective ownership of IFE at 60%..Soon it will be 49%. Additionally for 2 months it was an unknown as to what TRF�s position would be.
2.Announcements from not long ago showed a pretty picture of the good ship IFE sailing in November 2011..clearly this particular date was, and is, fantasy. Under promise and over deliver my friend.
3.Recent announcements failed to clearly articulate the net margin attributable to IFE. FOB costing�s within announcements appeared confused. All said and done it does appear that the project is low volume and low margin.
4.The Port Adelaide option for transport seemingly hasn�t been fully confirmed, (references to other producers using the same option doesn�t cut it) and unless the market has missed it, a definitive announcement that a contract has been signed is yet to appear. In addition it seems no construction has taken place, or even begun, at the port for the various items that need to be put in place.
5.The OMS contract is steeped in mystery. Who are they? (other than a glib one sentence explanation) and what $ margin are OMS going to take?
6.Hercules, in reality, is years away. As a result the market will attribute zero value to it.
7.For years, announcements have highlighted TRF�s desire to rapidly bring into production the iron ore resource. Why then, as production supposedly looms, dilute your ownership.
8.The 100% rights to the gold and other minerals within the tenement, SO OFTEN touted in announcements, are seemingly of little value; Given that TRF started its life as a gold explorer, and one suspects that you may have a touch of the gold bug in you; plainly then, if this was not the case why would TRF be veering off to Africa or South America. If the hits were any good surely one would focus on producing output in 8 months from the existing tenement rather than spending another 3 years exploring elsewhere.
9.One is left to assume another capital raising is on the way to pay for entry into Africa and or South America.
10.If holders wanted a spec gold play in Africa there are dozens to choose from.
11.Forget touting the zinc and lead within Telephone Dam, Zinifex (and I am not suggesting they knew what they were doing..god rest their soul) walked away from the joint exploration years ago.
12.Nothing has happened at Lynas Find for 5 years. Quit even mentioning it.
13.The TRF website is inexplicably out of date and woefully inadequate. Pay a designer / SEO expert a grand a month to look after it for you.
14.Repeated placements have been made to the chosen few. Bugger them, some of us have been here a while.
In short TRF is conducting a major u turn from what has been outlined for the past several years.
AND before the 3 cent rampers clamber on with a bleat about down ramping..
Disclosure: Bought a stake before the IFE spinoff and have not traded the stock at all in the interim; Have never rung or emailed management to quibble about not making 3 cents in a week. Also an acquaintance, who shares these views and disclosure, is a drill bit width outside the top 20.!
TRF Price at posting:
41.0¢ Sentiment: LT Buy Disclosure: Held
