In fact, seeing as we have had so much time talking about SP movements in the past few days, lets get back to the fundamentals.
Current Shares and Ops - 51 million Fully Dilluted MCap - $38 mill (today's closing) Cash $3.5 mill EV - Circa $35 mill
And for this $35 million, we get:
* 35% stake in RAD, will soon justify the current Mcap of TRH ALONE without the Potash
* 90% stake in an exploration target of 2.3 billions tonnes of potash ore @ KCl 32.8% (Circa 450 mill/tonnes) Oh, that is high grade as well - yes it is deep, but should be economic with low cost solution mining. Full costs projected in the $150-200 a tonne range. Leveraged to potash prices.
* In the USA - worth a point all to itself. Just for those who have not noticed, USA potash prices to farmers are now over $600 a tonne. They are projected to keep rising. The other countries are following the rise in US, and it is likely all TRH sales will be to the domestic market. Oh, and very low soverign risk, the market will pay premium for a top quality resource in the US.
* Potash at the start of a projected long term uptrend.
* Hugh Callahan was on the board (up until last week). Was instrumental in the foundation of RIV. Think he may know a thing or three about potential resource projects.
* The two new Potash managers are ex high level Rio Tinto among other companies. Don't think they will be moving from all of this to a $35 mill lemon now do you?
* The EV is almost comical compared to what is being given to the likes of EML & STB
So what needs to happen next:
* Final permit approval
* Cap raising (at some stage, does not have to happen at this price)
* Start drilling and prove up a JORC
The first of these three should be done and dusted in three weeks.
So are you gonna sell or buy some more, that is the question?
TRH Price at posting:
75.0¢ Sentiment: LT Buy Disclosure: Held
