TRF has always traded at a discount to the sum of its parts, but at 30 cents its almost at the point where you start to question yourself if something is actually wrong with the underlying assets. I personally think not, but it just seems insane TRF is trading at this level.
The current share price is basically attributing no income flows from the 20% free carry to trafford. Even if Ironclad achieve just $40/t margins on their 1 million tonnes in year 1, thats $8 million into traffords pockets - 30% of the current market cap of $26 million.....
This also means their assets are worth nil, including the potential for IFE flows to grow and for lead, zinc, silver deposits to become mineable as well.
TRF is basically trading at a discount to its current share holdings. If you take into account cashflows from a successful ironclad in 2012, the discount is VERY deep. I'm surprised the speculator is pumping the same story, even though i'm not particularly interested myself in what he says, but he does have some market effect.
I believe there is great potential here to double your money on TRF by 31 dec 2012. Not sure on the thoughts of others but i'm definitely weighing up my options to through some more cash at TRF.
TRF Price at posting:
30.0¢ Sentiment: LT Buy Disclosure: Held
