Seems like NST is delivering TAM a sh!t sandwich at the moment. Statement in these accounts says that CTP is back to a prospective 75K oz/pa operation (100% basis) so TAM's 40% share is just 30k.
TAM has to decide by next June whether it takes $52mil from NST by exercising the two options to give NST 100% or take a chance that NST will actually rebuild the plant and develop CT. I think TAM will decide to cut and run as Allied Properties will be sick of waiting by then and so the options might be exercised sooner than that.
TAM is definitely over a barrel now and the original sale agreement they drew up wasn't water-tight enough as regards how long NST had to develop the project to commercial production.
TAM Price at posting:
4.7¢ Sentiment: Hold Disclosure: Held
