Agree Delta... I have had the Supply Vs Demand argument with many other investors and brokers for many years... sometimes I am right and sometimes they are...
In terms of this project- it has a very small time frame and will be on the trucks and ships in a half a year. Then we have enough supply to last a few years at 2MT pa... then we onto Hercules and the huge JORC resource.
Dependant on Ore prices going forward that does have a large affect the profitability of these projects. Yet I class the strategic approach and JORC resources above average for a minnow. It is a high risk high reward play that is not for everyone.
Risk reward wise I am in this play because they are a Minnow. Sure simply be in a RIO\BHP if simply betting on commodity and worldwide prices going up. Far bigger gains in seeking the right emerging companies that have the right leadership and good products. Often you need to look long and hard- TRF\IFE fits this criteria for me.
Risk reward wise TRF\IFE project fits many aspects of my risk profile on this segment of my portfolio. Would I bet my house- No. Naturally if only based on the Hercules project getting up by 2015 i would never be in this play. I simply want a rerating of the smaller of the 2 to 300Mil... what it will be worth in production. IMO.
So are most investors IMO. Let us worry about competing with big boys when Hercules up and running and we have runs on the board already via Whilcherry Hill Ore. Then we are ready for MID tier status 10MT pa ++... huge amount of time away. 2015++... who cares yet at least they have a 10 year plan.
Happy with 1-2MT pa of very high quality heading to China very soon...
Cheers JAY
TRF Price at posting:
45.5¢ Sentiment: Buy Disclosure: Held
