Hi Furniture, IMHO EDE are not over valued TAS are way...

Hi Furniture,

IMHO EDE are not over valued TAS are way undervalued. Having said this, I expect TAS to rally over the next week or so now that the CR is behind us, which will reduce the EDE/TAS MC valuation discrepancy somewhat, but not completely.

If, however, GS announces a small drilling program at Vulcan very soon (unlikely IMHO), this changes things a lot as investors would hurry in and the TAS SP would then be rerated upward and thus the EDE/TAS MC valuation discrepancy would be further reduced. At current valuations, if TAS does commence a small drilling program at Vulcan, the downside risk to the TAS SP would be very limited due to TAS’s 50% shareholding in EDE. Therefore at the current SP TAS would be a very good speculative play.

As a long suffering shareholder of both TAS (and EDE) I share your frustration, however, I believe that EDE with their EdenCrete product, may be on the brink of a huge breakthrough, which would be a company changer, not only for EDE, bit also for TAS of course. It is not entirely out of the question that GS will decide to sell some or all of the TAS stake in EDE to a major global concrete company to fast track the EdenCrete project (once EdenCrete has been approved at all levels of course). This sale would net TAS a very tidy sum which GS could then invest in an extensive drilling program at Vulcan.

I am a believer that Vulcan is a huge iron deposit, however, due to its depth it is currently sub economic. If however, additional drilling discovered large amounts of copper etc. Vulcan would instantly become economically viable and it would be game on.

The other alternative, should the EdenCrete project be a huge success, would be for TAS to relinquish all its mining tenements and concentrate all its efforts solely on EDE. This would be a shame but given the state of the Aussie mining industry for junior explorers possibly the wiser choice for TAS and its long suffering shareholders.

Cheers and good luck!

p.s. please DYOR!