TAS about to roar from sleep?

Why Do I believe TAS is a sleeping giant about to wake up from a long sleep? It is because I think it has proven its resource the equivalent of Olympic Dam.

Ten years ago, I first bought into shares in TAS. At that time, the main draw card was the Vulcan project in South Australia. The surveys indicated peculiarities similar to the nearby Olympic Dam, owned by BHP. Olympic Dam is a massive deposit which according to one article I remember reading cannot be exhausted for as long as 50 YEARS of continuous mining. BHP to my understanding has delayed developing the project due to huge investment required and downturn in the price of commodities.

After a JV with Rio Tinto that didn't progressed beyond a less than stellar drill holes followed by a downturn in mining boom, TAS went into a long sleep along with its shareprice that slumbered at 1 cent. This is until TAS has found its version of an Olympic Dam in another project of mammoth potential located in the USA. This is its investment in EDEN ENERGY (EDE). By a combination of 'luck' and years of research perseverance in partnership with Monash University and funding from the Aust government, EDE has patent to carbon nanotube in concrete (Edencrete). Why can it be said, this is TAS's version of Olympic Dam? Well, consider:

1. Edencrete is now in commercialisation stage, after it has successfully passed field trials in Australia and the US and The GDOT (Georgia Dept of Transportation) has indicated it will specify the use of Edencrete in certain upcoming projects.
2. There is no product currently in the market the level of Edencretes in terms of tensile, flexural strength, abrasive resistance, and reduced permeability.
3. The state of Georgia has provided EDE with incentives of up to ~US$24.6m in the form of land grants and tax incentives.
4. EDE has assembled the best in class sales team who are formerly from big players in the concrete admixture business.
5. EDE is expected to complete its first high volume production plant in Colorado in early Q117, in excess of 2 million gals p.a.
6. EDE has started on design and plans to the manufacturing plant in Augusta, Georgia. The Georgia multi-phase facilities when completed is expected to generate 100 million gals of Edencrete with expected revenue of US$2.5B p.a.
7. The business proposition is highly profitable given the company has indicated all phases of the Georgia expansion following Phase 1 will be funded from operating cash flows.
8. The US road conditions are in such dire need of repair and maintenance worth billions of dollars in the next 10 years. In addition, the international demand will be similarly massive.
9. Roads will be needed for as long as man drives a car or a cart on earth. This brings the potential of Edencrete to last longer than any mining tenement.

So where does TAS sit in all of these? TAS owns about 43% of EDE thru its investment in wholly-owned subsidiary, Noble Energy. This means that The value of each share of TAS is about 1.4x the the value of EDE SP. At the moment, TAS is trading at 17 cents when it has a value of 35 cents based on EDE's current price of 25 cents.

Based on the expected completion of Colorado plant in q117 and expansion in Georgia, the current SP is indeed a sleeping giant, IMO. It does not reflect the commercialisation development that became evident in the last three months. However, believe it shall wake up soon. I hope you won't be caught sleeping when it does.

Please DYOR (R=research or reading) of company announcements and Edencrete.com to understand the context of the above. These are opinions only.

Regards