I'll just summarise, hopefuully covering all your issues/questions
- In the words of Ian Finch (albeit not precisely) TRF are an exploration company first, and an investor second. With thisin mind, to extend their issued capital by 50%+ to maintain their equity % in IFE is off the cards. They cannot ask TRF holders, the original owners of 100% of W.H. to shell out again, and massively, just to keep a few % of IFE. So I think they will avoid the internal dilution and drop their IFE % as a result. Who knows, they might take up some of the rights, but that isnt for me to decide.
- re tossing away the Fe, they are only dropping their % of equity in IFE, not their free carry, nor their gold rights to any ore the JV processes. So there is no change nor anything to worry about from that perspective.
- TRF havent indicated they intend to sell IFE shares, just their entitlement, assuming of course that the rights that are to be issued are infact renounceable.
In summary, TRF cannot afford to maintain 50% holding in IFE as it is entirely at the detriment of all of their other projects and investments.
I hope that helps
cheers Split
TRF Price at posting:
43.5¢ Sentiment: LT Buy Disclosure: Held
