What are the expectations?
posted on
Aug 05, 2012 04:55PM
Based on my calendar, Tyhee should be releasing their FS this month.
The following hurdles will be the environmental review, First Nations consultations, permitting, infrastructure and finally the all important financing (not necessarily in that order). If all goes well the first pour could be a few years off. Based on "a go it alone" with a combo of share dilution to 1 billion shares and $100 million in conventional debt I still see a $0.50 to 0.60 share price six months after the first pour, not before.
Since we blew through my $0.09 floor prediction based upon the outstanding PP at that time, the floor has dropped farther than I would have liked to see. A look at the insider report, shows the usual suspects buying. There will be no lasting jump in share price with the FS. A pop maybe, but a trip back down to the present level or below once the info is digested. Quite a disappointment for long suffering Shareholders.
I am still positive on Tyhee as some will do extremely well when the conditions allow for the mine to proceed. Many present shareholders will be very disappointed that there will be no lasting effect on the share price at this much anticipated event. A buyout will not make most of us whole. A JV has the same outcome. Go it alone is the only way forward to keep the upside a few years out.
From personal experience, the First Nations are becoming very savy and are starting to realize what power they have.
What concessions will be on the table if this project is as lucrative as some expect? Think about that for awhile. They will become our partners to some extent.
W