RE:3 Things Ricus Should Say Thursday
@Stockwiz ... with all necessary politeness and respect to you... but you are dreaming :) Debt repayment... yes, debt has been and will be repayed a little bit, but not in total. All the company has to achieve is financial stability and this will be guaranteed by a continuous positive cash flow due to high enough zinc prices and lower treatment charges. Last TC price was at only 65 USD btw - VERY low... no more financing? That is out of any possibility. In contrary, it should be counted as guaranteed that there will be another, even much bigger, round of financing for RP2. Cash flow will only pay a little bit to these costs and I do not recommend the company to take too much credit. So either the company sells some assets and finds a partner for a JV OR shareholders will pay at least 50-60% of the project. And thats all fair I think as it will also be shareholders who will benefit from the project. reward shareholders? Sorry, but you are totally misinterpreting the situation of the company: this company was fighting for survival only a few months ago, is now repaying debt, has reopened a mine and is planning a big mine project (RP2) - so all the money possibly available is welcome for Trevali and NO money can be wasted for such dumb things like dividends or share buybacks. The old TV management was - correctly - accused of getting it wrong with their share buyback plans by @AlfTanner and the last I would want TV to do now is give back money to shareholders as if there s nothing better to do with the money. Growth plans? Well.. guess you heard about "RP2"? If this isnt a really good growth plan ... :) RP 2 - to repeat this - has a MAJOR importance for TV as it will get AISC costs of Rosh Pinah down to around 0.65 USD/lb which will then guarantee the long-term survival of Trevali even in the next downturn and this in turn will lift the share price to the level of mining companies with a stable (!) positive cash flow, independent of economic cycles. Miners that are permanently profitable, are normally priced between 1.5 to 4 times book value, means TV - after RP2 will be priced at 3 to 6 times the current level. Of course this does not mean you should await a multiplication of the share price to these levels just by RP2, as we definitely will see more dilution for the project. But it means that even counting in the future dilution, the long term effect for shareholders and the company will be clearly positive.