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Teal Valley T.TV


Primary Symbol: P.TEAL

Teal is a Canadian, pharmaceutical & NHP manufacturer selling to Canada’s national, chain drug stores, presently expanding its portfolio to include cannabinoid-based products utilizing proprietary formulations & extractions for both the global Rx & recreational markets.


P.TEAL - Post by User

Comment by LuvtoInveston May 12, 2021 1:19pm
188 Views
Post# 33183633

RE:RE:RE:What to do with $200M in cashYou vote)

RE:RE:RE:What to do with $200M in cashYou vote)Miners have to strengthen their balance sheets when commodities are on the upswing. Last time around, TV did not do this. What happened when zinc prices started falling? They had to fight for survival - had to dilute, had to borrow from Glencore, had to get their revolving credit line reduced, had to agree to pay much higher interest on revolving line of credit, and had to go for hedging. Saving on interest or paying more interest is just one aspect of the whole picture.

Moreover, upswing in commodity price is not the right time to look for inorganic opportunities. 

Once TV strengthens its balance sheet (becomes debt free or reduces its debt substantially) and the commodity cycle changes (downtrend), that will be the time to look for inorganic growth opportunies.

For the time being, organic growth through RP2.0 and strengthening  the balance sheet (paying down debt) are the prudent things to do.

All this is with the assumption that the upswing in zinc will remain till at least 2022. The fact of the matter is nobody can predict and it may not even last till end 2021.

IMHO    
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