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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Post by valueplaysonlyon Apr 02, 2013 6:37pm
160 Views
Post# 21201269

south america focus is killing TID

south america focus is killing TID

Ditto  for Calmena.   South American  economies depend on mining  as the  key drivers  for their economiies.  With   many   major  mining  companies  having  stretched balance sheets  and the desire to right size production      for economic sustainability,  rather than  super producing  with  minimal  profits ,companies  with big exposure here will  be hurting.  This can  change rapidly     depending on commodity prices   but  the big major miners are  not interested in megaprojects   any time soon.  They over paid  for suspect assets and   took   on too much debt.    This  is  a 2014   or 2015 story.  We need to  see   miners stick to the knitting, curtail supply,  boost prices to ensure sustainability. 

The  balance sheet here scares   me the most.  The rig utilization is simply not there in the Americas.   however just like many  pundits wrote off natural  gas  last Spring,  the spot  price has  doubled   this Spring  because        production  has  been  taken  off.    Once  base metal  and precious metal prices  improve  this could be a good place  to rebound, the question is if  TID  can  hang in there for a few more  anemic quarters.

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