Why TRE is doomedHere it is, the dumbest statement in the history of mining press releases:
"The company is adequately financed to begin construction on the properties, and there will be no equity or debt offering and no forward sale of gold in order to launch these projects."
Put aside these very troubling facts:
- there is no economic study of this project;
- there is no estimate for how much it will cost;
- gold is under $1300 and most mines in the world are barely breaking even (not the time to be building a mine).
And just think about this word begin. Who begins constructing a mine without the capital to finish it? With only $13 million of working capital at the end of February, they can barely put a shovel in the ground. Then what? What bank is going to lend money for this? And you, TRE shareholder, are you going to be impressed that they didn't have to massively dilute your equity right away but were able to delay the pain a few months?
The way I see it, this company has no intention of spending any real money on constructing a mine. It's all a supterfuge to get you to think that they are making real progress when they're really just sitting back enjoying their cushy salaries and stock options. The LAST thing they want is to waste what little cash they have left on a project that cannot possibly generate any cash flow for many years. The next equity financing will be a rude awakening to all the long-suffering sharesholders and could finally send this stock into a death spiral. Expect delays, excuses, and diversion tactics--talk about shorts, gold manipulation--anything to keep the faithful from understanding the true state of things.