Approaching Maximum Uncertainty...We have:
Kaiser Spec Sell (a
toothless tiger for sure (he has ZERO SWAG), but its excellent
ENTERTAINMENT!) Rumors swirling over Construction delays (real mine construction (not urinals and outhouses);
Rights Offering (or no Rights Offering);
Anticipated Financing Package;
Pending Tuzo results (Mine Life is muy importante);
Pending Water Permits approval;
If the TIGS just invested in a non-brokered private placement
of common shares at a price of C$5.10 per share, for gross proceeds of $10.39 million, unless there is a material change for the worse in a fundamental issue relating to the project , I am perfectly comfortable buying more stock at levels
BELOW this price.
Delays would be a fundamental issue (as it impacts NPV and ROI), so we'll just have to wait and see about that a little while more until MPV publicly addresses this matter in more detail. Lets not forget that they also raised 17.85MM from a bought deal PP also.-these are third parties. THIRD PARTIES.
I have posted a more detailed summary of Kaiser's issues previously. I'll boil them down to two issues:
1. Rights Offering
2. Delays
These are the cruxt of his isues, IMO. All else is pure bunk. Diamond values, with or without flukes, average actual values versus modelled values: subterfuge, BS, Chafe, Decoys, phoooey! He contradicted himself on each of these diamond "valuation" issues to render his murky convoluted logic IRRELEVANT. So its the two issues above that have potentiual substance, and the RO issue is a temporary one-its really a NON ISSUE except if you are newsletter writer and want to get credit for enabling your subs to buy at a lower price. We all know that if an RO is undertaken, the discount will will be welcomed by existing investors (except RDGEO!!) and will "quickly" be forgotten as the share price rises thereafter.
Delays are potentially substantive, and I am very curious if this statement from the March 24th PR is still accurate: "De Beers confirmed that there has been no change in the project
schedule". So that means that this statement issued in a Jan 30th MPV PR remains unchanged:
=================
Project schedule
Regulatory restrictions imposed on the Joint Venture limited the material that can be trucked to
site this winter. In particular, shipments of cement and steel have been delayed. The Joint
Venture is currently exploring opportunities to mitigate the impact on the project schedule. In the event that appropriate mitigation measures are not found, mechanical completion of the process plant and cold commissioning will occur in Q2 2016, and first production in Q3 2016. Shareholders will be kept informed of developments.
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To me, they confirmed the worst case scenario (all ssumptions about Permits being held constant) and they MAY be upside to this timing. So all that is known to the market.
Awaiting TUZO results.