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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

Bullboard Posts
Comment by HappyInvestingon Nov 19, 2015 12:16am
114 Views
Post# 24303876

RE:RE:RE:My thoughts on today's low closing price

RE:RE:RE:My thoughts on today's low closing priceYou can't just suspend the ramp up to commercial production till the price improves.  The resumption later on would just take that much longer and go through more cash, and laying off the skilled staff comes at a cost and you risk them not being there when you want to restart.  Even in a care and maintenance scenario, there are a lot of fixed costs which still have to be paid, so the cash burn doesn't stop.  Additionally, when the other mines finally close down due to their exhausted ore reserves, you want to be fist in line to fill the void.  It's all about market share - especially if demand in China has slowed somewhat. (It's the same point with cutting oil production to bolster the price - nobody wants to do it for fear of loosing market share, so they just keep producting.)    

The best thing to do is to ramp up as quickly as possible, in order to get the cash costs down as low as possible. If there is a need for some bridge financing, get it from your partner Glencore, or possibly from one of the Canadian banks, provided they will lend into this commodity market, or from one of their many institutional shareholders who are have lots of cash.  Other alternatives include issueing a few more shares or high-grading some of the better ore zones if they have to, but for Heaven's sake, don't supsend the mine & plant operations.  Hopefully, the Zn defecit will materialize soon, and TV will be in commercial production with two world class mines.   
 
Warehouse stocks are being drawndown daily for Zn. It's just a matter of time before the price is more   reflective of the demand/supply fundamentals.  

Bullboard Posts