Teal Valley T.TV

RE:Timing of RP2

[molting]

I am puzzled as to why there is any rush to secure financing with the share price at .17 since part of the financing will likely involve equity. Similarly, our negotiating position for debt will improve if the balance sheet is a lot stronger. Am I missing something?

Pros of talking about RP2:

1. If RP2 works out then TV gets to AISC in the $0.60s to $0.70s.
2. If that's the case, then in 2-3 years TV's SP should move well over $1
3. Current zinc price trends will stimulate more production. If RP2 is active, TV will be at the leading edge of that wave.
4. If the above comes to be, buying in at anything below $0.50/share gives a very good return in 2-4 years. Good buy and hold for funds and individuals.
5. Putting out the word that RP2 is under active consideration points to all of the above. If so, then of course the sooner we get RP2 done, the better.

Cons of talking about RP2:

1. Raises fear of further equity dilution.
2. Draws critical attention to TV's near death experience (but also highlights TV's success in staving off that risk and it's now making money).

Although there's merit in getting RP2 going as soon as they comfortabley can, I agree that they should wait till their financial picture is more attractive and gives them the most bang for the buck.

If Q3 comes in good and Q4 comes in great along with significant debt reduction, TV may get RP2 going with debt only plus internal cash generation with no need for more equity sales.