RE:Market is over reacting
The market is absolutely over reacting, the report that precipitated the SP drop was disappointing.
But whoever is dumping shares at 1.30 is a fool.
RP2.0 will get done........TV needs it......Glencore wants it (it's going to happen).
The path to this may not be quite what we wanted.....(but thats life..)
The question will be what will TV have to do debtwise or financing wise or contactual obligation wise........
We know what RP2.0 will cost..that amount is a least as much TV has projected...but will of course be a bit more. That is unavoidable....(RP2.0 will still be worth every penny invested)
What we do not and cannot know is Zinc price, Asic, Production per quarter etc...(how much TV will profit from the next 8 quarters)
about 6 days ago I posted this
RP2.0 Financing from cash flow or loan?
Paying for RP2.0 with internal cash flows is what any of us would prefer I think, but there is something to be said for a little insurance to provide a cusion (in case zinc does skid for a quarter or 2)..
I think .....expecting to finance with internal cash and at the same time a small loan of 30- 40 million negociated at a point in the zinc price timeline as to be most advantageous with regards to loan conditions, interest etc... is where they should land.
Thats just me.....I have kind of a Murphys Law type attitude.
I stand by that post attitude and the idea behind it...........
Life so has shown me that (everything that could go wrong usually will) and (everything costs twice as much and takes twice as long as you would like)
I am rarely wrong on those two:) and also rarely dissapointed...I expect problems.
The report did disappoint me because we will likely encounter more problems before RP2.0 is completed. And the cushion got a lot thinner when that report surfaced.
It changes nothing in regards to TV's potential.......except it will take a lot longer for the SP to go where I believed it was heading prior to that report.
For bagholders this a bit of a slap in the face,
New shareholders however now get to buy in below 1.50 and have even more potential for profit. If you purchase Shares now at the 1.30 level you will double at 2.60..which is a very reasonable expectation by end of 2022.
If SP had not sunk from this report you would be purchasing at 2.00 and would have had to get all the way to 4.00 for the same result.
The market has severely over reacted thus far.....1.30 is a low risk giveaway.
but I personally do not want to see anymore headwinds, I don't need to see that cushion I referenced previoulsy get any thinner......Holding TV for years has chafed my arrse enough already.