What would be a good year for TIG?
IMO if TIG can sell 500K ton with a positive cashflow before loan paydown of say $30 million ($15
million after loan paydown,) I for one would be quite pleased. This would be the top end of forecast.
The challenge for the company then is to raise $100 mil odd without diluting shareholders to install the wash plant and upgrade port to 1 mil t/p/a+
If the Chinese see value in TIG they will likely make a pitch for the company earlier rather than later, IMO, which would give them another non-western aligned source of supply with a low COP.
If TIG could mine coking coal exclusively now , then the company would be in a position to
finance the upgrades from cashflow even @ 600K ton/p/a, IMO, albeit over a longer period of time. The question is how long before TIG becomes a predominantly coking coal miner?
600K t/p/a SS coking coal vs 600K ton of which 25% coking coal should yield an extra $24 mil USD revenue ($32 mil AUD) which would go to the bottom line.
What do others think?
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