- The most important positive is the doubleplay that cash costs have dropped and its Australian Sandstone mine is producing competitively.
- Another positive is the reported A$64.8m in cash/bank/bullion deposits. This represents U$46.8m at current forex and means that the new Casposo mine and capex an be paid for out of treasury and there’s little reason to expect any dilutive financing going forward.
- Another intriguing bonus is talk of a sale of its Iron Ore to one of two possible Brazilian purchasers. Although I personally am not holding my breath on this one (see today’s Chart of the Day) if TRY can do a deal it would be a great cash bonus to the company.
- The major negative in the release is the delays experienced at Andorinhas in opening up the high grade underground extraction. By no means serious, but all the same the company is now behind schedule on that count. TRY now expects to start feeding significant amounts of high grade into the mix beginning June 2009. Let’s see if they make that on time this time. TRY reports difficulties in procuring equipment and also power outages. The power problem sould now be a thing of the past as they’ve invested in back up diesel generators.
As said, those are just a few of the points I picked up and I strongly recommend that you read the full report (on that link above) for yourself. It’s my idea of a great investment and I cannot be louder and clearer than that. Great prospects, growth baked in, under the radar and importantly run by honest management that truly put shareholders first and don’t just pay lip-service to that angle. I’m long and have been since $0.84 and expect plenty more upside to come. My NOBS report on Troy Resources is still available if you are enough, find details here. However be clear that if you pay $10 all you’ll get is plenty more detail and the same reco; “buy” as I’m not trying any hard sell here. I’ll leave you with the Australian-listed stock and its performance from last night.