greggles
I'll be back!
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TEM acquiring PNG based Tolukuma Mine and Mt Penck Project. This deal came out of the blue and I have no idea whether or not it will be beneficial for TEM in the short or medium term.
Management is looking to de-risk the company by moving to production at the Tolukuma Mine ASAP. Tolukuma has been on care and maintenance since 2015 and while management says that production can be restarted in the "near term" it has not yet provided a timeline or even estimated when that might be, nor the cost involved in getting Tolukuma into production.
There's a lot of moving parts to this deal and a lot of uncertainty as well as a substantial amount of dilution with the issue of over 470 million shares to fund the acquisition.
The TEM share price is up 30% to 5.1c today, but I think this initial enthusiasm may wane in the coming weeks and months as the challenges ahead for TEM become clearer.
Management is looking to de-risk the company by moving to production at the Tolukuma Mine ASAP. Tolukuma has been on care and maintenance since 2015 and while management says that production can be restarted in the "near term" it has not yet provided a timeline or even estimated when that might be, nor the cost involved in getting Tolukuma into production.
There's a lot of moving parts to this deal and a lot of uncertainty as well as a substantial amount of dilution with the issue of over 470 million shares to fund the acquisition.
The TEM share price is up 30% to 5.1c today, but I think this initial enthusiasm may wane in the coming weeks and months as the challenges ahead for TEM become clearer.
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