TIE - Tietto Minerals

[Sean K]

260Koz in first year and 200Koz pa has now turned into 172Koz pa for first seven years.

 

[mullokintyre]

260Koz in first year and 200Koz pa has now turned into 172Koz pa for first seven years.

View attachment 162011View attachment 162012

Thats the magic of maths for you!.
Mick

 

[Sean K]

Thats the magic of maths for you!.
Mick

The DFS AISC was supposed to be $650 too... Their latest presentation in early Aug at D&D had AISC at $875-975. They seem to be just making best guess estimates with these numbers at the moment.

 

[mullokintyre]

Down 25% this am. Admittedly on a down day for most goldies, but thats a fair drop.
Would be good to sit down and work out some potential cash flow to try to get a valuation, but as you say, with such rubbery figures it would be a waste of time.
Buying in now is just gambling.
Mick

 

[Sean K]

Down 25% this am. Admittedly on a down day for most goldies, but thats a fair drop.
Would be good to sit down and work out some potential cash flow to try to get a valuation, but as you say, with such rubbery figures it would be a waste of time.
Buying in now is just gambling.
Mick

Rightly smashed, IMO. They've really under delivered. They had a few reasonable excuses early on in the mine schedule due to the artisanal work they had to get through, but they should have known about that.

This was undervalued last year when it was working up to production based on what they were promising, but they've managed to wreck it through not keeping promises and/or not being totally open to the market.

I first started going off this when they did a big CR in the lead up to production even though they were stating all along that they were 'fully funded to production'.

One of the few times I've actually managed to time an exit well selling in Nov 22 for a 65% gain. Pretty much been all downhill since then.

 

[Sean K]

Oh dear.

 

[Sean K]

What an implosion.

The Gods were smiling down at me late last year.

 

[Sean K]

Well done to anyone who bought down below 40c.

A few of us were wondering what these Chinese companies were up to on the register.

I wouldn't say this is opportunistic because the company has consistently under delivered on promises. Was fun during the build up to initial production I guess.

 

[Sean K]

For those looking for risk-reward, think about some of the WAf explorer/developers who are going to be gobbled up.

Get in on the dips.

Or, you could lose your house too.

It's been a happy hunting ground in WAf the past few years.

I've not seen a bigger arbitrage in value to price in these companies, all based on perceived risk.

TIE was one of the biggest no-brainers ever going into development on what they promised, but they promised too much. That's a warning.

Otherwise there's a few ASX listed WAf explorers/developers that might be considered a good deal.

Haojin Capital’s bid for Tietto Minerals could be the start of more interest in Australian-listed West African gold miners, which are considered substantially undervalued compared to their Australian peers due to the high risk jurisdictions in which they operate.

The Chinese suitor, which already owns 7.02 per cent of the company, has put forward a 58c a share takeover bid, valuing the group at about $654m, and with an existing stake in the business it’s unlikely to attract a rival offer.

But it may throw the spotlight on the sector, which is generating strong cashflow from operations, as miners there produce more gold per ounce.

The gold price is currently just under $US2000 an ounce and global instability may push demand up further.

Among other miners operating in West Africa are West African Resources and Perseus Mining.

Some believe it could be Russian and Chinese suitors that wade into the sector.

Tietto is working with Barrenjoey and Corrs.

The share price of Perseus Mining is down 5 per cent this year, while West African Resources is down 35 per cent.

 

[finicky]

Just what we need, more Chinese CCP Influence in Africa. I'd rather have a crashed share price than benefit from them.

Not Held

 

[Sean K]

Yes, opportunistic. Because you destroyed the share price with false and misleading promises you morons.

 

[Sean K]

Looks like those who held on might get a few more cents off the back of this.

Among the reasons in a strongly worded missive Street Talk has been told will circulate as early as today is concern that Zhaojin’s bid was opportunistically timed after a slower ramp-up at the company’s Abujar gold mine in Côte d’Ivoire in the first half of the last financial year.

Street Talk first reported the approach from Zhaojin, which has called in Standard Chartered and Herbert Smith Freehills for advice, in late October. The bid, at 58¢ per share, was at a 38 per cent premium to the last close.

Shares last traded at 60¢.

Tietto has appointed Barrenjoey and Corrs Chambers Westgarth.

Tietto will this week tell its shareholders that it understands its two other major shareholders – Chifeng Jilong Gold Mining and Kongwell Management, with 18.7 per cent of the company between them – will not be voting in favour of Zhaojin’s offer as the price is too low. Cryptically, the company will also tell investors they may be at risk of missing out on a higher price from an unnamed, third party if they take the money.

Sources said an independent expert – Grant Thornton – had concluded Tietto shares were worth between 79¢ and 93¢, which meant the Zhaojin offer was not fair – and not reasonable. In any case, the company has previously argued, the Abujar project is back on track after the end of the wet season, generating cash flows of more than $18 million in October.

Zhaojin Mining is one of the largest gold mining, processing and smelting operations in China. It has been listed on the Hong Kong Stock Exchange since 2006, but any takeover of Tietto will have to be approved by China’s National Development and Reform Commission and Ministry of Commerce. Any deal would also require the tick-off from Côte d’Ivoire’s Ministry of Mines, Petroleum and Energy.

In October, Harper told investors that the board “strongly encourage shareholders to wait until the Target’s Statement is available, and to carefully review its contents before making any decisions”.
It looks like that time has arrived.

 

[System]

On June 6th, 2024, Tietto Minerals Limited (TIE) was removed from the ASX's Official List in accordance with Listing Rule 17.14, following compulsory acquisition of its remaining securities by Zhaojin Capital (Hong Kong) Limited.