Tamaya is cash rich with about 30 million after issuing 300 million new shares at 11.5c. At the current market price, the market cap of the whole tamaya is only ~43 million. Although they would need the cash for operations, a share buyback would stabilize prices.
The way i see it, since they issued new shares 4:1 for iberian. if i recall the 2007 annual report, they issued abt 500 million shares for iberian back when they took over 86%. Hypothetically, hence if they bought 500 million back at these depressed prices of abt 4 cents, the writedown for iberian would be more like 20 million, much less than the 108 million theoretical value. of course, there arent that many shares available on the open market and the price wont remain at 4 cents.
Tamaya itself is still profitable. The writedown is massive but it would probably be once off. Sure copper prices will decrease but the % extraction is increasing. Eps for 08 excluding the writedowns should be abt 0.5 cent, considering just a month ago copper was at its highest price. 0.5/3.1 which is todays close share price is a pre tax rough rate of return of abt 16%.
Moreover, iberian isnt exactly broke. they still have more assets than liabilities even after impairment. tamaya doesnt have debt obligations til 2010, thats a long time to go for things to work out.
the stock is way depressed. why panic? even after severe writedowns and impairment, the company will remain a going concern.