TTY - Territory Resources

[pattyp]

Richard Elman of Noble that he is wrong too.

Rimtalay,

I am MORE then willing to tell Richard Elman that I have concerns - In fact I've had these discussion with a few chairs and directors.

I think you are over capitalised in TTY, you are far too emotionally attached to it. Take off the rose glasses for a minute.

Just because there is a BIG company with an investment doesn't mean all is rocking! Look at CNP... Loads of BIG investors and creditors there.

Please go are Read the BAU thread here on ASF (From Start) - Then come back here and tell me that I'm not a detailed and thorough analyst.

Also take a look at BAUs performance during the last 2-weeks... I know which stock I'd rather be in - Especially since TTY has rolled back to near where I sold out.

 

[jozepp]

Michael Kiernan has flagged his company’s intention to become involved in the sale of FreightLink.
http://www.businessspectator.com.au/bs.nsf/Article/Mining-rail-Territory-EUUXE?OpenDocument

The company and its key infrastructure asset, the rail line bisecting the continent, are up for sale after FreightLink faced difficulty meeting its debt obligations from the project’s construction.

Kiernan yesterday revealed Territory’s intention to become involved in the sale.

“Territory Resources, together with our partner, Noble, plan to declare our interest that we would like to become involved in a possible acquisition,” Kiernan told SCLN.

Territory has become one of the major customers of the rail line since it began mining at its Frances Creek operations last year, with 500,000 tonnes of iron ore transported from the mine to Darwin port since operations began.

“The bottom line is, as Andrew Forrest says, mining of iron ore is not necessarily digging the iron ore, it’s the delivery,” said Kiernan.

“Logistics is the single largest cost area of iron ore and any way you can reduce the operating costs in that area is significant.”

Kiernan said Territory would be very keen at the least to acquire the rolling stock on the railway the company currently uses for its iron ore exports.

However, he said he was not sure at this stage what sort of investment may be required, although the rolling stock associated with Territory’s operations alone is worth “in the order of $10-12 million”

“We’d be keen, and we will be declaring an interest to UBS either on our own or together with a consortium; we’d be more than happy to be involved in an acquisition of FreightLink,” he said.

He added that Territory’s plan had only been formulated this week and the company would be declaring its interest to UBS in the next few days.

Finished in 2004, the Darwin–Adelaide railway cost some $1.2 billion to build, including a $500 million injection from the federal, NT and South Australian governments.

Adelaide-based FreightLink posted an after-tax loss of more than $50 million last year despite posting 70 per cent growth in volumes transported last year.

The company has appointed bank UBS its adviser going into the sale and it is rumoured Queensland Rail, Babcock & Brown Infrastructure or Asciano could be interested in buying the business outright.

According to The Australian newspaper, state or federal government involvement could also be a possibility.

John Hoyle, an editor at Railway Digest, told the paper that the governments which helped finance the railway would not allow it to close even in the absence of a suitable buyer.

FreightLink chief executive John Fullerton has also said publicly this week that rail services would not be affected by the sale process.

The railway line has become a key piece of infrastructure for the burgeoning minerals industry in the NT and SA.

Mid-tier miner Oxiana signed a 10-year contract with FreightLink last year over the haulage of concentrate from its Prominent Hill development in South Australia. Prominent Hill is due for commissioning in November.

Singapore-based Om Holdings is another key customer, freighting manganese from its Bootu Creek operations to Darwin.

Kiernan said he had not held discussions with any of the other emerging or existing miners using the railway over Territory’s planned involvement.

In the meantime, Kiernan said it was business as usual for Territory.

“We’ve had discussions with [FreightLink] and they have adised there will be no impact on our operation at all.”

 

[bs1974]

I like TTY for the following reasons.

Production up and going with a ramp up in progress.

Relationship with chinese which is very important which may lead to joint ventures maybe buyout ops.

Ore at 62%

Diversifying into other profitable areas ( I am all for IO but it is wise I think to have other revenue streams in the future). Mineral sands and copper are both good ones.

Good experienced management 30 years which is lifetime almost for me.

Rail and port access. 7 days to china.

Spending on more exploration which will add more years to the mine.

And my favourite under $1......

They will hit their 10 year mine life target imo without a problem. That gives the breathing space to get cashed up for more acquistions more exploring more diversification. Take a 3 year view on this one I doubt you will be disapointed.

Not the biggest out there but they have the head start.

 

[SenTineL]

not much joy with the SP at the moment for TTY, keeps going down even after today's announcement or no announcement. it's all a downhill slide at the moment

 

[mike85]

i know what you mean SenTinel... down down down
so many other iron ore juniors are going off at the moment and TTY are still going down... ahh well

 

[kingbrown]

iam thinking on getting aboard the TTY tram
Now the price seems more appealing

Just one major concern
Have these guys got much ore in reserve ?

 

[Dukey]

iam thinking on getting aboard the TTY tram
Now the price seems more appealing

Just one major concern
Have these guys got much ore in reserve ?

Having just had a look over the MON thread again - I'm very glad I sold out of TTY when I did. suggest you guys check that thread and the last few pages of this one before jumping in.... esp. in regard to $$$ moving quietly between MK companies.

-dukey

 

[nq6]

Hi Any one out there think TTY is a good buy at 64 cents ? If so why? Seems a cheap buy, being a producing mine. Looking for discussion on this one NQ6 IN North QLD

 

[pattyp]

Its a pretty good price... I keep a very close eye on TTY...

BUT...

Trend is your friend, and the wider market is against you.

I'm waiting for things to settle, lots of emotional stuff going on with TTY, fundamentals are pretty good but you will maybe sleep easier by executing a little patience.

Just my opinion, I'm no expert, you make your own choices, etc...

Pat

 

[Sean K]

Hi Any one out there think TTY is a good buy at 64 cents ? If so why? Seems a cheap buy, being a producing mine. Looking for discussion on this one NQ6 IN North QLD

aq6, (nice nic ) to work out if a company is 'cheap', or not, the first thing you should do is work out the companies market cap (shares on issue / share price) compared to their income, potential income, peer comparison, and IGV, and assets ++. Lots to consider.

Maybe you could look at those things and tell us if it's a good buy?

And, if you have a charting mind look to see if it's hitting support or is trending in any particular way?

 

[SM Junkie]

I would not be suprised if Monarch Gold (in suspended trading) is having impact on the SP. Personally I don't like that TTY are a substantial holder in MON, he is using one company to prop up another. Surely this has to be a concern to TTY investors

 

[nioka]

Hi Any one out there think TTY is a good buy at 64 cents ? If so why? Seems a cheap buy, being a producing mine. Looking for discussion on this one NQ6 IN North QLD

The discussion on TTY has been carried out on this thread. In my opinion the situation has not changed. The management have digressed from their iron ore business into speculative other ventures. To decide on a share value you have to take those into account. I personally decided there were better investments in the fields that TTY were moving into than the ones they chose. I made my decision 2 months ago and that has proved correct so far. DYOR.

 

[oldblue]

The discussion on TTY has been carried out on this thread. In my opinion the situation has not changed. The management have digressed from their iron ore business into speculative other ventures. To decide on a share value you have to take those into account. I personally decided there were better investments in the fields that TTY were moving into than the ones they chose. I made my decision 2 months ago and that has proved correct so far. DYOR.

My sentiments exactly!
TTY took my eye a few months ago. I was attracted to the idea of a smaller scale iron ore producer with good contacts, good infrastructure ( rail and port) and able to take early advantage of the demand for ore at high prices. About that time, MK announced that TTY was to become a diversified miner, or words to that effect, and started to acquire holdings in various other companies. I backed off then, watched and waited. It seems a pity that the iron ore business isn't getting the attention it probably deserves but it doesn't appeal to me at present.

 

[jman2007]

Having just had a look over the MON thread again - I'm very glad I sold out of TTY when I did. suggest you guys check that thread and the last few pages of this one before jumping in.... esp. in regard to $$$ moving quietly between MK companies.

-dukey

Dukey,

Probably agree with you on that point, TTY's exposure to MON definitely playing a part in the re-rating of the company imho. I simply do not know enough about TTY's current operations to comment on their prospects, but I think potential investors should take the MON link into consideration.

My

jman

Disclaimer: dnh TTY/MON

 

[nq6]

Hey Kennas Thanks for the great input , especially the tone of your comment . Great stuff , NQ6[ Newbie]

 

[prawn_86]

Ann Out: MK 'Resigns'

Wonder how much board pressure there was on this resignation.

Now that one of the crucial question marks (MK) about the comapny is gone it will be interesting to watch the price. This is about the only IO producer i know that has gone backwards. If i had spare cash i would do a bit more in depth analysis.

 

[Sean K]

Hey Kennas Thanks for the great input , especially the tone of your comment . Great stuff , NQ6[ Newbie]

Ni nq6, I've suggested some of the things you can do as a 'newbie' to start developing your own analysis skills, instead of just relying on other people. There is no 'tone' in the comment, just facts. Good luck with learning how to evaluate a company's value, or potential value. Kennas

 

[Dukey]

Ann Out: MK 'Resigns'

Wonder how much board pressure there was on this resignation.

Now that one of the crucial question marks (MK) about the comapny is gone it will be interesting to watch the price. This is about the only IO producer i know that has gone backwards. If i had spare cash i would do a bit more in depth analysis.

Yes indeed - I would love to have been a fly on the wall in those meetings!!! And if TTY can sort out / recover most of the dollars dished out to related companies, then they could stage a nice comeback.... will be watching.

-Dukey

(not holding) - DYOR.

 

[Miner]

It is more than likely MK is going to join Salvation Army or floating a new company with Hillary Clinton to woo US share holders

It is for him the time to go for hibernation or salvation.
Please you may also see my post in IRL

He has left the abandoned ship MON, IRL and now TTY. Can he play golf or carry 16 kg load to work in a mine ?
Possibly will return like ALan Bond again

 

[SenTineL]

hmmm yeah it will be interesting to see what happens
TTY should take advantage of the new Iron ore prices negotiated by RIO
i wonder how much this will affect them, some solid gains in the last day and at the start of today, but has a lot of ground to make up.

will be interesting to see Fat Prophet's take on it since they recommended this as a buy a few times