TTY - Territory Resources

This news has re-kindled my interest in TTY!
The critical issue now is what can/will be done about TTY's interests in the other companies. Some of them are substantial and collectively there is a lot of capital involved.
I assume that Noble's interests would be best served by an orderly exit from some or all? I'm sure most other shareholders would welcome regaining a focus on iron ore.

looks like thats on the cards oldblue...

TTY in trading halt: - the trading halt is requested until Monday or the release of an announcement on the realignment of the company going forward

Fairly new to the sharemarket, very new to tty and i was wondering what are the thoughts on mondays announcement, is it good news? I flippen hope so!

Motogoon said:

Fairly new to the sharemarket, very new to tty and i was wondering what are the thoughts on mondays announcement, is it good news? I flippen hope so!

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The good news is that TTY are going to concentrate largely on the iron ore business and that Nobles appear to be supportive.
The potentially bad news is that we don't know what it will cost them to exit from the other, unwanted activities.
Overall, I think it's a positive move.



Disc: Not holding but interested.

Interesting position MK & the TTY board have got themselves into. All directors owe a fiduciary duty to the company to act in good faith and in the best interests of the company and so some questions do spring to mind. Has TTY's rather large investment in MON really been in the best interests of TTY or MON? Has MK acted under a conflict of interest as a TTY & MON director?

I guess this won't be an issue if TTY and MON come to some sort of agreement that allows TTY to protect shareholder value, but there may be developments if MON calls in the administrators or TTY's investment devalues significantly. With a range of penalties for a breach of these duties available under the Corporations Act as well as common law I presume that there will be some shareholders of TTY watching proceedings rather closely.

This is the latest from The West Australian newspaper -

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=82272

For the record, I don't hold TTY and sold out of MON when TTY started proping them up. Made me scared (obviously rightly so with the benefit of hindsight). IMO there should be some serious questions asked of MK and what has gone on with MON.

Rimtalay said:

Too many TTY shareholders don't seem to have the slightest idea.
1)They think that you can drill a JORC resource in 5 minutes during the wet season. A 4x4 can't even get to the site let alone a drill rig.
2)They expect immediate upgrades in the resources without drilling.
3) So many think that MK wants to takeover MON even though he said he won't. This is all without any proof except that TTY have taken a stake in MON, it's a company the management know will turn the corner very shortly and will make money even on the shareprice increase within 12 months. Better than leaving your cash in the bank if you can double it.
Did you know MON, poured 1400 ounces of gold last week, from a weeks production. This is twice previous production and this is just the start.
I can only say I'm very happy that you all sold out, because I picked up another 60,000 TTY shares at 86 cents last week. So who is the fool?
I note that MK bought another 100,000 TTY and 100,000 MON.
He must be a fool too!!! Or is he much smarter than you all realise. You know what I think.

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Rimtalay,
I couldn't resist bringing this gem up again. I'm often wrong but my thoughts on TTY and MON were right on the mark as far as I can see.

You were right though, Rimtilay, when you said that the management were about to turn the corner. However the management turned a different corner to the one you had in mind and now that corner has been turned TTY may just get on with being a good iron ore miner.

Your expensive TTY shares may just regain their value if you can hold them long enough.

Fat Prophets are liking this one and were still recommending to buy last week, to be honest thats why i bought in, have they got it wrong?

Territory Resources

After resolving the Monarch Gold diversion, TTY now needs a clear focus on maximising value from its iron ore operation.
At 1.5 mt a year from Francis Creek, TTY should be grossing at least $150m pa, and netting at worst $75m.
Any sales going through Noble it is to be hoped are on a strict commission basis as an agent (perhaps no more than 15%). Any payment which is considerably greater than normal commissions could be seen as rewarding Noble as a shareholder more than other shareholders.

Should post more on ASF. So, Territory Resources..... Referring to the latest June Quarterly Report released Friday and March Quarter Report.

Are these figures being fiddled? Make your own judgement!

For the nine months to the end of March Receipts from Product sales and Debtors minus expenses (Production and Admin) Totalled a loss of $410,000- ie -$7.993 million Sept07, +$5.884 million Dec07 and +$1.699 million for March08.

For the twelve months released on Friday now there is a loss of $20 million! That's $20 million for the 12 months but last quarter the loss totalled just $410,000- for 9 months. These figures are from mining costs deducted from sales. What?

It appears as per section 1.16 of Friday's report that there has been pre-shipment “advances” from Noble and these sums have been in the past put in the column of “1.1 receipts from product sales and related debtors” (Although the goods haven't been supplied yet) Anyone would have assumed that this column would have been for actual sales not (advanced sales paid in advance) Hmmm.

Now it appears that TTY as per 1.16 of the latest report has advanced payments for iron ore and now we will list them as borrowings. The advanced payments or “borrowings” (which did not exist on the last quarter report) has totalled $42.75 million and as per (1.17) with $15.556 being the repayment. So, what about the remaining (1.16 – 1.17) = $27.194 million. Is that advanced payments for undelivered Iron Ore as well?

So three conclusions IMO:
1)TTY has been putting advanced payments from Noble in 1.1 (to make out extra sales) and to keep the bottom line looking OK.
2)TTY has now “fabricated” the loans owed to Noble. Things are not looking good of late and if this company is broke, Noble will receive returns from the sale of assets.
3)I have no idea of what I'm talking about. But isn't this the reason ASF exists, surely its not just for ramping.

If you want to know where all the money has come from for all these investments in “other securities” it has been coming from (1.14 PROCEEDS FROM ISSUES OF SHARES, OPTIONS, etc.) totalling $85.6 million in the past 15 months. Of that left in cash, is just $1 million with $27 million still owed in (now NEW BORROWINGS) How that extra $7.6 million for the 3/7/08 payment fits in is unclear and there is another 28 million owed from MON (which is broke).

Mr.
You raise some interestiong points. I think you could refer to TTY as creative accountants and mining speculators rather than as an iron ore miner.

I jumped ship here a little while ago, as you can see from my earlier posts. It is a decision I do not regret. However the company could get straightened out, get rid of the parasitic investments, concentrate on iron ore and return to profitability. I may reinvest if I see those things happening.

nioka said:

Mr.
You raise some interestiong points. I think you could refer to TTY as creative accountants and mining speculators rather than as an iron ore miner.

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Exactly, in 9 months of shipping Iron Ore TTY can't turn a profit from the Iron Ore. They have lost 20 million from sales in the last 12 months.
(referr to LATEST accounts)

As the price sinks lower "Buyer Beware"
I thought $0.75 was a fair price but then on Friday the June Quarter was released.

TTY appears to be going broke !

Investors have also been mislead...

commsec now allow 40% margin loan on this stock, can't be that risky. especially with the appointments of mike donaldson and fiona harris, I think this is a good long term stock. of course the sod's at the bank may just be trying to pull my pants down. happy punting

Good work guys
Was looking to buying back into TTY
but i thought i should jump on ASF for a check

Will now definately run away on this one
Especially in this market
I feel for the poor buggers that jumped on when she hit her highs

cheers P.

Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!

foxyshres said:

Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!

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When there is something new on TTY you will progably hear about it first on ASF. No news probably means no good news.

foxyshres said:

Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!

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I think this still has potential as a good stock. The iron ore operations look like they will be quite profitable, but at the moment the mine life is quite short. Hopefully, further drilling will increase the resource size and mine life. As for the mess with Monarch Gold etc, it seems that the new board are trying to move on and focus on reliable, profitable business opportunities. This is a good thing for a smaller company. I bought some and plan to buy some more at the current price, but I wouldn't go putting al of your eggs in this basket, there is obviously some risk associated with backing a smaller player.

A few days ago TTY were queried by the stock exchange re their statement to the effect that their $24.5m loan to failed miner, Monarch Gold, was " not material". This from a company with a market cap of about $135m!
I'd be waiting to see what comes of this, although it looks like the $24.5m is lost, not to mention the original equity investment in Monarch, before getting involved.

oldblue said:

A few days ago TTY were queried by the stock exchange re their statement to the effect that their $24.5m loan to failed miner, Monarch Gold, was " not material". This from a company with a market cap of about $135m!
I'd be waiting to see what comes of this, although it looks like the $24.5m is lost, not to mention the original equity investment in Monarch, before getting involved.

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Can I suggest that the loss with Monach has already been factored into the SP or TTY. The change of management has probably also corrected the problem to an extent. Therefore it should not mean a further drop in the SP but it is also the reason for there not being a chance of an immediate upside. ( personal opinion DYOR.)

nioka said:

Can I suggest that the loss with Monach has already been factored into the SP or TTY. The change of management has probably also corrected the problem to an extent. Therefore it should not mean a further drop in the SP but it is also the reason for there not being a chance of an immediate upside. ( personal opinion DYOR.)

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I agree, nioka.
I'm no techie but to my untrained eye the TTY SP appears to be in a longterm downtrend since last December. I'd be looking to see this broken before getting too excited.