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TYC 0.0¢

sovereign risk clarified.....

  1. dolphin58

    1,539 Posts.

    Having attended the Nickel seminar yesterday I took the opportunity to meet David Moore and ask him some Tethyan questions.
    Specifically could TYC be another Freeport?
    He felt the resources could definitely be larger, but not of the same grade as a Freeport. The company has definietly being positioned by BHP/MCR to be of that ilk so a really huge upside potential over the coming years.
    If you dont understand what Freeport is do the homework! One of the most unique mining occurences in the world, and a sp to reflect that.
    As a holder, the biggest niggle in the guts I get is the location, sovereign risk and logistics.
    What he explained to me was quite extraordinary.
    There are quite a number of "asian banks/financiers" who have made quite an effort in finance and other assistance over the years to get TYC up and make it a very real business.I hadnt realised that it goes back some 10yrs and many, many people need TYC to be a success from the local government, local people through to export promise and asian bank supporters.

    It will be a great opportunity for the locals to leverage off the investment and mining expertise and has the very highest government support.
    On logistics there is another "miner" only some 20-30kms' off the backend of their known resource and rail/infrastructure is in place for that activity already.

    Water and power are the biggest focus in getting the mines in place apparently.

    I reflected to him that I hold AVL and felt TYC may be at more risk than the Congo, but in his opinion AVL had a higher rated sovereign issue, as the US also needs stability and a building economy in Pakistan.
    He was not suggesting AVL is in any trouble at all, just putting TYC risk profile into perspective for me.
    TYC have ramped up drilling and more results to be issued soon.

    Given David's hand in MCR over the last 5 1/2 years, I think TYC is in very good stead with accomplished management.

    Please dont castigate the opinions written up here, as I might have misrepresented what I heard given the crowd noise in the room.

    I hold both AVL and TYC so just wanted the skinny on both of them whilst I was there to learn about MCR,TIR and WSA at the Nickel seminar.

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