Like many other message boards, opinions here vary widely on the prospects for TRX. We can't all be right on this one. How many will make or lose money in Monday's trading? Will we see a 20% price swing on Monday, and if so, in which direction? SS
Short term the stock has the potential to move higher into the low to mid three dollar range. The big overhang is gone. However, watch out for tax loss selling. Almost everyone who bought the stock in the last two years is underwater.
Long term the stock is headed to zero. The company will eventually exhaust all the cash raised this year. The marquee project is Buckreef, which the previous developer a large well capitalized company said was uneconomical. Furthermore, TRX does not have the resources to develop the mine. TRX is deceiving shareholders by not releasing their commitments pursuant to the recently signed joint venture agreement. Management is content for the message boards to post erroneous information that STAMICO is going to fund the project. Use common sense. Tanzania did not sell the license for $3 million and not expect the licensee to bring capital to the project. Speculation about the financing sources is also just that speculation. Look at the lending activity and parameters of the names mentioned and it is clear that this project, even if it were economically viable, would not be financed by these entities.
None of the other projects have shown any real prospects. Look at the disclosure in the financial statements about capitalized mining costs. You can see how little money has actually been spent on most of the sites in recent years. Work has been idled at the sites to concentrate on Buckreef. That should raise a red flag. All of the internally explored projects have been mothballed to focus on a recently acquired license.
Finally with regard to Buckreef, ask yourself if it is worth as much as Mr. Sinclair insinuates (comparable to Geita and Bulh...), why why didn't any of the other bidders offer more than $3 million. I am sure that there are other smart acquirers among the 30+ other miners that bid on the project.