Reality, risk and the continuing low SP for TDC
posted on
Sep 17, 2012 02:17PM
History tells us that when we see currency wars, trade wars and excessive money printing beyond the normal growth rate, we are heading to war. When? May be tomorrow, next month or years from now. No one can predict. The only certainty is that capital seeks a balance between risk and reward. Let us take Tyhee. Any financing will come with a cost. Due to our weak bargaining position we will likely be forced to give away a larger piece of the prize than we would prefer. Shares, warrants, loans, etc. Dilution. The reality is that once the capital is raised there is a time frame (Gant chart) that spells out the milestones. During this time no return on the capital occurs. Only outlays. This must be made up over the future productive years. The dilution is directly proportional to the risk involved. Over the timeframe of building the mine, the world will surely be a different place. Priorities will be on the basic necessities of life and instruments of war. Producing mines will be the place where capital and interest flows. During war, there would be a redirection of energy and manpower. Sure Gold and Silver will do well in these times unless capped, confiscated or manipulated by decree. Sure, Tyhee has a resource that is trapped in the ground. Those with the capital are going through the same DD as I would when considering the risks that could occur in the timeframe to the first pour. Unless you have financed a risky venture over many years you can not hope to see my point. I have. Do not be surprised with the final result as it affects you. Cheers, Woody