Here’s why TNG is up nearly 40% today!
Nick Sundich, July 8, 2022
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
TNG (ASX: TNG) has gained over 40% today after appearing to have secured project finance. It has received a conditional letter of support for up to A$300m of debt funding for its Mount Peake Vanadium-Titanium-Iron Project. Shareholders are excited, but have they been getting ahead of themselves?
Check our Stocks Down Under article on TNG from last November.
TNG share price chart (Graph: TradingView)
Mount Peake is a Major project
TNG’s Mount Peake Project in the Northern Territory is one of the largest undeveloped vanadium-titanium-iron projects in the world. It has been recognised as a Major Project since 2012 by the NT government and since 2021 by the federal government – being one of 15 projects recognised by Canberra as Major.
The federal government has sought to reduce the reliance on imports of critical minerals and has identified projects such as Mount Peake that, when in production, could help with this objective. Of course, it is of little use to TNG if the project can’t get financing to get off the ground, but this problem just might be on the cusp of resolution.
TNG might have project finance
This morning, the company told shareholders the federal government’s export credit agency Export Finance Australia (EFA) has provided a conditional and non-binding letter of support of up to $300m of debt funding. Shareholders have sent the stock higher in excitement.
In one sense we can understand, given how critical funding is. But they shouldn’t get ahead of themselves. The Letter of Support was non-binding and conditional on a number of issues being resolved. These include meeting EFA KYC requirements, provision of a detailed financing proposal and TNG raising equity and securing funding from other lenders.
Still, with a long project life (>37 years), solid JRC Ore Reserves and Major project Status, TNG is in very good shape to satisfy these conditions and receive these funds in its coffers.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Trump vs. Jerome Powell: What Happens to the Market If Powell Is Fired?
The relationship between President Donald Trump and Federal Reserve Chair Jerome Powell has often been tumultuous, particularly around decisions regarding…
Telix Pharmaceuticals (ASX:TLX): It’s made ~A$1.7bn in revenue from Illucix, but here’s why the best is yet to come!
What would you have thought if you were told 5 years ago you would see Telix Pharmaceuticals as a successful…
Anti Woke ETFs: Do they practice what they preach and have they outperformed since Trump’s return to power?
Have you ever heard of so-called ‘Anti Woke ETFs’? If you’re sick of companies that are big on ESG, this…