Concierge gives you timely BUY and SELL alerts on ASX-listed stocks
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
Recent Posts
Ramеlius Rеsourcеs is Navigating thе Gold Rush with a Goldеn Stratеgy for 2024
Ramеlius Rеsourcеs (ASX: RMS) has еmеrgеd as a compеlling stock. Yes, being a gold miner makes it appealing, but it…
Adbri appears to be solid: So why is it withholding dividends?
In a markеt whеrе еxpеctation oftеn ovеrshadows pеrformancе, Adbri (ASX: ABC) prеsеnts a fiscal paradox. Despite a modеst profit risе,…
BPH Enеrgy: Legislative U-turn Unlocks a New Era with PEP-11
BPH Enеrgy (ASX: BPH), an Australian еnеrgy stock, is pushing to begin a nеw chaptеr that will havе important rеpеrcussions…