POST ON STOCK HOUSE BY MJB
Hello John:
Tinka CEO Graham Carman forwarded your email to me so that I might introduce myself.
My name is Michael Ballanger and I am Chairman of the Advisory Committee for Tinka, having raised over $15m for Tinka between 2010 and 2014 while engaged in the investment banking industry in Toronto. I am also a large Tinka shareholder.
Your suggestion that “Tinka needs to buy back at least $1,000,000 with of shares right now as a vote of confidence,announce new results and the new drill program.NOW” is an interesting comment. I will address that in the next few bullet points.
1. Tinka plans to release news very shortly to outline the drilling program and to provide insights into the results of the recently-completed IP survey.
2. Results from the drilling program are probably several weeks away. Management has stated, however, that results representing a “material change” will be released after they have been received and interpreted.
3. The primary driver for the share price will be found in the results. At U.S.$400 per metre, the cost of advancing the Zinc-Indium resource demands that the current working capital position ($9m plus) be allocated for drilling, not share buybacks.
4. The only “vote of confidence” that counts is the commitment of serious capital by Tinka’s two major shareholders, the Sentient Group and the IFC Group (World Bank).
One million dollars representing a 5,000,000 share buyback also represents 2,500 metres of drilling and with the significant potential of the Ayawilca project, longer term shareholders would be disappointed if 2,500 metres of drilling didn’t yield more significant results affecting valuation of the business. We all (management included) would like to see a higher share price and are convinced that the next 10,000 metres of drilling could potentially affect that result.
These are difficult markets for the entire mining sector with valuations for miners and multi-decade lows. Accordingly, preservation of the working capital position is imperative while strategically advancing the projects with precision targeting of the more prospective areas.
I have attached two analysts’ commentaries reference Tinka.
Please feel free to email me with your questions or concerns. Additionally, my telephone number is included below.
