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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: hubris33 who wrote (53455)	3/15/2007 6:20:49 AM
From: isopatch	Read Replies (1) \| Respond to of 109006

Hubie. Good comparative analysis. Kudos./eom

To: hubris33 who wrote (53455)	3/15/2007 7:29:47 PM
From: wsw1	Read Replies (1) \| Respond to of 109006

hubris, i don't advocate for others to do what i do... i have the luxury to watch my investment like a hawk (tending to all the eggs in my one basket)...i've never felt more positive about the future of the company... that aside...you make some absolutely valid points...i'm speculating...but, aren't we all? what's the difference between my investment in TRE and someone's investment in a home or anything else for that matter these days? you know as well as i know, that once the mania of this resource bull truly takes off, anything and everything is going to be bid up to the stratosphere... in short, TRE has the rights to the unproven mineral wealth of extremely prospective land in tanzania...there's no doubt the goods are there...the goal is for the assets to be proven and ultimately extracted at profit by someone else...yes, TRE is structured as a royalty company similar to RGLD and will derive future cash flow from properties which have been put into production by a partner... you are incorrect about the timelines in which TRE will earn royalty income...TRE derives pre-production royalties from the partner before the property even goes into production...that's part of the business plan, and a smart element of it...TRE earns income from day 1 of the royalty agreement...also, TRE earns income from day 1 of optioning a property to a jv partner in the form of "return of expenses", meaning that TRE's exploration expenses on a particular property that has been optioned will be recouped via payments from the jv partner who is paying rents on the property and committing additional expenses to further prove the mineral assets on a particular property... i like the soundness of TRE's business plan, the great unknown potential of the asset base, and the track record of the man at the helm of the company...after all, high risk = high reward...in this type of resource bull market, the explorers are always the biggest percentage gainers...like a cherry on top, then add the royalty business model, which is by far the smartest arrangement when compared against percentage jv miners...RGLD's long term performance is indicative of the premium investors give to the company vs. that of producers... i could also pull up charts with longer time frames displaying how TRE's price performance has blown away many other metals shares, but i won't play that game... as for UXG, i find it extremely ironic that you champion that company while dismissing TRE...from what i see, UXG's price performance has been worse than TRE's, and it's just as speculative an investment as TRE... tanzania is extremely mining-friendly and encouraging of foreign direct investment as evidenced by president jakaya kikwete's remarks at the africa - asia business forum last month...not to mention, TRE enjoys a unique relationship with the country...Joe Kahama, a president of a TRE subsidiary, represents tanzania's official and general business interests abroad in encouraging foreign direct investment...he has made several trips to china now in an official capacity, but also in a private capacity representing TRE's nickel prospects in the kabanga/kagera nickel belt...this is a win-win situation for the company...lastly, sinclair is a long-time friend with president kikwete...not many ceos of any company can say that they enjoy such a relationship with a president of an independent nation... good dialogue we have going here... billy