Tanzanian Royalty Exploration (TRX)

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Turdle GG
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Tanzanian Royalty Exploration (TRX)

Starting a new forum topic for Santa's company.  

Did we all notice Santa's latest reference to naked short sellers?  

see here:

http://www.jsmineset.com/2011/06/11/in-the-news-today-893/

I wonder what he's got in store for them?  Judging by recent price action (when the stock sometimes struggles intra-day, but finishes strongly) Santa must have a friendly buyer working with him, or he is buying by himself.  

Edited by admin on 11/08/2014 - 06:20
SoccerDad
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TRX strategy

I've been investing in TRX for about 6 months, there's a long term rounded bottom that started in October, been buying on the dips to the rounded bottom trendline (bullish) that comes like clockwork after a run up.  I haven't seen it violated for 3 straight days,  until then I'm a strong holder awaiting the breakout above $7.60's, when some serious money should come into the stock.

farmer
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tnx

I have been in trx for 10 years. The weekly has a cup and handle formation that when broken projects 13. TRX has the properties they just need to start mining the gravels of which kigosi, lunguya, bucks, and ushirumbo all have substantial gold in gravels at surface that can be mined for under 200 per ounce. It will come but it has been a long patient ride.

Robert LeRoy Parker
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Seeking alpha equated TRE to dogshit

Pretty much called it a giant fraud similar to sino forsest or other bogus chinese companies.

http://seekingalpha.com/article/274256-tanzanian-royalty-exploration-fool-s-gold

If it's true they have never produced an ounce of gold after all this time I don't understand owning this company. Buy I haven't done the dd so I can't take a steadfast position. But if the article is correct, Sinclair and his secret formula angel's aren't very good at managing a mine apparently. But I guess all his talk of MOPE has made him good at pumping stock prices.

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Given the high number of

Given the high number of short positions on the stock, I'm not surprised that article came out. Santa needs to shut up the nay sayers and pay a dividend in gold. That'll drive the shorts out.

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TRX down, uggh

TRX got killed right after I bought into it. It has bounced back here toward the end of the day, but I got a little jittery there. I am holding for the long run, but looking for info as to when I should stop loss if it comes to that. Any help greatly appreciated.

Holy Avenger
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JS specifically stated that

JS specifically stated that the solution to the current mining stock doldrums is to be found in generous dividends and warehouse receipts.

While I was listening to him say this in his latest KWN interview, I kept asking myself, "Why don't you lead by example?"

I'm still holding TRE and would like to add to my small position.

I'm in wait and see mode for now.

Turdle GG
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HA, I'm sure JS will do that.

HA, I'm sure JS will do that.  But his problem is that TRX is not yet producing any gold!

xaritas
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Producing or not selling?

I definitely got the impression from the shareholders' meeting a few months ago that TRX was producing gold, they just weren't selling it—waiting for a higher price. This was a "read between the lines" interpretation. Is this not something that other people got out of it, or I am just being loopy?

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TRX still not a producer, so can't be a seller

xaritas,

unfortunately, that's not correct.  TRX has not yet produced one ounce of gold.   The impression you got of wanting to wait for higher prices to sell their gold was due to the fact that JS mentioned that he'd like to bring on production in stages and that he wasn't concerned about bringing on all production at the same time.  As he is of the view that the price of gold is only going in one direction, he's happy to ramp up production over time.

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Made some notes back in Feb

Made some notes back in Feb during TRE's (TNX's) CC.  I've bolded the relevant parts for this discussion.  RLP, if I cannot rely on and have faith in Mr. Sinclair's integrity, I might as well shut it down.

Tre-Annual Meeting – Feb 22, 2011

10:19am

  • Leave meeting understanding strategy, when cash flow will begin, taking comfort in what you have and looking forward to significant future
  • sought best/largest auditors – live in a unusual environment having to defend itself more than once; don’t like paying b/c its our money; appoint KPMG
  • must admit it’s one of the most entertaining & fun CC’s I’ve listened to; then again, don’t listen to a vast # of CC’s
  • final transaction with company – sunction holly? – well run by individuals
  • significant interest in business – Russians haven’t figured out how to do business other than robber baron; so to do business, have to realize what you’re involving yourself with; never understand totally where they’re coming from; once cheque clear, Chinese sense, business partners you can have
  • once arrangement made, Zinh Chong – produces 90% of nickel in china
  • Chinese philosophy: have a plan, work a plan
  • Motivated by having product
  • Publicly stated up & running in 5 years
  • Didn’t argue with 3% royalty
  • Assure that as they progress, start to look at 3% over 30 means
  • So to have partner who went through all gold properties, who spent more time on gold vs. nickel, who through sunction-holly opened up possibilities of all gold properties, which tre turned down, started off as adversarial transaction level, but no thank you, not interest in SH’s
  • Jim-chong – don’t need to raise $’s in market – beauty of this company
  • They take all expenses/costs – elected TRE to be political partner – stay on base for work permits, permits to mine/explore, relationships with locals
  • So complement they’ve made is political stance TRE has in Tanzania
  • Company made up of many asset criteria
  • We will always have a level playing field
  • Sovereign company has elected TRE as political intermediary even though Chinese have best possible connections having supported Tanzania when west (not Canada) US viewed Tanzania as opposition
  • Big responsibility – how partners treat locals; make sure benefits Tanzania
  • Sov’n corporation selected TRE to walk through political process – interest in not being sidelined from what they’re really there for – develop entire nickel belt – up to producing in 5 years
  • Chinese put in communication line – dug it by hand in 2 months –
  • 3-5 yrs – Jim Sinclair accepts this – statement of reality
  • They are talking to major entity – of acquiring advanced properties – already in Berundi – major property – will bring it into production
  • Suggestion with China – takes years, takes self-discipline, takes time, takes control & we’ve brought it home for you
  • Lot more than a royalty arrangement –
  • We’ve been under severe attack; also strategized defense
  • Part of defense is 43-101 technical reports; Canada, although not at centre of mineral finance; still have individual’s here who understand
  • Short position that existed in Canada come to a point down to nil b/c read 43-101 dealing with properties
  • That says if you come after us with trying to profit from short, have to go through 4 significant events that might not support position
  • This is a war & I am defending for you
  • Have to have constant ammunition should it be required in SH’s best interest
  • Beginning, right to have very low profile; when companies put out positive report, share goes down; short junior/long majors spread
  • Inexplicable takedowns occur unless someone seriously short
  • Bare in mind, looking at infinite risk when you short
  • Short in Canada is closed – read report, this company has serious properties, for which serious work/results; downside, upside risk –
  • But shorts still open in the US – they are less discrimination (nice way of saying stupid) meaning they don’t read material but modestly coming down
  • Next event short will be concerned about is a resource estimate
  • We decide if we’re going ahead
  • In doing 43-101 report…characteristic of exploration which also is production; why trench & throw it back in the trench; when you spend that much $’s to explore…
  • Under licenses, can sell 40% and can stockpile 60%
  • Don’t understand why major mines sell everything they have; must believe gold will lose value
  • Don’t want to sell 100%
  • And I believe, b/c I know in being in 50 yrs in industry, know gold is going to $1650
  • Respect Martin Armstrong even though he’s not available to join us today
  • Greece is under severe market attack & failure of sov’n country is same thing as Lehman
  • Attack on PIGS
  • Gold will rise – beginning to express currency characteristics
  • Difficulty in choosing right currency has become unmanageable – gold will continue to become currency of strength without liability; storehouse of value; medium of exchange
  • No doubt $1650 is a given – just think of math
  • 1 million ounces is $1B – no one can walk away
  • We have finest technical board you can have; considerable risks; collapsed course veins; drilled it out; but in pursuing 43-101, trenching characteristics – b/c six figure cost, might as well be part of production
  • Alf/Martin haven’t been terribly wrong, wouldn’t be doing duty to SH’s if sold everything
  • Machine plant delivered within week or two – being sent from South Africa
  • Ability to prove thesis – order/obtain 3-100 per ton plants
  • If producing 320/hour, 2 shifts of 10 hours, 20 hours/day *320 tons = 6400 tons per day
  • Wouldn’t go near it if we thought it was a waste of time
  • Was hoping to say we are producing; believe me it’ll only be a few weeks
  • Put that in cement
  • Have personnel – as we ramp up, within reality of hiring/training, if not last financing, probably near to last having to be made
  • And that’s good for me – bare in mind, use negatives to learn what not to do
  • Will see dislodge all points as being wrong/prejudicial
  • Reversed strategy on financers/traders to make sure not screwed over
  • $24.5M invested in the company – wanted us to know – will contribute everything he has/everything he is – remains 100% commitment to us
  • Education site is important – understand jsmineset has a place & it’s a teaching forum – read international – under 30,000 as top sites –
  • Traderdan taking care of it, Eric will become one of most important person, Monty – not surrounded by yes people – challenges you to constantly review & examine conclusions – to be absolutely sure what you’re telling people is truth
  • No one knows everything; can’t be sure won’t go into sov’n default…but must understand underlying characteristics which company is built up upon…that all circumstances meet need that $1650 is real – not b/c of chart, not b/c of mathematical…b/c of makers & shakers – those that are causing great problems will be greatest profit centres
  • Build a major concern without further financing/dilute SH interest; picking up a little bit here & there
  • Soon, will climb ladder in 2 categories of 3 sections of what makes gold company valuable
  • Fact we have Jin Sung standing next to us is very important
  • b/c majors did such damage to B/S’s, lost billions on derivatives, lost all cash; bankrupted themselves; went bank to financers & asked for loan
  • richest corporation - $245 range –
  • when you get something (loans), must give something – bonds have convertibility that went back to financers
  • this American corporation will get richer & richer
  • properties interested in – only if property brings great reward
  • not out of acquisition business
  • focused on not carrying anything that doesn’t have potential to be significant addition to company
  • company will be progressing & earning, if successful in endeavours, don’t need add’l cash, expanding exploration, as taking values, # of exploration, mgmt will be expanded, move up from exploration into junior producer, constantly carrying on exploration for big cahuna, so total transformation
  • not a 1 property company; largest landholder of potentially mineralized property in Tanzania; own or control 10K sq Km’s
  • have huge amount of work to do – technical reports say yes we’ve done that
  • never started this with objective of nice & modest returns – started knowing we had tremendous amount, define it and going for significant success & JS willing to support this
  • very important to remain reasonably liquid so he’s there if absolutely necessary
  • 4M seller & finding a buyer after close – intention is to be a destroyer
  • Been in metals for over 40 yrs – if you knew what it takes to run a business –
  • Sarbanes-Oxley makes accountants rich – if they can’t take us out, they’ll quit
  • Didn’t make a lot of sense to make a lot of noise b/c environment full of destroyers – but where are Warburgs brokers these days? 
  • Would love to own stock but having liquid $’s isn’t so bad
  • We’re standing up – where we stand today is enter into new category
  • Finally pick up what’s under our feet to fund balance – it’s in various place – 200,500,300 ounces in various places – not a 1 property company – our problem, we have so much, but this amount could benefit mightily as gold price rises & starved for resources
  • But have an exit plan – make every effort to grow ourselves but could find a partner
  • Review 43-101 technicals to tell shorts they have trouble
  • Never hold back material information
  • Live in an environment of destruction – don’t want to see anything being built but want to see everything taken down
  • What we’ve seen lately is destruction of companies & making profits
  • Like to do now, call on Rayon to show what he’s been talking about, after presentation, stock holder math genius to discuss what he’s done in algorithm sense to give accuracy/prediction so get better understanding of what all this is
  • Properties
    • Rayon – wants to make something substantial out of himself to meet his life goals
    • Says ok boss we’ll do it – can do it kinda guy; accept responsibilities
    • Internet; 3g network – more direct response
    • Airports nearby
  • Invitation to come to the properties
  • Majors have had to weaken b/s’s, get cash, use up cash, walk away from properties not earning $’s that its consuming from them
  • See Africa before you see animals in a zoo
  • Gave them singular country/language; admitted screw up on economic policies and fired himself via socialism policies; fostered all attempts to open up economy
  • Leadership in gov’t – free markets, going after corruption, president fired whole cabinet – this is the country you’d want to be a part of – growth & business supported
  • Q&A
    • Large inst’l investors coming in
    • Director selling shares; no big deal
    • Directors not coming to AGM’s – understand but many here today; every director have been there for all meetings, especially technical meetings
    • Every single 1 has qualities/capacities favourable
    • Homestake model – dividend
      • Obligation to $9 – highest price paid
      • Profit challenged
      • Model of dividend impression by Shenly in 1940’s
      • What Shenley did was choice b/w cash dividend or receipt for whisky
      • Obligation to asap return to SH’s – do same thing Shenly did – offer Warehouse certificate on gold itself and trade them (applause) – will do everything he can to do this
      • Beauty of this – could start a market on this so certificate saleable anywhere & delivery anywhere & same opportunity to turn certificate to cash
      • Dedicated – but above $9.11 and can breathe a little easier and will do everything to deliver
    • Any plans on other exchange trading?
      • Hard to qualify for HK exchange
      • Don’t think it would make sense to delist before listing somewhere else
      • London -$250K – what will make us wealthy is what we can bring out from the ground not the fluff/picture painted
    • Tanzania
      • Companies have to buy companies to get into Tanzania
      • No longer any opp’y & if there is, no potential
xaritas
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Nice.

caramel wrote:
  • Was hoping to say we are producing; believe me it’ll only be a few weeks

Right, thanks (h/t)... that is what planted the idea.

caramel
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ok, so Emerson's article has

ok, so Emerson's article has a few assumption, notably of which is:

a) TNX will continually need to go back into the market, sell shares, waste SH money on exploration that isn't going anywhere, etc.  Sinclair says:

  • Have personnel – as we ramp up, within reality of hiring/training, if not last financing, probably near to last having to be made
  • And that’s good for me – bare in mind, use negatives to learn what not to do
  • Will see dislodge all points as being wrong/prejudicial
  • Reversed strategy on financers/traders to make sure not screwed over

b) Emerson says they're not great at finding gold.  I suspect they're already producing, probably started in March.  And TNX has the 43-101 reports - the gold is there.  He states that TNX has been looking for so long yet haven't found gold.  Earth to Emerson here - just b/c gold is present doesn't mean you have to mine gold at ridiculously low prices to what Sinclair knows the price will be in the near future.

c) he surmises that b/c Sinclair urges SH's to not lend their stock to short sellers.  He considers this an 'act of desperation'.  What Emerson ignores is there's a host short sellers, and sadly, naked short sellers, that Sinclair predicts will get their butt handed to them.   I suspect there's a lot of shorts out there who can't get the shares the need at a low enough price to get out of their position.  These shorts, naked or otherwise, will get what's coming to them.  

In other words, why did Emerson write this article without really doing his DD?  Why this attack on TNX?  My guess is he wrote this to get SH's to sell their shares, lower the price, so shorts can attempt to cover at ever lower prices.  Keep in mind the majority of TNX SH's are long term holders so I suspect it's even more difficult for the shorts to attempt to cover.  

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TRX is not for the weak hands.........

I am a long-term shareholder of TRX, probably for over 7 years or so. I have seen it rise at a sharp pace, and I have felt it fall with the 2008 financial crisis. As a junior explorer, the stock price was easily manipulated by the hedge funds and pressured by a lot of naked shorting. Now as the company nears production from the gravels at its many sites, the pressure is on the shorts of over 5 million shares to pound the stock when they can to shake out as many shares as possible.  Yet they face a major buyer in the Geier Fund, a hedge fund that has accumulated over 10% of the shares of TRX.

It is not a stock easily traded in size as the daily volume is sometimes only 180,000 shares with a low float. I buy on the big swoons and was buying yesterday and today more trading shares. The mistake many new investors make is to buy all at once and then sit and wonder why TRX went down another week or month. The professional traders of this stock know how to play the game........we must learn to follow their lead. At these levels near $6.00 US, they are accumulating and will continue to buy if the stock drops further to $5.50. If you are a new investor to mining issues, you need to learn the trading pattern of individual stocks if you intend to invest a large amount in any one issue.

To those who doubt whether TRX will ever produce any gold, you need to do more research into what the company has done so far. The Kigosi deposit has been tested using a 20 TPH gravity plant to determine the type of deposit and the process to use when the mining license is granted. The gold which has been produced during this testing phase cannot be sold, since the mining license has not been granted yet. This gold is being stored in a company vault until such time as it can be sent off to a refinery and refined further.  The same 20 TPH gravity plant was next moved to the Lunguya deposit where the testing of the gravels was completed and is now being assembled at the Buckreef deposit, which has been upgraded to 2.1 million ounces after reviewing previous drill results which had not been released by the previous owner. In regard to the Lunguya deposit, TRX has a mining license in hand and a 100 TPH plant on order to be assembled on site. It is quite possible this construction is going on at this time.

In closing, I can only say that if any Turdites are considering an investment in TRX, be aware that the stock price is easily manipulated in both directions and will likely continue until such time as production and sale of gold has commenced. Once cash flow and earnings have been established, Mr. Sinclair has stated that dividends will be the first order of business as a reward to those who have made an investment in the company and stood by the company through all the bashing by the shorts and the unfavorable and inaccurate media attacks. With cash costs for the gravels under $200 an ounce, the earnings should be substantial in relation to other majors whose costs often exceed $700-$800 an ounce for an underground operation.

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who stole my gold?

Xaritas, you got it partially correct. They have produced some gold from testing of the gravity plant at two of the gravels' sites. But they are awaiting the mining license for the Kigosi deposit before they can announce production figures and send the gold off to the refinery. Sinclair did state that in the future when production is in full swing on the 2 properties, he might hold some of the gold in inventory to sell at higher prices, something other miners have done in the past, I believe Goldcorp under Robert McEwen having done so.

farmer
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100 tonner on order?

hawkeye, where did this come from?

jmmergott
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Oh they're producing alright!

My family has been personal friends of Jim's for a few decades now and I can assure you he says what he says and the way he says it for a reason.  As Caramel pointed out in the blow by blow of the annual meeting, they were all ready just awaiting the mill's arrival.  I believe he said 40/60, as in only 40% will be sold and 60% will be stockpiled.  

What you need to understand about Jim is, well, frankly he's kind of a dick.  (I mean that in a good way)  He has said numerous times that Barron's article taught him a lot, and a lot of it was to always have some aces up your sleeve that they DON"T know about.  He has never run TRX (natural reaction was to type TRE still...) Like other ceo's run a gold company.  If there is an exciting piece of news, he won't necessarily rush to release it.  he'll hold on and wait for when the moments right.  He DESPISES the gold shorts greatly because he knows their intentions.  He wants to take them out, beat them and teach them a lesson they won't forget, then insure nobody in their right mind will ever mess with his company and his shareholders again.  They are producing, they may have even made a half way decent profit.  He won't talk about it.  One day it will just get released, "TRX earns a nickel a share" out of no where.  The reason why he wanted to do business with  Jim-Chong was because they are a private company.  They are under no obligation to release any information on the money they make or the nickel they produced on that property.  If no one knows how much nickel they have produced, no one will know what 3% of it is (TRX's cut)  and no one will be able to predict possible earnings for them, making it a nightmare for a short seller.  (And believe me Jim will stay quite about it as well)

Jim's entire intention with everything he's doing right now is to give the shorts the MotherFing burn of they're life from many different angles.  Be patient, there is no one on earth that understands gold better than him.  TRX will be a wildly exceptional company and I'd hate to not own some the day he decides he's finally gonna say something.

hawkeye
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100 TPH Plant for Lunguya........

Farmer, I received this information from another shareholder who contacted Mr. Sinclair by email and received a reply on 3-23-2011. Mr. Sinclair said at that time that the 20 TPH plant that had been doing sampling at Kigosi was being dismantled and shipped to the Lunguya site......and I am quoting from the email as it was posted on cometgold.com....

" The 20 TPH leads the 100 TPH plants. We are very close now to having bulk sampled the total amount of pits required for Kigosi. It will take about 10 days to dismantle the plant and deliver it to Lunguya.  As soon as the 20 TPH proves its method there we will bring in the 100 TPH plant moving the 20 TPH to Buckreef.  The license for full mining at Kigosi will come, and I believe soon.  However, we are in Africa and operating on African time. The moment it comes, in comes a 100 TPH.............Have I explained this clearly? If so, please pass it alone. You can quote me word for word."

A subsequent conversation on cometgold.com with other shareholders gave me the impression that the bulk sampling at Lunguya was complete and the 20 TPH was being moved to Buckreef. I assume from this information that the 100 TPH has been ordered for Lunguya. I will query the company to verify if this is so and post the reply.

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Unlimited selling.

6.01 a fucking share.  Geez oh mighty. This is freaking nuts. Total crazy shit. But the thing is, whoever is selling right now has the ability to take it down even further. To $5? Why not. Clearly, someone is selling the hell out of this. This is a  massacre from 7.40 just the other day. The sellers have unlimited funds/naked shorts. You cannot win in this situation.

My revised strategy on trading miners is to avoid the losers at all cost. Yet here I am with a beat down miner bleeding out the a-hole.  

hawkeye
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why does someone trade a small float miner..........

SSK, you should know by now that TRX, UXG, RIC, the whole shoooting gallery is in the sights of the hedge funds and shorts.........you need to be trading something that the shorts can't move around as easily.........maybe AAPL, VMW, SINO........lol.........pick a high-cap stock with good daily volume.......leave TRX to investors who can stomach the ups and downs, or feel the pain if you must trade it..............cool

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Same old shit

Total crazy shit. But the thing is, whoever is selling right now has the ability to take it down even further. To $5? Why not. Clearly, someone is selling the hell out of this. This is a  massacre from 7.40 just the other day. The sellers have unlimited funds/naked shorts. You cannot win in this situation.

If it goes to $5 buy more.  If you don't have any money to buy more, stop trading so much. 

Whoever is selling this is desperate to paint the tape in order to cover at a profit.  They will get sent to the blast furnace shorting the miners.

You can win, it's buying the dips selling the rips. 

Don't be such a melodramatic pussy.  For too long I have heard you belly ache about the miner's performance.  Unless you are daytrading your monthly expenses, I don't understand why you get so bent out of shape.

After reading your comments for quite some time, and I am convinced that you don't understand the fundamentals.

In closing, chill the fuck out.

From a fellow Hoosier, (Evansville)

Rick James 

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