Friday, December 5, 2014

Tanzanian Royalty Explortation Stock Hit Hard Following Seeking Alpha Article

On November 30, 2014, the website called Seeking Alpha published an article titled "Playing Mine Games, Tanzanian Royalty Exploration Is About To Fold". You can read the article here.

This article is written by an author with a pen name of James Emerson, CFA. Whether or not this is a real person or not I am not sure. The title of the article is quite blunt regarding the outlook for Tanzanian Royalty Exploration's future prospects as in, there are no future prospects for the company since it is about to fold.

The summary of the main points of the article are as follows:


- Tanzanian Royalty Exploration Corporation has only C$1.8 million of cash remaining on the balance sheet.

- The company missed the target date for commissioning the Buckreef Mine, triggering a penalty payment to the JV partner.

- TRX did not make the required penalty payment, and may be in default of its obligations under the Joint Venture agreement governing the company's primary asset.

 - Ernst & Young LLP highlights the existence of a material uncertainty that raises substantial doubt as to TRX's ability to continue as a going concern.

This article is not the first written by this author about Tanzanian Royalty Exploration. Previous articles on the same web site,  Seeking Alpha, have had a similar theme to them.

In fact, Tanzanian Royalty Exploration and James Sinclair publicly refuted one of these articles back on Jun/10/2011, and you can read the press release here.

So the question is, who is right? Who is legitimate? Is it this unknown author on this interesting web site writing hit pieces from behind the keyboard of his computer somewhere? Or, is it Jim Sinclair, a wealthy and well known gold guru who is running the public company and will even answer his phone and talk to you about any questions you might have?

If I was a betting man, I would be on Jim Sinclair and not trust what you read coming from an unknown source, just like me.

You can learn more about Tanzanian Royalty Exploration by visiting the web site