post cr ev

Simple calaculations give us the following approximate numbers post CR and using today's close:

Mkt cap 67mn X 0.62 = $41.54mn

Of which

Cash = $11.5mn or 17.2c per share

RAD 22.7mn shares at 21c = 4.76mn or 7.1c per share

So cash and RAD are worth 24.3c per share leaving 37.7c per share for EV.

EV is thus $25.3mn

This is still far too cheap.

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Taking an EV of $50mn as a more reasonable EV in the pre drill stage we would get the following:

EV $50mn = 74.6c per share + cash & RAD (24.3) would give us a fair SP of 74.6 + 24.3 = 98.9c or about 60% higher than where we are now.

Once drilling starts and then once we are awaiting results I would expect the SP to run higher still.

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For my part I send a big thumbs up to the management of TRH for being able to raise $9.5mn in the current difficult stock market at a price almost double of where we were only 3 months ago.

In a market like we have atm the large gains will only be had by being on board in special situations and from where I sit they don't come more special than TRH.

EB