How cheap is this stock?
Here is what we know about TAM:
Market cap of 36.4 M$ (at 3.1 cps)
Liquid Assets of 32.7 M$
- Cash = 28.4 M
- NST Shares ~ 4.3 M$
Enterprise Value = 3.7 M$ - so what does 3,7 M$ EV get you??
Enterprise = 60% of CTP (resource base / plant / infrastructure etc.)
Note that the last 15% of CTP transacted at 20M$ via put option to NST (Implying 80M $ for balance of enterprise). To achieve an Enterprise value of 80M$, the share price would be over 20 times its current position (i.e. in the 60's cents).
Lets test this a little more on EV per resource ounce as a sanity check.
The Enterprise includes 60% of a Resource base = 2.74 M Oz @ 2.8 gpt (exclude any value for the plant that, with work, could actually process the gold - which is a distinguishing feature for this company versus many others who have resources but no reasonable pathway to production).
The EV$ per resource ounce is ~ $2.20 at current share price (TAM share). That is, the EV is loose change per resource Oz (and greater than 50% of those resource ounces are measured or indicated).
If the share price was 20 times higher, the EV per resource Oz would lift to $44 - which is still not unreasonable compared to many others.
I dont know if anyone has a chart showing all the latest EV's per resource Oz (and it is only one metric). My point is simply that this stock can rise an awful long way before comparison metrics would suggest the stock has approached fair value.
Interested in other thoughts on this one..
