There have been some significant announcements recently, which have passed without much comment on here. So I thought I would put together a bit of a summary of TMX and its current value as I see it.
Current mcap at 5.0 cents is $5.85m
(there are also 51m out-of-the-money 25 cent options, which I will ignore.)
Current cash position - I believe it is $2.7m at 30 June:
3rd Qtr cash position was - $400K 4th qtr expenditure assumption - minus $400K
Capital raisings - $700K (rights issue) Fortrend Placement - $1.36m Bligh Capital placement - $665K
So EV for TMX is $3.15m
So, for your EV of $3.15m you get:
- TMX's deal with Bundarra Mining will see the mining of the 16,200oz reserve WITH NO CAPITAL OUTLAY, for a 50/50 profit split. All upside, no risk for TMX...
- TMX have a further $5m of funding up their sleeve from Fortrend, with only a 10% VWAP discount for the issue of new shares. This is a great deal, IMO, as it guarantees a maximum level of dilution, and can be done at times most advantageous to the company. Investors also do not need to worry about further capital raisings for the next 2+ years..
This capital will enable for the forwarding of Wonder North (697,200t @ 2.45oz/t for 55,326 recov. oz - cash surplus of $10.0m), and Coogee (102,600 @ 3.82oz/t for 11,600 recov. oz - cash surplus of $4.0m).
And, the extra capital will pay for further drilling - which should please investors.
So, in summary, you have a small goldy with a no-risk source of income near-term, $5m of capital up their sleeve with only 10% discount to the share price, $2.7 cash NOW, and some economic gold deposits.
And independent assessment places the value at between 9.9c and 15.1c (almost 200-300% of the current price).
Good buying, IMO.
Y
TMX Price at posting:
4.7¢ Sentiment: LT Buy Disclosure: Held
