Hi all I just wanted to throw my 0.6c worth in and say that, as a speculation, I think that the current focus of TYX on the Eureka Gold Project as a pathway to turning around the earnings situation seems to make sense. Given recent positive drilling result announcements (e.g. 7 March), and expected low costs of mining, I think that the Eureka pit could well provide that much needed cashflow. To help me with my speculation, I've been playing with some really simple calculations... Suppose an ore body of some 100m x 50m x 10m is extracted from the pit, and the ore contains an average gold content of 4g/t. That's around 125,000 t @ 4g/t = 16,000 oz of gold worth around AUD$29M. If the costs associated with extracting the gold is around say AUD$1,100/oz, then for 16,000 oz that's cost of around AUD$18M. So the company earnings from the project should be around AUD$11M, or for 942M shares, around 1.2c a share. So according to these numbers, unless there are significant losses on other projects, the current company share price of 0.6c seems to be considerably undervalued by my estimates. Note that if the average gold content of the ore were only 3g/t, then the earnings per share from the project would be around 0.9 c, which is still a significant boost. Anyway, as I said, just throwing my speculative 0.6c worth out there Regards and good luck to all, MM
TYX Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
