Gangsta, Cheers. Next drill results due end of Jan. When most brokers are back on deck. The Bundarra Project is surrounded by mills with spare capacity (at current count 5 mills) one of which is owned by SBM (holds +10% of TMX). That Russian nickel crowd (Norsilk Nickel ?)own the Thunderbox gold plant 25km north and they've got very little ore to process. This allows TMX to be an aggressive explorer because they know they can turn discovery into cash more quickly and cheaply than most. Importantly their resources are, and will be, in close proximity ( within a 2km radius) so they're economically real ounces and will allow the market to fairly value them.
Based on an Enterprise Value per resource ounce of say A$50 ( about the average for "real" junior oz's) TMX shares would trade at about A$0.32cps on the targeted 500,000oz resource. I’d estimate a first resource of between 500,000 – 750,000 oz’s by midyear. Think it'll increase again later into 2008. So I'm targeting between A$0.32 - 50cps by mid 2008. This target will be driven by the upcoming exploration results, JORC resources, continued aggressive exploration and obviously the Au price.
Shareprice is sloppy at the moment. The 2007 capital raising was put away (placed) badly and with an option. This means there's been overhang in the stock ever since mid 2007. Placement investors are todays sellers; bored, want to invest somewhere else, can sell the shares and keep their options, etc. If the stock doesn't move higher and absorb the overhang it persists longer. This is why the TMX shareprice hasn't moved higher for long.
The good news is the overhang is mostly worked through now.
Based on this, good news flow from now will meet with less resistance and once the resistance is seen to have gone the stock will pop. Once it pops the market will want to know why and the story will be reborn. In Feb.
Appointment of Jason Brewer is very positive and shows the "money men" are settling in. They can see how it's all going to work out.
If you like a stock it's good to get in when results are near, exploration plans are aggressive and overhang is dwindling. I purchased Integra last year(at A$0.15cps)when they were at the same stage TMX is today.
About 3 weeks before 2008 kicks off for TMX shareholders.
I've been buying and will continue over the next few weeks.
Keep in touch.
Climate Change (Yes it does)
TMX Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
