In the case of Troy we can completely disregard the A$ exchange rate. Costs are mostly US$-based with some costs based in the local currency, which tracks the US$.
Troy so far had cashflows of +/- 0 if production comes from Hicks and +40m if all production would be sourced from Smarts 3. Going forward, assuming everything staying the same except for the source of ore the 3.5 g/t section at the NW of OC (not the highest grade OC offers but probably the most consistent) would equal to 60-80m of operational cashflows (it would be 80m except for the fact there is a 10km road transport involved). Still lots of work to be done. It looks like OC will have at least 7 years of production. Certainly a p/e ratio of 0.75 as the current share price or 2.15 as the 30c price would imply seems too low for that LOM.
TRY Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
