Well we have been waiting since 2012 listing for TMZ to begin realise its huge potential. Straight line down since then with the resources sector. And now we are only poised at an early launch pad which should see us return to the IPO price and well beyond on modest success. That's how it looks to me, and very doable just on the Bygoo TIN project development.
At current spot AUD 29,000 / tonne, an average 1.1 pct grade at surface on a spec gravity of 2 say, would give us paydirt at around AUD 650 / cubic metre .... that's like finding a gold deposit at surface grading about 6-7 g/t
Yet lets not forget that 35 m at 2.1 pct monster hit, so who really knows what average resource grade can be refined here. Whatever the case, mining and processing costs would be pretty low given the open pittable and good metallurgical characteristics shown.
Bottom line, low capex and low opex for concentrates production cf to a "normal" tin producer hence margins will be high. And even though the initial exploration target is 10-20,000 tonnes, the big mineralised strikes and new finds suggest it could continue to grow to substantially larger.
No wonder then the US interests in progressively paying TMZ up to 25 million bucks to cover our costs to production and ongoing 24 pct equity thereafter for a (estimating) 2,000 tpa producer in likely to be, quick time.
So lets see them infill and other assays due soon to get this project firmly on track without the need to issue any more shares from current 99 million share cap .... unless strategic of course.
On the TIN project alone I justify to myself an initial tech target of around 26 cps as the TIN project ticks all the boxes and on my back of envelope estimated earnings and PERs, more likely a sp closing in on a buck as it confirms production .... lets say 3 years away.
But that aint all. We have two free carried JVs in place now with SVL and SCI which might add a bit more spice on the way, and the ones I have been waiting for ex the old CMR inventory, two golden IRG style wildcat ....elephants more likely .... in which TMZ have correctly decided to retain 100 pct until better defined. Even before the initial TIN deal which sees 3 mill cash progressively received this year for starters, these wildcats have been funded by NSW State Government initiative for best exploration targets defined in NSW.
I don't need to say what a hit in either of these would do to the TMZ share price. They need to be drilled and assayed by June 30. That means SOON.
Soooo with great expectation I look forward to what should be a new company making year for TMZ per the TIN project in progress which more than underpins IMO a share price triple of that now, with multiples thereof on reaching production, PLUS the exciting prospect of some serious wealth creation on a positive result from the coming 100 pct owned Cadia-style GOLD elephants soon to be drilled.
Good luck to the long term faithful and may it indeed be a very happy 2017.
Opinions with extreme prejudiced.
TMZ Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
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