TMZ is an emerging TIN company with high reward/risk leverage from current 3 mill EV by my reckoning.
TMZ also has a couple of 100 pct owned Gold + Base Metal plays for which NSW State Government awarded it project funding based refund of drill expense up to 170 K bucks methinks .... enough to put down a couple of deep DDHs down the wildcats throats.
There is also Gold at Bygoo with some good historical hits if you read the reports but that's probably part of the Canadian farm-in.
Gold price spot is now about usd 1340 / oz just short of the usd 1365/oz major pivotal point thru which IMO we will have a confirmation of primary wave launch, its third of the fifth. IMO once thru this, and it might only be days away, gold will be in serious launch mode with much higher prices this year and beyond, with a minimal chart technical target of usd 2500/0z over the next couple of years and possibly well beyond if you listen to the FINSYS golden gurus.
I as a long term supporter and substantial holder of this stock am happy with the Canadian deal struck and hope it can continue to its conclusion viz 3 mill bucks for drilling as required to maiden JORC definition of Bygoo Tin then decision for further 22 mill bucks cash for final 75 pct ownership by the Canadians.
TMZ have received and used abt 800K of the initial 3 mill, the balance of which is due progressively til June 30 this year,
If they TMZ receive a further 22 mill starting this H2 and into 2019, ie equiv 20 cps CASH injection, that should likely suffice to pay for their 25 pct capex of plant to produce Tin concentrates from Bygoo, and more importantly, mean no further capital raisings / share issues likely. Back of envelope estimates of later earnings from TMZ's 25 pct at current 100 mill shares or so would probably justify a share price at 70-100 cents per share. Guestimating for current Tin prices at around usd 20,000 / tonne and trending higher.
No allowance is made for the two 100 pct exploration wildcats which I hope some cash is put aside for their initial assessment.
What I would like to see now from the company is an update on the Tin Bygoo project and financing and likely timing for maiden JORC resource ........ the current exploration target has already previously been defined at 10 - 20, 000 tonnes near surface, high grade from memory.
What I also want to see defined is a program and timing for drilling program of the two potentially big golden wildcat plays and how they will be funded.
Imagine a commercial hit during a major primary breakout in the gold price and with our current share cap intact. Potentially the stuff of dreams.
I decided to invest in TMZ for the Gold and base metal potential, some ground being ex the CMR NSW holdings which I had followed them for. The Tin subsequently appeared as a wonderful bonus to underpin the company's evolution as a low risk high reward / potentially explosive reward play.
Hope its a great year for TMZ.
Keenly looking forward to the next updates in detail.
OWEP
TMZ Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
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