tThe "market" seems to have its knickers in a knot because annual production may "only" be 150,000 ounces instead of the earlier forecast of 170,000 ounces.
Well, do the sums.
AISC is all important here. I would be surprised if it is above US$1400 . The current gold price is just shy of US$2400 per ounce. So on the basis of AISC coming in (and the quarterly report, due out by the end of this month, should tell us what the AISC actually is ) at under US$1400, cash flow on a predicted annualised basis could be 150,000 x US$1000 = US$150,000,000. That is, about AU$230,000,000. And TIE, unlike many others won't have any debt repayments, because the company has virtually no debt as far as I am aware of.
Cash cow alright. And at the current TIE share price of $0.66, TIE has a market capitalisation of AU$723,000,000.
Annual cash flow of $230,000,000 for a $723,000,000 company?
The economics, as far as I see it, are quite astounding.
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