why try?, page-2

it's relatively simple imo:

PROs:

- $60 million of cash backing (more than market cap, as the yanks would say, you're buying dollars for cents)

- Production ramping up in Brazil to 50,000 oz/pa at an estimated life of mine cost of US$300 an oz (note: current quarter cost was US$660)

- High AUD price of gold should keep processing at Sandstone viable and profitable

- 0.5mtpa iron ore project at pre-feasibility. Reductions in spot iron ore price will reduce the profitability of this but at a capex cost of only $5 million it will still generate a decent profit per year or upfront profit if divested

- Gold plant in storage in NSW, although the market will not attribute any value to this as it has been there for a number of years

- Strong management and a proven track record

- Has been painted with a similar brush as has the rest of the junior / mid-cap gold producers as a result of recent failings (irrational, but creates a buying opportunity)

CONs:

- Cash cost of production in recent quarter out of Brazil (still cash flow positive though)

- Thinly traded stock (in this market environment) has added to the share price decline, although the share price has performed in line with peers

- Potential for further falls in share price, there are a number of gold producers and explorers, especially in the US and Canada that are trading at even greater discounts to their cash on hand, so there is some scope for TRY to move lower