Day Trader’s Weekend Aftermarket Lounge 18-20 Sep 2020, page-192

  1. 13,712 Posts.
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    Good to hear you hold TTM.
    Canaccord released a research note mid week. On page 23 they mentioned that Jerusalem project which hosts 1.2mill oz at 14g/t is one of TTM's assets but it had been under legal dispute. That is why it hasn't been mentioned by TTM after they acquired Core's assets. The research note also said that a court has found in favour of TTM and I believe the company will announce all of this when it comes out of trading halt. I've been told that will be tomorrow. I was surprised to learn this when I read the note on Wednesday night because I have researched TTM heavily and I found no mention of Jerusalem by TTM. I think this news will take the market by complete surprise so the sp reaction could be big.
    TTM's Dynasty project hosts 2.1mill oz at 4.5g/t. If they announce that they have added Jerusalem to their portfolio, the total resource will grow to 3.3mill oz at around 8g/t. That should be a big attention grabber and the company should attract a lot of interest from investors, brokers and insto's with a resource like that.
    The market currently values Dynasty at around $70/oz. If the same rate is maintained on the 3.3mill oz, the sp could jump by just over 50% to 21c.
    $70/oz x 3.3mill oz = $231mill market cap which equates to around 21c. With the much higher grade, a higher multiple than $70 might be applied. Cannacord applies a valuation of $114/oz which is the industry average, for a sp valuation of 22c for Dynasty alone.
    It should be an eventful week for TTM.
    The new drilling program was also reported by Canaccord as being imminent. That may provide a further boost over time ahead of the planned JORC release later this quarter.


 
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