twenty cents by xmas, page-5

TAM has 3,538,390,059 shares on issue

to reach 20 cents it needs the capacity to earn at least 2 cents EPS

with 3,538,390,059 shares on issue, it must have the capacity to earn $71M NPAT per annum

to make $71M NPAT per annum, its EBITDA must be $110M per annum

Current gold price is AUS$1,100 per oz. If costs are $650 per oz then at a $450 margin, TAM must be able to produce 250,000 announces per year or 21,000 ounces per month

can it do that?

currently TAM is aiming for 50,000 ounces per annum

they have a 250k tpa plant which at 8g/t can produce 60,000 ounces per year or 35,000 ounces per at 4.6 g/t

thus, it is impossible for TAM to reach 20 cents

at a margin of $450 ounce, 85 cent exchange rate, current gold price and 50,000 ounce production, NPAT per annum will be 0.4 cents EPS

Current TAM share price is 4.1 cents or trading on a PE ratio of 10 (i.e, if can ever meet its goals and make a profit).

TAM is now fully valued based on fundamentals

It is time a sell (in my opinion).