is it the right time to buy now?, page-19

Catsgrave & Gould

I usually do not hang out on threads but the 20 cent call got me stuck in TAM. (I have been trying to disappear but with no luck).

I am the head negative poster. Why? Because based in fundamentals, TAM is very toppy.

Catsgrave, 'traders' use technical charts and 'investors' use fundamentals. The trader method is called 'T.A' and the investor method is called 'F.A'.

So now with TAM there are traders involved with the stock.

Boring old fashioned investor F.A language is below.

Do you understand what is being said?

Best wishes.

V

Why negative?

TAM production capacity is 50K oz per annum, 60K oz at most.

Gold is high at US$1,000 oz or AUS$1,170

TAM has not even released any production costs.

If TAM could produce 60K oz pa at a margin of $600 (very optimistic & unlikely) their EBITDA would be $36M.

Their NPAT would be $24M. Their EPS would be 0.7 cents doing exceptionally well.

At a good $500 margin (still optimistic), their EPS would be 0.55 cents. At 0.55 cents EPS, their PE ratio is 12.

This company is being treated like it is a successful producer and they are yet to indicate they can make a profit. If the quarterly report to be released in October is negative regarding their production costs, their will be blood.


TAM market cap is now $225M, half that of AVO. AVO has triple the production capacity and resource.