The market cap will get to somewhere between $800m and $1.2B fairly easily in this gold price environment if they are producing 170k ozpa at an AISC of around US$950.
At an average of US$1,900 gold price per ounce, that's revenue for TIE (before tax) of about $325m USD (AUD $520m) per year.
And they own their 8 drill rigs.
What are they going to do with all that money, because in 2 or 3 years they'll literally be drowning in it.
I'd say that because of who owns most of the shares, they'll eventually make a massive one-time return-of-capital dividend to shareholders, maybe something in the order of 30 cents a share.
Katana Asset Management in Cottesloe are smart operators, they don't get things wrong. As they say, this is so undervalued that it's impossible to ignore, regardless of jurisdiction.
Gw
TIE Price at posting:
42.5¢ Sentiment: None Disclosure: Held
