Gold is a very minor component of this share - I view it as a bonus IF it comes through at all. TRF is only as good as its subsidiaries, IFE in particular. A careful examination of IFE shows that it is PROBABLY undervalued by (potentially) 800% - simple calculation of 2m tonnes Fe ore pa x 5 years@ $20 per tonne profit = $200m spread between 52m shares = $4.00 per share (and this ignores the value of the huge,long term, lower quality resource at Wilcherry Hill). But even if you accept todays SP for IFE as representing fair value for the resource , the value of TRF's holding in IFE is $22m plus 20% free carry = $9m , so there is $31m in value. TRF 's 12% interest in ROL at todays SP is worth $16m.....so, component parts valued at $47m gives a share value for TRF of 0.57...and that ignores any value for the gold ! If this share is not good value at 0.47 then I don't know what is !!!
TRF Price at posting:
46.0¢ Sentiment: ST Buy Disclosure: Held
