I have just done a little calculation. I would not mind if someone wishes to check my numbers. Sandfire Resources has a Price / Free Cash Flow ratio of 12.76 X TNC has about 1100 Million shares on issue ( 1.1 Billion) Original predicted FCF was about $111 Million over 4 years. Now modified to about $200 Million over 4 years (at current prices and exchange rates) Therefore $200 M X 44 years = $50 Million per year. 50 M / 1100 Million = $0.045 per share (???) I am not supposing this happens in the very short term nor that a small miner such as TNC can command the sort of premium SFR does. But a Price / Free Cash Flow ratio of say...2 X or 3 X or 4 X etc. etc....quite appealing gto me and confirms my belief in HOLDING.
TNC Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
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