Guessing the 2017 guidance, page-28

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beaver007

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20/01/17

09:22

Post #: 22019642
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Originally posted by MagicSeven ↑

To all the investors and interested ones in tgs,

Now you can imagine why I am such a critical investor about tgs.. Just look on my calculation, where you can see a matrix table for different copper production scenarios (27, 30, 32,5kt), with diff. sales prices (2.35, 2.40, 2.55/lb) and a "cautious" expected aisc of total 1.73 (incl. inefficiency of production because of incidents, wet season, pads, etc...)

So if you look on the cashflow statement 2017 (last line on pdf) we have a scenario of 32.5kt with an avg. sales of 2.55 and aisc of 1.73. This would just generate a net cash of 34.5mn.

As soon as possible (asap, within a year) we have to pay min. 1/7 of our debts (because debts should be paid asap when cp is on its high/est lvl/s!) of 180.5mn (w/o drc bank!). Now this would mean that we should pay back loans of >26mn (just avg. of total outst. loan) end of 2017 beg. 2018!

But as you can see in my best case model we just generate 34.5mn.. and we need also cash to expand our production further to at least 50kt/year (as tiger already mentioned some times ago!)! And we also maybe need a "left" cash to initialise a beginning cobalt production!

So just with the best case scenario (based on my calculation!) we are able to meet those results!

Hopefully tgs is able to manage a min. of 27kt production with a flat aisc rate ~1.50, which would generate a much more positive cashflow (~38mn, bef. payback of debt!)

click here for tgs-guidance 2017 - my personal view

Ps. Cashflow = after operating, financing costs..

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Why does tiger need to pay all debt ?
Best mining companies in the world (and companies generally) carry debt

Copper cannot stay sub 3 bucks. The world will run out. In fact the world runs out if it doesn't get over 3.50. Industry gotta earn it's cost of capital

TGS market cap is well under 100 million. Your continued skepticism is misplaced, you are not considering the companys current value and the investment case based on that value.

TGS Price at posting: 3.8¢ Sentiment: Buy Disclosure: Held
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Guessing the 2017 guidance, page-28

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