Issue i have with TGZ is in reality to be a cash cow it needs 1400-1500usd Gold.
in a buy zone...
You are probably right, TGZ cash flow is premised on higher gold prices given its AISC is around $900 and growth in the medium term is weighted upon Banfora coming on stream.
Looking at Toronto trading in the last week there appears to be moderate selling, and traded at 68 cents on Friday night. I was happy to top up at 70 cents on Friday our time, and otherwise have a suspicion that as we approach final investment decisions on Banfora we will see statement of borrowing and possibly a small rights issue to cement funding requirements. Note that TGZ have significant cash holdings too and moderate free cash flow at present.
Might be wrong, but otherwise agree that TGZ is in a buy zone at present. DYOR
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