gold on hand

This little gem in the back of the TBR half yearly....


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Ore stockpiles ? at cost 11,999 10,547
Gold on hand ? at cost 35,151 23,634
Gold in transit ? at cost - 698
Drill rig parts 125 -
47,275 34,879
Gold on hand at 31 December 2010 has a net realisable value of $61,875,606 [30 June 2010: $53,398,876]
measured at a spot rate as at 31 December 2010.
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As normal, TBR does everything if can to downplay its financial situation. What the above means, is that the gold on hand (ie : in the safe) and gold in the stockpiles ready to process, are worth around $80M at current market price. Their "at cost" method severely underestimates the value, which they have been doig for years now....why? I dont really know.

Given the market cap of around $100M, the fact they have a VERY profitable underground mine in operation for another many years, and a second one Rubicon now in development, plus greenfileds exporation in Ghana, this is looking to be very cheap at a net market cap (minus cash and gold at hand) of around $20M......