A few thoughts on TAM...
* I find it interesting that TAM's controlling shareholder APAC Resources has been acquiring Northern Star shares (in addition to TAM's own 500,000 holding). On 23 April 20 they acquired a further 300,000 NST shares at $13.31 giving them a total 815,000 shares worth around $10.6 million. I don't believe they would make this sort of investment if they thought the CTP was not likely to proceed.
* If NST announced a CTP re-commencement it would add an additional 10-11% to their annual gold production (112,500oz) on a base case of 150,000 oz pa. Given NST's high PE ratio this could be worth between $1.50 to $2.00 to its share price. Given APAC's significant investment in NST, perhaps there is a chance that they would accept a scrip offer for their 46% TAM holding.
* As TAM's CTP resource calculation was made in 2010 and would have been based on a Aus$ gold price around $1,200 lower than current levels. If the resource was to be re-estimated for the current gold environment it would certainly have a lower cut-off grade and hence establish a larger resource. This could potentially increase the CTP resource by say 10% to over 4 million ounces.
* From an operational perspective, the almost 5 year delay in mining has worked in TAM's favour in that mining re-commencement will likely to provide significantly higher cash flow margins of around $400-$500 higher per ounce. Also from an asset perspective, TAM's 25% of the CTP's in ground gold continues to substantially increase in value, although to-date is not being reflected in TAM's SP.
* From my perspective, TAM provides a relatively low risk and heavily discounted alternative to holding cash and gold in a bank plus lots of operational upside.
DYOR
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3.0¢ |
Change
-0.001(3.23%) |
Mkt cap ! $35.25M |
Open | High | Low | Value | Volume |
3.1¢ | 3.1¢ | 3.0¢ | $8.283K | 267.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 178000 | 3.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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3.1¢ | 1924 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 178000 | 0.030 |
6 | 853932 | 0.029 |
4 | 642463 | 0.028 |
3 | 700000 | 0.027 |
2 | 350000 | 0.026 |
Price($) | Vol. | No. |
---|---|---|
0.031 | 1924 | 1 |
0.033 | 1000 | 1 |
0.035 | 235324 | 2 |
0.036 | 253758 | 2 |
0.037 | 80000 | 1 |
Last trade - 11.36am 02/09/2024 (20 minute delay) ? |
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