re: Ann: Acquisition of 3Moz Gold Project, Mo...
Hi Wassie
I agree what a cracka project and picked up for only $4.54/oz thats insanely cheap. having a look at that EV peer comp on the presso, its closest comparison is AMX.
Just working some back of envelope numbers AMX is worth $133m dispite its recent problems take out the $42m in cash leaves $91m EV divided by 3.1moz = $29.35/ounce.
Now TNV's project has 3moz ounces at higher grade in Mozambique arguably a better investment destination, so you can easliy use AMX's valuation metrics as a base case.
therefore TNV having 3moz is worth $88m, post the acquisition there will be about 60m shares on issue which equates to rougly $1.46per share.
Lets then be conservative and build some risk into the Ev/resource price of 50% and use $14.67/oz still means a share price of $0.73 or 100% return from the current levels on conservative numbers
In summary I'm going to have to call my bank manager and ask for some more money so i can get some more.
PD
Do your own research this is my opinion only.
TNV Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held