That equals a market cap of around A$950m according to Petra, at the current gold price (US$1,900), and 170k ozpa production, and AISC of around US$1,000.
It seems a reasonable but conservative evaluation, and is (prudently) factoring in some risk, however if gold goes over US$2,000 and holds that level, perhaps even touching US$2,100, and the AISC stays nearly the same, and then they successfully bring on the second production project as a leach operation, and production goes close to 220k ozpa, then I'd expect a market cap of somewhere near the A$1.3 billion range, and a share price then of around $1.25 to $1.40, especially if they throw in a dividend after the debt is repaid.
Someone may lob another bid, but it's unlikely while they can pick up shares at 58 cents in the foreseeable future. TIE needs a spike to 80 cents, and then for the bidding to begin all over again. It needs the future ramp up to proceed smoothly from here, and there is a fair chance of that as it progresses, given the expertise of Matt and the team.
Gw
TIE Price at posting:
59.5¢ Sentiment: None Disclosure: Held
