The disconnect between gold producers and the A$ gold price is enormous. A massive opportunity for those with cash.
In respect to TRY (which I have been buying), they are unhedged 50,000ozpa producer with near-term iron ore production as a free by-product. (Even if iron-ore prices fall, none of this value is factored in to TRY's price)
And with $60m cash, and a mcap of $71m at $1.02, TRY has an EV of only $11m!
$11m ! Can you believe that a company who is currently mining gold at 50,000ozpa, when gold is just short of A$1,200oz, can have an EV of $11m?
This really is a perfect storm of a buying opportunity, IMO. Even if you believe the sky is about to fall in economically, A$ gold is likely to benefit if it does.
And the strategic value of cash at the moment cannot be underestimated. TRY is in a strong position to buy assets that are being likewise underpriced by the market, with two mills that can be put to work. Plenty of very good quality gold projects out there, owned by companies with little cash on hand, and finance hard to come by...
Take a deep breath, ignore your paper position, and coolly examine TRY. The decision is an easy one.
TRY Price at posting:
$1.03 Sentiment: ST Buy Disclosure: Held
