BP in a report on the gold sector published June 2014 rated TRY...

BP in a report on the gold sector published June 2014 rated TRY as the best gold pick with a valuation of 1.47

http://www.bellpotter.com.au/onlineresearch/FileGet.aspx?guid=8D38F1E8-A7F1-468D-833D-7B98B930D8BD

The report says that of all current ASX listed producers, TRY’s cost of production is the lowest and it reckons it offers the most leverage to rise in the spot price….

Other bits on TRY in the report….

“A recent operational update advising of disruption to Caposo’s production (a series of rockfalls in the high grade Level 9 stope and a six-day shut for mill liner maintenance) has
deferred access to Casposo’s high grade silver at depth (and deferred a step up in earnings to FY15). Given we expect Casposo to overcome the temporary disruptions and
continue with its transition from open pit to high grade underground (with no change to the fully funded Karouni Project timeline) our valuation remains largely intact.

The FY15 dividend of 10cps assumes two smaller dividend payments as we expect TRY to endeavour to maintain its track record to date of 13 dividends over 13 years due to no
dividend in FY14. Our assumption of a double dividend assumes enough surplus cash from Casposo’s transition to the underground. A similar dividend approach was taken
during the development of Casposo when a dividend in 2010 was missed but two dividends were declared in 2011.

TRY’s greatest growth potential lies with the development of Karouni (expected to be producing by FY16) as Casposo continue to transition from open pit to high grade
underground. We recommend TRY as a Buy, and expect its value to re-rate as it de-risks the Karouni project with a PFS due by Q4FY14. Our valuation conservatively applies a
15% country risk discount, and only considers upside relating to TRY’s current resource.”

Note: Karouni will now start to produce an year earlier then what BP assumed…..