conservative valuation

Hi guys,

Following is a revised estimate of the basic share value of TMR

The estimate is very conservative and does not give any upside from the new tenements in Chile which have doubled the copper resources of TMR and added next to copper and gold also iron ore to the mix.
The extra shares that has been used to pay for this tenement has been added to the calculation but not the upside of the 10 cts per share in NPV.

As previous no upside for the Portuguese as well as the Iberian ramp up of gold production has been added


Copper production soon to be 13000 t/annum

Copper price US$3/lb
Production cost US$1/lb
Revenue US$85.8 million
minus Production cost =US$28.6 million
Profit before Tax = US$57.2
Tax 30% = US17.1 million
Profit after Tax = US$40.1 million

Gold from Armenia
Production @ 40000 oz/annum
Production cost = US$300/oz
Gold price US$650/oz
Profit befor Tax =US$14 million
Tax 30% = US$4.2 million
Profit after tax = US$9.8 million

Total profit of both Gold and Copper production = around US$50 million

Profit US$50 million = A$57 Million (exchange US$0.87)

Assume TMR has 1000 million shares after the failed take-over of IBR (owns now 86%) and the latest Chile aquisition

EPS = A$0.057 per share

Use a PE ratio of a conservative 7 = A$0.40 cts per share

This is in my opinion the basic value of the share as it stands today.
Keep in mind that the Iberian resources will be easily ramped up to more then 100 000 oz per annum

Also that the copper resouces have upside from exploration and an copper oxide resource close to the current mining operations.

The latest aquistion of the Chile copper/gold and iron ore resource has not been given any value in this valuation. (SRK gives a NPV of US$87 for this tenement or 10 cts per share and that would be with a copper price of US$1.40 so with todays price we look at a NPV of more then 20 cents per share!!!!)

The gold assets in Portugal which are not included in this scenario as well as the exploration tenements for gold in Australia. (do your own research and you be suprisedof the value of these)

As I have stated before this is a jewel not recognised by the wider market yet and ready for a nice re-rating.

As for now all I can say this share is cheap a chips.

but not for long, so have a closer look before you have to pay much more.

And for those who still need more evidence, the directors bought not long ago millions of shares between them, out of their own pockets!!!! (see the ASX announcements)


Good luck to all and imho this share will reach the $1 mark before the year is out.