elzeI hope you did not pay too much for your TGZ shares.TGZ is...

elze

I hope you did not pay too much for your TGZ shares.

TGZ is in a danger period until it either starts processing ore of much higher grade (thereby significantly increasing production and lowering costs) or ends the hedge.

TGZ may get itself into trouble if the POG falls too far.

I was expecting TGZ to fall back to $1.50 at some stage. However in a GFC2/economic depression they will fall a lot more.

Unlike CGX, I do not think TGZ is flush with funds.

PRU, RSG or EVR are economically safer bets in west Africa. PVM is also interesting, although they are not yet producers.

TGZ could become a good buy closer to when the hedge ends, especially if they have found a lot more gold at higher grade. They have solid management and will probably survive.

I am not sure of the current situation in Senegal, but for some years they seemed one of the safer places to operate a mine. TGZ was (still is?) their only gold producer and the government clearly wanted them there, whereas Ghana has lots of producers and its government now wants to tax them to the maximum.

I used to hold MDL/TGZ and look at it from time to time.

loki