If they are able to secure funding and keep those rigs in the ground over the next few months, with a resource upgrade we could realistically see 4c/s by May 2018. If results like these continue to flow i'd be hopeful we can get to a combined resource of close to 5moz. They said in their presentation they are targeting similar increases in resource (from 2.9 to 3.7 is about 27.5% so should take us to 4.6moz)
I don't see how funding will be a problem with major holders at 85%, if we can get some fresh local investors on board i think this thing will become the next major profitable producer.
Obviously some risk with the large amount of shares on issue but no major shareholders have been selling which indicates they are long term holders.
Development & Production is only 12 months away - if they do get Rietfontein producing at 60koz/pa that would imply let's say $500/oz US profit - 36M profit.. peer comparison for that sort of profit really undervalues this stock. PRU in comparison has a $450m cap?
Another important thing that the market doesn't seem to have valued correctly yet is the positive change in government, the rand has strengthened against all majors and it could really change the whole SA story.
I'm very positive on this one, thoughts anyone?
TGM Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
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