prawns view on tmr

Ok since i recently got back in, and there has been a few anns i thought i would share my views.

Any comments appreciated.

SPP: will cause dilution unfortunately, but there are other companies out there with a large amount of shares on issue that still do well. MC and PE is more important imo than shares on issue. I can see why management are doing it, but not sure i agree totally

My biggest issue is it means the price will be trading sideways for at least another month.

PE: PE @ 11.5c is 19, based on last years profit figures.
This puts them in the realm of most mining companies, but does not account for any of their other projects or recent upgrades to throughput capacity.
Even if higher grades are not reached, and costs stay as they are, one would expect an increased profit this year due to higher throughput and cu prices so therefore PE ratio will fall even further

MC: Around $140million. Seems to me that this would be fair value if they were an explorer/developer and were not achieving profits. Personally i think that something about 1.5 - 2times this figure would be a more realistic value at this very moment.

Exploration: We all know that Armenia has a huge drill program going. I like this as it keeps the focus in Chile for now. Other Chilean projects are being drilled heavily and hopefully even more JORC figures continue to come out

Management: Everyone knows the potential these guys have but they seem to fail to deliver on the crucial factor, share appreciation. Not necessarily all their fault, but ultimately that is their job. Providing they continue to upgrade mine capacity i guess it is only a matter of time.
Hugh has said the wants to be a $1bill co by 2010 so thats 7x current prices.


And that sums up my thoughts...