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Short Term Trading Weekend Lounge: 9 -11 Mar, page-44

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jas626

6,951 Posts.

533

09/03/18

21:18

Post #: 31655081
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Originally posted by jas626 ↑

for those interested in tungsten stocks, thought I would compare TGN with SEI

TGN MC 270 million
cash 15 million
resource - 87 million tonnes @ 0.018% wo
looking to be in production late 2018 and they have
MoU signed with Xiamen Tungsten Co., Ltd in early November 2017 -strategic alliance with major Chinese tungsten producer.

SEI MC 15 million
cash 2 million
resource 47 million tonnes @0.13% wo
NPV of 161 million
pay back period 1.5 years
10 year mine life, low strip ratio
all environment, bonds, permits and technical work completed with 2012 jorc
possibly cash flow soon ( mid march) with possibly MOU signed with off take partner

so SEI has about half the resources if you multiply their existing MC by two you get a MC of around 30 million compared to TGN.

as you can see SEI resource is significantly undervalued here compared to TGN
here is the break down
SEI MC
15 million x by 18 times = 270 million
currently TGN is valued at 18 times SEI yet only has twice the size deposit?

Expand

I forgot to deduct the cash component from TGN but it does not make much difference
still 17 times undervalued

XAO Value at posting: 6,069.1
1 Upvote

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