The Cashflow Bullet, page-468

IMO it's a down side of try modus operandi

Where other companies will spend a heap of time and money drilling to prove up a big resource with a long LOM before committing building a mine, try takes a calculated decision to build a mine with a smaller initial resource with the aim of proving up reserves and extending LOM using cash flow from the operation.

The risk is that they don't get to prove up enough reserves for a significant increase in LOM but that is balance out by the fact try usually develop mines with relatively low capex, pay off debt relatively quickly and the be generating free cash flow.

If we want to compare TRY with GUY, look how long it too for GUY to prove up there reserves, how much that cost and how much it cost them to develop the mine. TRY did relatively cheaply and quickly where GUY took a lot longer and cost a lot more but GUY kicked off with 16 year of reserves where try kicked off with 4 year LOM having taken Smarts underground out of the equation for the pre-feasibility.

I have held try for a long time and have been happy with how they operate, they have used the same approach on a number of different mines and for 13 years where paying dividends. It was working really well with Casposo, debt was paid off and the free cash flow was going to pay for the development of Karouni. Unfortunately we had a hat trick of circumstances that stuffed that up.

Not sure if putting try down as an explorer is correct, unlike your typical exploration company that spends money on exploration and has no cash flow, try is producing gold and while for now has limited free cash flow for exploration it will not be long before debt will be paid off and more free cash flow will be available for exploration. Another benefit of already having a production mill in place is that relatively small deposits can be exploited that would other wise be uneconomical.

I am confident try will be producing at Karouni for quite some years but IMO SP will be held back if all they are doing is mining relativity small deposits