In additionto benefiting from the rising Australian dollar gold...

In additionto benefiting from the rising Australian dollar gold price and a nicely set up pricechart, I believe TAM is uniquely placed to benefit from three potential near-termevents:-

1. New discovery / CTP deposit upgrade. Northern Star (NST) releases its QuarterlyActivities Report on Tuesday 30^thJuly followed by the release of their major Reserve and Resource Update inearly August. NST were scheduled to drill 386AC exploration holes during the lastquarter spread between four prospective CTP areas. Given NST’s undoubted skillsplus all the survey work and drilling undertaken over the past several years, Iexpect NST has developed an excellent understanding of Tanami region geology, which should certainly increases the probability for new discoveries.

2. Mining commencement at CTP. NST’s past presentations have included full year CTP production for the 2020/21 Financial Year. Given the high Aus gold price and continued positive drilling results, particularly extensions at depth below the larger existing pits (Groundrush, Hurricane and Jims), IMO there is negligible chance that mining will not proceed. Mining commencement would enable NST to become a 1 million ounce producer, something they would no doubt be keen to achieve. I think NST may use its August Resource Update to confirm its CTP intensions given they are likely to require around 12 months for plant re-establishment.

3. Potential takeover by APAC Resources. As I have written previously, Ibelieve there are strong strategic reasonsfor APAC to acquire the outstanding 56.4% of TAM i.e. Direct access to around $180min accumulated tax losses (worth about $38m) plus its $28m in cash and $6.5m inNST shares; Strong cash generation from TAM’s 25% “free carried” CTP mineinterest; Potential to access a portion of gold production for their commoditytrading business and as mentioned on their web site, excellent potential for resourceexpansion. To my knowledge APAC still has the $A85m cash it raised back inApril.

I thinkthere is a good chance for at least oneof these events occurring within the next few weeks. However, it is certainlynot unreasonable to speculate that two or even all three could occur within afairly short period of time???

TAM iscertainly “under-promoted” and I believe management’s minimal marketcommunication has contributed to a general lack of interest in the stock aswell as its low valuation. On The positive side I expect ANY good news willreally kick this stock along!