It does look excessive.I hope that the 34 year 4.8% net smelter...

It does look excessive.

I hope that the 34 year 4.8% net smelter royalty only relates to the current tenements, otherwise it would be totally absurd if they were to build more mining operations and have to pay royalty on that production. The press release was not clear on this point.

The main takeaways from this deal is that TGZ should be able to produce at a cost below USD1000/ounce after covering all expenses, ought to be in a position to become totally debt free this year, and have a mine life of at least 10 years.

Eventually the market will re-rate the company after it has demonstrated its profitability.

TGZ is not one for short term trading, I am looking for a 2-3 year hold here before selling out. The share has become very illiquid so day traders will not touch it. Things should improve once they are in a position to pay dividends.

loki