I've just bought in and think this is a bargin .... It's valued...

I've just bought in and think this is a bargin ....
It's valued at under $10mn and has $7mn cash that's a good start.

So what are we getting for $2.5mn ?
Manatial & Julieta Norte prospects - part extension of Troy resources Casposo mine. "High grade gold mineralisation identified right upto the surface". Drilling in the June qtr

Santo Domingo Prospect - mapping and sampling completed by end of July

Northern NSW - bits and pieces


When's it going to change from a cash hungry explorer to a cashflow +ve producer ?
Good question ... but my guess is fairly quickly.
At Manatial we know it works as an open cut mine.
Earlier this month Troy announced that Casposo was fully funded and they have released plant throughput figures that show that their processing plant will have lower grades running through it in a couple of years time (2012 /2013) so some additional revenue from processing 3rd party material may be appreciated or if Manatial has better mineralisation than recognised by the market then we will have a bid from Troy. (Troy announced projected Casposo production as 320,000 oz/annum of gold and 9,000,000 oz silver produced over the 6 year mine life with an average cash cost after silver credits being US$120/oz !!!! ... let's see that's +/- $55mn per year production profit ... and ELT's apparently worth almost nothing ??

Why are we getting this for nothing ?
Because the selling shareholders never bought into this part of the company anyway and it needs to find it's correct core investor base.

Obviously we're in nowhere near the same position as TRY but with a comparative valuation of virtually $0 this has to be a reasonable bet.