will triako recover, page-9

gold deposit way undervalued Just did some numbers on TKRs' Hera's resource.

Basically they did a pre feasibility that said the project was profitable if they trucked the ore to nearby mills based on long term average metals prices (e.g. gold
US $400, zinc around $US $1000 etc). I just adjusted the metals prices to todays prices. Based on this I see an improvment in profitability of around $200 mill US - say $250 mill AUD. Given that TKR is capitalised at around $30 mill this is a massive upside. i.e. coudl be worth 8 times todays value if this is correct.

This valuation does not take into account:
1. Their Shareholding in Ausmelt. Worth around 25 cents a share to TKR.
2. Their other exploration properties (the Nymagee one had very impressive zinc grade hits on the first hole and they have a good JV with Teck Cominco which is one of the worlds largest metals companies).
3. Their old gold mine at Mineral Hill (or the treatment plant) which they stopped mining as it was not going to be profitable when gold prices were much lower.
4. Their cash - which they say is enough to get them through the bankable feasibility study.

If anyone has the inclination please go ahead and check my figures based on the december quarterly and factoring in todays metals prices.

Price has been strengthening - having a second go at breaking out past 125 at the moment.

Cheers
hots