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Tuesday, October 27, 2015 2:43:44 PM
TMR.TO – TMAC Resources
So I’ve subscrived to Claude Cormier and find his writing excellent and his analysis rational. He has had two home runs I’ve missed out on so far as just subscribed which was Carlisle Goldfields (just bought out by JV Partner Alamos) and Sabina Gold & Silver (Just went on a 100% run – high grade advanced gold deposit in Canada’s NWT).
I’m just putting highlights here as some here are either OrMetal subscribers and you can figure out TMAC story quite easily by viewing the Denver Gold Forum presentation on their website and listening to the webast.
http://www.denvergoldforum.org/dgf15/company-webcast/TMR:CN/
This is a long term holder.
Highlights
- Similar to Klondex development is into ore on in Doris North deposit which is first to production. There is an high grade zone that allows them to forecast production of 200k oz in 2018 @ 10 g/5 – the second year of production. This leads to rapid payback.
- Building a mine for next 1.5 years, but similar to Klondex there is huge potential for a rerating if they can prove to market they can launch into production so potentially levered to gold price rise holding now.
- Newmont and Miramar spend over a billion on this project over the years so TMAC only has $290M of capex to get a potential gold district into production. 20 year mine life from pre-feasibility.
- They have 82M shares outstanding post-IPO per their PR below. That makes current $CAD FD MC @ 6.08 $CAD 500M . They just secured a $US 120M or $CAD 160M term loan and should have $CAD 76Min excess cash at the start of production per slide 25 below. So at start of production, TMAC should have EV of $CAD 584M vs. pre-feas after-tax NPV5% of $CAD 626M. Since pre-feas was at $US 1250 gold and 1.17 f/x rate that equates to $CAD 1460 gold, but $CAD gold currently trading at $CAD 1540. Basically, after-tax NPV5% with $CAD 1540 gold probably around $CAD 675-700M, so trading slightly under NAV.
http://www.tmacresources.com/files/doc_presentations/20150921-DGF-Conference-Final.pdf
- CEO Terry Macgibbon (i.e. TMAC resources) worked at INCO (Canada’s flagship mining co before acquired by VALE) for 30 years and then formed FNX mining which merged with Quadra and then sold to KGMH Polska. Truly experienced.
- Finally – here is the mine plan from the 43-101 pre-feas. 2018 production is forecasted at 200k ounces @ 10 g/t.
-
So I’ve subscrived to Claude Cormier and find his writing excellent and his analysis rational. He has had two home runs I’ve missed out on so far as just subscribed which was Carlisle Goldfields (just bought out by JV Partner Alamos) and Sabina Gold & Silver (Just went on a 100% run – high grade advanced gold deposit in Canada’s NWT).
I’m just putting highlights here as some here are either OrMetal subscribers and you can figure out TMAC story quite easily by viewing the Denver Gold Forum presentation on their website and listening to the webast.
http://www.denvergoldforum.org/dgf15/company-webcast/TMR:CN/
This is a long term holder.
Highlights
- Similar to Klondex development is into ore on in Doris North deposit which is first to production. There is an high grade zone that allows them to forecast production of 200k oz in 2018 @ 10 g/5 – the second year of production. This leads to rapid payback.
- Building a mine for next 1.5 years, but similar to Klondex there is huge potential for a rerating if they can prove to market they can launch into production so potentially levered to gold price rise holding now.
- Newmont and Miramar spend over a billion on this project over the years so TMAC only has $290M of capex to get a potential gold district into production. 20 year mine life from pre-feasibility.
- They have 82M shares outstanding post-IPO per their PR below. That makes current $CAD FD MC @ 6.08 $CAD 500M . They just secured a $US 120M or $CAD 160M term loan and should have $CAD 76Min excess cash at the start of production per slide 25 below. So at start of production, TMAC should have EV of $CAD 584M vs. pre-feas after-tax NPV5% of $CAD 626M. Since pre-feas was at $US 1250 gold and 1.17 f/x rate that equates to $CAD 1460 gold, but $CAD gold currently trading at $CAD 1540. Basically, after-tax NPV5% with $CAD 1540 gold probably around $CAD 675-700M, so trading slightly under NAV.
http://www.tmacresources.com/files/doc_presentations/20150921-DGF-Conference-Final.pdf
- CEO Terry Macgibbon (i.e. TMAC resources) worked at INCO (Canada’s flagship mining co before acquired by VALE) for 30 years and then formed FNX mining which merged with Quadra and then sold to KGMH Polska. Truly experienced.
- Finally – here is the mine plan from the 43-101 pre-feas. 2018 production is forecasted at 200k ounces @ 10 g/t.
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