Value Microcaps Junior Miners

[dr_airtime]

TGZ - did some digging...

...see my SH post (no one over on pumphouse has a clue of course!). The $30M raise is logically to retire the remaining Macquarie loan which should be exactly $30M. (Exactly $60M on December 31, 2013 BS, plus the PR'd they reduced by $30M with FNV funds so exactly $30M remaining).

http://www.stockhouse.com/companies/bullboard/t.tgz/teranga-gold-corporation?postid=22438397

This is logical as it is run by Cormark who own 30M shares from Mid-January and it frees up $15M in restricted cash for immediate use - see the SH post.

Now for the juicy part. At December 31, 2013 they had $15M of cash and $20M of restricted cash (restricted cash was reduced to only $15M after FNV payment came in) so $35M total regardless.

With the Cormark Bought Deal TGZ will be immediately debt free (except for small 4M of capital leases on mining trucks) and have $35M in cash (from December 31), plus the cash they have generated in Q1-13. What are they going to do with all that cash?

This is really stretching it...but what if Cormart pulled a Mart on Teranga and announced a dividend? that would put Teranga immediately over $1.00 permanently. That is total speculation but last time Cormark was supporting a stock that both I and them had a concentrated bet in (i.e Mart MMT.V) look what happened!

I don't think they would do a juicy dividend like Mart as that is not what mining investors are looking for but even $10M/year is just 1/10th of 2013's $100M in cash flow from operations before changes in working capital and that would be a nice 3.8% yield based on todays closing MC of $281M (10/281 = 3.8%)