GREY:OLEPF - Post by User
Post by
tony1969on Jul 13, 2013 1:55pm
177 Views
Post# 21605994
I believe that TGZ can show EPS growth with with roughly 350 million ...
I believe that TGZ can show EPS growth with with roughly 350 million ...shares or about 50% more than the 245 million they have now after a deal with OLE. They can conservatively increase production by 50% from 200k ounces per year to 300k ounces per year after they acquire the OJVG. This will basically neutralize their dilution. They can give us OLE holders a bit of a premium. Maybe .65 to .70 shares of TGZ instead of the .582 and give Bendon cash and some stock to finalize the deal. With about 350 million share this company can earna very conservative $.10 per quarter or a $35 million profit even with gold much lower at around $1100 per ounce or so. This would be earnings of $.40 a year per share. Putting a super cheap multiple of 5 on a now growing company gives you a $2 stock.
TGZ's shareholder meeting this week should be interesting to say the least. They will not report earnings for q2 until August but they will probably state how much they have in cash after q2 this coming week which I believe is an important factor in their negotiations with Bendon. I would assume they will have a nice bump up from the $60 million they had after Q1 since they were finally hedge free during 95% of q2. Comments?