Roulston, Humphreys refresh True Gold Mining buy
Roulston, Humphreys refresh True Gold Mining buy
2014-11-11 18:55 ET - In the News
Lawrence Roulston and Tommy Humphreys, in the Oct. 31, 2014, edition of Resource Opportunities, refresh their buy of True Gold Mining Inc., recently 20 cents. Before Mr. Humphreys came along, Mr. Roulston said buy True Gold five times from Jan. 15, 2010, to June 24, 2014, at prices ranging from 24.5 cents to 65 cents. A $1,000 investment for each buy is now worth $2,859. True Gold is building a mine at its Karma project in Burkina Faso. Its stock plunged to a multiyear low of 14 cents in late October after the president of Burkina Faso was deposed and the parliament was set on fire, even though operations at Karma continued safely and without interruption. The project has all its permits and is fully financed through a streaming deal with Franco-Nevada and Sandstorm Gold. Production is scheduled to start in the fourth quarter of 2015, and 2016 output should reach 160,000 ounces at an all-in cash cost of $720 an ounce. As well, True Gold recently released a preliminary economic assessment at the North Kao deposit near Karma, estimating an after-tax internal rate of return of 213 per cent. Mr. Roulston and Mr. Humphreys are impressed by these numbers and predict that True Gold will see a "rerating" as it enters production.