Where are we?In response to recent posts and to investor’s concerns regarding Taranga’s `place’ in the mining industry and to its success; I offer the following for your consideration.
Since entering the precious metals investment group, I have read many `fact sheets’ about many up-and-coming mining companies; they all give a mental picture of a `pie’, representing the degree of success and/or fortunes to be made. The degree of success and/or fortunes to be made, (they will tell you) would consume the whole pie, if not for the tiny little wedge of pie representing cost of development, management and butterfly nets, (for catching flatulence, or whatever else comes to mind). Unfortunately, the end result, (by more than 50%) did not deliver the success as mentioned and assured in the pie originally presented to us – We may have just discovered the origin of the often heard “Pie in the Sky” remark.
While some here, (perhaps most here) believe that Teranga has moved beyond the pie in the sky category, it’s obvious that we all have different views on where Teranga is in terms of success(?).
Teranga’s Sabodala Mine has been in operation since 2009. Where do we place Teranga’s development stage in relationship to charts shown below? This investor believes Teranga is in the `Production Stage’ and yet I must conclude the Company is still in the `Discovery and Development Stages’ as well.
Keep in mind; in the mining industry it is generally accepted that a world class gold mine contains 5 million, (or more) ounces of gold. Teranga has 2.6+ million ounces of gold and with additional drilling that current 2.6+ million ounces will increase – Reserve classification is the gold mentioned, (only reserve ounces are bankable).
Chart: Life Cycle of a Junior Miner
Chart below: Same subject, additional information/analysis