Teranga Gold Corporation T.TGZ

What's in the Q1 report?

[staz]

Don't want to piss on your parade, guys, but the Q1 results can explain some part of a sp depreciation. Strip ratio went to 22 from 8 , all-in sustaining costs are $1078 versus $825 a year ago. Everybody is focused on that GDXJ thing while the results are not that stellar . Most likely the stock will see a spike after rebalancing. But a new mine will require around $250-300M .With $6M in profit per Q you'll need 40 years to finance the new mine without taking on debt or issuing new shares. It's a good company but reading it's Q statements I don't see the upside events (except for the rebalancing of the fund which can give a temporary boost) in the short-mid term. I'm looking to put some money in this one but not sure if now is the right time.

[Highwired7]

Staz, thanks, I'll add that to my list of reasons why I'm out, had high hopes for this one, was long since May of last year, took a hit on this one, glad to be out though.

[ts9222]

Yes that high $1078 AISC number and high AISC guidance for 2017 is preventing me from getting back in. I already made two round trips with tgz for good profit. Last time bought near 40c and sold near $1. I might go for a third round trip if tgz goes to extreme lows like last time when it went to 38c. tgz has big swings to the extreme which can make it good for traders. Right now GCM with high

[auburn2]

Ridiculous comparison. GCM has almost 2X as many current liabilities as current assets and is under a heavy DEBT burden. Additionally when TGZ went to 40 cents the gold market was in a state of capitulation never before seen in my lifetime and this was before Mimran had 20% of the shares.

[ts9222]

>> GCM has almost 2X as many current liabilities as current assets<< No you are wrong, just look at their latest financial statement. Total assets $396.244M, Total liabilities $201.884M, Net Total equity $194.360M I knew someone would mention debt. Just look at the Enterprise Value which adds market cap with debt. GCM EV is around USD$110M which is very low for a 160k oz producer. EV

[Highwired7]

"Saying another company has debt is like the kettle calling the tea pot black." Dats raciss.  

[lumpy13]

ts9222:  EV is net worth added to debt, which in the case of GCM totals $283m - not $110m.  I don't find anywhere in their financial notes that the 2018 convertibles are mandatorily convertbile.  The company is required to deposit 25% of excess cash flow into a sinking fund to buy/redeem these debentures.  Otherwise, why would they be purchasing them in the market if they

[ts9222]

(I wasn't the one who gave you that one star.) >> EV is net worth added to debt << Not true, look at the definition of EV https://www.investopedia.com/terms/e/ "Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents." So basically EV = market cap + debt - cash since there is no

[ts9222]

Link got cut off, definition of EV here: https://www.investopedia.com/terms/e/enterprisevalue.asp You can say their recording of debt at market price which is trading at discount to face value is not fair, so say the 2018 debentures convert to 23.57m share as stated in their latest news release. Plus 20.4m common shares equals 43.97m shares at current share price of CDN$1.42 or USD$1.05 gives a

[lumpy13]

You're completely right.  I wasn't thinking and was using book equity as of 3/31/17, not market equity.  My bad.  I hadn't noticed the 2018 debentures could be converted (at least 81%) into equity as that wasn't noticed in the quarterly statement.  The 2020 debentures just got extended to 2024, with the interest rate increasing from 6% to 8%.