Teranga Gold Corporation T.TGZ

Banfora NPV

[ts9222]

Compare these projects

Banfora
NPV $90m
Pre-production capex $232m

GCM Segovia
https://www.stockhouse.com/news/press-releases/2017/09/28/gran-colombia-gold-files-national-instrument-43-101-preliminary-economic
NPV $178m
Pre-production capex $0 (already paid and operating)


GCM Segovia has twice the NPV of Banfora and is already a producing mine.
Banfora initial capex of US$232m is way higher than the entire market cap of GCM CAD$42m and higher than the fully diluted Enterprise Value of GCM.

Instead of waiting for 2 years to build Banfora, you can get an already operating mine for cheaper that is already generating positive free cash flow with double the NPV. Banfora production is expected to be 131k oz/yr. GCM latest 12 month production was 165k oz/yr and should increase to around 195k oz next year.

Recent drill results had many bonanza grade 200 g/t drill holes.
https://www.stockhouse.com/news/press-releases/2017/09/18/gran-colombia-gold-announces-multiple-high-grade-drill-results-from-its-2017

[Quicklogic]

You are forgetting GCM debt of 150M$ or so. Very misleading spam post.

[ts9222]

You are forgetting TGZ will have 150M$ or so in debt too to construct Banfora. Very misleading reply. GCM $46m of debt will disappear next year when their 2018 debentures convert to shares at a higher price than current share price, US$1.95 (CAD$2.40). This debenture is different in that it can convert at the option of the company. With free cash flow of $15m-$20m per year buying back debt, they

[Quicklogic]

misleading reply? LOL, you're the one coming on this board and comparing TGZ to GCM, not me.

[ts9222]

Yes your reply is misleading. Calling another company as having debt when your TGZ will also have debt is like the kettle calling the tea pot black.

[kkkrrr]

we all know GCM is far too cheap because they will buy back a lot of debt in the next years and Segovia is a cash-Cow now  ...    but there is no need promote GCM at other bullboards ... this is a board for TGZ

[kkkrrr]

bought back some shares of TGZ today bevcause its cheap enough now ... this stock has 30% upside from here even with an mixed feasibility-study for Banfora ....but the positive cash-flow from Sabodala will help a lot and economics of banfora will improve with the exploration update in Q1 2018...   exploration around Banfora and Sabodala will be the key for the SP ....   good