TMAC Resources Inc. T.TMR

Thanks Wineaux for the RBC report

[Shermandrock1]

A couple of things: 1) Target $7.00? Seems a bit low to me. However, if it occurs in 1 year, it would represent a 33% ROR at today's price. 2) Long term recovery of 88% in model. Lets see.....88% / 90% = 98%. I wonder who may have a more clear perspective in this matter........actual miners with multiple years of hands on experience or someone sitting on the 27th floor with a computer writing about something he has no experience or knowledge about........3) Financing uncertainty? Huh? With 2,000 tpd, 9 gpt, 85% recovery and gold at $1,450, FCF should be sufficient to a) provide for expansion in an orderly fashion and 2) allow for expansion of ore processing at Boston (not Madrid) with the addition of an additional processing facility 3) allow for continued exploration. Yep, while not overtly negative, I think that the author introduced some concerns hoping that the price will not be elevated too much prior to their clients completing their purchases. Yep, the old "Bash & Stash" routine. Lastly, here are the headwinds that occurred in Q2: 1) mining: did not mine as many tons as intended. Solution(s) a) purchased additional equipment b) focusing on opening up more mining faces. IMO, solution is in process. Done. Press on. 2) recovery: yep lower than anticipated. The gravity recovery equipment was not operational or minimally operational for the entire quarter. Solution: called manufacturer, ordered / fabricated required parts to replace deficient parts. Surely by now, 68 days post quarter end, the parts have been received and installed. Sheesh. These folks seem to have a sense of urgency about them. Does anyone think that Jason's $4.5M COC payout is not a motivator? 3) throughput: May and June demonstrate consistent 2,000 tpd. There you have it folks the recovery % is on the upswing, the mining rate is on the upswing, the processing is on the upswing and the grade remains on the high side. $7.00? Nope.

[Wineaux]

Thanks Sherm, you're analysis helped. I bought more this morning, I'm officially 100% tapped out. 

[snowshoedb]

The analysts concern about financing is valid. Go back to the Q1 conferencew call presentation and look at slide 8. This goes back to the refincing of the debt. The company had previously agreed to 5.5-6.5 million in quarterly principle payments with a an initial maturity date of the debt set at July 31 2020. The maturity was later extended to July 31, 2022. Just prior to the Q1 Conference call