Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Tucows Inc TC.P.T


Primary Symbol: TCX Alternate Symbol(s):  T.TC

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Ting, Wavelo and Tucows Domains. Ting segment provides retail high speed Internet access services to individuals and small businesses. Wavelo segment offers platform and other professional services related to communication service providers, including Mobile Network Operators and Internet Service Providers. The Tucows Domains segment includes wholesale and retail domain name registration services, value added services and portfolio services. It primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses. The Company provides these services primarily through a global Internet-based distribution network of Internet service providers, Web hosting companies and other providers of Internet services to end-users.


NDAQ:TCX - Post by User

Comment by LongonZincon Jun 06, 2013 11:05am
170 Views
Post# 21492359

RE: Longonzinc re royalty effect

RE: Longonzinc re royalty effect

I will respond to a couple of points.  First, the 900 Au and 2.5 Cu is just an example of cash flows at those price points and it shows real cash flow.  As far as I can tell no one has a magic ball that can tell for certain what future metal prices will be.  I think the price points above would make for a dire situation.  However, what I think you are trying to describe if free cash flow.  With the high debt load they have, they need to generate more cash flow to service their debt than they could generate at those prices.

Almost any realistic way you project future metal prices with the mine production and cash costs as forecasted by TCM there will be similar payback periods for the initial capex for both TCM and RG, thus the profit points realitive to payback will be similar if they achieve the operational goals they've established.  I tend to look at metal production over the first 5 to 7 years, mostly because that is the sweet spot, as well as the period in which most projects are paid back.  Years beyond that is typically where the "profit" comes from.  However, depending upon the ore body the mine plans beyond say 5 years can change significantly (for example higher grade ores are discovered and mined plans get changed [less likely in this case]).

As far as risk, yes there is always risk that metal grades and recoveries will not be as modeled or that operational costs will be higher than projected or combination of all of these factors.  When a project like this fails all involved even RG will feel the pain.

<< Previous
Bullboard Posts
Next >>

USER FEEDBACK SURVEY ×

Be the voice that helps shape the content on site!

At Stockhouse, we’re committed to delivering content that matters to you. Your insights are key in shaping our strategy. Take a few minutes to share your feedback and help influence what you see on our site!

The Market Online in partnership with Stockhouse