Looking goodTamerlane Ventures is ow trading close to C
.5 That means that since Feb 02 this year SP has bnow gone up some 125%, and that's then only the beginning! The target to reach C$1.5 before the end of this year may now be reviced upwards, given how management now progresses with financing and what a lot of interest thay have been able to generate from the investror community at recent presentation, events and so forth.
Tamerlane recently announced its updated feasibility study and NI 43-101 Reserve Report for the Pine Point Project. The current mineral inventory for the project is as follows:
Proven & Probable Reserves: 7.8 million tonnes (6.16% Zn, 3.01% Pb)
Measured & Indicated Resources: 8.0 million tonnes (2.26% Zn, 1.13% Pb)
Inferred Resources: 4.1 million tonnes (2.36% Zn, 0.82% Pb)
https://www.stockhouse.com/tools/?page=%2FfinancialTools%2Fsn%5Fnewsreleases%2Easp%3Fsymbol%3DV%2ETAM%26newsid%3D8050993
Feb 17th 2011 the comapany presented these news regarding financing:
Tamerlane Announces Signed Term Sheet for US$60 Million Senior Secured Financing BELLINGHAM, Wash., USA – Tamerlane Ventures Inc. ("Tamerlane" or “the Company") (TSX-V: TAM) is pleased to announce that it has signed a term sheet for a US$60 million senior secured financing, which represents the senior debt portion of the three-part financing plan for construction of its Pine Point project. The term sheet was submitted by Durham Capital Corporation (“Durham”), together with its participants and third party lenders.
The US$60 million bridge financing contains a three-year maturity with an option to extend the loan for an additional 2 years. The interest rate is 12% per annum, with interest to accrue for the first 18 months while the project is being constructed. The Company will pay a 3% origination fee and, once the facility is closed, will pay a 0.5% per annum fee on any undrawn amount
https://www.tamerlaneventures.com/index.php/news-mainmenu-5/news-2011/150-tamerlane-announces-signed-term-sheet-for-us60-million-senior-secured-financing
In the mean while there are tons if interesting info here:
"An estimated 20% of the worlds Zink production is coming off line between now and 2012 due to depleation of reserves and resources and many estimates therefore talk about a squees in the world zink production and a future zink price one dollar higher than today"
https://www.tamerlaneventures.com/index.php/home-mainmenu-1
Key
- Permitted for development
- Feasebility study completed
- extensive infrastructure already in place
- Awailable workforce and community support
- Significant reserves/recourses with additional uppside
- in production after some 24 moths of compleded financing
Analysis
"Tamerlane Ventures (TSX-V, TAM) has a huge stock potential to reach CAD 1.50 or more this year if zink and lead prices maintain their current level of over USD 1.10/lb or rise even more. During the first seven months of 2007 TAM rallied some 400 % from CAD 0.6 to CAD 3. Now there are around 100 % more shares fully diluted so if you reduce the 2007 numbers by 50 % you get a hint of what could happen this time as this stock analysis will show.
The case is better now since
1 .the Pine Point project is fully permitted and
2. the world economy is in an earlier state of progression after the deep recession which practically halted the company`s development plans in 2008."
https://hem.passagen.se/fingerpr/loparn/TAM/
More about world Zink outlook
Zinc consumption numbers provided by the international zinc and lead study group over the last couple of months are simply phenomenal and as the presentation below indicates large growth rates could prevail for the next few years sending the zinc market into a hefty deficit beginning 2013 as some mines run out of ore.
If you compare the presentation numbers (mainly brook hunt) and the real data from the ILZSG you see that the main reason why zinc prices are actually sticking closely to the upper part of the cash cost curve is a structural underestimation of growth on the demand side.
When China's galvanizing boom started the growth rates were even more impressive than today, but their overall share of the market was little and Europe+US had negative growth rates, therefore zinc consumption didn't shoot up the way it did in 2010, so far zinc consumption grew by 15% (Jan-Nov).
In 2011 China could become the largest producer of galvanized sheet with a growth rate above 30% in 2010!
https://nyrstar.com/nyrstar/en/investors/reports/2010/db-brics-conference/db-brics-conference.pdf
https://www.ilzsg.org/static/statistics.aspx?from=2
Conclution: with only financing remaining we are here dealing with a real investment opportunity. My target this year is C$1.5 and closer to production we're looking at C$3 as the next level.But again that's then only the beginning.