Tamerlane Ventures Inc. V.TAM

TAM potential still huge

[loparn]

The USD 144 million Net Present Value after tax, discribed in the Sept presentation at USD 1.10 Zn&Pb price at the current price corresponds to a NPV around 20 % higher due to around 4 % higher price and the 5x leverage.

That is around USD 173 million NPV after tax.

At CAD 0.41 the Tamerlane market value is a maximum of around USD 36 million with 87 million FD shares (due to the bridge financing terms).

Therefore the stock potential still is huge, even considering a possible equity financing later this year of USD 25 million according to the Feb 2011 presentation. At that time there is a clear possibility for TAM to have reached over CAD 1, reducing the stock dilution to less than 25 million new shares.

Thus, at current metal price the NPV per share could reach over CAD  173(/87+25) or around  CAD 1.54 (approximating USD = 1 CAD).

But the case now has an even bigger potential since in the next feasibility update the N204 deposit also will be included and therefore may increase the NPV even more !
Furthermore, in the figures above the Los Pinos copper project is not included and it contains a historic resource of around 1/3 of the Pine Point project in situ metal value.

These two circumstances indicate a possible further TAM stock potential to around CAD 2 or so this year.

And finally, for real longtermers, in 2013 when production is scheduled to start, there are forecasts of a limited Zinc supply.

So the TAM journey may have only just begun...

[tdfxman]

Thanks for the pump Loparn, but we had that with Cali.first it was 20M in equity, now it is $25M.  What happened to the 20M they did months ago?I have been here for years, from .50 to 3 to .05 and back again.it's a game to her to get her 3%.  If you think we only issue 25M shares, wow.  Everything they do is 25M plus warrants that add 50% to that.Sure I want this to do well, but

[elitespooner]

Good post!Ive enjoyed reading this.Ive been scouring the CDN markets for exposure similiar to this deposit. Ive come across co.'s that are years away from their permitting, feasability, etc and have market caps of well over 100MM.We're looking at construction within the next quarter at a very small capex.

[blue_sea]

That's why at least C$ 1.50 is adequate per share of TAM plus a bonus for copper.Sooner or later the market will be very hungry for TAM.

[blue_sea]

Hi tdfxman,the last years were very hard in mining business, especially for explorers. Finally the management of Tamerlane didn't give away Pine Point for some bucks like other companies were urged to sell their assets. Unfortunately the consequences of the artificial made financial crises brought much dilution for the shareholders of many explorers. They all aren't happy with that.I'm

[tdfxman]

Can you tell me where I said that please?  Thanks in advance.I agree with something Cali/Cruc said a bit ago.But they ensure they award themselves plenty of options in a heads Iwin, tails you lose option award program in the remote chancelightening does strike. And they'd never bother to set up a play withshareholders interests to align with theirs anyway - that would bepatently absurd

[tdfxman]

Can you tell me where I said that please?  Thanks in advance.I agree with something Cali/Cruc said a bit ago.But they ensure they award themselves plenty of options in a heads Iwin, tails you lose option award program in the remote chancelightening does strike. And they'd never bother to set up a play withshareholders interests to align with theirs anyway - that would bepatently absurd

[tdfxman]

Can you tell me where I said that please?  Thanks in advance.I agree with something Cali/Cruc said a bit ago.But they ensure they award themselves plenty of options in a heads Iwin, tails you lose option award program in the remote chancelightening does strike. And they'd never bother to set up a play withshareholders interests to align with theirs anyway - that would bepatently absurd

[elitespooner]

Now thats a feel good story to me.I love the idea of enterprise, seeing an opportunity or an asset overlooked and pouncing on it.Thats good business and Ill ride along those notions any day..... follow the smart money

[Fierze]

"What happened to the 20M they did months ago?"The december bridge financing was 5+5 million, not 20. The company intends to repay that debt facility from proceeds from the larger project financing which they intend to close in 2011. Meanwhile, "The bridge loan will provide management with the necessary financial resources to focus exclusively on the completion of the update