Iskyhigh
Good post, I agree with what you say, there is some value in Los Azules for TNR shareholders.
"Los Azules is a 100% owned advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile. It is one of the world's largest undeveloped copper deposits with a mineral resource of 10.8 billion pounds of copper (inferred) and 4.6 billion pounds of copper (indicated). Gold resources are 710,000 ounces indicated, and 1.79 million ounces inferred. Silver resources are 19 million ounces indicated, and 56 million ounces inferred.”
15.4 billion pounds copper x $3.44* = $52,976,000,000*
2.5 million ounces gold x $1,725.90* = $4,314,750,000*
75 million ounces silver x $32.60* = $2,445,000,000*
TOTAL -------------------------------------- $59,735,750,000*
15% of $59,735,750,000* = $8,960,362,500*
$8,960,362,500* (TNR share)
*Today’s closing price = Street Value
(This is the number producer will be looking at – End Result)
I’ll address the pessimist(s) first:
Numbers shown represent 100% extraction & street value, over the life of mine, (You may want to look up LOM). So to be fair, let’s assume TNR sticks it out and is present to accept the last handful of cash. After TNR’s last payment total of received cash is added up and after all expenses it amounts to 20% of number above, ($8,960,362,500). IMO allocating 80% of street value for costs is more than fair.
$1,792,072,500 cash received isn't too bad. In the mean time, think about what that received cash has done to TNR share price,,, after the markets find out what TNR shareholders are sitting on.
For the optimist(s):
First and foremost, metal prices will go up, which naturally will increase value of resources. Second, continued exploration of project will most likely reveal additional resources. Third, if you are looking for a nice payday somewhere in the near future, one of the senior miners could step in and do an M&A prior to, (or just after) a feasibility study is completed – The chances of MUX & TNR seeing this project through without one of the big shots stepping in are somewhat slim due to the amount of wealth involved. But, for now, think about what the wealth described above is going to do to the TNR share price.