TAM new analysis
Hopefully there will be a higher focus on TAM now, with the CEO participating in the PP.
have written a new Tamerlane stock analysis, though only in swedish (so far at least) but I think there is a fair chance now we will see at least a few more swedes to invest or speculate in TAM if metall prices do not fall that much shortly or rather continue to rise. The swedes contributed to the great interest two years ago before the sub prime crisis ended the happy days.
Here is just a brief discussion and conclusion of my calculation :
Assumed average (dilutive) financing/PP stock price is 0.26 CAD (including warrants), which though may be increased if the Pine Point project seems to be possible to debt finance to a high degree, since then the market should recognize the long term potential better and the stock could perform similar to first the 6-7 first months of 2007 when it increased around 400 % (5 x).
In the best case, with 15 % equity and 85 % debt and Zn & Pb price weighted average 1.50 USD/lb the calculation points to TAM fundamental potential to around CAD 2 including Los Pinos.
With 25 % equity and 75 % debt Zn & Pb 1.30 => TAM potential to around CAD 1
With 35 % equity and 65 % debt Zn & Pb 1.09 => TAM potential to around CAD 0.35
Thus you realize that even as low as a 0.26 CAD financing/PP average stock price allows for the two first higher debt alternatives, 75 % and 85 % to be quite appealing.
If metal prices rise further as these alternatives assume, then TAM will be a very likely "multibagger" in my opinion since the chances for high debt financing increases substantially and also for the financing/PP average stock price to be increased above the CAD 0.26 level resulting in less stock dilution and higher potential.
I conclude that 20-25 % or more higher metal prices than today´s could be enough for TAM to be converted from a CAD 0.15-0.30 stock to a possible CAD 0.5-2 stock once more, allowing for a higher than CAD 0.26 financing/PP average stock price thus increasing the stock price potential even further, and increase the probability for the financing of the Pine Point project to actually take place.
Best wishes for success TAM :-)