RE:RE:Why Teranga gold so undervaluedTreetop2 wrote:
My answer: Through the streaming arrangement with Franco-Nevada, TGZ effectively hands over roughly $20 million of its profits annually. Isn't that enough to knock off about $200 from the company's market cap? Remember they went into the streaming deal in return for $135 million, which is another indicator of its impact.
Having said that, for once I am impressed that TGZ actually kept its promise of paying off the debt facility, and on top of that increased its cash on hand. But we know there are always ups and downs in production and costs, so it's hard to say whether the trend will continue.
I intend to take a closer look when the financials come out, and consider getting back in on a dip in the gold price.
ding ding ding... we've got a winner or did you read my post? whatever
its around 15m a year as Franco pays TG 20% off the gold price.