thefabergegg wrote: Yes that stream is a pain in the as* and TGZ has done a terrible job communicating that it essentially a 3.5% stream over the 6 yr period. The only way to really get rid of it is dilute through higher production or hire an assassin as you say.
I do agree that EDV makes a compelling case, when investors see the production #s and potential stock price appreciation it's attractive. However am still not convince - I need two qtr to cement that their strategy works - as for the balance sheet and debt I agree with you but right now however I'm sticking to the one without debts.
What youre doing with investment capital in terms of money being moved around from these WA producers is exactly what I described - minimum new capital goes into them so EDV and TGZ etc will have to get it from SMF investors and perhaps from Randgold/Acacia.
At some point something has to give at TGZ - reward shareholders somehow, management or board change, a waterfall moment, a high profile investor(s) that gives it additional credibility or all of the above. They've done well - they need to work harder to really stand out. I'd like to see 2nd qtr plus 50k production and cost to remain the same QoQ, add more to the cash balance - notice that though profit was 15m or 4c they only came out with 3.1m being added to the cash balance or 1c - they spend it as quickly as they made it.
By the way - these WA producers will need to consolidate SMF EDV TGZ GSC PRU then soon AKG plus others - Watch out for BTO they may come from nowhere and take it from Randgold, Acacia. Honestly from all these TGZ is the only one that is a takeover candidate simply because of having no debts and upside potential on reserves and production- they have a nice little operation going that's making money and that's what other miners are looking for to fix their own balance sheet or pad it.
That's my take and narrative on the whole thing.
ts9222 wrote: thefabergegg wrote: I'll post when I get them.
That EDV story will turn into a GSC....at some point
Oh nooo!!! I put my profits from tgz into edv, maybe i should have talked to you first. GSC has operating cash flow of $2.41m while edv operating cash flow is 127.44m for 2014, so it won't turn into GSC any time soon. Debt is bad if a company doesn't have any means of paying it down. edv just finished with major capital expenditures and is now paying down debt, paid down $20m in Q1 and their net debt is down to $224m when cash on hand is subtracted from it. Their largest mine is scheduled to drop another $150 in AISC for 2015 after transitioning to owner operated. A $950 AISC for edv may be considered better than a $950 AISC for tgz because edv can pay down their debt while tgz would need to hire an assasin to get rid of franco. I still like tgz when high grade gora and golouma comes online, but didn't have the patience to wait two quarters. Will buy tgz closer to Q4 if the price hasn't moved up by then.