Value here or not?Can someone please explain if the following logic makes any sense?
On a basic view, TGZ has about $100m in the bank and about 536m shares on issue.
Simple maths suggest that each share has $0.187 in cash. At the last traded price I estimate TGZ share has an enterprise value of ($0.74 - $0.187 =) $0.56 rounded down.
Also TGZ is producing more than 216,000 oz p.a. with a AISC of about $1075. Given that there is $200/oz of 'free cashflow', the free cashflow amounts to a 'paltry' $43m/year. This amounts to more than $0.08/share /year. Not too shabby.
I suspect that the share price behaviour is more a function of the GDXJ scenario mentioned in a previous post than management. In fact I think the management is doing well and will be voting in the upcoming general meeting to affirm this.