easy double from $3 to $6If you look at SMF.to (very comparable peer) you will quickly see that if we were to be valued like them we should be trading at $9 for TGZ; however, let's assume SMF is overvalued and it should really be at $650 million market cap instead of over $1 billion. We still get $6 for TGZ.
Within a few more trading days we should have feasibility study for Banfora along with financing plan.
I think people fear huge capital raise with share issuance (dilution) at this $3 fire sale price. I think management along with their cornerstone investor are too smart for this. Likely financing for Banfora which should add 150,0000 ounces production per year when it comes online in 2019 will be in form of debt, existing cash in bank, future cash flows from Sabodala mine production, and so even if they do have to do any share issuance will likely be very minimal.
Fear of major share issuance and voluntary removal from ASX (Australia) likely has been causing the share pressure but I think that will end soon and I wouldn't be surprised to be at $4+++ by October.