Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Teuton Resources Corp V.TUO

Alternate Symbol(s):  TEUTF

Teuton Resources Corp. is a Canada-based exploration stage company. The Company is in the business of acquiring, exploring and dealing in mineral properties in the province of British Columbia, Canada. It owns interests in more than thirty properties in the prolific Golden Triangle area of northwest British Columbia. The Company’s property portfolio includes, Treaty Creek Property, Eskay Rift Property, Harry Property, Del Norte Property, Lord Nelson Property, Orion Property, Big Gold Property, Tonga Property, Fiji Property, King Tut Property, Tuck Property, High North Property, Delta Property, Fairweather Property, Tennyson Property, Pearson Property, Clone Property, Four J’s Property, Konkin Silver Property, Midas Property, Bay Silver Property, Bonsai Property, Gold Mountain Property, Ram Property, Silver Leduc Property, Stamp Property, and Treaty East Property. The Lord Nelson claims lie immediately north of Teuton’s Del Norte property.


TSXV:TUO - Post by User

Bullboard Posts
Comment by stockzorgon Feb 22, 2019 10:51pm
56 Views
Post# 29403080

RE:Highper big holder here with questions.

RE:Highper big holder here with questions.
brodude wrote: Would you mind explaining the potential upside to Teuton assuming the following:

1.  Treaty Creek is proved up to have 6-7 million ounces that can be economically mined;
2.  Tunnel deal is reached favorable to Teuton;
3.  One of the wildcat anomolies (not Treaty Creek) results in iron cap type deposit; 
4.  Some value is assigned to Teuton's TC royalty and its other greenfield properties;  and finally
5  Gold approaches its lifetime high of $1950-$2000 per ounce.

You see, I like to dream of Carribean islands and large sailboats.

Bro


Reposting my criteria for valuation of Teuton stock:

My baseline valuation for TUO right now, assuming no gold discoveries and no new options for this year is $.23 USD per share.  This includes only the existing assets - cash, incoming options payments and stock due (at current market value), claims as they stand on the balance sheet (which is declining every year as option payments come in, so it's a very low number), bonds, and property.

There is also about $4 million in tax loss carryforwards (TLC) which would be useful to a profitable company acquiring TUO, so another $.10 there, but only in a takeover situation.

Treaty Creek value for the KSM project - I am assuming 1% of total project cost for Treaty Creek tunnel  rights, or 1% of $5 Billion, or $50 million, of which 20% ($10 million) would be for TUO - $.25 USD per share.  Keep in mind that a deal for the tunnel rights could also include a buyout of Teuton's NSR or the 20% T/C stake.  A lot depends on this deal for the Teuton stock price.

I am valuing every 1 million economic oz. Au found at Treaty Creek as follows:

$40 million for value of gold in the ground based on Cipher Research data showing $40 per oz. for projects that are in development.  This is based on over 200 actual transactions over more than 20 years.  [If you don't consider Treaty Creek to be in development, use $31 per oz. which is the Cipher Research median number for Canadian gold in the ground that is not under development].  So for every 1 million ounces found, $8 million (20%) would be for TUO, or $.20 per share USD.  For 6 million ounces, $1.20/share for 7 million oz. $1.40/share.  This would also be true of new discoveries on Teuton properties, pro rated if Teuton does not own 100%, as with some of the properties jointly owned with Silver Grail, etc.  The discovery would have to be economic.

The TUO NSR on Treaty Creek is a bit fuzzy since I don't know where they have .98%, or where they have .49%.  I use .49% for the NSR number and $1250/oz. as the price of gold.  So I get $.15 per share US$ for every million oz. less transportation and refining costs, as it is mined in the future.  To be conservative I use net $.10/share.  This is also true of the Teuton optioned properties such as the Pretium or Tudor options, where Teuton has NSR's.

If the price of gold changes I add/subtract 2% to the valuation for every 1% that gold increases/decreases.  This reflects the fact that mining stock prices (especially juniors) move more than the price of gold.  If gold increases 50% to $1995/oz Teuton stock approximately doubles.

I am assuming that TUO will not be paying anything for the Treaty Creek project after a production decision has been made - I think they will do a transaction to get out of the project and convert it to cash, possibly retaining the NSR.  The TUO business model is project generation, not mining.

I assume about $1 CDN = $.75 US$

Open to input on these assumptions as always.  Do your own DD as I am not an authority on anything.


Bullboard Posts