RE:EDV's pathBobMabena wrote: This morning I spent some time looking at old reports from TGZ specifically related to Wahgnion (how do you even pronounce that :-)
- IRR calculated when it was in the feasability stage was 15% on a GP of 1250. That must be significantly higher now.
- Debt is manageable and with interest rates globally going into a free fall they should have no issues getting more debt if needed at attractive rates
- The mine should be going into production very soon and will add a tremendous amount of cashflow.
I look at EDV and it's frankly a really well run company with multiple mines in the same regions. TGZ seems to be a few years behind where they are. To me it just seems like TGZ's share price has improved because of the gold price factor but I dont think the new mine has really been baked into the share price yet. Am I dreaming in technicolor or are others seeing the same thing?
EDV is about 5 years ahead of TGZ . Annual production now over 700,000 OZ
from about 5 mines. 2020 should be 800,000 OZ. Market cap still under $3B (low IMO) Extremely well run company. Backed by another African ( Egyptian?) billionaire named Sawiris.
Now the have a cash flow machine with which to pay off all debt associated with newest mine build-out, start to pay a dividend or gobble up smaller west African players to achieve 1 M oz production annually.
TGZ could be them one day. But they have to execute quarter after quarter. It’ll take 5 years and more dilution.
I own both and probably 15 other gold companies. I lightened up on TGZ lately but still like it’s chances of hitting $7 or more as the gold bull market progresses. May reload as we go through this consolidation phase.
The important thing for investors to know is even with precious metal equities you need to diversify across explorers and producers, various countries and continents, silver and gold, etc. lots can go wrong with any one equity. Good management trumps everything. Luck plays a part as well.
Most peple picking any gold equities will look smart in a couple of years. The trick is to find the out performers, with superior mgt teams. Check out Leagold. South American play run by former Endeavour President that got them most of the way through the building years ( that TGZ is just starting) . A sleeper for sure.
Still like TGZ for the portfolio - but not as a solitary position. That’s just plain crazy.
GL
MM