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Teranga Gold Corporation T.TGZ

Teranga Gold Corp is a Canadian-based gold company with assets is production, development, and exploration situated on prospective gold belts across West Africa in Burkina Faso, Cote d'lvoire and Senegal.


TSX:TGZ - Post by User

Post by templetooth2on Dec 10, 2019 4:11pm
203 Views
Post# 30441213

Whoa!

Whoa!
At $6 per share, pro-forma mkt cap is just over $1 B Cdn. or $770-odd US. Add $310 net debt and you have an enterprise value of $1.08 B US or $1.4 B Cdn.

From the share proceeds of about $150 million, about $75 will have to be paid to Barrick and the smaller vendor, leaving about $75 million to be applied to capex. That isn't nearly enough. Capex is supposed to be around $200 million, or at least that was Canaccord's opinion a few months ago. So expect another $125 added to the debt number.

The above numbers do not make allowance for cash that will be generated between now and end of construction, but I think that today's enthusiasm is still a bit much. As I understand it, the Masawa ore is "complex", mining-speak for troublesome. Having paid $146 per ounce in the ground (ignoring price bonus later) this deal could produce a hiccup or two along the way to the promised land!
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