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TMAC Resources Inc. T.TMR

TMAC Resources Inc is an industrial metals and materials company. The business acquires, explores, and evaluates mineral properties. Its lone business segment is Mining; this segment is engaged in the exploration and development of precious metal resources, primarily gold. The company generates the vast majority of its revenue in Canada. TMAC Resources' primary mine is located in Hope Bay, in the Kitikmeot region of the western Nunavut Territory. TMAC mines for gold resources and inferred minera


TSX:TMR - Post by User

Post by Shermandrock1on Jan 05, 2020 2:39pm
120 Views
Post# 30519993

Is an impairment charge in the offing?

Is an impairment charge in the offing?Suppose for the moment that recovery cannot be reliably expected to exceed 86%. At 86%, that would calculate to 95.55% of the recovery as included in the PEA. Does that mean that the ability of the project to generate the anticipated returns is impaired by 4.45%? Looking back at the recent stream wherein the 2.5% stream was assigned a value of $40M. By that valuation metric, that would imply an impairment charge of $71M. However (there is always a however), the mineralization recently discovered / extended that will be added to reserves / resources shortly will likely exceed that by a significant margin. Does that negate any impairment charge? Perhaps the impairment charge can be limited to a % of the cost of the underperforming mill? Say $5M, $10M, $20M. That would actually be helpful to the ASIC as depreciation on a going forward basis would be less per ounce. All these questions, eh? This is exactly what happens when management chooses to keep information on lock down. Folks like me tend to speculate (often wrongly) and make stuff up to fill the information gap. It sure would be welcome for some indication of the performance of the implemented fixes. That is not too much to ask, right?
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