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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

Comment by Tadon Jan 13, 2020 11:38am
103 Views
Post# 30546534

RE:RE:It seems to me that most folks here are focusing

RE:RE:It seems to me that most folks here are focusingsnowshoedb,

check out the Q3 financials Sherm... they only have positive cash to service debt by selling assets. It doesn't matter how much gold they find if you can only process 2000 tpd. And you can't get the tons out unless you do mine development so that you can get at the rock and they spent $94M to do that... 

They are not generating cash to pay the debt.



Pardon my ignorance, again, maybe I am missing something, but the 3rd quarter clearly shows a net profit of C$8.4 million from operations, and depreciation expense is basically a non-cash item, so cash flow is significantly higher than actual profit.

Would really like to understand your overly negative view point. Can understand your concerns about the recent hiccups with operational issues, and Q4 is expected to be considerably less impressive than Q3 results, so are you less inclined to believe that the company cannot overcome the mining issues disclosed over the past few months ? 


TMAC Q3 Financial Statement

https://s1.q4cdn.com/893791552/files/doc_financials/2019/q3/TMAC-Financial-Statements-Q3-2019-_Filing-Copy.pdf


Revenue

Metal sales                                                         $72.8 million


Cost of sales

Production costs                                                  $34.0 million
Royalties and selling expenses                             $2.3 million
Depreciation                                                        $17.2 million

                                                                            $53.5 million
Profit (loss) from mining operations                    $19.3 million



General and administrative

Salaries and wages   $1.9 million
Share-based payments     (11d)                             $1.1 million
Other corporate                                                      $0.9 million
Profit (loss) before  the following                          $15.4 million


Net finance income (expense) 12                          ($4.9) millon
Foreign exchange gain (loss)                                ($1.7) million
Fair value gain (loss)                                             ($1.2) million
Profit on sale of property, plant and equipment 6    $5.5 million
Other income (expenses)                                      ($0.1) million

Profit (loss) before income taxes                       13.0 million



Current income tax expense                                 ($1.3) million
Deferred income tax (expense) recovery              ($3.3) million
                                                                              ($4.6) million

Profit (loss) and comprehensive
profit (loss) for the period                                   $8.4 million



Quite clearly the company has the ability to generate not only enough positive cash flow from current operations, they are actually operating at a profit.

Still trying to understand where you think they can't afford to start paying the US$2.5 million quarterly debt repayments ? 

Even when you strip out out the $5.5 million profit on the sale of assets (details in Note 6) in regards to the royalty agreement with Maverix Metals, TMAC would still have shown a profit of C$2.9 million 


Thanx in advance

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