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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 templetooth2on Jan 21, 2020 7:34pm
159 Views
Post# 30580441

Not mentioned...

Not mentioned...
... in the FP article is this opinion from Canaccord: "We model a cash decline from Q3/19 to Q4/19 of $47 M to $36 M. We have incorporated a $55M equity raise in Q2/20 in our model to ensure TMAC remains working capital positive into next year."

Comment: should that come to pass, it would mark the third annual financing arranged around the time of the sealift. Even though last year's financing was predominantly a royalty deal, I just don't see a public market appetite for another equity raise...unless constructed at truly giveaway prices. Nevertheless, Canaccord maintains a $5.75 one year target. I enjoy reading Canaccord's research but I must say, they are embarassingly optimistic.

Lest I get too pessimistic, it is perhaps worth noting again that TMAC's market cap is approaching $300 M. Currently $316 or so. Meanwhile, next door neighbour Sabina is at Triple 5's and Marathon Gold is sneaking up to $281 M. Roxgold, which I have despised for the last year, bloody Roxgold is worth more than TMAC at $330-odd million. Actually, I'm beginning to warm up on ROXG due to some stunning drill results, but that's another story. Point is: $300 million doesn't buy you much when gold is in a bull market and I suspect I'm not the only one to have achieved this profound insight.
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