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Teal Valley T.TV


Primary Symbol: P.TEAL

Teal is a Canadian, pharmaceutical & NHP manufacturer selling to Canada’s national, chain drug stores, presently expanding its portfolio to include cannabinoid-based products utilizing proprietary formulations & extractions for both the global Rx & recreational markets.


P.TEAL - Post by User

Comment by HappyInvestingon Aug 18, 2021 1:32pm
225 Views
Post# 33724219

RE:So average down or wait out?

RE:So average down or wait out? There's virtually no risk here at this price level.  The break up value of the assets, not even including the RP2.0 FS, is far greater than their current market cap.   As far as I've seen, analysts still have a minimum target of 30c, which could be higher still if this company performs as it should.  We've all been frustrated by the lack of performance in the past, but this is slowly being turned around.   

TV is now generating good cash, paying down debt, and they have their costs (both cash costs and AISC) under control.  The capex for the RP 2.0 could easily be paid from cash generated by operations, and/or extensions or amendments to their credit facilities with Glencore. The market for zinc remains strong, with prices hovering between US$1.34-1.38/lb.   Prices for lead are the highest they've ever been, and price of silver is also strong at US$23.50.   Half of their Zn hedges for 2021 are now history, and they've only got about 60 million lbs (or ~20%) of their 2022 production hedged - if I recall.  If they hedge in the future, as may be required by their credit facilities, I expect it will be at least at current prices or higher, which I would consider prudent.

Don't be fooled by the bashers.  Their emotions are getting the better of them, because they've lost money and/or are frustrated.  However, I don't think they can argue that the fundamentals are in place for TV to deliver value to shareholders in due course.  We just have to have some patience.    

  


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