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Troilus Gold Corp T.TLG

Alternate Symbol(s):  CHXMF

Troilus Gold Corp. is a Canadian mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. The Company owns a 100% interest in the Troilus project. The Company holds a land position of approximately 435 square kilometers (km2) in the mining jurisdiction of Quebec, Canada, within the prospective Frotet-Evans Greenstone Belt. The Troilus Mine is located northeast of the Val-d'Or district of Quebec, produced 2 million ounces of gold and approximately 70,000 tons of copper. The seven kilometer main mineral corridor includes zones Z87, J Zone, X22 and Southwest, containing an estimated 11.21 Moz AuEq in the Indicated category and 1.80 Moz AuEq in the Inferred category. The Troilus property has an established infrastructure, including operating substation and power lines, an extensive network of well-maintained roads, operating water treatment facility, and a permitted tailing facility.


TSX:TLG - Post by User

Comment by AlwaysLong683on Mar 30, 2024 12:54am
84 Views
Post# 35960813

RE:RE:Observations / Comments On Today's "Operational Update" PR

RE:RE:Observations / Comments On Today's "Operational Update" PR
Investors in microcap first-mine builder companies may have different investment strategies even if are all interested in investing in the same company, and of course that's fine.
 
Buying now (or in past months / years) and holding because one likes the project, the current share price / market cap, and possess confidence in management to deliver is one of those strategies.

Another is waiting to make an investment decision after seeing exactly what the particulars of both the FS and JV agreement are, how well management is proceeding in securing agreements on debt financing, construction contractors, building material suppliers, etc. (e.g, fixed price contracts, costs tied to inflation, etc....?), and whether these steps moving towards the start of construction are being completed on time and on budget or if additional time / financing will be required.
 
It's not an exact science, but I'm a believer in the Lassonde Curve, and projects can go south / spin their wheels for quite some time before they are hitting the home stretch of the financing / contracting / permitting phase of a mine build. Botched moves by management can turn a very promising project to one that goes over-budget, experiences repeated delays in working toward conclusion of their post-FS work, etc. that may go on to cause the share price to be range bound for a long period of time, making any current investment in company shares dead money for that time period and perhaps never realizing the big jump in share price.
 
My current reading of TLG so far is those investors who would run up the share price (either buy taking a significant initial position in the name or adding to their existing holdings) are not impressed with management to date and will want to see whether the company can hit post-FS target timeframes up to breaking ground on the actual mine build along with any significant delays or cost overruns incurred along the way. If not, you could see existing institutional investors start bailing on the project. For example, if I'm not mistaken, I believe none other than mega money manager Blackrock (which at one time was MOZ's largest shareholder at just over 7%) gradually dumped their position in MOZ after they had seen enough re. the delays and added costs in moving the Valentine project forward shortly before MOZ sold the company to CXB at what many MOZ shareholders considered to be an outrageously low sale price per share. Also, if 50+ companies have a stake in TLG at a current market cap of $142M, that averages out to less than $3M each in current market value - not exactly big money investments unless the companies in question are very small operations.
 
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