TELSON RESOURCES INC SOHFD

Looks like someone didn’t like Q4 results

[junior_miner]

I have pretty accurate calculator to estimate mine profitability. If I plug in Q4 realized:
- metal prices (Zn only 1.07)
- grades mined (I know does not fully represent grades sold)
- royalty 4%
- USD 300 TC/RC
I get small loss of -0,29 M. Pretty close to what was realized for the Q. Note, any model cannot be perfectly accurate, there are lots of small unknowns like what was exact mining dilution etc.

Now if I plug in
- current metal prices
- USD 159 TC/RC, no price participation
- 0% royalty
- long term metal grades
Annual mine cash flow is USD 29M. Quite well in line with company statement of 1.4M monthly EBITDA in Q1. (Metal prices have increased materially since) 

Q1 report, and especially Q2 should be materially better than Q4.

[Spikearoo1]

Thanks for your post JM.  Sounds reasonable.   I think it was smart for them to get rid of that royalty...despite the dilution.   Hopefully when they announce later this month the final funds to build the 2nd mine are complete and in hand, we see some upward movement with sustained prices above 60 cents.   Still seems that TSN is under valued considering that