Touchstone Exploration Inc T.TXP

I get the impression many are trapped in the stock?

[auburn2]

Not sure the valuation is all that compelling given the weak state of the finances. I  could see a current fair market cap being about C$170 million, or around 80 cents. The current froth seems related to exploration excitement that tends to overvalue these companies as retail piles in looking for fast and quick gains (hence all the retail currently trapped in the stock).

Agreed all thoe small wells to produce Royston will be costly.

[auburn2]

Cascadura discovery to produce the proved reserves costs US$15.8 million. Where is the money coming from?

[Binkie]

I suspect a lot of retail investors are underwater here, myself included. I'm hoping the reserves report gives the sp a boost and there is more good news to support it. Last corporate presentation, they stated near term production of about 10,500 boed from coho and 2 at cascadura, but I'm not sure August is that near or the date that firm, but there's hope. 

[FredAdair]

Can you explain the basis for your valuation as C$170mm?

[auburn2]

Based on the last reserves report and current company finances. The EV should be at a discount to reserves NPV, with a greater discount for weak finances. How would you value it and why? At TXG we're reasonably soon going to have the whole market cap in cash if we like, which means their new project with an NPV at $1900 gold must be over US$800 million is afforded no market value. At least

[FredAdair]

a) Unloved for a year b) Price flatlining and evidence of algo suppression - mostly London with active hedge in Toronto c) Institutional support at a (marginally) higher level d) Fulfilled phase 1 exploration commitments during a pandemic - so probably not total scammers e) Dreadful expectation management re commercialisation - during a pandemic - on a carribean island - so not doing a good job of