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Bullboard - Stock Discussion Forum Trigon Metals Inc V.TM

Alternate Symbol(s):  PNTZF

Trigon Metals Inc. is a Canada-based exploration and development company. The Company is focused on copper and silver holdings in mine-friendly African jurisdictions. The Company has operations in Namibia and Morocco. In Namibia, it holds an 80% interest in five mining licenses in the Otavi Mountainlands, an area of Namibia generally recognized for its high-grade copper deposits, where the... see more

TSXV:TM - Post Discussion

Trigon Metals Inc > Good News and a 68 cent price target
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Post by harleymonster1 on May 19, 2021 3:42pm

Good News and a 68 cent price target

Just released Mpartners – Initial   Fact Sheet on Trigon Metals Inc. (TM – TSXV).
 
Last week Trigon Metals announced it would begin production by year end at the Kombat Mine in Namibia. TM aims to ship its first concentrates before 2021 year-end and have positive cash flow in early 2022. Havana Investments and Epangelo (State mining entity) each hold 10% interest in the project leaving TM with 80%.
 
The Kombat mine, previously closed in 2008, has a salvageable crushing and grinding facility; however, the flotation circuit requires some equipment to be replaced. The mine has three working headframes with a lifting capacity of 8,000 tpd and two production declines. The mill is relatively small with a capacity of 1,100 tpd and expects to produce recoveries between 90-95% as the ore is overwhelmingly sulphides. Production will begin from a newly developed open pit producing head grades of 1.3% Cu. The feasibility study indicates a restart cost of $6.4M, but management expects costs to be lower as much of the equipment has be sourced from other retired mills in Namibia.
 
Kombat Growth: TM indicates there is significant room to optimize the mine for further growth. Firstly, with the grinding process being the bottleneck, TM plans to improve its efficiency to match the spare capacity of the crushing and flotation processes, bringing mill capacity to 2,000 tpd (from 1,100 tpd previously). In years 2 and 3, TM will begin recovering ore from underground operations which will increase the head grade to 2.2% Cu, boosting production to 27 Mlbs Cu by 2024. However, even at 27 Mlbs Cu per year, the mill is still significantly undersized with a mine life of 40 years with the existing resource. TM is confident that additional drilling will grow the resource and add more ore from high-grade areas like the Asis Far West. The Kombat resource update and revised mine plan are to be released in June. Most importantly TM is planning to release a PEA on a “Larger Project”, without mill constraints, to better show the true potential of an asset of this size. 
 
Silver Hill: Silver Hill is a copper-silver exploration project, acquired by the company in October 2020 (100% interest), located in Morocco. The project includes widely distributed ancient slags on one third of the concession indicating a history of primitive metal recovery. Additionally, an abundance of copper oxide minerals and old workings on the property indicate excellent potential for a copper prospect. Since the acquisition, the company’s drilling program has demonstrated good mineralization over a larger than expected horizon. We are anticipating more positive results to be released soon.
 
Exploration: With the restart of the Kombat mine and imminent cash flow by Q1/22, TM will be able to fund a significant drilling campaign on the Kombat property. The primary objective is to significantly grow the resource to a point where it has the economic potential to replace the mill and become a major copper producer. Company management is confident that an extensive drilling program will grow the current resource by 2-3x. In the next month, we expect TM to upgrade about 85% of its inferred resource to indicated. In addition, the cash flows from Kombat will fund the continuation of the drilling program at the Silver Hill exploration project.
 
Kombat Valuation: Our model values the Kombat Mine at $96M (modelling mining of open pit and underground M + I resources at resource grades) which equates to an adjusted NAV of $107 and $0.68/share by applying an 8% discount. TM currently trades at $0.37/share with a P/NAV of 0.45x compared to peers at 0.7x.
 
 
 
I would think as Trigon expands its Namibian resource and more drill results are announced there and in Morocco , the analysts are likely to change their target price to reflect developments . 
 
Comment by Red_Deer on May 19, 2021 4:48pm
WHAT is So GOOD About THIS eh !!!!!!!!!!   ????????????? The Price Target @ 68 Cents IS Way, Way, WAY LOWER than ALL the RECENT TARGETS the PERMA PUMPERS have Been DOLING OUT on a Daily BASIS. They ARE All READY into 20 to 30 DOLLARS Range with THEIR Price Targets eh !!!!! So WHO Should ALL of US BeLIEVE  eh ????????????/
Comment by Red_Deer on May 19, 2021 5:13pm
Maybe Prudent to NOTE that the ACTUAL Wording in the Referenced News Release CONTAINS words Such as ""HOPE TO"" and ""ANTICIPATES""__thus using WOULD in the MPartners Report Seems a TAD AGGRESSIVE eh ?????? Mr MARKET Never Likes MISSED Targets !!!!!!!!!!!!!!!!   Trigon hopes to resume Kombat production by year-end   2021-05-06 13:43 ET ...more  
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