Member Info for bottomdollar

Bistolover, that was a joke, sorry if it wasn't obvious. I was poking fun at posters who get upset over a minor adjustment in timing.

"I don't get why they should need to delay further." Here are a couple of guesses:

- Our management is lazy or incompetent.

- They are delaying deliberately to annoy impatient shareholders.

In either case, we should show our annoyance by SELLING before the news comes out.

Listen carefully to the last interview and see my post from a few days ago:

"Watching the interview, and talking about Senegal PFS timing, Segun started to say "with the holiday period coming up.." before the interviewer jumped in to clarify that he meant to ask about timeline to production. So nobody should be surprised that the PFS is released in January. I have no problem waiting for that. "

It's not helpful to build up expectations which then lead to disappointment and grumbling.

Watching the interview, and talking about Senegal PFS timing, Segun started to say "with the holiday period coming up.." before the interviewer jumped in to clarify that he meant to ask about timeline to production. So nobody should be surprised that the PFS is released in January. I have no problem waiting for that.

Meanwhile, it sounds like drilling under the pit in Segilola is delivering strong results. So as stated before, it will be the company's call when to put a new number on the resource and mine life, but that will not be the upper limit. My guess is that they are aiming to get a good quantity of additional open-pit ounces, so that the underground phase can be pushed back. Hell, I would even be happy to hedge some ounces over $4000 to guarantee the profitability of a deeper pit; as well as guarantee the funds needed to build Douta.

THX still trades like a random gold stock, doing whatever most gold stocks are doing. Most people still don't know how to recognize exceptional value even when it is in plain view. Anyway no use crying about it, that is the behaviour of the market we are in. Have to look beyond the day-to-day weather.

"Segilola will go underground after all... " Yes, but first the pit will get bigger. So I expect (remains to be proven) a couple of additional years of open pit production (beyond original mine life), with profits in the current range, before going underground. Production during the underground phase may or may not be lower, but that's still a long way off and many variables to be worked out before we will know. Stockpiles and satellite pits are likely to play a role in boosting ore volume during the underground phase.

"He couldn't contain his enthusiasm" - exactly! For somebody who has been super careful to avoid hype or risky statements, Segun now shows that he feels he is on solid ground by elaborating on his optimism on several fronts. Specifically on the Segilola extension, it's clear this has been 'delayed' because they are still finding more gold. At some point, I expect they will release an updated reserve and mine life, even though it will not be final, when they think it is enough to stir the market (not to mention making a mine plan). Proving out deeper reserves takes time, money and skill, and they have worked through the process very diligently.

When you start with a high-grade open pit, while knowing you haven't drilled the whole ore body, it's inevitable that you will in time find more reserves to extend the mine life - exactly what Segun has been saying all along. In contrast, when you have a low-grade pit, going much deeper may or may not prove feasible, even with a higher gold price.

What I've realized is that most stocks are either overvalued or undervalued most of the time, due to random events, herd behaviour, and general irrationality of most market players. When you find an undervalued stock but the market doesn't agree, unfortunately there's not much you can do except wait for the market to catch up. With a company like THX that is piling up cash and paying a dividend, I have confidence that the wait won't be too long for the market to come around. I like a CEO like Segun who doesn't worry too much about promotion, he just does his job and shares the straight facts, with no hype, knowing that the market will eventually give credit.

Thanks for that link, Nimrod. I looked at the YTD chart of Van Eck Gold Miners ETF in that article and thought 'that's a familiar looking chart.' If you could lay it over the THX YTD chart, they are almost identical twins. Except for one detail - THX has hit over 5x YTD, while the ETF reached 2.5x YTD. So yes, our share price has been and always will be subject to general sentiment to gold, BUT our leverage has been much higher. Will this continue on the next leg up?

What is a UT?

I expect both lower production and higher costs per oz in the final years of the mine, due to lower grades as well as deeper depths, higher strip ratio and underground development costs. But as others have said, a high gold price means more ounces that can be extracted profitably. Just don't expect annual profits to be constant, but it will be a profitable mine for years to come. Certainly long enough for one or more other projects to come on stream.

Bla bla about the gold price is a waste of everybody's time on this board. I just used my private forecasting method and found that:

50% of the market thinks gold will go higher than $3618

50% of the market thinks gold will go lower than $3618 (ie the current price)

I would like to add - and this is relevant to the board - THX probably offers among the LOWEST leverage to the gold price of all gold producers, since it has very low AISC (ie high profit margins), and zero debt. If you want leverage to the gold price, choose companies with lower profit margins and high debt, both of which translate to higher share price sensitivity to the gold price.

Could you please refrain from making posts that are not relevant to the THX board, thanks. If you just want to talk about any random issue vaguely related to gold, there are better places to do that.

If you believe in buybacks, then you know where to spend your dividend.. as long as you think THX is still undervalued..

Quarterly net earnings over six times the dividend, am I right?

It's not blind luck if they got the idea from an advisor with a track record who has shared genuine research. If it was from a random viral video, that would be blind luck.

Still a major buy opportunity. We are used to a market that is slow to understand the value of THX. Meanwhile, we collect the dividend and at least get paid an allowance for our patience. But we know the dividend is only a fraction of the cash being accumulated, and only a fraction of the value being created on multiple projects.

The good thing about THX is that you don't even have to follow, fret or fantasize about the price of gold to know whether you are making money.

..and the dividend will likely be announced in July.