Member Info for Kat-079

Low AISC of $800-$1000/oz and production of 85,000-95000oz per year means THX would be highly profitable even with POG at $2,300/oz. SP of 35p would still be low given LOM extension and the extra mine projects they have in the pipeline.

@Noel. Perhaps you can interpret this for me. Does this mean the charts are predicting POG topping out at $3395 followed by a significant pull back? Should we be worried?

@Major4legs

"Fear of political interference and jurisprudence in Africa" - THX is Nigeria's flagship to attract mining investment in the country. They need to diversify from oil & gas production and would be shooting themselves in the foot to be interfering as this early stage. Demonstrated by recent support from the federal government in the Osun state dispute.

"POG is inflated and might fall 30% on more stable global outlook" - Possible but unlikely with Agent Orange in the WH, accelerating de-dollarisation, M2 money supply, etc.

"Or usual doubts over mining and projected production" - Demonstrated increased gold production for each of the last 4 quarters. Current LOM is an issue which may be putting people off, but expecting this to be addressed this year by extending LOM and PFS for Douta.

@Genghis: Not to play down the inherent risk of mining in Africa, but I do think that our first-movers status does help to mitigate this. The Nigerian government is trying to attract miners ATM rather than deter investment. This may change but maybe not a few years yet.

I had previously thought about trimming 20% of my holding myself when the SP hit 29.5p. Then the massive dividend was announced and I changed my mind. Also, I can't think of any where else I'd want to put the money except in gold mining stocks. And THX is still one of the most undervalued in the sector.

Above average volume on the TSX too. Bodes well.

THX at 0.49 CAD on the TSX which is around 27p in GBP. Hopefully threatening 30p soon, as predicted by HC, when the Q1 operating update drops in a week or so.

I had previously predicted a modest maiden dividend of 2-3% a la SHG, this is over 10%!!. If this doesn't get some big money interested nothing will. Fantastic results by THX and well done to Segun & the BOD for initiating this policy.

Whilst there are varying definitions, I think Broom is right: FCF is calculated after subtracting CAPEX.

@roughandtumble - Oops, didn't see your post before I sent mine

Gold over $3000 poz and SP over 25p equivalent on the TSX. Tomorrow would be a perfect time to drop the PFS. Hoping for an RNS in the morning 😎

@Condor_Forever - I'm 95% invested in gold mining stocks ATM in my ISA. MTL is my highest holding based on book value (thanks to Pedro for the tip!) but ranks second to SRB based on market value at 25%, So I'm overweight in sector, but not as much as you in terms of individual stocks.

Still holding quite a bit of cash in reserve to buy more in case of pull backs. MTL and PAF in particular.

😂

But, but, our resident charting guru said that his suspicions, based on the chart, was for a drop to 15p. This guy Zak is saying 32p. If this analysis methodology is based on science, surely there should be some agreement/repeatability?

Not sure what needs explaining here Noel. As you point out, the SP does indeed undervalue the company based on the financial information we have available ATM. This exactly the reason for investing in the company at this particular time. You know, buy low sell high.

Hmmm, who to believe here. HC, who bases his predictions on financial data and the price of gold, or some bloke who has a suspicion of a 5p drop based on his feelings and aligns himself with posters with a self confessed malign intent to disrupt the BB. IDK, it's a tricky one.

Well, there goes the neighbourhood.

@Troajan: Maybe not the best advert for T/O given that it references SHG before "it" happened.

@AngryBadger

My X-O account has the cash too but now the MTL shares are no longer available for trading! Price has been set to zero. What a debacle this has been.

@Bert - Me too! Just rounded up to nearest 100k. Will wait now for any further dips...