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Tarachi Gold Corp. (TRGGF)

Other OTC - Other OTC Delayed price. Currency in USD
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0.0691-0.0003 (-0.43%)
At close: 10:34AM EDT
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  • R
    REX
    Cut and pasted from the KE Report:
    Financial Analysis of Magistral Tailings Plant

    Assumption: Gold price for 2022 average $1850 us

    The grade of the stockpile to be processed is about 2.05 g/t, 1.3 million tons = 86’000 ozs.

    Recoveries are expected to be 75-77%, average= 76%,

    Gross Gold ozs = 86,000 x 76% recovery = Net Gold ozs 64’500

    Cash Cost = $1000 (although in interviews the new CEO whose professional experience is with tailing ops has stated sub $1000 cash cost, last week when we chatted after he returned from Mexico he reaffirmed a sub $1000 is highly likely)

    Gross Cashflow per ozs at $1850 gold = $1850-$1000= $850/ozs.

    Total Gross Cashflow over the life of tailing project= $850 x 64,500 net ozs produced = $54,825,000 USD

    TOTAL NET CASHFLOW over stated life of trailings = $54’825’000 x .80 (to subtract 20% to include all royalties and taxes = $43,860,000 USD / $55,956,710 CAN Dollars

    NOTE: Total unencumbered Free Cashflow of $55.95 Million , current Enterprise Value of $14.88 Million.

    "Huh? ....Hold on I gotta clean my glasses….HOLY COW!!! I’m so sorry, I made a mistake, the shares aren’t free, you get paid 4X to own them."

    THESIS TEST Downside/Upside -/+ $350 on Gold Price, Assumption $1850 USD/OZ

    At $1500 oz USD Gold Net Cashflow = $32.9 Million CAN = 2.4 x current Enterprise Value

    At $2200 oz USD Gold Net Cashflow = $79.1 Million CAN =5.3 x current Enterprise Value
  • L
    Leon
    well done Michael, you started the party. nice to see the stock going up finally. it was so undervalued at these great drill results + going to make profit from tailings is a great combination for the future. Let's party x3
  • L
    Leon
    Tarachi in production with tailings next year, expected for jul 2022. would be great.
  • M
    Michael
    I’ll start the party sure 🎉
  • L
    Leon
    Rexboy, thanks for the analysis. great point. I added some stocks last week. I want to keep adding at these low prices. also I was impressed by the drill results. do not understand the lack of buyers in the stock.