Monday, October 30, 2006

Tenke Mining Fireworks Has Begun

From previous post on Tenke Mining: "I wrote it after Western Silver acquisition: "The new deal in my opinion will be catalysis for much higher price valuations of Juniors with real resources. From Hommel: WTZ has metal resources in zinc, Silver, copper and lead at current prices worth of USD10 bio in the ground with PRODUCTION. Glamis is buying it for USD 1 bio 1 to 10 price/resource rate.
From Paradigm research: DRC alone account for 71.5 bio Cu eq lb*2.27USD/lb*24.75%=40.3USD bio Tenke's share rock value in the ground. In WTZ - Silver, but here we have all Argentina properties and Jose Maria bulk tonnage discovery (not included in this rock value)
With start of production in 2008 even if prices stay the same level TNK potentially MC is 4.0USD bio (without new major Argentina discoveries and increased reserves in DRC). They will have to finance 24.75% part of mine in DRC, I am not sure about the cost but if even we take dilution of 10 mio at CAD15.0 average it will bring 150 mio CAD for all activities. With FD at 51.7 mio plus dilution of 10 mio we will have in 2008 FD 61.7 SHARE PRICE TARGET CAD75.0
Now everybody can do DD and add potential Argentina, price rise in Cobalt and Copper, less dilution due to debt use.
Minus of course that it is DRC, but ... with time for mining it could be valued more than USA.
To unlock all this value we need couple of smart decisions of Lundins: spin off Argentina comes to mind, buy out TNR and on this base consolidation of all gold projects of Lundin group RBI, CGH - the new GOLD Co will move into new league right away: PRODUCER with big exploration potential with much higher valuation of gold properties.
Best luck to shareHOLDERS,
Sufiy."
First part has already happen PP for CAD103 mil at CAD12.70 bought out by Lundin family."
Regards,
Sufiy.

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