Monday, October 3, 2011

Brief Update on Tribune Resources (TBR)

I covered Gold miner Tribune resources on the blog a couple of weeks ago:


Which followed a post 12 months ago on October 3rd 2010:

 
These posts will provide some background if you haven't already seen them.

I haven't yet had a chance to go through the annual report (released to the ASX Friday afternoon after close of trade) in great detail myself, but a few highlights on the first skim through:

  • Grade from Raleigh Underground Mine consistent @ 13.4 g/t
  • Entitlement to Raleigh's production was 52,147 ounces of Gold
  • Share of gold deposited: 48,537 ounces of Gold (58,218 last year)
  • 10,000m of RC drilling at Ghana project continues
  • Profit after income tax $9,901,300 ($19,309,081 in 2010)
  • Total Net Assets: $93m (from balance sheet, bullion not at spot)
  • Gold on hand, 30/06/11: net realisable value $83.5m ($102m @ spot)

So this company is sitting on:

  • $102m worth of Gold
  • $10.6m in cash
  • 10,003 ounces of Gold ($17m gross) credited in August
  • Probably another similar amount due in November
  • Mine providing 50k ounces of Gold pa (mine costs sub $450 per oz)
  • Exploration tenement down strike from PRU in Ghana

And the market isn't even valuing this company at $125m with shares sitting available on market today at $2.50...?

Absolute madness.


BB.

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4 comments:

  1. Far more undervalued is Tribune's sister company, Rand Mining. Rand owns 12.25% of the East Kundana project that produces Tribune's gold (Tribune owns three times as much, 36.75%, Barrick own the rest and operate the mine), so it has 1/3 of the resources and production as Tribune in its own right. In addition, Rand own almost 12m Tribune shares (about $28m at $2.35), and basically no debt. Yet Rand's market cap is only $35m (at 58c)!

    One of the little gems uncovered by goldnerds.com.au :)

    ReplyDelete
  2. My only concern with Rand is that they are:

    a) Less liquid (even moreso than TBR if that is possible hah!)
    b) Iron Ore option may see 8m of their TBR shares sold/traded

    Can't say I've looked that far into the Iron Ore project they are looking to acquire. Maybe there is sufficient value for the trade?

    ReplyDelete
  3. Baron: Re HC post.
    Moderated for mentioning alleged $5 offer for Tribune Shares by Barrick or something to that effect. Numerous posters on HC with vested interests and confusing posts.

    http://www.mclernonfile.com/ this guy has an axed to grind, but with good reason

    ReplyDelete
  4. Thanks, had noticed that clearly some of the posters in the HC thread know each other and have interests/inside information. If there has been a takeover offer I wonder if it will ever come to light...

    ReplyDelete