1.28% 7.7¢ tanami gold nl

# Tam What's it worth

1. 887 Posts.
140
This is a question, not a statement.

From last quarterly report.

Estimated reserves - Ounces
Measured : 610,000
Indicated : 1,001,000
===================
.... 1,611,000
Inferred : 1,133,000
-------------------------------
Total ... 2,744,000
==================

Let's assume say that the measured and indicated are about right, and say 1/3 of the inferred is reasonably reliable
That gives a resource of about, say, 2,000.000 ounces.
At current gold price of about \$2,234, let;s say \$2,000 will be achievable.

Value of reserves, say 2,000 x 2,000,000 = \$4,000,000,000., \$4 billion say.
Tam share is 60% free carried. ie. \$2.4 billion.

About 1.25 billion shares in the company

So, 2,4 divided by 1,25 = 1.92

ie. by this calculation, a share is wirth about \$1.90 from a realisation of the resource, probably conservatively, if it all works out in the end..
Of course allowances for risk of all kinds of unforeseen possible problems.
Factor in about 50% because of a long time scale and possible risks, say then about \$1.
That's over 10 times the current value.

What are opinions on this?
Given the large upside using ths kind of calculation rating TAM as worth holding out for \$1/share.
What is the error, if any, and why only \$0.08 sp?

WIll be pleased to hear why this is wrong or a reasonable guess..
Last edited by : 01/03/21

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