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DoctorSolar

Terrane Metals (TRX)

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This one has really taken a hammering over the last 6 weeks since goldcorp decided not to convert their equity interest in Terrane into a participating joint venture. Down 50% to 90cents currently.

 

I know John Doody was very surprised at this and looking at the project I have to say I am a little mystified too. Why would goldcorp not go in to a joint venture here?

 

  • Upon development the project will have an average annual production of 262,100 oz gold and 89 million lb copper for the first six years of a 22.1 year mine life.
  • Net of a copper credit, gold production cash cost is negative US$ 8 per oz, assuming an average copper price of $2 per pound.

 

 

 

Are investors now nervous about the terms of new financing?

 

The Company will now consider financing alternatives for the recently approved $172 million 2010 construction budget.

 

90 cents seems cheap to my untrained eyes. Worth buying some now?

 

Or wait till details of financing are revealed?

 

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I am tempted to put in a "stink bid" somewhere near the 200 day ma which is quite close to the 61.8% Fibo of the move fromOct 2008 and Nov 2009.

In the current climate of uncertainty it may take a bit longer to get the finance in place and it might be dilutive.

 

 

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I am tempted to put in a "stink bid" somewhere near the 200 day ma which is quite close to the 61.8% Fibo of the move fromOct 2008 and Nov 2009.

In the current climate of uncertainty it may take a bit longer to get the finance in place and it might be dilutive.

Up 10% quick smart today. Goodness I appear to have either a streak of luck or developed some good intuition around market timing! :lol:

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