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Tanzanian Royalty Exploration Corp. Message Board

  • keepshorting keepshorting Feb 14, 2013 7:19 PM Flag

    Barrick Gold CEO - "no new mines"

    Folks - The senior miners are now focusing on cost cutting and efficiency. That makes it unlikely for them to pursue acquisitions and makes the junior exploration stocks unattractive. The only that will do well are those who find a high margin gold deposit in a geographically safe area like Nevada, not Tanzania.

    No doubt in my mind that TRX is going to $0

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    • Obviously a "challenging environment" as the consultants and power point students like to say. But Herr Kurz,
      Barrick isn't the only miner + 2012 saw a good number of smaller acquisitions. Few / no elephant deals like Redback. Look at the 2012 9MO Ernst and Young M&A, capital raising report for miners. It actually bodes well for TRX as the shift is to low risk miners--smaller deals, low cap costs, low cost, safe / diverse geography As well, more activity investment from Asia & Mideast.

      Sentiment: Hold

      • 2 Replies to augustusgloop
      • First TRX isn't a really miner. Second the primary project is Buckreef which is worth less than $5 million. TRX paid $3 million for Buckreef in an auction. Any major who wanted to buy the asset would have done so at that time. The resource estimates were already determined. TRX has done very little to add incremental value to that $3 million price. No major is going to pay 100x the value of the project to purchase TRX. Further while the NPV is positive, the economics of the project do not flow to TRX shareholders. 45% goes to STAMICO and TRX will have to raise $250 million in capital or slightly less than the current market capitalization to advance the project. The economics will flow to STAMICO and to the provider of capital. That is if the project even gets moving.

      • Redback turned out to be a disaster. TRX will never get bought out because there is nothing to buy. And they will never be a producing mine because it would have already taken place.

        There is only one way that gold stocks get back in favor. The SP500 and DOW need to get slaughtered. I mean pummeled to death. Cause the current theme is long SPY, short GDX.

 
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