No argument from me on TVX management, especially in terms of the shareholder mess they have. That alone would probably defer many (or it may attract a raider) from investing. But, I sometimes ask the question, "does this company's gold know who manages it?" Operationally this company is doing fine, the problem is they've butchered their shareholders in an almost unforgivable manner.
I will stick with my value point however. The average "enterprise value" industry valuation placed on an ounce of production is now $525/oz. Average cash costs are $183 for the top tier producers.
mips1.net
TVX has an enterprise value of $85 million (after subtracting net work cap, debt), so at 37 c it has a valuation of about $340/oz of production, with a cash cost of $180 (near the median). What I like about TVX though is the above average life remaining in most of their mines (La Coipa 8 years, Crixas- 9, Brasilia- over 12, Musselwhite-11). They really only have one dog, New Britannia. After the convertible conversion fiasco, TVX is left in very good financial condition.
Hellas is a wild card, but at these prices, the market has priced it's value at flat out zero. But even leaving Hellas out, TVX has about the lowest valuation in the market using these variables: 1. cash cost 2. reserves/enterprise value. 3. production/EV, relative to costs. |
