Cash and Impact of Silver Price on Canatuan
For anyone who is still following this play, I just thought I'd post a bit of info that was passed on to me and received from the IR people at TVI. Looks like EDCO is generating the cash flow that will allow TVI to continue their prospects at Canatuan. Apparently several companies have express interest in a Joint Venture with TVI. Anyhow, things are looking good considering the battering that the stock price has received over the last few months. We could be in for a jump, should things work out. Now on to the email from IR at TVI:
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Thank you for you recent e-mail to TVI Pacific.
You are correct. The recent rise in the price of silver does have a
significant effect on the valuation of our Canatuan development project.
The Company has been monitoring metals prices and analyzing their affect on our projects for some time, and have found that the Canatuan project is extremely sensitive to changes in the price of silver.
Based on assumptions made in the bankable feasibility study on Canatuan, the IRR of the project at metal prices of $300/oz Au, $0.85/lb Cu, $0.55/lb Zn and $7.00/oz silver, is 45.08%, on an all equity basis. This gives it approximately the same value as several months ago, when metal prices were $340/oz Au, $4.75/oz Ag, $1.00/lb Cu and $0.65/lb Zn.
The process of finalization of financing for Canatuan is stil underway.
TVI is examining all of the options available to it, and several
companies continue to express interest in a potential joint venture.
TVI's working capital level as of the end of our third quarter,
September 30, 1997, was approximately $3.4 million (Can). EDCO, TVI's exploration drilling subsidiary, continues to supply the Company with a healthy cash flow. EDCO is currently working on several contracts in the Philippines, China and Taiwan, and is anticipating more work in the future throughout the asian region.
Tim, I hope this has been helpful. If you have any further questions,
please contact me directly at (403) 265-4356, or refer to TVI's web site at 'http://www.tvipacific.com'.
Regards,
Cyrus Ameli
Investor Relations |
