TMR - Tamaya Resources

[Wysiwyg]

Tamaya expects to be listed on the Toronto Stock Exchange sometime next year as part of its plans to develop into a mid-tier mining company.

Spag. matey......do you know what effect a dual exchange listing has on a company? I mean how is it part of a company becoming bigger?
I thought company growth was from within.

p.s. genuine question.

 

[rogue_investor]

fair point... is increasing debt to shareholders something that puts a company in a stronger postion? listing on another exchange is not necessarily great for shareholders... certainly good for the company as they can get more punters in but I don't see this as a direct positive unless they have investors lining up for the stock.

 

[robandcoll]

That is there intention to get more punters lining up. It is a stock that tends to be ignored on the ASX and listing it on the Toronto Exchange is a move to gain more exposure

 

[redandgreen]

That is there intention to get more punters lining up. It is a stock that tends to be ignored on the ASX and listing it on the Toronto Exchange is a move to gain more exposure

if we look at the OGD experience the listing on the Toronto exchange has not, as yet, bought the with it, the additional investor interest that we shareholders had hoped for.
This company continues to disappoint despite so many upbeat broker recommendations

 

[Wysiwyg]

Spag. matey......do you know what effect a dual exchange listing has on a company? I mean how is it part of a company becoming bigger?
I thought company growth was from within.

p.s. genuine question.

Oops...sorry spaghetti , it was a copy of the story in the Australian.I was mistaken and the question is no longer pertinent .

 

[robandcoll]

Hugh continues to buy. 100,000 @ 30c.

http://aspect.comsec.com.au/asxdata/20070921/pdf/00761560.pdf

 

[Wysiwyg]

More company director buying!!!Good to see them soaking up shares in the high 20c range.Some more signs of confidence from a competent crew.

 

[Wysiwyg]

Just dying to know why there are continuous sell offs inTMR.I have some reasons and that be the prices of gold and copper are high and investors see a reduction in p.o.g. & p.o.c. or maybe the 4 for 1 deal (433,365,241 shares)with the Iberians is seeing some profit now.I think the latter is the case.

A penny for your thoughts! (At least anyway)

 

[robandcoll]

My thoughts: it is been day traded and has been for a while. The sell side though changes at different levels constantly and some one is definitly accumulating

Not long now

 

[robandcoll]

From Shaw Brokers ( Very good read). PT1

Tamaya Resources; the building of a mid-tier miner
28/09/2007 By: egoli

Tamaya Resources Limited (TMR) recently finalised its purchase of Latitude Copper, effectively doubling the resource base in Chile . The resources are modest in size, but the potential of the tenements, in particular Filipina Grande, are substantial.

The company plans to develop a second copper mine in Chile based around these tenements, where we believe eventual resources up to 100 million tonnes (mt) are a distinct possibility.


Advertisement

With the development of the 100kozpa Lichvaz gold mine well underway in Armenia , the company’s strategy of organic growth and acquisition is proving highly successful and setting itself up to make the transition from small-scale producer to mid-tier diversified miner in coming years.

Current reported resources at Filipina Grande (JORC) are 12mt@1.28%Cu and 0.34g/t gold, along with 1.9mt@0.83%Cu in the oxide portion.

TMR recently announced it’s maiden JORC compliant resource for Lichvaz of 3mt@7g/tAu, 31g/tAg and 0.5% Cu for 0.67moz Au. Again, the tonnage is small, but we believe the company has only drilled out a small portion of the ultimate resource potential of the area, and with an initial grade of >9g/t gold equivalent, there is plenty of scope for further upgrades to the inventory.

The theme for Tamaya is growing resources, expanding production. There are some near-term hurdles to overcome including resolution of the minority interest in earlier acquisition Iberian Resource Limited (IBR) and listing in Toronto , but we consider than TMR represents an excellent medium to longer term growth proposition, with a suggested investment timeframe of 2-3 years to enable the underlying value of projects to be unlocked.

For a company of modest market capitalisation, the future cashflows generated from both the Chile copper projects and European gold operations will put the company in a good position to continue to grow the business at a moderate pace.

Latitude Copper, Chile (TMR, 100%)

TMR recently acquired a 100% interest in Latin America Copper Chile S.A (‘LAC’) previously a subsidiary of AIM listed Latitude Resources (‘LTR’).

The project is located approximately 250km north of the Company’s existing operations at Cinabrio, and in close proximity to hydro-power and regional infrastructure.

Consideration was $24.6 million based on a fixed issue of 85 million shares and 15 million options at varying exercise prices up to $0.50ps. LAC controls a majority interest in approximately 5 exploration properties in the prospective Andean IOCGU belt north of Santiago .

LTR listed on the AIM in 2005, with an implied value for the Chilean assets of just under ₤7 million. Despite spending some ₤3 million on exploration in Chile, the market failed to recognise the true value, and prior to TMR’s offer, was significantly discounting the asset value (according to LTR).

TMR’s offer was opportunistic and well-timed considering the release of the SRK report valuing part of the project at an NPV of just under US$90 million m. The report considered several scenarios around a potential 60mt resource at 1.28%Cu and 0.34g/tAu, with potential for significant increases to NPV from sales of iron concentrates as a by-product. This was based on a long term copper price of US$1.40/lb and US$500/oz for gold; US$235 million capex and recoveries of 75% for gold and 86% for Cu.

Existing resources established at Filpina Grande are quite modest, at 12mt@1.28%Cu and 0.34g/tAu and 1.9mt@0.83%Cu of oxides.

Based on a brief review of documentation, we consider there is excellent potential to establish a resource base at Filipina Grande of between 50 and 100mt, based on the limited drilling undertaken to date, and extensive distribution of mineralisation.

Other exploration assets acquired through Latitude show promising results, including Santa Dominga with 76m@1.61%Cu and 0.33g/tAu. An initial resource statement is pending for this project. T

The company is planning to conduct a substantial drilling campaign in Chile , focused on Filpina Grande, with 140,000m planned over the next two years.

Over the next twelve months, depending on drilling results, there is potential for more confidence to be gained in the project.

The present plan is to prove up sufficient resources to justify the 3mtpa operation at Filipina Grande, whilst evaluating the numerous other geophysical targets and identified prospects within the tenements.

 

[robandcoll]

Part 2:

Punitaqui/Cinabrio Mine, Chile (TMR, 100%)

The expansion of the Punitaqui/Cinabrio mine in Chile to 3000tpd (1mtpa) is well advanced, with the relocation of three second hand ball mills from Spain achieved last quarter. The new three-stage crusher, installed at a cost of $US2 million, is capable of crushing up to 4000t of ore a day.

In the June quarter the company produced around 1400t of Cu and 40koz of silver, with production rates continuing to increase. Based on achievement of 3000tpd by early next year, we estimate total production of 11.6kt of Cu, generating revenues above US$70 million, and potential EBITDA in excess of US$40 million. This is based on an average copper price of US$3.20/lb for 2008.

The feasibility study for the oxide project is underway, with results anticipated soon, and construction underway in 2008. Capital cost will be low, with initial production of 200ktpa increasing to 400ktpa over two years.

Lichvaz Gold Project, Armenia (TMR, 86%)

TMR recently announced a maiden JORC resource for the Lichvaz mine of 3mt@7.0g/tAu, 31.5g/tAg and 0.5%Cu for just under 0.7moz gold. This superseded the earlier (non-JORC) estimate of around 9mt@3.75g/t, 24.5g/tAg and 0.3%Cu.

The company is in the process of finalising a US$60 million debt raising to fund construction, with first gold pour at the new facilities due early in 2009 at an initial rate of 100kozpa. Approximately 500kozpa of silver will be produced, taking the total to 110kozpa on a gold equivalent basis. Total capital cost, including contingencies and working capital is estimated at US$60 million.

The company believes that ultimately, depending on resources established and particularly a large, lower grade bulk stockwork resource, an operation producing up to 200kozpa may be feasible at the site.

The company purchased the 800ktpa Rishton Mill in Queensland , and will be relocating the refurbished components to Armenia in 2008. The site currently has a gravity circuit installed and is producing a small amount of gold (6kozpa).

The mine has experienced a significant amount of development over its life, with substantial declines and adits already in place. Since ownership of the asset by Iberian (IBR), the infrastructure has been upgraded (left). There is good access at the site, with sealed roads, power and plenty of water.

Due to the favourable operating environment in Armenia , operating costs are forecast by the Company to be below US$300/oz.

A 20,000m RC drilling program is due to commence at the mine in coming months, and we anticipate significant upgrades to the resource base over the next 18 months leading up to full scale production at the site.

Monetmor/Portalegre Gold, Portugal (TMR, 86%)

TMR, through it’s majority owned subsidiary Iberian Resources hold almost 1,400km² of tenements in Portugal , including almost 1moz of gold at the Montemor and Portalegre deposits. Additional projects held by the company include Caviera base metals and Regua tungsten.

The company is moving towards feasibility with the Montemor project, following scoping studies indicating a production rate of 60kozpa at a cost below US$350/oz. The current resource base consists of shallow shear-hosted deposits, with potential for extensions to known resources along strike and at depth. The initial JORC inferred resource at Montemor has previously been established at 6mt@2.2g/tAu for 0.61moz. Over 50,000m of drilling has previously been undertaken at the deposit.

During the feasibility phase, the plan is continued drilling and completion of baseline environmental studies leading to completion of an Environmental Impact Statement (EIS).

An initial resource of 7.4mt@1.37g/t Au (327koz) has been delineated at Portalegre, approximately 100km to the north-east of Montemor. The company considers the shallow oxide ore to represent an excellent opportunity to establish a heap leach operation, also at a production rate of around 60kozpa.

We anticipate development of both Portuguese projects is a few years away, with the exact timeline yet to be determined.

Initially, the Company plans to establish a resource inventory of 2moz, which will aid in deciding the most appropriate development strategy for the projects.

Provided activities are progressed promptly, first gold production could be achieved by mid to late 2010, based on a simple cyanide heap-leach style processing plant to produce around 60kozpa. A second operation at a similar rate may start twelve months later.

Board and Management

The board of directors have significant experience in developing gold and base metals projects. Executive Chairman Hugh Callaghan is a former Rio Tinto Limited (RIO) executive, partly responsible for developing Riversdale Mining into a $600 million company, and share price appreciation well over 1000%. Previous experience also includes working at the Escondida mine in Chile .

MD, Mike Fischer is a seasoned mine manager, joining TMR from CBH Resources Limited (CBH), where he was EGM operations.

TMR have executives on the ground in Chile and Armenia , actively overseeing the exploration and expansion plans, including Steve Playford, mine manager at Cinabrio.

Conclusion

In summary, we have been impressed by the progress made by management to date in the short time since the acquisition of Iberian resources. The team appears to have a genuine commitment to growing the business at a manageable pace, and the next eighteen months will be a critical period of transformation of the company from small-scale producer, to diversified miner.

A total of five mining projects have potential to be in production within three years, which represents an ambitious target, however one that the company believes is achievable.

We believe the growing production base, excellent potential for further substantial increases to the global resource inventory and potential production/earnings profile going forward should continue to see the company attract a high level of interest and support in 2008.

 

[Wysiwyg]

Gee it does look like the 31 c barrier will be overcome today.A few (maybe the same) buyers looking for millions in the buy queue.Those pesky sellers have abated so this may be the break to higher ground looming.

 

[qlksvr]

yer already 30 million turnover before lunch Is there something I have missed? Last time we had this big of a turnover the stock price went from 25c to 35c.

 

[popy]

I believe hugh might have some very exciting news in the pipeline. Best on board now.Sit tight! Strong fundamentals and the best managements going around. There are some high profile people in this company and they are there for a reason. The writing is on the wall and this company is ready to step up to a mid tier company.

 

[Kremmen]

34.5M traded so far today is huge. Surely the important question is "Who's buying"? At those numbers, I don't think it's just us.

 

[Pommiegranite]

34.5M traded so far today is huge. Surely the important question is "Who's buying"? At those numbers, I don't think it's just us.

Most of that was a massive single buy of 20million

Now if that's not a good signal...i don't know what is!!

 

[Kremmen]

Most of that was a massive single buy of 20million

Now if that's not a good signal...i don't know what is!!

You always have to wonder with these situations: How did they manage to get so many? If the company's going up, sellers should have held out for a higher price. (Though doing it on a down day on the market is a good move by the buyer.)

But, yes, it's a good signal ... but I still would like to know whose. If it's a mining company or someone who knows the mining industry well, it's an even better signal.

 

[qlksvr]

Institutional buyers? Over 36m traded so far. When is the quarterly report due out, must be in the next few days?

 

[Impala]

Anyone have thoughts on the terms and conditions of the convertible bond issue? Looks like the market was not over-enamoured with it, although hard to read a 3c price fall in context of overall market volatility. Bond issue looked OK to me; Tamaya has right to redeem immediately prior to any bondholder converting.

 

[Benelong]

So Tamaya down to 24c, a distant memory from its highs in the 30's. I'm wondering if this is a short term lull or is there something I don't know. Where to now for our beloved stock?