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TTR - Tectonic Resources

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Has given up on RAV8 nickel project, still going with stake in a small gold producer and now looking at Philips River Gold - has env apprvls, just needs finance although has offtake agreement with Sempra. Hopes to produce by end of 2007. Resources suggest 1.5 Au equiv, which gives it an Au equiv EV of $25. Wonder if we will see some announcements re financing soon?
some thoughts only...
 
Have been watching it on and off,

Early March it caught my eye,

Burnakura JV 50:50 with EXT (Gold)

Philips River 8mt @ 2.5g/t Au + 30 g/t Ag + 1% Cu + 1.5% Pb + 0.8% Zn

Cap Ex $30m, Mining should last 5 years, seemed interesting but marginal at the time, may have another proper look and create excel sheet for it.
 
Tectonic Resources News

Currently Suspended pending announcement - was due at latest today but not released. Announcement probably relates to Phillips River Gold Project funding - seems to have accumulated a good resource and share price looks cheap. Has anyone any thoughts on this stock?
 
Re: Tectonic Resources News



Any thoughts?
Yeah. They should get of their ....magnificent golden chair........And do something regarding the BARN... Joint Venture with Extract , which unfortunately inhibits EXT's further progress and positive (very positive) announcements from the Land of the Bushmen......

Cheers!
 


Looks much better at these levels, hence why I bought

Will do a full fundamental analysis soon,
 
TTR Tectonic Resources

Shares
220m on issue
Mkt cap @ 10c = $22m
Mkt cap @ 15c = $33m
Mkt cap @ 20c = $44m


Placed 10m to Sempra Metals, who have helped fund FXR and TZN's projects as the want all the Copper offtakes

Placed 10m@ 13c to MCR in exchange for them to explore around and mine around the RAV 8 Mine, but TTR still has a 100% in the Immediate RAV 8 Mine

Cash
About $6m will need to confirm in the latest qtrly,
Also looking to selll Burnakuraa mine which should net $2m
And recently signed a offtake to sell remant Nickel to BHP, should Net $1m - $2m

So By the end of the Qtr they could have around $10m in the bank


Projects
Phillips River 100% Owned, VMS type Gold/Copper/Zinc/Lead/Silver deposit

To best describe this deposit its like a lower grade version of JML's Jaguar

JORC 8Mt@ 2.5g/t Gold + 30 g/t Silver +1% Copper + 0.8% Zinc + 1.5% Lead

Using Conservative spot prices and a CAP EX of $40m the project has an NPV of $50m = 25c TTR (See their presentations for this)

Rav 8 100% Nickel Near Ravensthorpe
Recently announced an agreement to sell 10kt-14kt of ore containing 1% Nickel to BHP, depending on how much they recieve per lb Ni, will Net between $1m - $2m

Today they have announced the re-commencement of mining at RAV 8, this could start to generate some really good cash flow given current Nickel Spot Prices.



Exploration areae Surrounding Rav 8 20%, Free Carried by MCR for $6.5m worth of work Nickel Near Ravensthorpe

Recently signed deal where MCR can explore around the RAV 8 area, MCR is earning an 80% interest by spening $6.5m of which they also took a subscription of 10m shares in TTR @ 13c = $1.3m for TTR


Burnakura 50% JV with EXT Gold
Both EXT and TTR have decided to divest the asset, its sale should net $2 for TTR


Summary
By the end of the Qtr I expect TTR to have around $10m in the bank, it would seem that with booming Nickel Prices RAV 8 will once again become the cash cow for TTR,

Sempra has cleary shown its willingness to back TTR's Phillips River as its a VMS deposit like JML's but simply lower grade, One very important thing about VMS deposits is that they are found in CLUSTERS, NEVER ALONE, so TTR has excellent potential to find another Phillips River nearby

Comments? Thoughts?
 
thanks for the analysis YT...

this is share i have followed on and off, without ever owning, since it was 5 cents many many years back...

since it hit 30c plus, i stopped following it, and am frankly surprised its back down to 10c levels..

was there a reason for the fall? Does anyone have more history on this stock?
 
Rafa I think mainly it was due to the underperformance of Burnakurra and as a result Phillips River was put on the back burner,


I was interested in the company at 20c, I love it at 10c based on my analysis


Alsso re Burnakurra, in addition to divesting/selling it which should Net TTR $2m they are doing the following

As announced by Tectonic Resources NL (Tectonic) (manager of the BJV) on October 6, 2006, Tectonic and Extract Resources Limited (Extract) have agreed to suspend further mine capital development works and concentrate on the extraction of the currently accessible ore reserves from the NOA2 mine which forms part of the BJV. This program is expected to yield 44,000 tonne of ore grading 8.2 g/t gold over the next five months. Significant positive cash flow is expected from this program as there is no accompanying mine development cost.

So 44kt@8.2g/t = 360,800 grams gold = 12885 oz's Au say 12koz's to be safe

Assume Cash costs = $500oz therefore margin = $300 oz, NPV of remant Ore processing = $3.6m split 50:50 = Another $1.8m in cash to TTR,

We'll have to wait for their Qtrly to confirm all of this, but either way I like where its headed, especially given they are recommencing Nickle production at RAV 8
 
I should add that re Phillips River,

Its not a deep underground operation, majority of the deposit is open pittable

As its close to the companies RAV 8 operations a significant portion of Office and site equipment is already in place

Most importantly all approvals are in place and all Key Mining equipment have been secured
 
Also with regard to Philips River, TTR say in one of their presentations that there is practically no drilling below 200m (underneath the current JORC resource), so there is a good chance to find more just by drilling below what they've already got. The fact that deeper resources don't exist is just a function of nobody having looked for them yet. I agree with YT; I love it at 10c as well.
 
TTR have made a wise choice to resume operations at their RAV 8 mine given soaring Nickel prices,

TTR still have a 100% interest in the immediate Rav 8 MIne and the surrounding area

As already mentioned however a recently signed deal will allow MCR to explore around the RAV 8 area, MCR is earning an 80% interest by spening $6.5m of which they also took a subscription of 10m shares in TTR @ 13c = $1.3m for TTR

As well as the fact that they still have in place an offtake agreeement with BHP, recently announcing they expect to sell 10kt-14kt of remnant ore containing 1% Nickel to BHP, depending on how much they recieve per lb Ni, will Net between $1m - $2m

I think resuming their Nickel operations will really get them going much like AUM,

And dont forget there's still Phillips River which with a JORC 8Mt@ 2.5g/t Gold + 30 g/t Silver +1% Copper + 0.8% Zinc + 1.5% Lead
and using Conservative spot prices and a CAP EX of $40m the project has an NPV of $50m = 25c TTR (See their presentations for this)

As well as the sale of Burnakura which should net $4m to TTR

With the backing of Sempra Metals, a farmin from MCR and nickel offtakes with BHP, TTR has certainly turned the corner and appears to be in an uptrend
 
Kennas,

I'd appreciate your technical thoughts on the following

I'm haveing a bit of trouble seeing resistance levels,

I think that 12c was a pretty significant resistance level and now that it has been cleared on volume it appears that this should provide very strong support

But where do you see resistance levels at?

Cheers in advance
 
I think I see resistance at 14c and 16c on the chart, after that 22c


Sell depth seems to confirm 14c and 16c, I think TTR's Qtrly update will be enough to get it over 16c

From there it will have to consolidate before moving,

Price Catalysts to watch for

- Qtrly
- Update re BHP Nickel sales
- Update re Nickel Mining at RAV 8
- Update re MCR exploration arround Rav 8
- Update re sale Burnakurra and processing of remanant high grade ores
- Update re Phillips River
 
Qtr is out.

The result is good with upgrade of gold output from the forecast, however the costing is over-budget.......


MARKET SENTIMENT,what would you say ???
 
With Nickle at such record levels and the dangerously low stockpiles still being depleted its a great time for TTR to focus its efforts back on its Rav 8 Nickel Mine
 
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