$TMRC : Texas Mineral Resources — Updated Economic Analysis

Flagship ProjectRound Top
Mineral Resources (M&I)307,260,007 kg REOs
Shares Outstanding46,686,252
Market Cap$14,005,876
Average Annual Production10,754,100 kg
LoM20 Years
Payable REOs215,082,005 kg
True All-in Cost (TAIC) $21.43/kg.
Gross Revenue$7,764,424,000
Texas State Royalty($487,476,000)
Gross Income$7,276,947,000
Total Operating Costs($2,213,683,000)
Operating Profit$5,063,264,000
Total Capital Costs($845,000,000)
Income Taxes($1,063,285,440)
Net Income$3,154,978,560
Net Profit Margin41%
Absolute Cost Structure (ACS)39%
True Value (TMRC, 30%)$20.27/sh.
Cash Flow Multiple5x
Annual Cash Flow (TMRC, 30%)$47,324,678
Future Market Cap$236,623,392
Market Cap Growth1,589%

Notes: All Values in U.S. Dollars

Update, 9 September 2019

Gustavson’s August 2019 revisions to the Round Top PEA had a negligible impact on Fahy Capital Management’s independent analysis. In fact, the updated PEA is more in line with our own assumptions. Consequently, we don’t feel compelled to revise our expectations.

2 replies to “$TMRC : Texas Mineral Resources — Updated Economic Analysis”

    1. Mike,

      It certainly could. Additionally, SC Fundamental Value put pressure on shares at the peak of the last run up. I don’t know what their long-term strategy is; I was surprised to see them sell a bit ahead of the trade war de-escalation. They had, clearly, foreknowledge —- lead time of about 24 hrs.

      $TMRC is a long-term holding of ours and we have no intention of trading around a core position. Were shares to drop another 30%, we’d double our stake.

      Have a great evening.


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