Added more TGD shares at 0.34.
A good quarter as expected but unexpected dilution and the gold dives. What a week. Been long TGD for a while now and I see balance sheet getting stronger and stronger. There is a good chance that management might put SF mine in care and maintenance if gold stays around this low level but unlike 2015, there is no debt and TGD should have around 40 million in bank by end of this year. This makes the balance sheet strong and the possibility that TGD will go bankrupt can be ignored.
I truly believe gold will go higher but if stays around 1150 -1250, i will still hold TGD and add on special occasions like today. The dilution and higher share count will likely mean that upside and rapid move up is limited.however a slow and steady rise on a longer time frame is possible and higly likely. buyout seems closer at this low prices then sudden move up.
Just a funny thing but the recent dilution looks well timed and good given the current gold price move. Think of this opportunity as buytng TGD at better price point than the banks. The bought deal was at $0.41 in terms of dollar and I get to pick the same shares at $0.34. If it goes below 0.30 i will likely double my shares.
Note: Pundits and experts got this election so wrong and seems like the pundits and experts are doing the same in financial market. This 4 year term I believe will see rising interest rate, rising debt level and along with it rise in gold prices.
Disclosure: I am/we are long TGD.