Tuesday 18 July 2023

My Vision for TNR Gold and Strategy: Share Buyback, Potential Valuations, and Shotgun Gold Project Spinout


“We are building The Green Energy Metals Royalty and Gold Company. Our business model provides the unique entry point into the creation of supply chains for critical materials like energy metals which are powering Tesla Energy rEVolution and Gold industry which is providing the ultimate hedge during this part of the economic cycle. Our shareholders are participating in the building of The Green Energy Metals Royalty and Gold Company. In our portfolio, we have a unique combination of assets providing exposure to different parts of mining cycle: starting with the power of blue sky discovery and including partnerships with industry leaders like McEwen Mining, Ganfeng Lithium and Lundin Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”

Kirill Klip, Executive Chairman TNR Gold Corp.


A lot of our investors have been asking me recently, what is my personal Vision for TNR Gold, what is the future of our Company and what are my personal goals to achieve for TNR Gold.

Our Company has reached major milestones this year after the full repayment of the investment loan and all recent developments in the marketplace.



I would like to share with you my personal Vision for TNR Gold’s future. 

The Company is of the view that the recent market prices of its Shares do not properly reflect the underlying value of the Shares. I personally believe that the current market price is grossly undervaluing the intrinsic value of TNR Gold’s assets.


 


We demonstrate our commitment to maximising shareholder value and fair valuation of our Company and all assets in the TNR Gold portfolio. TNR Gold has announced and is conducting the share buyback program under approved by TSX Venture NCIB rules. 



Insiders resumed their buying in the market when we were allowed to do so.

 

After much effort, our Company is in a strong financial position now. The recent corporate and market developments confirm the success of our corporate strategy and provide us with the opportunity to build real shareholder value reflecting the true magnitude of our assets. 




The Company is experiencing a coming-of-age moment and we have generated a lot of interest in the industry in our Company and portfolio of TNR Gold’s assets. Our shareholders have been extremely patient with the Company, and they deserve correct, fair, and maximised valuations. 




We are aiming to realise much higher potential valuations of our assets for all our shareholders and stakeholders. Below you can find my personal basic aspirational goals and estimations for the appropriate potential market valuations of TNR Gold’s assets and potential share price representations of such values.


Potential Valuations of TNR Gold Corp.


 

Valuations

 

 

Market-Based*

 

Base Case**

 

Positive Case***

 

Mariana Lithium NSR

 

 

USD$9M

 

USD$22M

 

USD$54M

 

Los Azules Copper NSR

 

 

USD$30M

 

USD$39M

 

USD$59M

 

Shotgun Gold Project

 

 

USD$10M

 

USD$21M

 

USD$35M

 

Total Assets Valuation

 

 

USD$49M

CAD$64M

 

USD$82M

CAD$107M

 

USD$148M

CAD$194M

 

Potential Share Price

 

 

CAD$0.29

 

CAD$0.48

 

CAD$0.87


*Mariana Lithium NSR valuation – based on LRC transaction. Los Azules Copper – Rob McEwen’s estimation of 1.25% NSR valuation of USD$100M based on the Osisko Gold Royalties transaction. Shotgun Gold 700,000 oz AU @ USD$15/oz. 

** Mariana Lithium NSR valuation – 20,000T LiCl*USD$40,000/T*0.45%NSR*6. Los Azules Copper NSR valuation – 182,000T*USD$10,000/T*0.36%NSR*6. Shotgun Gold 700,000 oz AU @ USD$30/oz

*** Mariana Lithium NSR valuation – 40,000T LiCl*USD$50,000/T*0.45%NSR*6. Los Azules Copper NSR valuation – 182,000T*USD$15,000/T*0.36%NSR*6. Shotgun Gold 700,000 oz AU@USD$50/oz

The CAD$1M payable to TNR Gold by Ganfeng for 1% Mariana Lithium NSR buyback and exercising of options and warrants will provide the financing for TNR Gold’s working capital. 

We do not need to finance TNR Gold by diluting the holdings of our shareholders.

NPR Royalty on Batidero I and II properties of the Josemaria Copper-Gold Project provides additional growth potential for TNR Gold’s Royalty Portfolio.




TNR Gold – AmeriGold – Shotgun Gold 

The Company’s strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties. We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner who shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time. 



I believe that in order to maximise shareholder value and reach the potential valuations presented above we must preserve capital, reduce the amount of outstanding shares and not invest in Alaska our own capital.


Our strategy presented to potential strategic partners involves the creation of a JV with one of the major gold mining companies when our partner will be investing very substantial capital in the development of the Shotgun Gold Project while earning a stake in the project.



TNR Gold shareholders will benefit from the strategic partner’s capital being invested “in the ground” and industry expertise, including operations in Alaska.



The Management is investigating the best value creation strategies for the Shotgun Gold Project and has put in place the corporate structure of AmeriGold – the stand-alone company that could potentially inherit the Shotgun Gold Project JV operations after the contemplated potential spinout from TNR Gold.



This article is for information only and provides publicly available information and my personal Vision and valuation matrix of TNR Gold. I am the largest individual shareholder of our Company. Nothing in this blog post constitutes investment advice, offer or solicitation of the sale of any securities. Please carefully read all our Legal Disclaimers and conduct your own due diligence as always.

Thank you for your support of TNR Gold!

Tesla Nicola rEVolution and Gold. 







Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.




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