TRY-TROY RESOURCES cheap low cost Gold producer

[JBmurc]

Good low cost Gold producer with a nice cash balance an assets..mid-cap in the making
-Mrktcap-117mill
-Divie -1.7%
-forward production 80-100koz gold + silver
-Just $90 an ounce is the expected cost of gold production from TRY's recently acquired Casposo Gold/Silver Project from IAU (IAU book value 60mill TRY paid 22mill )
-Unhedged
-Only 69,837,533 fully paid ordinary shares held by 2,744 shareholders

http://www.try.com.au/

TRY is aiming to become a significant profitable mid tier gold producer with a portfolio of quality long life assets. Between 2004 to 2007, TRY produced approximately 410,000oz of gold at an average cash cost of US$201/oz. This was in line with a strategy of generating strong earnings and cash flow from low cost operations. TRY are also focused on; growing annual gold production and reserves, strategic merger and acquisitions, an aggressive exploration program and fast tracking gold field development. TRY purchased the Andorinhas Gold project from Agincourt Resources and commenced first production within 16 months of purchase in March 2008. The company is targeting 50,000oz of gold per annum with forecast operating costs of US$300 per ounce over a 5 year life. As at 30 June 2008, TRY had a cash balance of approximately $60m and has committed to spending over $10m in FY08 focusing on gold and iron ore at the Andorinhas project. Troy Resources reported net loss of $17.65m for the year ended 30 June 2008. Revenue from ordinary activities were $39.73m, down 57% from last year. Basic and Diluted EPS were (25.7) cents compared to 34.4 cents last year. The net operating cash outflow was $31.38m compared to an inflow of $34m in the pcp. The final dividend declared was 3 cents fully franked, taking the full year dividend to 3 cents compared with 7.5 cents last year.

[drillfix]

Good stock JB, These guys also gotta sh#t heap of cash dont they?

I remember reading a report on these guys a while back when they about mid 80s.

Another stock I wish I had bought when I had no funds Bahhh~! :rolleyes:

[JBmurc]

Good stock JB, These guys also gotta sh#t heap of cash dont they?

I remember reading a report on these guys a while back when they about mid 80s.

Another stock I wish I had bought when I had no funds Bahhh~! :rolleyes:

Yeah still when Golds over 2k an silvers priced in the 000s TRY will be many multiples of today close of 1.70
I luckily got in at 1.35 only a week back

[JBmurc]

Been buying up TRY of late under the pressure of bot trades an the odd short termers
volume wise their only been some 2.5mill shares traded from 1.70 to 1.30 so it really been the smaller holder pressure selling ,as 70% is held by the smart top-20
If any other big boys want to buy a decent piece they'll have to pay up to get it.

looks likely to be producing a av. 100ozpa over the next 5yrs + 800k silver(the real kicker once silver goes though the roof)

has -32mill cash on hand -2 producing mines soon to be 3 massive exploration upside
big plus there's only 74.7mill shares outstanding


worth reading up their latest presentation----

http://hotcopper.com.au/asx_announcements.asp?id=66719

[JBmurc]

16 July 2009
High Grade Results at Two Mile Hill Prospect, Sandstone
Western Australia
Highlights
 Banded Iron Formation (BIF) hosted high grade gold mineralisation was intersected
on both the eastern and western margins of the Two Mile Hill tonalite. The BIF is
quartz veined and extensively replaced by pyrite. Gold intersections are as follows:
TRCD735; 6.8m at 15.73g/t gold from 215.0m downhole including 3.4m at 30.36g/t
gold from 216.4m and TRCD733; 25.9m at 16.56g/t gold from 240.1m
including 3.5m at 20.24g/t gold from 243.0m and 13.7m grading 25.98g/t gold
from 251.0m downhole.
 Tonalite hosted gold intercepts (calculated without using a cutoff or applying a top
cut) include; TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole; TRCD730;
205.5m at 1.14g/t gold from 94.0m downhole; TRCD731; 156.3m at 1.14g/t gold
from 216.5m downhole; TRCD732; 353.3m grading 1.04g/t gold from 125.7m
downhole; TRCD034; 158.6m at 0.83g/t gold from 200.3m downhole and
TRCD735; 230.4m grading 1.62g/t gold from 243.1m downhole.
PERTH, Western Australia: Troy Resources NL (“Troy”) (TSX: TRY, ASX: TRY) is
pleased to advise that an 8 hole (2940m) follow-up drill program at Two Mile Hill has better
delineated the intrusive hosted stockworks style gold mineralisation associated with the Two
Mile Hill tonalite first identified by drilling in April - June 2008 (TDD034; 387.0m grading
1.57g/t gold and TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole) and has
identified a second higher grade style of gold mineralisation hosted within a Banded Iron
Formation (BIF). The Two Mile Hill Prospect is located 2.7km northeast of the Sandstone Mill
(see attached Drill Hole Cross-Sections and Location Plan).
All assays have now been received for the 8 hole drill program consisting of Reverse
Circulation (RC) precollars and Diamond Core (DC) extensions totaling 2940m (780m in RC
precollars; 2160m in DC extensions).
Holes were drilled on 40m sections over a 240m strike of the Two Mile Hill tonalite stock. All
holes were orientated at an azimuth of 270o (MGA) with variable declinations ranging from
-55o to -67o. The maximum hole depth was 504m.

---BIF was intersected on both sides of the tonalite in close proximity to the tonalite in several
holes. The two intersections in separate drill holes occur on the east side and on the west
side of the tonalite. The BIF is highly quartz veined and extensively replaced by pyrite. These
intersections contained high grade gold values as follows:
TRCD735: 6.8m at 15.73g/t gold from 215.0m
Including 3.4m at 30.36g/t gold from 216.4m
TRCD733: 25.9m at 16.56g/t gold from 240.1m
Including 3.5m at 20.24g/t gold from 243.0m
and 13.7m at 25.98g/t gold from 251.0m

[fruitloop]

Hey JB, been looking at this stock in the last couple of weeks.
Trying to round out my portfolio by holding some gold stocks.
Nice announcement and results.
Personally I think that Gold will provide some nice insurance against the way the economy is going.

Only need to find some spare cash :-(

[JBmurc]

TRY- moving higher again today -good news coming-? has gone from low 1.20s to 1.445 currently ,bots doing the work with 1-6 shares getting brought 7-8 times in a row hitting the sells (was doing the same on the buy side only weeks ago)
games being played??

[JBmurc]

Casposo
Life of mine operating cost:

US$276/oz AuEq (1)

US$90/oz after silver by-product (now I believe we'll see gold head towards 1500oz next yr nice profit per oz)


BUENOS AIRES, June 22 (Reuters) - Casposo, an Argentine mine operated by Australia's Troy Resources TRY.V, will begin to produce gold and silver next year after an $87 million investment in the project, an executive from the company told Reuters on Monday.

Construction at the mine in San Juan Province, some 785 miles (1,265 km) northwest of Buenos Aires, should be complete this year and the mine will employ at least 200 people when it is operational.

"What we have said is that we could start the construction before the end of the year, now I quite clearly see we are probably going to do it faster than that," Ken Nilsson, operations director for Troy Resources said in an interview in Buenos Aires.

"And the planning (for production) is for 12 months after starting the construction but again I'm hoping to do it quicker than that. My personal target is the beginning of July (of 2010)," he said.

Casposo is expected to produce some 60,000 ounces of gold and silver in its first year and 80,000 ounces per year in the rest of its five-year projected life.

Troy Resources acquired Casposo from Intrepid Mines IXN.TO in May. The mid-sized miner, formed in 1987, also has two mines in Brazil and plans to continue investing in South America.

"We have been looking at other projects in Argentina for a number of years but they are not for sale. But we keep looking and this year and in following years we would spend a lot of money on exploration, particularly around the mine site," Nilsson said.

He said the company's Sandstone mine in Australia will stop producing in the next 12 to 18 months, so getting Casposo up and running soon is important.

[JBmurc]

New Inferred Resource – Two Mile Hill Prospect Sandstone
Western Australia
Highlights
 An Inferred Mineral Resource of 10,541,000t grading 1.3g/t (grams per tonne)
gold for 452,000oz contained gold has been estimated for the Two Mile Hill
tonalite gold mineralisation
COMMENTARY
Commenting on the results Troy’s CEO, Paul Benson, said: “At over 450,000 oz this is a
significant resource and although low-grade, the geometry of the intrusive is such that it
could be amenable to low-cost high-tonnage mining methods. However, it’s the recent
discovery of high-grade gold mineralisation in the adjacent Banded Iron Formation (BIF),
announced on July 16th, but not included in this resource number, that makes this really
interesting.
We are currently planning a Phase 3 exploration program to test the extent of the high-grade
BIF mineralisation. If we can prove up sufficient high-grade it’s easy to see a concept where
a decline is mined through the tonalite to access the BIF horizon. With an existing operation
and workforce, a permitted site and development in mineralised tonalite, the tonnage
required to make a viable operation is significantly less than for a standalone greenfields
operation.
Sandstone has never had much more than 3 years forecast mine life ahead of it, yet it is
about to mark its 10th anniversary as a Troy operation. It’s been an outstanding performer for
the company and obviously we’re hoping that Two Mile Hill can play a part in extending
production well into the next decade. All going well we should be in a position to evaluate the
Phase 3 results early in the December quarter”.

[JBmurc]

Troy Declares 10th Consecutive Fully Franked Dividend
Highlights
 Dividend of 4.0 Australian cents per share fully franked.
PERTH, Western Australia: Growing junior gold producer, Troy Resources NL (“Troy”)
(TSX: TRY, ASX: TRY) today announced it will pay a fully franked final dividend of 4
Australian cents per share out of profits for the year ended 30 June 2009. The Company is
expecting to report an audited net profit after income tax, for the year ended 30 June 2009,
approximating AUD 16 million. The record date for the dividend is close of trading on Friday
21 August, 2009 and the payment date is Friday 4 September, 2009.
Commenting on the announcement Troy’s CEO, Paul Benson said: “This is Troy’s
tenth consecutive fully franked dividend which is an amazing record for a junior gold
producer. The dividend of 4 cents per share represents a yield of 2.3% on Friday’s
closing share price. The 2009 financial year was certainly one of building the
foundations for the profitable growth of the company which will allow us to continue
paying dividends in the future.”
ENDS

[JBmurc]

Troy Resources Finds A Princess Among The Frogs, As It Moves Towards Production Of 120,000 Ounces Of Gold Per Year

By Rob Davies / www.minesite.com

Few junior miners could have been better placed for the crash last year than Troy Resources. Troy banked A$48m in cash in July 2008 after selling its stake in Canadian junior Comaplex Minerals to Agnico-Eagle. So you might think that in the context of what followed the market would have rewarded a company that was cashed up and had two producing gold mines. Wrong.

At one point last year Troy was trading at A$67 cents, well below the value of the cash it had on the balance sheet. These days the equity is trading at a more reasonable A$1.95 giving Troy a market capitalisation of A$144 million. Some of that change in valuation is due to a firmer market, but it is mostly down to the company’s judicious purchase of the Casposo gold-silver project In Argentina for US$20 million in May this year from Intrepid Mines.

Troy undertook a long search before it found the right acquisition, and chief executive Paul Benson admits to kissing a lot of frogs before finding the right one.
But as he was out shopping, what he found interesting was that companies that in the past had declined to allow Troy past the coffee machine were now all over them. And by the time Troy had run its slide rule over the properties that were now on offer, it was troy that was the one saying “Adios”. In the end the choice of a deposit in Argentina might surprise some. However, Paul defends it by saying that it is in the mining-friendly province of San Juan, and is just down the road from Barrick’s Pascua Lama mine.

Moreover, Troy has experience of operating in South America, through its Andorhinas gold mine in Brazil. It was declining output from a combination of Andorhinas and from the Sandstone project in Australia that lead to Troy undertaking the 18 month search for a new mine all round the world. Paul admits that the company spent a lot of time in West Africa. The problem there though, he continues, is that compared to South America the lack of infrastructure meant that mine development would be slower and more expensive.

Troy acquired Casposo at a valuation of US$48 per resource ounce on a gold equivalent basis and then immediately set about recalculating the resource statement using existing drill data that hadn’t yet been incorporated into the existing totals. As it stands now, Casposo has a a gold reserve of 287,000 ounces, a silver reserve of seven million ounces, a gold resource of 444,000 ounces, and a silver resource of 17 million ounces, which on a gold equivalent resource ounce basis equates to an even lower acquisition valuation of US$36 per ounce. The previous AMEC feasibility study on Casposo is the one being used to construct the mine and Paul sees no need to change that at this stage, so there won’t be any change to reserves just yet either.

Right now his challenge is to shift the two million tonnes per year process plant that’s currently sitting in an Australian shed out to Argentina. The first concrete pour will start in a few weeks, and the plant will be shipped in October. The mine plan calls for first production during the September quarter of 2010. Output in year one will be 58,000 ounces of gold, and half a million ounces of silver.

Adding that to the existing production from Sandstone and Andorhinas takes group output up to over 120,000 ounces per year. At that level, Troy’s production would be its highest ever. Although the forecasts project a decline from then on, Paul is confident that the recent resource increases at both Troy’s existing mines will enable current production rates to be sustained for longer.

Total gold resources for the group now stand at over 1.5 million ounces, another record for the group. One area in particular Paul is enthusiastic about is Two Mile Hill at Sandstone, where recent drill testing revealed several good intersections, including one of 13.7 metres at 25.9 grammes per tonne.

A deposit in Argentina and a plant in a shed in Australia isn’t much use until they are mated. That, and finishing the rest of the construction, will cost another US$45 million. While that total is a lot less than the original estimate of US$86 million that appeared in the AMEC report it will take all the company’s existing cash of A$35 million - and a bit.

The lesson from last year, though, is that the market wants miners to own mines, not cash. Troy has delivered on that by converting its cash into gold in the ground. Once it has built the plant in Argentina it can complete the circle by turning the gold back into cash, a lot more cash. That’s what we call adding value.

[JBmurc]

Troy Announces a Profit of A$16.7 Million and Builds the
Foundation for Future Growth
Highlights:
 Net profit after tax of A$16.7 million
 Pays 10th consecutive fully-franked cash dividend. FY2009 4 cents per share
 53% increase in gold production to 61,832 ounces
 Acquired the Casposo gold/silver deposit in Argentina
 32% increase in the Casposo Mineral Resource
 Commenced production from the high grade Mamão underground mine at the
Andorinhas operation in Brazil
 The Sandstone mine which was due to close in February 2009, will now continue
production through at least July 2010 with the mining of additional ore
(30,000oz) from a cut back to the pit at the Lord Nelson deposit
 Discovery of high-grade mineralisation at the Two Mile Hill prospect at
Sandstone, Western Australia including an intercept of 13.7m at 25.98g/t Au
 96% increase in gold Reserves to 539,500oz, a 60% increase in Measured and
Indicated gold Resources to 893,400oz and a 240% increase in Indicated
Resources to 648,400oz
 Maiden silver Reserves of 6.7 million ounces and silver Indicated Resources of
15.4 million ounces
 Cash reserves of over A$35 million
 Unhedged gold and silver position
 Debt free
PERTH, Western Australia: Growing junior gold producer, Troy Resources NL
(TSX/ASX: TRY) today announced a profit of $16.7m for the financial year ended 30 June
2009. This result compares to a loss $17.6m in FY 2008.

[JBmurc]

Well been enjoying the TRY ride not in any hurry to get off either current S/P- 2.38could have brought a truck load back when I first started the thread 1.30's

will sell some once north of $3

[JBmurc]

I mean shouldn't LOL very tightly held blue chip jnr mining could well raise the total amount through a rights issue just include some free $3ex opts

Gold at $1015 TRY's forward production costs $90-100per oz of gold thanks to the silver credits now with once TRY have their third gold mine in production TRY should be producing over 100,000oz of GOLD 2011yr
Now if you like myself believe gold will be trading north of $1500 by 2011 TRY should stand to have a massive nett profit over 100mill+ so even if TRY have say 100mill shares outstanding TRY should well command an SP of $8-$10 as well as paying a great divie to buyers of now..


2 October 2009
Dear Fellow Shareholder
TROY RESOURCES UPDATE
Notice of Shareholder Meeting
As you are aware, the Company received, on 25 September, a 249D notice from Warrigal Pty Ltd,
(a 9.63% shareholder in the Company associated with Mr John Jones, a Non-Executive Director in
the Company).
Mr Jones, through his company, Warrigal Pty Ltd, is requisitioning a meeting of shareholders to:
 Remove Mr Paul Benson, the current CEO of the Company, as a Director
 Remove Mr Alan Naylor, the founding shareholder and a Director of the Company since 1984,
as a Director
 Remove Dr Denis Clarke, the Chair of the Company’s Audit Committee and a Director of the
company since 1999, as a Director
And replace them with:
 Mr Peter Stern, an advisor to Mr Jones
 Mr Robin Parish, and
 Mr Andrew Barclay
The Board has formed a sub-committee to guide the Company’s response to the above
requisitions.
It is anticipated that a general meeting will be held towards the end of November, most likely on the
same day as the Company’s Annual General Meeting. An explanatory booklet will be sent to
shareholders ahead of this general meeting, and each director to whom the 249D notice relates,
along with Warrigal Pty Ltd’s proposed nominees to the Company’s board, will be asked to provide
details for the booklet, to assist shareholders in making a decision.
Casposo Project
The 249D notice came at a time when the Company was finalising its evaluation of a range of
capital raising alternatives to secure the balance of funding required to complete construction of the
Casposo Gold Project (Casposo) in San Juan Province Argentina.
There has been some media commentary on the funding of Casposo. In light of that, I thought it
would be useful to recap the Company’s recent progress regarding this project.
After finalising the acquisition of Casposo in May 2008, Troy set about recalculating the Casposo
Mineral Resource to incorporate data from 61 new diamond drill holes completed by the previous
owners, Intrepid Mines Limited which had not been incorporated into their published resource
numbers.
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
The new calculations resulted in a 32% increase in contained gold equivalent Indicated Resource
ounces as was announced to the market on 29 July.
On 5 August 2009, a capital cost revision was completed for Casposo to produce a revised
estimate of US$45 million to develop the project to first production. The revised estimate
represents a 47% or US$41million reduction on the capital cost estimate previously announced by
Intrepid.
The capital savings were realised from utilisation of existing near-new plant, which had been held
in storage in Cobar, NSW and bringing the project management in-house utilising Troy’s existing
capacity and expertise in South America, resulting in a significant decrease in costs over using an
EPCM contractor.
This work led to a significant improvement in project economics and on 6 August the Board
authorised the commencement of construction at Casposo. First gold production is planned for the
September quarter 2010.
The Board is continuing to work through the best ways to fund Casposo. It is anticipated that
funding will now be required by the end of 2009, in light of, among other things, advantageous
pricing of certain capital items if they are acquired now.
As a first step in obtaining that funding, the Company’s partly paid shares have been called, to
raise $1,946,418 by 23 October 2009.
The Board continues to evaluate the best way to raise the balance of the capital required to ensure
timely completion of construction and will keep shareholders informed.
Financial Results
I would also like to take this opportunity to inform shareholders that the Company’s full year
statutory accounts for 2009 were released to the ASX on 30 September 2009, and are available for
your review on the ASX website.
ASX 300
We were pleased that on 18 September 2009 the Company joined the ranks of Australia’s top 300
companies with its admission to the ASX300.
Further announcements will be made as and when updated information becomes available.
In the interim, please do not hesitate to contact me on shareholders@troyres.com.au or visit
Troy’s website www.try.com.au should you require any further information.

[Corporate]

JB..have you taken a loook at DRA?

[JBmurc]

JB..have you taken a loook at DRA?

Na not yet you should do post some of your research on DRA -reserves,grades,cash,marketcap,managerment class,past history etc

PRESS RELEASE
9 October 2009
CASPOSO PROJECT UPDATE
HIGHLIGHTS
 Site excavation and pre-construction site preparation completed
 Government approval secured to commence plant construction
 Concrete work underway – leach tanks 30% complete
 On site access roadwork completed
 Site fencing completed
 Project well supported by local community and Argentinean Government
 Transport of stored plant components from NSW on schedule to arrive at Zarate
Port in December 2009
 Brownfields exploration of near-mine targets ongoing
Perth, Western Australia: Growing junior gold producer, Troy Resources NL (TSX, ASX:
TRY) is pleased to update the market on the progress of its Casposo gold-silver project
(Casposo) in San Juan province, Argentina.
Troy’s Chairman, John Dow reiterated Casposo’s significance to the continued delivery of
value to its shareholders.
“Casposo is the cornerstone of the Company’s near term growth plans. When the project
comes online, Troy will again be producing more than 100 000 ounces per annum, bringing
us closer to our vision of becoming a profitable mid-tier gold producer.
“The project remains on schedule and within budget, with site work progressing rapidly. It is
very exciting to see the transformation from an exploration camp to a producing mine.
Already the size and scope of the infrastructure is evident.
“It’s all coming together very nicely under the management of Troy’s Executive Director Ken
Nilsson. Ken has a proven track record as a mine builder, and we remain confident in our
ability to build and commission Casposo safely, quickly and at low cost.
“The Board continues to work through the funding for Casposo, and is confident in meeting
forecast first production in the September quarter of 2010, provided that project funding is
finalised before the end of the calendar year.”

[JBmurc]

Current TRY SP-$2.75
The way the SP has gone of late TRY could have raised the lot though shareholders these $2 rights are very sort after can't wait to get my lot

INFORMATION FOR SHAREHOLDERS PRO-RATA NON-RENOUNCEABLE ENTITLEMENTS ISSUE
As you may be aware, the Company will shortly be offering to you an opportunity to acquire more shares in the Company pursuant to a pro-rata non-renounceable entitlements issue to shareholders of ordinary fully paid shares ("Shares") on the basis of one (1) Share for every six (6) Shares held by you at 5.00pm WST on 12 November 2009, at an issue price of $2.00 per Share, to raise approximately $24.9 million ("Entitlements Issue"). This offer will be made pursuant to an offer document ("Offer Document") and if you wish to participate in the Entitlements Issue, you will need to complete the Entitlement and Acceptance Form that will accompany that Offer Document.
A copy of the Offer Document will be lodged with ASX on 17 November 2009 and will available on the ASX website (www.asx.com.au) and the Company's website (www.troyres.com.au) on that date. The Offer Document will be despatched to persons holding shares as at the record date of 12 November 2009.
Pursuant to the Listing Rules of the ASX Limited (“Listing Rules”), the Company is required to provide to you certain information before proceeding with the Entitlements Issue. This letter contains all the information required by Appendix 3B of the Listing Rules.
1. A maximum of 12,449,790 Shares will be issued pursuant to the Entitlements Issue (assuming no existing options are exercised).
2. The Shares rank equally in all respects from the date of allotment with the existing class of quoted Shares.
3. The issue price of the Shares will be $2.00 each.
4. The Company will apply for quotation of the Shares issued pursuant to the Entitlements Issue on the official list of the ASX.
5. The funds raised by the Entitlements Issue will be used for construction activities at the Casposo Project in Argentina.
6. It is anticipated the securities will be entered into uncertificated holdings or dispatch of certificates on 7 December 2009.
7. The total number and class of all securities quoted on ASX (including the maximum number of Shares to be issued in the Entitlements Issue on an undiluted basis – ie. assuming none of the Company's options are exercised) is as follows:
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
Class
Number
Ordinary shares
74,698,744
Entitlements Issue
12,449,790
TOTAL
87,148,534

[JBmurc]

SULPHIDATION EPITHERMAL PROJECT LOCATED 22KM NORTH OF THE CASPOSO
MINE, SAN JUAN PROVINCE, ARGENTINA
HIGHLIGHTS
 Troy secures deal to acquire the historic Castaño Nuevo high grade, low
sulphidation epithermal gold -silver vein project located 22km to the northeast
of the Casposo Mine.
 Troy has entered into an earn-in option agreement with the owners of the
Castaño Nuevo Property whereby Troy can earn a 100% interest in the project
through a series of staged cash payments and in-ground exploration
expenditures totaling USD$1.1M over 4 years. The project is one of the best
outcropping, low sulphidation epithermal vein occurrences in the Casposo
District outside Troy’s existing tenements and within trucking distance of the
Casposo Mill.
PERTH, Western Australia: Troy Resources NL (“Troy”) (TSX: TRY, ASX: TRY) is
pleased to announce that it has entered into an earn-in option agreement with the owners of
the Castaño Nuevo Property whereby Troy can earn a 100% interest in the project through
a series of staged cash payments and in-ground exploration expenditures totalling
USD$1.1M over a 4 year period. Troy’s first year commitment includes in-ground exploration
expenditure of US$100,000 as well as cash payments totaling US$100,000.
Commenting on the deal Troy’s CEO, Paul Benson, said: “This is an exciting and
significant step as it is Troy’s first exploration play in Argentina outside of the
Casposo leases. Importantly, with its close proximity to Casposo, we can leverage our
infrastructure and local knowledge to quickly assess the project’s potential.
“With this deal we have secured the rights to explore and develop the Castaño Nuevo
Project which, in our view, represents one of the best outcropping low-sulphidation
epithermal vein occurrences in the Casposo district outside our existing tenements.
Being within trucking distance of our Casposo Mill, the project has potential as a
satellite ore source to supplement our current Resource and Reserve inventory and
extend the Casposo Life of Mine production.
“Exploration will commence in early 2010 with a detailed geological mapping and rock
sampling program that will be followed by drilling later in the year”.
The Castaño Nuevo Property comprises a series outcropping, gold and silver bearing low
sulphidation epithermal quartz-amethyst-adularia veins which were first discovered in 1885.
This historic high grade gold-silver vein district is located 22km to the northeast; about 45km
by road from Troy’s Casposo plant site (see Figure 1).
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
Figure 1: Project Location Plan Casposo Mine and Castaño Nuevo Property
CASTAÑO NUEVO PROPERTY
During the late 1800s the Dios Protege, San Antonio, Andacollo, San Pedro and San
Agustín Mines, were operated by the London Registered Rio Del Oro Mining Company. A
1914 Argentina government Census report noted that the site saw continuous production
over a 20 year period through 1914 and in 1909, 2200 tons of ore were treated, which
produced 62,693g of gold (2,106oz gold) and 381,222g of silver (12,256oz silver), giving
an average of 28 gold grams (recovered) per ton.
3
The most recent exploration in the area was undertaken between 1997 and 2005 by two
junior explorers. Both programs included geological mapping, rock sampling, geophysical
surveys (magnetics and Induced Polarization) as well as limited shallow drilling.
Like Casposo to the south, the Castaño Nuevo Project is situated within a northwest –
southeast trending regional structural corridor. The low sulphidation vein system is
genetically very similar to the Casposo Deposit (see Photos 1 and Photo 2).
At surface the veins, with the exception of the main historic producer (Dios Protege), are
narrow (<1.5m) and low grade (2g/t gold) but historic surface rock grab sampling has
produced values of up to 30g/t gold and 50g/t silver. The veins form a north trending open
fan pattern over strike lengths of up to 700m, with vein widths ranging from 1m up to 5m.
This vein system is hosted in propylitic altered and locally silicified andesite. The veins have
been dated at 265Ma, which is about 15Ma younger than the Casposo veins.

[Huang Chung]

JB

A hint of some positive news regarding TRY's nickel JV with Western Areas at Sandstone, in today's release from WSA.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01028323

[JBmurc]

JB

A hint of some positive news regarding TRY's nickel JV with Western Areas at Sandstone, in today's release from WSA.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01028323

yeah now thats out of left feild also I here TRY have a nice wee Iron ore discovery with a low start-up costs also sitting in the back round ....I was more than happy to invest just with their GOLD an SILVER mines an permits the extra kicker to send TRY upwards to $3+ in 2010

[JBmurc]

TROY FINANCING UPDATE
HIGHLIGHTS
 Following a competitive process, Troy Resources NL has signed a mandate with
Investec Bank (Australia) Limited to provide a A$25m Revolving Corporate Debt
Facility.
 With existing cash reserves, including the recent equity raising, the Casposo gold
and silver project in Argentina is now fully funded to first production in the
September quarter 2010.
 The Facility has two Tranches. Tranche A of A$15m will fund construction of
Casposo. Tranche B of A$10m is available for a combination of Casposo
development and for general corporate purposes. The intention is that these funds
will primarily be used for an accelerated exploration program of the Casposo and
Castaño Nuevo leases to build the Company’s gold and silver Reserves and
Resources.
 The facility requires no gold or silver price hedging leaving Troy shareholders fully
exposed to the underlying commodity prices.
 The facility includes the issuance of options to Investec with an exercise price at a
30% premium to the Troy share price.
 Loan Maturity is 3 years.
Perth, Western Australia: Growing junior gold producer, Troy Resources NL (TSX, ASX:
TRY) today reported it has signed a mandate with Investec Bank (Australia) Limited
(Investec) to provide an A$25m Revolving Corporate Debt Facility. The Facility is provided in
two tranches. Tranche A for the amount of A$15m has already received Investec Credit
Approval and will be available for drawing when the loan documentation is finalised,
currently expected in March 2010. Tranche A is intended to provide the balance of funding to
finalise construction of the Casposo gold and silver mine in Argentina.
Tranche B for the amount of A$10m is subject to Investec’s due diligence review and final
credit approval which is expected in May 2010. For clarity, the availability of Tranche A is not
impacted by the availability of Tranche B. Although the funding from Tranche B is intended
for general corporate purposes it is expected that it will primarily be directed to funding an
accelerated exploration program of the Casposo and Castaño Nuevo leases to build the
Company’s gold and silver Reserves and Resources, with a view to extending the Casposo
mine life.
Part of the cost of the loan facility includes the granting of call options over Troy ordinary
shares to Investec (subject to the standard approval of the Toronto Stock Exchange). The
volume of the shares will be equivalent to A$3m for Tranche A and A$2m for Tranche B. The
exercise price for these options will be a 30% premium over the relevant 90 day VWAP
(volume weighted average share price):
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
 Tranche A exercise price - $3.15/share
 Tranche B exercise price - to be calculated on the date Investec advises Troy that
Tranche B is credit approved
The term of the loan is 3 years and no mandatory gold or silver price hedging is involved.
Finalisation of the loan is subject to standard conditions precedent and completion of
documentation.
The acceptance of Investec’s offer followed a rigorous and competitive selection process
undertaken with the assistance of Optimum Capital.
Commenting on today’s announcement, Troy’s CEO Paul Benson said: “Casposo plays a
significant role in Troy’s strategy to become a profitable mid-tier gold company. In this
context, securing the debt facility to finalise construction funding is a very important company
milestone. With full funding in place, Ken Nilsson, Troy’s Executive Director Operations, can
focus on bringing Casposo into production. We remain on track to pour first gold in the
September quarter of 2010.
“Importantly the facility includes a second Tranche of A$10m (Tranche B) that puts Troy in
the position to continue to look at and evaluate new gold projects. With the additional
funding in place, acquisitions are very much on the agenda along with accelerated
exploration programmes testing the potential of the Casposo leases and the nearby Castaño
Nuevo Joint Venture. We are very excited by the geological prospectivity of the leases and
are confident that we will be able to add significantly to the existing gold and silver Reserves
and Resources over the coming twenty four months, with a view to extending the Casposo
mine life.
“Based on the significant free cashflow forecast from Casposo, our expectation is that any
debt drawn-down will be repaid expeditiously. Any repayments ahead of schedule can be
redrawn for corporate acquisitions or project developments.
“We reached agreement with Investec following an exhaustive and rigorous competitive
process. Of importance for Troy shareholders, the facility does not require mandatory gold or
silver price hedging. Also, part of the fees payable is in the form of call options over Troy
stock. The exercise price of these options is at a 30% premium to the relevant Troy share
price; and a significant appreciation in the Troy share price would presumably be necessary
before these options are exercised.”

[JBmurc]

TRY - looking at buying more into this A grade Goldie hoping for a pullback in gold an some sellers to push closer to $2 for me to top up

-from recent presentation-

How Does Troy Measure Up?
 Troy has a track record of low cost mine development and
production
 We focus on low-capex relatively high-grade gold deposits in
jurisdictions we are comfortable operating in
− Sandstone, WA
− Sertao, Brazil
− Andorinhas, Brazil
− Casposo, Argentina
 Troy has paid A$30.5M in ten consecutive fully franked cash
dividends
 Troy has been operating in South America since 2002 and
Casposo will be the 3rd mine we have built and operated there.

-TRY third mine to open sept 2010-

 All major permits in place
 Site civil and earthworks commenced
 Tanks manufactured locally have begun arriving on site
 Gold processing plant held in storage in Australia was shipped to
Argentina in December 2009
 Other pieces of plant purchased in Canada, Australia, Germany and
the USA
 Although still in the early stages of project development, Troy expects
Casposo to be:
 On schedule (first production September quarter 2010); and
 Under budget (US$41.5M capital spend to first production

-TRY 2011 target is 100,000oz+ gold pa for many years as their in the right place to increase reserves
with there 3 mines forward costs ranging from-$90-$450-$550per oz US (yes I know want your thinking major$$$$$$ thanks to the silver credit costs are very low if silver goes even higher TRY could well be producing gold for free at their new casposo mine opt sept)

-now at current gold prices AUD where taking about some serious profits here

Now with a market cap of only 190mill AUD- no dept - a history of paying SH's divies-a very bright 100-200 mill dollar income future is TRY has very few peers in the same league.


TRY could well command a $10 sp within the decade IMHO as well as pay a large yield to smart holders-they'll need a large reserve base ,high gold price,low costs,smart management



-With the IMF looking at selling another 190t of real hard currency for USD just like last time when gold was 1040 an then went to 1200+ I really think we could see another buyer or buyer's fight to exit their USD for the gold -China for one will be hoping to see the Gold price reduce closer to 1000 so they get a good price on the sale if say the buyers front up closer or higher than current prices I really think gold will fly like last time $1300-$1400

-The final Pillar in the gold bull market is a bear market in US Treasuries.

The increase in the discount rate to 0.75% is driven by market realities and a desire to be able to sell US Treasuries as foreign demand falls off.

The bull market in gold moved from $400 to $887.50 in the 1970s as interest rates rose from 3% to 14 7.8% on Ten Year money.

Once again the knee jerk reaction is to sell gold and buy the dollar. Be assured this must happen.

Because the final Pillar is falling while Gold is over $1000, you can look at Armstrong's $5000 prediction as a realistic possibility.

Stay the course.

Respectfully,
Jim

[Corporate]

JB - are you sure about that cash cost?

[shasta]

JB - are you sure about that cash cost?

Here's the cash costs for FY09

http://www.try.com.au/default.aspx?MenuID=18

This doesn't take into account the silver credits, that i can see?

Total production/cash costs to date

http://www.try.com.au/default.aspx?MenuID=20

[JBmurc]

JB - are you sure about that cash cost?

yeah sorry only for their 3rd mine $90 an ounce is the expected cost of gold production from TRY's recently acquired Casposo Gold/Silver Project thats at a 60:1 gold : silver ratio (geo's believe at the most there's round 7 times more silver than gold left the long term ratio is average round 14:1)so if silver increases more than gold TRY costs at casposo will decrease with the silver cashflows increasing

Also Casposo which is the mine I was focused on will produce 98,000oz Equivalent Gold in it's second year or 80,000oz of just gold so you can see it's going make a major dent in costs of their next 3 yrs of gold/silver production

I really believe TRY will find more gold reserves in close to their operation's in turn keeping production above 100k for many years to come

[JBmurc]

Troy believes that the Andorinhas Iron Ore Project has the potential to develop into a profitable operating mine with limited capital expenditure required. Troy is already operating an open pit at Lagoa Seca (10km) and underground mine and processing plant at Mamao (2km) from the iron ore target areas. Thus it has personnel and facilities in place to commence mining quickly if a positive outcome is received from the Pre Feasibility Study and when appropriate statutory approvals are received. Capital costs for the construction of an on-site screening plant are currently being assessed. Approaches to domestic iron ore smelters have been made and discussions for an off-take agreement have commenced.

Troy CEO Paul Benson said, "We are pleased with these sampling results which highlight the high grade nature of the iron ore and are increasingly confident that Troy will soon be developing a second mining operation at Andorinhas that has the potential to significantly enhance the profitability of the site and the value of the Company."

"We need to wait until we complete the Resource Statement, Pre Feasibility Study, receive the appropriate permits and sign off-take agreements, but so far everything is on track to enable the Troy Board to consider the investment decision this calendar year."

"The Pre Feasibility Study is still looking at an initial production rate in the range of 500,000 to 1 million tonnes per year. Because this is a very simple operation, free digging and screening, and because of the synergies with the gold operation, the capital costs should be very low by current market standards. We still see capital in the order of US$5 million. The final number will be dependent on what we do in-house and what we contract out."

"This is an exciting project for the loyal Troy shareholders who have stood by the Company."


from what I've found it was cancelled due to the 2008 GFC -but isn't iron ore looking bullish again BHP etc planning on higher sales prices

talk was of a 5mill setup cost for a 10c+ per share return pa -

[shasta]

Some bad news for Troy

http://www.theaustralian.com.au/business/mining-energy/armed-robbers-steal-gold-troy-resources/story-e6frg9do-1225833516731

2,000 ounces of Gold stolen....

[Huang Chung]

Would have to get the award for the most unusual announcement of the day :).

[Corporate]

TRY's cash costs can't be that great JB. For the half year ended 31 December they made a gross profit of $1.2m (4% GP) and a loss for the 6 months of $5.5m.

Take a look at DRA.

[JBmurc]

TRY's cash costs can't be that great JB. For the half year ended 31 December they made a gross profit of $1.2m (4% GP) and a loss for the 6 months of $5.5m.

Take a look at DRA.

forward costs Corp --will prob go no-where for awhile till they announce profits or increase in reserves which I believe they will soon.
investing longer term in TRY with the new silver/gold mine an history of returning cash to shareholders a major reason why I will continue to hold

The result was achieved after allowing A$3.7m for exploration expenditure (2008: A$3.9m)
and A$6.6m for amortisation and depreciation (2008: A$5.7m). It is important to note that
Troy has an aggressive exploration program aimed at increasing reserves and resources
and nearly all of this exploration expenditure is expensed.
At the end of December 2009, Troy had available cash and bullion valued at more than
A$40m. This, together with the A$25m debt facility to be provided by Investec Bank as
announced in February 2010, is sufficient to complete construction and commissioning of the
Casposo gold and silver project in Argentina and to aggressively explore the Casposo and
nearby Castaño Nuevo leases.
Casposo remains on track to pour first gold in the September quarter 2010. The Sandstone
operation is scheduled to close in the June quarter 2010. The site will move to care and
maintenance while we evaluate exploration results due to be completed in the March
quarter.
Commenting on the results Troy CEO Paul Benson said: “Reporting a loss is always
disappointing although this result was largely impacted by delayed gold sales in Brazil
through the December 31 balance date. The profit on these sales of approximately A$2.5m,
realised in January, 2010, will now be recorded in the June half.
“At an operating level the result was largely in line with the previous corresponding period
but the final result in the 2008 half benefited from the A$21m profit from the sale of the
Company’s interest in Comaplex.
“We fully expect to return to profitability in FY2011 with the commissioning of the Casposo
gold and silver project in Argentina.

[shasta]

forward costs Corp --will prob go no-where for awhile till they announce profits or increase in reserves which I believe they will soon.
investing longer term in TRY with the new silver/gold mine an history of returning cash to shareholders a major reason why I will continue to hold

The result was achieved after allowing A$3.7m for exploration expenditure (2008: A$3.9m)
and A$6.6m for amortisation and depreciation (2008: A$5.7m). It is important to note that
Troy has an aggressive exploration program aimed at increasing reserves and resources
and nearly all of this exploration expenditure is expensed.
At the end of December 2009, Troy had available cash and bullion valued at more than
A$40m. This, together with the A$25m debt facility to be provided by Investec Bank as
announced in February 2010, is sufficient to complete construction and commissioning of the
Casposo gold and silver project in Argentina and to aggressively explore the Casposo and
nearby Castaño Nuevo leases.
Casposo remains on track to pour first gold in the September quarter 2010. The Sandstone
operation is scheduled to close in the June quarter 2010. The site will move to care and
maintenance while we evaluate exploration results due to be completed in the March
quarter.
Commenting on the results Troy CEO Paul Benson said: “Reporting a loss is always
disappointing although this result was largely impacted by delayed gold sales in Brazil
through the December 31 balance date. The profit on these sales of approximately A$2.5m,
realised in January, 2010, will now be recorded in the June half.
“At an operating level the result was largely in line with the previous corresponding period
but the final result in the 2008 half benefited from the A$21m profit from the sale of the
Company’s interest in Comaplex.
“We fully expect to return to profitability in FY2011 with the commissioning of the Casposo
gold and silver project in Argentina.

TRY - Casposo Updated Mining Reserve & Production schedule

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490397

AVERAGE CASH COSTS AFTER SILVER CREDITS OF $US120/oz

Capex approx ~$US86m (payback 1 year), Troy now estimate this to be down to $US41.5m

IRR = 74.8%, for the 5 -6 year production totalling 320k/oz Au & 9m/oz Ag

Generating good cashflows, & leveraged nicely to the price of gold & silver

I'm watching this gold/silver play closely

Disc: Nil held

[shasta]

TRY - Casposo Updated Mining Reserve & Production schedule

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490397

AVERAGE CASH COSTS AFTER SILVER CREDITS OF $US120/oz

Capex approx ~$US86m (payback 1 year), Troy now estimate this to be down to $US41.5m

IRR = 74.8%, for the 5 -6 year production totalling 320k/oz Au & 9m/oz Ag

Generating good cashflows, & leveraged nicely to the price of gold & silver

I'm watching this gold/silver play closely

Disc: Nil held


TRY - Casposo Financing Complete

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490862

1st Tranch of funding received $15m (out of $25m)

With Casposo due for production Q3 2010, this money will make sure it's all ready to go.

3 year term for the total $25m loan, & no hedging obligations is great for TRY who should easily be able to repay the loan.

[shasta]

TRY - Casposo Financing Complete

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490862

1st Tranch of funding received $15m (out of $25m)

With Casposo due for production Q3 2010, this money will make sure it's all ready to go.

3 year term for the total $25m loan, & no hedging obligations is great for TRY who should easily be able to repay the loan.

TRY closed up 22c to $2.86 (near to the intra-day high) on slightly higher than usual volume, no anns out?

The other goldie i'm following GDO was up 12.5% today (up 3.5c to 31.5c)

TRY Chart looking good too...

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=TRY

[shasta]

TRY closed up 22c to $2.86 (near to the intra-day high) on slightly higher than usual volume, no anns out?

The other goldie i'm following GDO was up 12.5% today (up 3.5c to 31.5c)

TRY Chart looking good too...

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=TRY

TRY - Presentation at the Goldman Sachs JBWere Micro Cap Conference

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=492658

I still prefer GDO in the Gold sector, but TRY's low cash costs & silver credits makes it a close 2nd

[Huang Chung]

Sale of Andorinhas Iron Ore:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01083064

[shasta]

Sale of Andorinhas Iron Ore:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01083064

Seems to be a very favourable sale for Troy, i like the earn out clauses to boost the total payments, given the $4m is spread over 360 days

[asc4]

Looks to be following the US Gold Price at the mo. So much potential with the silver credits here. Still waiting on first pour at casposo. Dividend and exploration results should come closer to the end of year.

Anyone got thoughts on this?

It seems the market has barely priced in Casposo as a low cost 90,000oz/yr prospect, with production imminent.
Is it a sovereign risk issue with 2 mines in South America?

[JBmurc]

TRY-my fav safe jnr gold producer now I don't think it will double in the short like ARD,SVL,ARV etc can but mid term TRY has a great path to growth an should re-rate many $ higher over the next few years as well as pay a divie

Buy if you want a solid producer linked to the Gold/Silver price with little downside (as long as GOLD etc stays strong)

[COLIN]

A quiet achiever, which has stirred a bit today following a favourable view in "Diggers and Drillers" - suggesting 30% above then level. Might be tempted to add to my holding (should have done that before telling you guys!).

Cheers.

[shasta]

A quiet achiever, which has stirred a bit today following a favourable view in "Diggers and Drillers" - suggesting 30% above then level. Might be tempted to add to my holding (should have done that before telling you guys!).

Cheers.

The chart i posted earlier in the thread suggests somethings in the wind today, up 42c (~11%) to $4.12 at the mo

[COLIN]

The chart i posted earlier in the thread suggests somethings in the wind today, up 42c (~11%) to $4.12 at the mo

I take it that you might have changed your mind, Shasta, as to the merits of TRY versus GDO (your post of 28/5/10)!

[Entrep]

been looking at GDO lately too - can't work out the pull back yesterday though?

[JBmurc]

TRY been a great investment glad my mate listen to me back in 09 when I got him to buy 41,000 TRY at 1.28 today $4.72 plus divies ea year a great hold...
I sure many others been happy to keep holding this strong jnr goldie

[Joshuatree]

Great advice to your mate JB. The better quality, cream goldies like TRY (i hold)have started moving ,playing catchup to the goldprice.Smaller developing ones will follow,like EVG (my biggest holding).Being long gold in a global economy where there is no quick fix a profitable strategy methinks.Cheers

[JBmurc]

TROY BREAKING RECORDS AND DECLARING 13TH FULLY FRANKED CASH DIVIDEND
HIGHLIGHTS FOR FY2012
• Record Profit after Tax up 115% to A$31.4 million • Record Revenue up 104% to A$208.6 million • Record Gold Equivalent Production up 79% to 137,457 ounces
• Record Exploration Spend up 87% to $16.5 million resulting in a record drilling total of 64,024 metres – an all-time high for the Company of which 45,322 metres were drilled at Casposo in Argentina
• Net cash of $40.9 million compared to net debt of $5.5 million at the previous year end, even after paying $4.7 million in dividends, $16.5 million in exploration and $16.5 million in capital investment
• Declares a final fully franked cash dividend of 10 cents per share, an increase of 67% over the last dividend
Perth, Western Australia: Growing junior low cost gold producer, Troy Resources Limited (ASX, TSX: TRY) today announced a record profit of A$31.4m for the financial year ended 30 June 2012, a 115% increase on the FY2011 profit of $14.6m. The profit increase was primarily driven by a 79% increase in gold equivalent production to 137,457 ounces. The Company has declared a final fully franked cash dividend of 10 cents per share which represents a 67% increase over the FY2011 final dividend. The record date for the dividend is 14 September, 2012 and payment date is 19 October 2012. The current dividend reinvestment plan will operate for this dividend. Further details on the plan are provided below.
Commenting on the results, Troy’s CEO, Paul Benson said: “It is very pleasing to report so many new records; record production, record revenue, and record profit. With both Casposo and Andorinhas performing well, production in gold-equivalent terms was up 79% to 137,457 ounces lifting revenue 104% to $208.6 million generating a profit after tax of $31.4 million, up 115% from last year.
“With the increase in profit the Company has been able to reward shareholders with an increase in final dividend to 10 cents per share which represents a dividend yield of 2.3% on the closing price on 23 August, 2012. This will be the 13th fully franked cash dividend paid to shareholders over the last 13 years, a record that truly sets us apart from our peers.

[JBmurc]

wow looks like selling my mates last lot at $5 was a good call ...now at 3.30-3.45 only months later is looking good buying once again
crazy times in the gold sector in 2012 Gold still made 7% on major bull trend...2013 looks more of the same problems in debt/currency markets yet the market is pricing the Gold sector is worse off than it did in the early 2000's with sub $500 gold....??

TRY ---low cost gold/silver producer ....

[skid]

http://www.kitco.com/KitcoNewsVideo/index.html?v=13-01-08_Vince_Lanci_1

His take on why small gold explorer-producers are having a rough time

[JBmurc]

Skaffolds Top 50 Stocks for 2013 has TRY ranked 28 for income and number 50 for growth with an astonishing valuation of $11.43
From their website "Skaffold is a state-of-the-art online stock research application. It interprets key financials and forecasts into image-rich visuals. The application is automated and updated daily using information sourced from top-tier financial institutions."

TRY currently $2.98 new lows since 2010

[Dej]

Skaffolds Top 50 Stocks for 2013 has TRY ranked 28 for income and number 50 for growth with an astonishing valuation of $11.43
From their website "Skaffold is a state-of-the-art online stock research application. It interprets key financials and forecasts into image-rich visuals. The application is automated and updated daily using information sourced from top-tier financial institutions."

TRY currently $2.98 new lows since 2010

Seems to good to be true - from $3 to $12 is a 300% increase in SP in a year? Triple-banger :t_up:

[JBmurc]

Seems to good to be true - from $3 to $12 is a 300% increase in SP in a year? Triple-banger :t_up:

Yeah sounds like it ....seems some country risk it hurting the SP as well as the fall in the Gold/silver prices

[Joshuatree]

Unstable economic situ in Argentina is one reason i sold out a while ago. Still hold ORE because of its special situ and free shareholding by an Arg province to hopefully protect it if the **** really hits the fan. However ORE s/p is also affected by the same uncertainty atp, imo. cheers JT

[JBmurc]

Great drill results ann......Including "1.10m at 198.01g/t gold and 18,670g/t silver"

"Commenting on the results Troy CEO Paul Benson said: “These drilling results are particularly pleasing on a number of levels. Obviously there are some very high grades, but more importantly these holes are filling a gap between the Inca 1 and Inca 2 blocks that are already in underground Reserves and are in an area where tunnel development was already planned and thus easy to access. At this stage we expect to add this material to Reserves and Resources later in the year”.

“The holes were collared in the hangingwall and also tested the mineralised structure called B-Vein before hitting the INCA structure thus allowing us to continue to define this hangingwall zone. B-vein is currently being mined in the open cut, but to date none of the underground mineralisation has been included in Reserves. Again we now expect to include the underground B-Vein in a Reserve and Resources update later in the year.”

[digger]

Strange no comments today about takeover offer of Azimuth[AZH}. Share price down 14% to 214 falling 35cents. That must have hurt holders of TRY. I have no shares but following. This on surface seems to benifit AZH more than TRY. Am i missing something?

[JBmurc]

Possible nationalisation and economic collapse the problem?

http://seekingalpha.com/article/477871-argentina-on-the-brink-what-is-the-real-investment-risk

Yes for sure this has been a major negative for the SP

[tricha]

Yes for sure this has been a major negative for the SP

Yep, toss a coin, one minute u have it, the next u have nothing.

it is a gambling stock.

[JBmurc]

Yep, toss a coin, one minute u have it, the next u have nothing.

it is a gambling stock.

yes that or the safety of the Aussie shores with there higher costs.....

[JBmurc]

DSB share prices indicates it is all over when the reality is it is down on fear.

Agree 100% in one of the hated sectors along with U308,rare earths,PGM .....at this stage but after reading it's last presentation It goes to the top of my watchlist ....

[JBmurc]

Troy Resources (TRYRF.PK, but is traded by the much more liquid ticker TRY.TO on the Canadian Stock Exchange as well), a gold producer which has all its operating mines located in South America. At first sight, Troy Resources probably isn't very appealing. A flagship mine in Argentina which experiences problems transforming it from an open pit into an underground operation, a second mine closing in 2015, exercising a $37.5M debt facility indicating financial difficulties for a producer after closing a seemingly expensive acquisition, this all doesn't seem to bode well.

However, after careful research it appears Troy Resources (TRYRF.PK) deserves more attention as I will show later on, because in the future at these share price levels, it will be an undervalued company with strong positive cash flow, several quality assets and considerable upside potential regarding production and exploration, convincingly compensating the described issues in my opinion.
ttp://seekingalpha.com/article/1719462-transformation-in-progress-troy-resources?source=google_news

disc-buying TRY

[Corporate]

JB

Last time I looked these guys were well done on reserves. I haven't the time to chew but that was my previous concern.

Cheers
C

[JBmurc]

JB

Last time I looked these guys were well done on reserves. I haven't the time to chew but that was my previous concern.

Cheers
C

Yes not got the biggest reserves round 500koz au-eq but they have now addressed that with the Acquisition of Azimuth Resources • that held the High Grade West Omai Project 1.6Moz @ 3.1 g/t including Largest land package in Guyana (~8,000km2) over Guiana Shield greenstone...shouldn't be hard to get a much larger reserve base with the drill bit

[Bobcat.]

TRY - Troy Resources:

Four Gold Mines - Sandstone (WA) plus three Sth American gold mines - Andorinhas, Brazil (to close in 2015); Sertao, Brazil; and Casposo, Argentina (also Silver) - plus this year acquired Azimuth Resources in Guyana (mining friendly, large 8000sq km land package, English speaking).
Producing 103koz of gold per annum
Has paid 13 cash divis over past 13 years
Builds mines quickly at low cost
NPAT of 18.6m (40% down from 31.6m in FY12)
$21m cash with $25m debt (Net debt/Equity of 16.2% c.f. 34% in 2012)
New $40m debt facility
Cash costs of ~$A700/oz (up from $A500/oz in 2012).
Anybody know what their all-in op costs run at per oz?

Good technical support at AUD$1.45

Discl: Holding a small bundle.

[Huang Chung]

Don't think they operate Sandstone any more.

[Bobcat.]

You are correct Chung: from Troy's latest financial report, they have:
1. sold Sandstone to Southern Cross Goldfields, generating $2.5m profit (2012: $1.2m loss). A good move I would say.
2. confirmed a market takeover of Azimuth, with compulsory aquisition susequent to year-end, expecting to make an investment decision re its new Omai project in early 2014.

BC

[Wolf]

Anyone still holding?

[Stranger_Danger]

Anyone still holding?

Not yet, this is at the very top of my watchlist.

Bottom picking is really hard, but at some stage soon I'll pull the trigger.

[Wolf]

Not yet, this is at the very top of my watchlist.

Bottom picking is really hard, but at some stage soon I'll pull the trigger.

Agreed, i dont buy in downtrends but TRY is starting to look really attractive.

[Bobcat.]

she is oversold all to hell, tapering is being factored into the sp. if there is none on Friday and gold bounces, im putting the house on it (metaphorically!) first thing Monday.

Why wait 'til Monday? Tonight or tomorrow is the time to buy into this low cost producer.

Several directors (Nillson, Benson, Parish, etc) were buying earlier this month when the sp was closer to $1. It's now trading at a 15% premium to what they paid (and they would have a pretty good idea I would say re fair value).

I've got more cash freed up tonight and will be coming in again to buy tomorrow. Watch Toronto overnight.

http://www.bloomberg.com/quote/TRY:CN

BC

[Skol]

Bobcat wanted to bet me that TRY would be $1.10 by the end of last week.
This sucker's headed for oblivion at this rate.

[Wolf]

The only PM report worth reading (and the reason why im cautious here!)

http://www.kitco.com/ind/Arora_corner/2013-12-16-German-Regulars-Probe-Gold-And-Silver-Price-Manipulation-Ignore-Conspiracies-And-Focus-On-Three-Points.html

Thanks for sharing Moosie

[Daytr]

What is the mine life for Troy? I can't see that they have production beyond 2014? Is this he case or does Casposo extend beyond 2014?

[Bobcat.]

What is the mine life for Troy? I can't see that they have production beyond 2014? Is this he case or does Casposo extend beyond 2014?

Andorinhas - likely to close in 2015 (Guidance: 29koz for 2014)
Casposo - no mention of closure (Guidance: 120koz for 2014 accessing high grade underground ore @ 10g/t - 44 g/t)

West Omai (1.6Moz @ 3.1g/t) on fast track to be constructed 2H 2014, operational in 2015.

http://www.asx.com.au/asxpdf/20131128/pdf/42l6qnlxn730cb.pdf

Today's dump has taken TRY down to 75.5 - there has to be some psychological support there - as has been pointed out above, this is 25% below what most directors have been paying! If I wasn't still holding quite a few (yeah, I know - don't rub it in), I'd definitely be buying. I've done some hard yards with this one. Come in now to reap some fast money.

Rebound coming (now up to 78). To mix metaphors, this is not a dog, and this rebound will not be a dead cat bounce.

[Daytr]

Thanks BC, I read that earlier, its very light on detail.
Do you know CAPEX for West Omai? And how are they funding this?
Do you know the reserves / resources or mine life of Casposo?

I might give Dave Sadgrove a call if he's still there. Used to have coffee with him back in the day.

Will let you know what I find out.

Cheers

[Daytr]

Just spoke to Dave & have since bought stock. Casposo has a 3.5 year mine life at this point but its likely this will be extended & could be one of those rolling ore-bodies that run for years. Capex number on West Omai to be released in Jan & they will go to pre-feas. Probably wont go bankable as they don't tend to bother as usually only partially fund with debt & have no difficulty accessing funding. So all going well West Omai in production mid 2015.

I must admit I was pretty keen on this in the early 90s, but in the high 70s seem ridiculously cheap. Say it wont be long before its back over a buck.

[Bobcat.]

Just spoke to Dave & have since bought stock. Casposo has a 3.5 year mine life at this point but its likely this will be extended & could be one of those rolling ore-bodies that run for years. Capex number on West Omai to be released in Jan & they will go to pre-feas. Probably wont go bankable as they don't tend to bother as usually only partially fund with debt & have no difficulty accessing funding. So all going well West Omai in production mid 2015.

I must admit I was pretty keen on this in the early 90s, but in the high 70s seem ridiculously cheap. Say it wont be long before its back over a buck.

Thanks Daytr - you have some good contacts in the industry. Your post has rebuilt some confidence in this stock which has of late been waning a little. I'll continue to hold. Did Mr Sadgrove say which major shareholder has been selling?

[Daytr]

Nah you don't really want to ask those sort of questions unless you are really tight. I know David, met him a couple of times but don't know him well enough to ask those sort of questions. He really is just a finance guy as well. The MD I gather is very hands on. TRT have runs on the board, done it several times before so I can't see any reason why they should deliver with West Omai & also extend Casposo. So I don't think there is anything to worry about, but they could do better at delivering information to the market that's for sure!

[Bobcat.]

TRY has bounced well off its double bottom of 75c. Currently trading up 6.7% at 80c...but still with a steep hill to climb.

PRU (with an ASIC of ~$1300 and lacking hedging) also coming off its bottom, showing some spark to be up 11% today.

AQG also up nicely (6%) and GRY is still climbing steady (up 40% this month).

Even though the Equity markets are still bubbling, there looks to be money now flowing back into ASX PM stocks.

OGC and EVN are lacking lustre this month but could well be the next to shine (both with good mgmt, EPS and future prospects).

BC

[Daytr]

BC, I think EVN is held back due to its ties to NCM & NCM is a large stock holder of EVN. On its own it would be doing a lot better as they have a hedge locked in at A$1600 for 150k toz! Jake Klein is a smart guy as well. I am certaily keeping a close eye on them.

[Daytr]

Back on topic, yep nice bounce by TRY, traded to 81c! Looking good with lift in POG.

[Bobcat.]

BC, while I concur TRY is bouncing, it is most definitely not a double bottom. the low of 70 cents has never been tested until last week. are you confusing this with PoG? be careful you dont get on a dead cat bounce here, gold rallied on very little volume this past week, and we all know what happens to very weak rallies in a bear market...

I'm referring to TRY's 3 year low of 75c (earlier this week) - tested twice and held strong. Where do you get 70c from, Moosie?

[Daytr]

Yep agree, looking good for breaking $1 this week as long as POG holds up.

[Daytr]

Yesterday was a bit disappointing for TRY, mind you most goldies were off. I think the real upside for TRY is bringing on the 2nd mine & bringing production back to 200k+ toz pa. I don't think any value at all is being attributed to having a near term 2nd mine.

[tosspot]

So you walking the talk and buying a stake

[noodles]

Yikes!

http://mobile.nytimes.com/2014/01/24/world/americas/argentinas-currency-falls-sharply-against-the-dollar-stirring-inflation-fears.html?_r=0&referrer=

Not Argentina again! I feel sorry for their people.

[Bobcat.]

My thinking is not so sharp on a Saturday morning. I think this means that relative to the USD and AUD (which BTW also fell overnight against the greenback) the local cost of labour, etc for TRY (in Argentinian pesos) is relatively less and so in AUD or USD currencies their AISC is lower. Meanwhile, TRY's exported gold produces more revenue in pesos but more or less the same revenue in AUD/USD. Lower costs with higher revenue results in higher EBIT...yes?

Am I missing something here?

BC

[tricha]

You're missing a biggie BC. If their currency goes under and the bank has no reserves, especially in gold, you can count your unlucky stars Kristina will be nationalising TRY's gold mine. If that happens, I'd hate to see the SP. it was an issue awhile ago but it now looks to be back on the table if things are going worse than before...

We at least agree on this one Moosie, sovereign risk! One day u have it, the next day it is stolen. Great company but high risk.

[tosspot]

Anyone else seen those grades? Wow! No wonder the directors were buying. You happy Daytr?
yea pretty sweet but seems the market are very hard to impress with gold companies these days.

I got in last week at 1.10 will hold as the way this company is going can only see upside from here. potential to $2 in a short span

[Bobcat.]

Anyone else seen those grades? Wow! No wonder the directors were buying. You happy Daytr?

Daytr sold out around 90c to take a quick profit. I'm still holding but bought in too early and so I'm only now getting close to break even. I'm hoping others picked up a good size parcel when this stock was being promoted on ST around 75-80cps a few weeks ago.

Their latest report is a good one, and so I'm happy to continue to hold.

- ASIC for December dropped to under $900USD/oz, which is about what is now expected through 2014.
- Casposo Gold production up 5%, silver up 63% and gold equivalent up 23%, with higher grades now forecasted (Gold equiv upto 82.2g/t).
- Scoping study for Guyana (Omai) with forecast gold production of 90-100koz per annum with av grade of 4g/t.

BC

[JBmurc]

Sold a chunk 1.18 today paid 82.5c not long ago shifting funds into SOC

[tosspot]

Sold a chunk 1.18 today paid 82.5c not long ago shifting funds into SOC
wow odd call, I suppose you have your reason and made a nice profit but this is clearly trending up and SOC are in the pitts.

[Bobcat.]

wow odd call, I suppose you have your reason and made a nice profit but this is clearly trending up and SOC are in the pitts.

Sell high, buy low.

It looks like JB may have made a good play - TRY falling away slightly after peaking just above $1.20, and it's had a good run lately. SOC now has decent support at 13c with fewer sellers in sight.

I'm holding both, but admittedly understanding the true value of SOC a lot less than I do of TRY.

[JBmurc]

Sell high, buy low.

It looks like JB may have made a good play - TRY falling away slightly after peaking just above $1.20, and it's had a good run lately. SOC now has decent support at 13c with fewer sellers in sight.

I'm holding both, but admittedly understanding the true value of SOC a lot less than I do of TRY.


Well I must say I do like the fact SOC assets are in Aussie and not in Argentina and with over 20mill worth of exploration to come
no need to raise capital.. AUD1430oz gold ...great results to date ...major broker support now on board with a goal to market SOC to the market/Investors could well be one of the better discovery in Aus history ....will know in time
TRY I do really like outside operating in Argentina ....adds risk to the investment
http://www.marketwatch.com/story/miners-pull-back-from-projects-in-argentina-2013-05-21

[Bobcat.]

Today's lift has taken RSI to well over 80%, and I've sold out. There are better opportunities elsewhere.

[JBmurc]

Just watched a piece on Al Jazeera about Argentina. Not looking good at all. Government minister just blaming "opportunistic entrepreuners" as usual (equal to "lalala, fingers in ears, cloth over eyes, lala lalala). I hear Germany circa 1930s calling...

Yes main reason I sold .....if the operation was in Aussie would be well over $2 per share

[Bobcat.]

I'm in for a momentum trade, thanks for selling to me BC :)

You've only just today bought into this, Moosie, or are you topping up an existing holding?

RSI is screaming at me to sell, and I've made the mistake of ignoring that signal before. Good luck to you with what's left to the upside.

BC

[Bobcat.]

Back in July, TRY hit resistance at 1.44, which is where it's sitting now. Volume rising and RSI at 80%. Tomorrow will be technically interesting for this stock.

If dips over the next few days to around 125c, with fundamentals intact, I'll look to come back on board. Until then, I'm looking elsewhere....

BC

[Bobcat.]

Gold is up $10/oz but TRY up less than 1% in Toronto. It's still hitting resistance. Not being hedged will help but, IMO, we may need to wait for Gold to break $1300USD/oz before TRY goes much higher.

[Bobcat.]

TRY up to $1.48 in TO so don't know what you're on about BC.

According to DB there are 168.5M shares floated with TRY currently sitting on a P/E of 7.

If you look at the price recovery on a long enough timeline compared to OGC then TRY should be testing $3-$3.50 area right now in line with PoG. That's how oversold the company has been. (apples and oranges though and all...)

Whoops, sorry - I was looking at TRYRF:US which has traded only in the past half hour (500 shares). Before that it was priced at yesterday's price.
http://www.bloomberg.com/quote/TRYRF:US

I see now that TRY in Canada has been trading 9% higher with a volume of 96,000.

http://www.bloomberg.com/quote/TRY:CN

My mistake - it should therefore climb today on the .asx.

[Daytr]

Always be wary of people that are buying large & spruiking the price. Don't get me wrong I know we all do it, however if TRY is good value now, what was it when it was trading 75c!

[Daytr]

Or perhaps even today Moosie. Some of these guys, (I'm not saying this guy) will say these sorts of things to sell into your buying. i.e. create liquidity for their exit.


A steal of the century! Always wary of the big boys Daytr. Todays buyers can be tomorrows sellers :)

[Daytr]

Maybe, but why on earth would you tell people you are buying something when you are still buying. There is no logic behind it, unless 1) you have finished buying, or 2) you are actually selling.

There was a famous stock broker in Sydney years ago Renee Rivkin, who used to publish the Rivkin report. He would constantly put out tips on stocks he was selling & visa versa. He actually got jailed in the end. There's a lot more to that story, but I would be here all night! haha.

[Daytr]

I used to see Rivkin quite often in Double Bay leaning against his lambo smoking a stogie. The funny thing was the reason he had to lean against it & was never seen in it is I understand he was too fat to get behind the wheel. He used to get one of his 'boys' to drive it there for him!

[Bobcat.]

Maybe, but why on earth would you tell people you are buying something when you are still buying. There is no logic behind it, unless 1) you have finished buying, or 2) you are actually selling.

There was a famous stock broker in Sydney years ago Renee Rivkin, who used to publish the Rivkin report. He would constantly put out tips on stocks he was selling & visa versa. He actually got jailed in the end. There's a lot more to that story, but I would be here all night! haha.

Rivkin gave in to a temptation that all ST posters face. It reminds me of something Shakespeare wrote:

"Do not dispraise the thing you intent to buy;
And hold this virtue well;
Do not commend what you intend to sell"

[Daytr]

That wasn't the only temptation he gave into BC... The stories I could tell you about that guy & quite a few of his high powered associates as well that are still around. I went to his club the Embassy in Double Bay a few times, very dodge to say the least & that was just the tip of the iceberg imo.

[Bobcat.]

I very nearly bought into TRY again Friday at 1.15 but decided to buy instead on the way up. Tempting but. With PoG bouncing nicely off 1320usd I don't expect TRY to fall much closer towards $1. Finger on the buy trigger Monday.

[Bobcat.]

I like TRY's report well enough to have come in again a few days ago. Of course, without hedging, the POG has a huge influence on TRY's sp.

Edit: CEO resigns.
http://www.asx.com.au/asxpdf/20140429/pdf/42p7mnhpv2ympj.pdf

[Bobcat.]

Oh wow, TRY getting absolutely HAMMERED on fears of Argentine debt default...

Probably more to do with this...

http://www.asx.com.au/asxpdf/20140728/pdf/42r2696vhl8r0b.pdf

[Daytr]

I didn't think the announcement was that bad. The selloff is suggesting to me at the current POG TRY was over valued. Below the open pit sounds interesting & there could be some high grade there but will take a reasonable amount of drilling to understand. Could prove to be a much longer mine life though which could be where the real value kicks in.

[Bobcat.]

Troy's $40m debt facility with Investec Bank Australia has been fully drawn, but here is the ASIC information which has spooked investors:

Cosposo - $916/oz
Andorinhas - $1,165/oz

...which do NOT include $134/oz for general corporate and admin costs! And this is USD, not AUD.

A large increase on last year...not good. It's no wonder they released this report outside of market open.

Discl: still holding (just a small parcel)...but wishing of course that I'd sold last week at around $1.30 when the PoG was hovering around $1330USD. This used to be a low cost unhedged digger that looked promising...now it's just unhedged. Oh well, it's now in the same category as KCN.

Are you still holding, Moose?

[BlackPeter]

Glad that I didn't start my ASX adventure with this share (well, not yet) - was sort of tempted yesterday, but thought to give it another sleep. Looks now like a falling knife to me ...

[notooshabby]

Do we know what has driven the costs up? Makes it hard to know where TRY becomes a speculative buy really... I still think the situation with Argentina won't help SM confidence in them either...

[Daytr]

I think its starting to look like good value here, may get another 10% or so lower. Those costs I think are transitional & should improve. I don't hold any FYI.

[Daytr]

Now I recon TRY is looking pretty damned attractive although you can't rule out it touches previous lows of around 72c from memory.

[BlackPeter]

Now I recon TRY is looking pretty damned attractive although you can't rule out it touches previous lows of around 72c from memory.
Daytr,

are you just looking at historic charts, or did you analyse the current situation?

I haven't yet figured out how much damage the Argentinian debt crisis might do to the company, and whether the increasing production costs as per their recent report are just temporary. Anything on these topics you would want to share with us?

[Daytr]

BlackPeter, Moosie, is my reverse indicator. LOL. Sorry just kidding Moose. I'll have a closer look BlackPeter & come back to you. One comment though, the Argentine bond 'crisis ' is a storm in a tea cup & IMO should have little bearing on TRY.

[JBmurc]

Will be a good swing trade here just getting the timing right is the key ....certainly keeping a eye on TRY in no hurry with some great trading shares round currently

[notooshabby]

Will be a good swing trade here just getting the timing right is the key ....certainly keeping a eye on TRY in no hurry with some great trading shares round currently

Do we think we're seeing some price support here this morning? I've dipped my toe in the water on a small parcel. Still mindful that I don't know what's driven up production costs... so not in for a lot!

[Daytr]

Change of tune from the weekend Moosie?


Potential double bottom forming

[Daytr]

Managed to take a closer look at TRY. Looks like their high costs is transitional & in the June quarter they did quite a bit of development work that should mean costs are quite a bit lower in the next quarter. They will also be tapping into a new open pit & blending ore from August (now). I also like the look of their new mine in Guyana, some of the grades are fantastic, although it may take a while for them to be realized as they have 3 years of open pit. Exploration potential looks high IMO. Subject to the gold price not taking off, the market may take a while to recognize the value here, but I would definitely rate as a buy.

[BlackPeter]

Managed to take a closer look at TRY. Looks like their high costs is transitional & in the June quarter they did quite a bit of development work that shoulder mean costs are quite a bit lower in the next quarter. They will also be tapping into a new open pit & blending ore from August (now). I also like the look of their new mine in Guyana, some of the grades are fantastic, although it may take a while for them to be realized as they have 3 years of open pit. Exploration potential looks high IMO. Subject to the gold price not taking off, the market may take a while to recognize the value here, but I would definitely rate as a buy.

Cheers for that

[JBmurc]

Buying on the double bottom looking for a bounce back towards $1 before the years out....maybe a trade here and there if the Gold price can add some input

[JBmurc]

Troy Resources yesterday [August 23] received over $1.1 billion in equipment for the Karouni Project as it continues to prepare for the start of operations next year. This purchase represents the single largest purchase ever of Doosan equipment in Latin America or the Caribbean.

The equipment which has been purchased from local company, Farm Supplies Limited, is in keeping with Troy Resources commitment to purchase equipment, services and supplies, when available, locally.
This, the company noted is to ensure that, beyond its commitment to develop a world class mine and invest in Guyana, the spin off from its investment is multiplied through additional purchases locally.
In addition to the delivery of equipment, Farm Supplies Limited will also provide training for its Guyanese operators and technicians, in the use and maintenance of the new equipment. The equipment handed over includes 12 Doosan DA40 Trucks and 3 Doosan DX 500 Excavators.

The Karouni Project is into intense preparation for the construction phase with works to be carried out for the installation of the ball mill, mine operations, employee housing and other critical infrastructural works. CEO of Troy Resources, Ken Nilsson, explained that the Karouni project must also be seen as an investment in Guyana, not only via taxes and royalties, but in terms of contributing to employment, purchases and infrastructure development.
The company, he explained wants to ensure that both their shareholders and local interests are satisfied thereby ensuring a win-win situation.
Troy Resources Guyana Inc. is expected to complete the construction of its US$87 million Mine in the West Omai region before the middle of 2015. Once completed, the Mine will employ approximately 300 persons including contractors.

[BlackPeter]

Hmm - PoG rising, Analysts positive ("outperform"), but share price dropping like a stone. Any views on this stock out there?

[Daytr]

had to print a truck load of shares for last years acquisition ..... massive dilution of wealth.
From what I have researched their cost of production per ounce has increased as well.

Snapiti, what dilution? They only have 195M shares on issue & they have taken out debt for their latest development not raised equity.

In regards costs I think the high costs are just transitional, but that's just a view from what I have read.

[BlackPeter]

Q3 report is out - and looking promising. On target to achieve the full year predictions, despite some delays in getting the Coruja permit's.

http://www.asx.com.au/asxpdf/20141030/pdf/42tbprhcgfd4t5.pdf

BTW - and noticed they are hedging their deliveries - expecting PoG to fall further?

[BlackPeter]

Gosh - share price keeps dropping ... anybody an idea what's going on?

PoG sort of stabilised around $1200 / ounce, and TRY production costs are around $750 / ounce and bound to further drop. Lots of headroom in case markets expect a further drop in PoG.

Are people concerned about a fall out from the Argentina debt crisis?

Is the Guyana project not advancing as it should?

Any clues?

[BFG]

Gosh - share price keeps dropping ... anybody an idea what's going on?

PoG sort of stabilised around $1200 / ounce, and TRY production costs are around $750 / ounce and bound to further drop. Lots of headroom in case markets expect a further drop in PoG.

Are people concerned about a fall out from the Argentina debt crisis?

Is the Guyana project not advancing as it should?

Any clues?

Check out shorts of Aussie gold producers. Quite a few in top 100. All commodity stocks taking a hammering. Shorts loving it. On the wrong side of the ledger if holding these past few months.

But yes, absolutely ridiculous price.

[BlackPeter]

Thanks guys ... glad it is not just me believing that TRY is at the current price a bargain ...

[Daytr]

Nice timing by looks of today's trading & gold getting a boost as well.

[BFG]

Nice timing by looks of today's trading & gold getting a boost as well.

CEO had nice timing with the buys as well. Quite a bit of a fear discount on this one right now.

Are those shorts starting to be covered over the gold producers sector Daytr?

[Daytr]

In some stocks & not others. Troy when I last looked had about 4% of issued stock shorted whereas quite a few others are twice that

[Joshuatree]

How about the ETF(GDXJ) rebalancing.Im reading on another thread those with mkt caps below $75 mill may be dropped tomorrow.

[BlackPeter]

the following link is an interesting read from TRY's project manager.
The story relates to him as the CEO but this is incorrect.
The story relates to many of the issue's facing the company in Guyana.
One of the biggest issue's raised for me was indication of lengthy time delays involved to get the paper work signed off.
Also the fact that TRY are trying to get approval for cyanide use in a region where there are no policies for it's use..... sounds like a paper work delay coming to me.

http://www.theworldfolio.com/interviews/giving-confidence-to-guyanas-mining-sector/3361/

Thanks for sharing that, very interesting read ...

[BFG]

I don't think the CEO has been buying.......... he has just been given some performance rights...... is that what you are referring to.
Nope, I mean Dix buying up:

https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3771987

[Joshuatree]

How about the ETF(GDXJ) rebalancing.Im reading on another thread those with mkt caps below $75 mill may be dropped tomorrow.

So looks like rebalancing over now in a number of goldies, big volumes today. Disclose Don't hold TRY

[Daytr]

All good points Snapiti, the royalty was something I picked up on a as well.
I think many are overlooking their current production & I think Troy should have a reasonable quarter.
Basically I think all three stocks you mention are good value at the current POG.

[BFG]

Agreed Snaps. OGC always will be the standout/leader in my books. Majors are great volatility plays if you know sentiment/PoG direction. Obviously the big boys have been loving the short game lately. I hope to see TRY rebound after GDXJ rebalancing is done.

[Daytr]

I get what you mean, but I would phrase it slightly differently. Individual mining stocks...
All mining stocks are obviously cyclical, but inside the cycle they have their own life cycle & yes the investment or I prefer to see it as a trade will have massive swings due to the lifecycle of the mine as well as other factors. Basically I find it a great sector of the market to trade.

[BlackPeter]

unfortunately if there are significant delays the current share price around 40 cps wont look cheap.
Currently according to TRY they will be up and running prior to July 2015.

... and it sounds like they just managed to pass another important mile stone - on time: http://www.asx.com.au/asxpdf/20150112/pdf/42vyklx5mxr4xx.pdf

Anyway - market loving it ... and I am back in the money :t_up:.

[babymonster]

I think gold stocks are for short term holding. From Nov to now, I have traded Ogc NZ twice. Both bought at 2.08, first time sold at 2.35 and second time sold at 2.47, of course both times were a bit early, ogc NZ now is more than 2.50

[BlackPeter]

I think gold stocks are for short term holding. From Nov to now, I have traded Ogc NZ twice. Both bought at 2.08, first time sold at 2.35 and second time sold at 2.47, of course both times were a bit early, ogc NZ now is more than 2.50

It depends. It is true that some mines are not very good in paying dividends when times are good (particularly the ones where the boards prefer to grow their empire instead of looking after shareholders interest) - and with these stocks trading is basically the only way to make money out of them. It is true as well, that gold miners have a tendency to be bumpy ... obviously good for trading if you get the timing right.

On the other hand - some miners offer as well a good dividend flow (TRY used to) - and if the long term gold trend goes at the same time into the right direction, than I don't see why holding and enjoying the dividends shouldn't be a valid strategy either.

Agree however that just "buy and hold" without appropriate reviews is unlikely to be long term a winner with mining companies ...

[Daytr]

With the sort of volatility mining stocks have a dividend is here nor there as far as I'm concerned & probably a waste of capital unless its a substantial return.

[BlackPeter]

Gosh - share price keeps dropping ... anybody an idea what's going on?

PoG sort of stabilised around $1200 / ounce, and TRY production costs are around $750 / ounce and bound to further drop. Lots of headroom in case markets expect a further drop in PoG.

Are people concerned about a fall out from the Argentina debt crisis?

Is the Guyana project not advancing as it should?

Any clues?

Amazing what difference a month can make ... 75 cents (as we speak) and still rising ...
How could I doubt them in mid December (when the SP was hovering around 36 cents)?

Obviously - strongly correlated to gold ... and I expect gold to more likely rise than fall this year. However anybody hazarding a guess what the stock might be worth at current PoG?

NTA (for what it is worth) $1.01;

Estimate based on forward PE (with probably underestimated earnings and requesting PE = 12.5): $1 ... $2

Analysts consensus forecast (Nov 15, but not updated yet): 80 cents

Comments?

[BFG]

Amazing what difference a month can make ... 75 cents (as we speak) and still rising ...
How could I doubt them in mid December (when the SP was hovering around 36 cents)?

Obviously - strongly correlated to gold ... and I expect gold to more likely rise than fall this year. However anybody hazarding a guess what the stock might be worth at current PoG?

NTA (for what it is worth) $1.01;

Estimate based on forward PE (with probably underestimated earnings and requesting PE = 12.5): $1 ... $2

Analysts consensus forecast (Nov 15, but not updated yet): 80 cents

Comments?

The silly downtrend was heavily influenced by a) Van Eck selling down those goldies for its GXJ ETF which had fallen off the ASX 300 and b) shorters going hard on this info and the falling price of gold. Sentiment was horrendous as well. As we all know, the distressed seller has now left and gold is rising, along with sentiment. Q2 production starting up at Karounui should provide another boost. TRY should be trading above $1.00 right now based on PoG alone!

[BlackPeter]

The silly downtrend was heavily influenced by a) Van Eck selling down those goldies for its GXJ ETF which had fallen off the ASX 300 and b) shorters going hard on this info and the falling price of gold. Sentiment was horrendous as well. As we all know, the distressed seller has now left and gold is rising, along with sentiment. Q2 production starting up at Karounui should provide another boost. TRY should be trading above $1.00 right now based on PoG alone!

cheers Moosie, appreciate the view! Amazing game ...

[Daytr]

It does seem like there is value still there, however it will simply come down to what the pog does next.

[BlackPeter]

Mining licence granted:

http://www.asx.com.au/asxpdf/20150209/pdf/42wgxb14mhz2zx.pdf

I guess will be interesting to see, whether short term the somewhat sluggish PoG or the good news prevail. Mid to long term I expect them to do well (as long as nothing unexpected happens).

Discl: holding - DYOR

[BFG]

This is the announcement that tells me the bulk of the risk in the new venture has been taken out of the picture.
Unfortunately TRY sp will always fluctuated in line with the POG........ however for me this announcement is the opportunity to invest more in one of the best manage gold mininig companies in the world

Once that revenue from Karounui starts flowing a rerate will be inevitable (as long as gold holds up!)

[JBmurc]

Once that revenue from Karounui starts flowing a rerate will be inevitable (as long as gold holds up!)

Yes TRY moving towards 200koz 2017 low AISC will explode back to old highs $5 etc if Gold can also kick on ...

Disc-brought in 58c

[Daytr]

Market cap now back to $100M.
Replacement production now only 3 months away.
170K ounce producer with low ASIC & market cap of $100M!
Unbelievable.
Just filled my boots. ;-)

[JBmurc]

what the hell are these guys doing.....huge cap raise @ 40cps.
All funding was supposed to be in place for the new mine and they are now printing a **** load of more shares at the rock bottom price of 40 cps.
was looking at getting back in at this level but no thanks.....no way
Can't stand management that print shares and then say in their announcement "funds are to help sure up the balance sheet" well if management where doing there job correctly during a very positive time for gold, in AUD terms, they would not need to sure up anything.
My new valuation for TRY is sub 30 cps.

Yes not good at all ...Gladly not holding

[Daytr]

I stopped myself out of this some time ago, but was about to get back in just prior to the announcement of the CR.
The main issue I have with the CR is that that have doe it at a time when the SP was weakening.
If they had anticipated this was required there has certainly been better times to do it.
They are about to go through a transitional period, starting up the new mine.
I must admit I'm surprised by how much they raised & if I had been a share holder at the time I would be pissed off, but I'm not, so I now see it as pretty good value & the company has been de-risked somewhat. In saying that there may be room to pic it up in the mid to high 30s.

[BlackPeter]

hmm - same post appeared a couple of minutes later on hotcopper: http://hotcopper.com.au/threads/i-smell-a-rat.2516229/#post-15291820.
Question - are you xmanrocks or did (s)he copy your post?

Not sure, whether I want to assess a company based on a slip of an executive in an interview I can't even watch myself (or is there a link where we could look at?), but I agree the timing of the CR was unexpected (and clearly not well picked).

Anyway - the market seems to feel at this stage that the capital rising is done at fair terms: A wall of support around 40 cents. So I guess, whatever it is - they seemed to have picked a fair price for the CR (according to bipolar Mr. Market). Analyst consensus is still on "outperform" and 12 month price forecast now in the early 60 cents (allowing already for the CR dilution). Not a rock star, but still looking solid - but than, the analysts are obviously looking at the same information we do, so if there is something they haven't told us, than all bets are off.

Still think that the share is good value at 40 cents - but yes, the people who bought in for between 4 and 5 dollars (a couple of years ago) might feel somewhat aggrieved. I would.

So I guess the only thing we can do now is wait - and hope that the truth should reveal itself earlier than with some other stocks discussed in this forum (like e.g. PEB). I'd expect a nudge up after the conclusion of the CR, particularly if PoG holds (or keeps climbing). I'd expect a further nudge when the first gold flows (June / July) ... and after that it will likely follow PoG, whatever this does.

Discl: cautiously optimistic and holding (i.e. I might be biased) - DYOR

[Baa_Baa]

hmm - same post appeared a couple of minutes later on hotcopper: http://hotcopper.com.au/threads/i-smell-a-rat.2516229/#post-15291820.
Question - are you xmanrocks or did (s)he copy your post?

It's a concatenation of two posts, xmanrocks (this might sound very sceptical) and hotmix (..well TRY have recently announced). Snaps was probably just in a hurry and forgot to attribute.

[BlackPeter]

It's a concatenation of two posts, xmanrocks (this might sound very sceptical) and hotmix (..well TRY have recently announced). Snaps was probably just in a hurry and forgot to attribute.

Not quite ... read it again. hotmix was just copying the second part of xmanrocks post (and put it into quotation marks) in order to respond to it. As well - snapitis post was last edited four minutes before xmanrocks post appeared (assuming that hotcopper is running on Sydney time).

[Baa_Baa]

Oh you're correct, well spotted BP.

[Daytr]

On the face of it TRY was seem like very good value, however why is the market not buying into it?
Gold has jumped recently & Troy has done very little.
Overall, in the long term you would think TRY will pay multiples, however Snapiti raises some good points & basically outlines what could be deemed as political or country risk & needs to be considered in holding. Obviously all about risk / reward.
For mine the ccy bounce against the USD is over cooked & I wouldn't be surprised to see gold trade back below $1200 & if I'm right gold miners will obviously follow. (disclaimer; I'm short gold)

[airedale]

As always this is also the story of the US$ index, and that is slipping south. I am still long on POG.

[JBmurc]

Might be time to shopping for some TRY.asx ....with the final phase of commissioning its new gold mine (Karouni) in Guyana. Predicted earnings (based on confirmed gold reserves) for the next 2 years are already higher than today's share price. A forward PE of 1.4

[BlackPeter]

Might be time to shopping for some TRY.asx ....with the final phase of commissioning its new gold mine (Karouni) in Guyana. Predicted earnings (based on confirmed gold reserves) for the next 2 years are already higher than today's share price. A forward PE of 1.4

Looking at the recent SP movement if feels the market is optimistic - or maybe some people know more about the progress in the wet commissioning than others?

Still a speculative stock, but how they say: high risk, high gain. Hopefully we all know more in a couple of weeks.

Discl: holding;

[JBmurc]

After some more study I'm thinking sept Qtr might well add some downward pressure.......high 20's be good buying for a swing trade of the DEC qtr results..might sit on the sidelines with a plan to enter likely later this month ....of course if the PM kick on the SP will move

[BlackPeter]

After some more study I'm thinking sept Qtr might well add some downward pressure.......high 20's be good buying for a swing trade of the DEC qtr results..might sit on the sidelines with a plan to enter likely later this month ....of course if the PM kick on the SP will move

Sure - might be a worthwhile gamble. I guess how the SP develops short term will be dependent on what comes first:

The Q3 financials (which can't look flash, given that they hardly made money and spent lots due to commissioning cost for Karouni without income form this mine, limited income (likely a loss) from Argentina and added cost of closing down the Brazil mine (Obviously the numbers still can look better or worse than expected) or

good news from Karouni (like commissioning completed and first gold poured).

Anybody's best guess how they are playing it and whether this adds a further dent (or a steep climb) to the SP trend ... in an ideal world both announcements would come at the same time, but who knows?