I have followed these guys for a few years now without jumping in. .. until Friday last week I picked up a small parcel (speculative punt). They have a Market Cap ~$19m with approx. 90m shares on issue. If anyone knows anything about the Zulieka Shear in WA, they will understand the ground is staked by the likes of NST, EVN and many others. The fault is know to house quite a few decent mines, TNR have a JV to earn up to 49% (initially) through expending a few million drilling etc. NST have hit some great ground nearby with a hit of 107.5m of 3.1g/t which is about 1km away from the NST/TNR tenement boundary (slide 19 in their most recent Investor Presentation). TNR have completed 1/4 large drilling programs and will be Swiss cheesing the area throughout this year. Having a look at their tenements tells me it's a fairly decent speculative gold explorer which has the potential to hit some decent gold mineralisation... remember the best place to find gold is right next door to a gold mine! Risk/Reward. Project include; Zuleika Shear (222.6km2) (JV to earn 49%) Mt Stirling (23.3km2) (earning 51-100%) - a small JORC resource which they are infill drilling. Malcolm Project (77.5km2) (earning 51-100%) Bardon Project (8.4km2) (100%) They could be a takeover target given they have quite a bit of good prospecting ground along the Shear, but time will tell I guess. Note: I only have a small holding, it's a rather illiquid stock as turnover is small. DYOR
NCM is trading on a PE of 55 (as per Commsec), EVN is trading on a PE of about 18 (as per Commsec). NCM produce ~2.4m oz/year against EVN's 800,000. In the coming bull market EVN could well make up ground, through a take over of a smaller gold producer/explorers etc. and turn into an Institutional darling, pushing the PE higher. I'm a huge fan of Jake Klein running EVN, he has built a great business for the golden years ahead.