To understand Tyhee's value, consider this $500 million dollar question
posted on
Feb 06, 2010 10:35PM
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I've been poking around in Agnico, to understand how the meadowbank project (near Baker Lake, Nunavut) fits into their corporate vision.
It makes me excited and concerned for Tyhee. Supposing that as Tyhee gets closer and closer to the Pre Feas and the DAR submission, the knock on the door gets louder and louder. I'm not talking about that scraping sound you hear when mice are at play in the wall nearby (aka Viking), I'm talking about the BAM BAM BAM at the door which you must take notice of.
With that may come a deciscive moment for Dave Webb and for all of us small owners of Tyhee. Even we 10% owner, collectively here on Agoracom, have a vote on this.
So my line of thought is this: Thyee's constellation is economic enough for Tyhee to get into production in the mid term, to continue to grow ounces, and certainly (in my view) demonstrate a 5 million ounce global resource by the time we are in production, on our way to many more millions down the road.
Looking at it that way, Tyhee would start off as a producing gold mine and then not only expand exploration in the Yellowknife Gold Camp, but also look at projects in other areas. I think those other areas would be in Canada, such as the Kirkland Lake region.
So in that vein, Tyhee would have a graph like AEM has, starting with a few hundred thousand ounces / year and ultimately mine 5+ million onces, expanidng production and adding other projects and ounces over the subsequent years. I can see tyhee being a major gold company in 10 years or so, with more than one producing mine. But all in safe geographic regions, (CANADA, EH).
The trouble is, I also see offers coming in from increasingly powerful producers, who would probably want the entire project (as we see in AEM's recent corporate strategy / history).
So my question to you all is this: Do you want:
A: For Tyhee to stay the course for 100% ownership, and build a gold proding success?
B: For tyhee to find a cash-solid partner for JV, but give up a considerable %? or
C: Accept a half-billion dollars from somebody like AEM for the entire constellation?
I have no reason to belive AEM or any other big'un is at the door today, but I intuit that such a knocking is on the horizon. Just as I intuited that Romarco was worth watching when it was 15 cents.
My vote is A, go all the way on our own, even if it takes time. I would not accept less than a billion dollars (after Dec 2010).
Please give your thoughts, co-owners.
SKELEG