Teranga Gold (TGZ-T)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has done very well and taking its valuation into consideration, it is still relatively cheap at 15x earnings. The high debt should decline with good cash flow, and management hopes to be debt free by 2022. Earnings beat expectations last quarter, and Barrick Gold owns 11%. Unlock Premium - Try 5i Free

He believes they have solved issues in Africa.

This is the price laggard in West Africa, and therefore he is sort of attracted to it. His suspicion is that in the West African consolidation, which he sees continuing, this company will likely get bought out.

It is undervalued. They fashioned a wonderful operational turnaround. They are an African producer that disappointed for two or three years.

Feels the recent area consolidation that they did was good. To own the stock right now, you would have to believe in both an increase in gold prices and that the operational failures they’ve had are over. He would rather pay more for the stock after they put his mind at ease with regards to their operational difficulties.

Pretty good cash costs, but they have a relatively low mine life. Costs will go up over time. They acquired a property nearby and increased their asset. He is impressed by the size of the camp. It is probably an acquisition target now. FNV loaned them the money to do all of this. It is quite a stable country. Prime minister was a geologist. Thinks it is one of the better jurisdictions in Africa.