Is High-Grade US Gold Producer Transatlantic Mining Undervalued?

Transatlantic Mining Corp. {TSX-V: TCO}  (TMC”) is a precious metal development company that recently achieved high-grade gold & silver concentrate production.  TMC (controls/owns an Interest in) two crown-jewel assets; a leased, fully-permitted Mine & Mill complex, and an 80% Interest in the Monitor Copper-Gold (“Monitor”) project in the highly prolific Coeur D’Alene Mining District, Idaho (USA).  The recent move in copper to above $2.60/lb., is focusing a lot of attention on exciting copper projects like Monitor. 

Management is leasing (with exclusive option to purchase) the US Grant Gold-Silver Mine & Mill (“US Grant”) in Montana (USA).  TMC is a highly speculative investment opportunity, but a company well worth watching for a number of eagerly anticipated corporate developments.  The mine plan calls for a ramp up to a run-rate of ~900 gold equivalent ounces per month

Subject to favorable drill results and resource delineation, the Mill will be upgraded to 300 tpd next year, allowing for up to 2,000 ounces/month, 100% net to TMC.  NOTE:  {production above that level would require corporate initiatives such as, tuck-in acquisitions, leases, JVs, farm-ins and access to toll milling}.  Those initiatives are under careful consideration.

It’s hard to overstate the importance of being in production vs. “near” production or “fast-tracked to production.”  Likewise, having 2 highly prospective assets located in the U.S., is significant.  TMC is a compelling risk-adjusted investment opportunity at a market cap of just C$10.8 M = US$8.0 M.

Key management members are a major part of the TMC story.  This team has delivered strong shareholder gains, most notably with Northern Star Resources (ASX: NST).

Executive Chairman, Bernie Sostak is a highly seasoned geologist with over 25 years’ experience in the gold mining industry.  His most recent role was General Manager of Business Development & Technical Services for Northern Star Resources.  Bernie played a crucial role in building NST during its highest growth phase, from 2010-14.  He was one of the leaders of a team responsible for identifying, evaluating, (deal) structuring & integrating the acquisition of four mines.  Prior, he was Director of Resource & Reserve Strategy for Barrick Gold (TSX: ABX) (NYSE: ABX).  His experience includes the management of mineral resources & reserves, resource estimation, sourcing and evaluating mining assets, mine planning & operations, technical risk analysis, project portfolio management and deal generation.

Executive Director / CEO, Rob Tindall has over 20 years’ experience in the finance industry, the past 10 focused on funding exploration & construction of mining/energy projects in Australia, North America and around the world.  He has been actively involved in raising investment capital for numerous companies.  Over the past nine months Rob has traveled the world, multiple times, on behalf of Transatlantic Mining Corp.  

Non-Executive Director, Michael Hulmes is a well known and respected mining engineer with over 30 years’ experience in mining operations and projects in Australia, Papua New Guinea, Portugal, Spain, Saudi Arabia & Tanzania.  As former MD of Somincor, Michael was responsible for the Neves-Corvo & Aguablanca Mines in Portugal & Spain respectively.  Prior roles include, General Manager Operations at the Ok Tedi Mine in Papua New Guinea, COO for Citadel Resources and General Manager – Australian Operations for Barrick Australia, with responsibility for 5 mines, and General Manager of the Plutonic Gold Mine in Western Australia.

Non-Executive Director, Ray Parry holds degrees in both accounting and finance and an MBA specializing in international business.  He is a Fellow member of the Certified Practicing Accountants of Australia and has over 30 years’ experience in a variety of sectors including mining, manufacturing, banking, and oil and gas.  Currently, Ray is the CFO and Company Secretary of Hanking Gold Mining, and prior to that he was CFO at Northern Star Resources.  Various other roles have included senior management positions with St. Barbara, Kerr McGee (USA) / Tronox and Bankwest.

New hires are being carefully vetted, announcement(s) to follow.  Readers are invited to stay in touch with me for the very latest updates.  I can be reached at epstein.peter4@gmail.com.  The following interview is a decent overview of the story.  I plan on publishing more about Transatlantic Mining Corp {TSX-V: TCO}  (TMC”) in coming months. 

Transatlantic Mining Corp.

Disclosures: The content of this article is for informational purposes only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein, about Transatlantic Miningincluding but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered, in any way whatsoever, implicit or explicit investment advice. Further, nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Peter Epstein and  [ER] have never been, and are not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they do not perform market making activities. Peter Epstein and [ER] are not directly employed by any company, group, organization, party or person. Shares of Transatlantic Mining are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds.

At the time this article was posted, Peter Epstein owned shares in Transatlantic Mining and the Company was a sponsor of Epstein ResearchReaders understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. Mr. Epstein & [ER] are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article.