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4/28/15

True Gold (TGM.v) 4q14 financials

In the 4q14 NR just out, True Gold (TGM.v) says it's going to be a bit late in getting its mine constructed and running, what with the locals being slightly miffed and breaking its stuff:
"At the time of the shutdown, Karma was ahead of schedule and under budget. Once activities resume at Karma, the Company expects it will be in a position to pour first gold within 10 months. Accordingly, the Company has amended its previous guidance, which forecast Karma to enter production before the end of 2015."
Then if we check the bullet points of the MD&A, TGM says everything's a go by 1q16.
"True Gold’s Board of Directors approved a construction decision with a target of commercial operations by Q1 2016."
Hmmmm...wonder why they're insisting on that timeline, what with things likely to be unstable until the new national elections in October?....hmmm...I dun..ah wait! What's this from note 14 of the Reg F about the repayment terms of the gold stream deal?
 "True Gold is obligated to deliver 100,000 ounces of gold over five years (the “Delivery Period”). During the Delivery Period, which starts on March 31, 2016, True Gold shall deliver to the Syndicate an aggregate of 20,000 ounces of gold each year."
Ah yeah, that'll be it.

Bottom line: IKN smells junior miner BS from several thousand kilometres distance and says there will be no commercial production at Karma in 2016. Any takers on that bet?