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• Trigon announced commercial production at its Kombat mine.
• On October 5th, TM announced its first shipment of copper concentrate.
• Concentrate grades in September were 35.3% Cu, significantly higher than our expectations of 20% Cu. This will lower shipment costs on a per-tonne basis, increasing cash flow.
This morning, Trigon Metals Inc. (TM:TSXV) announced that it has achieved commercial production as of Oct 11th, at its Kombat mine in Namibia. Commercial production is defined as operating at 70% of production capacity over a period of 30 consecutive days. Earlier this month, TM announced that on September 29th, the Company shipped its first copper concentrate from the Kombat mine. A total of 470 tonnes of concentrate was produced in September with 101 tonnes being shipped in this first shipment. The average concentrate grade of the September production was 35.3% Cu and 345 g/t Ag, well above our modelled copper grade of 20% Cu. We are pleased that TM was able to achieve these milestones on time, despite the large undertaking and supply chain issues over the past year.
Both announcements are significant milestones for Trigon as they mark the beginning of revenues and ultimately cashflows for the Company. We are maintaining our BUY rating and C$0.60/share target price on TM.
Trigon is in the final stages of completing its feasibility study on the underground portion of the operation, which is expected this quarter. We view this pending release as a significant catalyst as it will provide shareholders with more clarity into the potential robust production and economics of the underground operation. As a reminder, the majority of our valuation for the Kombat mine comes from the underground operation.
TM: Kombat Mine Announces Commercial Production
What you need to know:• Trigon announced commercial production at its Kombat mine.
• On October 5th, TM announced its first shipment of copper concentrate.
• Concentrate grades in September were 35.3% Cu, significantly higher than our expectations of 20% Cu. This will lower shipment costs on a per-tonne basis, increasing cash flow.
This morning, Trigon Metals Inc. (TM:TSXV) announced that it has achieved commercial production as of Oct 11th, at its Kombat mine in Namibia. Commercial production is defined as operating at 70% of production capacity over a period of 30 consecutive days. Earlier this month, TM announced that on September 29th, the Company shipped its first copper concentrate from the Kombat mine. A total of 470 tonnes of concentrate was produced in September with 101 tonnes being shipped in this first shipment. The average concentrate grade of the September production was 35.3% Cu and 345 g/t Ag, well above our modelled copper grade of 20% Cu. We are pleased that TM was able to achieve these milestones on time, despite the large undertaking and supply chain issues over the past year.
Both announcements are significant milestones for Trigon as they mark the beginning of revenues and ultimately cashflows for the Company. We are maintaining our BUY rating and C$0.60/share target price on TM.
Trigon is in the final stages of completing its feasibility study on the underground portion of the operation, which is expected this quarter. We view this pending release as a significant catalyst as it will provide shareholders with more clarity into the potential robust production and economics of the underground operation. As a reminder, the majority of our valuation for the Kombat mine comes from the underground operation.
Underlying
TRIGON METALS INC.
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Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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