06:29:46 EDT Fri 29 Mar 2024
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Tanzanian Royalty Exploration Corp
Symbol TNX
Shares Issued 101,298,306
Close 2014-08-20 C$ 2.57
Market Cap C$ 260,336,646
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Globe says Tanzanian Royalty proves Barron's wrong

2014-08-21 08:03 ET - In the News

The Globe and Mail reports in its Thursday edition Tanzanian Royalty Exploration ($2.57) is up by more than 40 per cent from its low last December. The Globe's David Milstead writes Tanzanian Royalty has no operating mines and no proven reserves. Instead, the company reports a couple million ounces of "measured" and "indicated" resources, a classification for ounces of gold that have, it says, "reasonable prospects for eventual economic extraction." For this, investors have rewarded the company with a market value of roughly $270-million. The downdraft is not solely due to the decline in enthusiasm for gold stocks in 2013. Instead, it seems to be in part from Tanzanian Royalty Exploration's removal from the NYSE Arca Gold Miners Index -- and the popular gold-miners ETF that tracks it. Last September, Barron's predicted that once the Gold Miners ETF sold its shares, pain would surely ensue for Tanzanian Royalty stockholders. There was a problem with the Barron's thesis, however: Tanzanian Royalty is also a part of the Global Junior Gold Miners Index and a tracking ETF (GDXJ), and in 2014, as prospects for gold turned, investors poured nearly $900-million into the ETF through July, according to Lipper.

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