TGX Theragenics Corp.

EDISON EQUITY RESEARCH: TRUE NORTH GEMS - GREENLAND’S RUBY AND PINK SAPPHIRE MINE

True North Gems’ Aappaluttoq ruby and pink sapphire mine in Greenland will start up in Q315. This follows a turnaround year of permit approvals and project financing. Two key risks remain: project execution as planned and management’s ability to market its gemstones. Concerning the latter, we await the first sale of Aappaluttoq stones in H215 to provide the first indication of value for its rubies and pink sapphires. Our DDF C$0.41/share valuation (using a 10% discount rate) currently uses prices as contained within True North’s revised pre-feasibility study (PFS), which we also use to value the company’s shares. 


True North Gems is developing its 93% owned (73% upon completion of the mine by its JV partner LNSG) and exploitation (mining) permitted Aappaluttoq ruby and pink sapphire mine in Greenland.


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