Tempus Resources


Last Price:


Our Investment Summary

Date of Initial Coverage


Initial Entry Price


Returns from Initial Entry


Our Big Bet for TMR

TMR becomes a gold producer following the discovery of enough new gold sources to justify the restart of its onsite gold mill.

Investment Memo: Tempus Resources (ASX:TMR) - LIVE

Opened: 28-Jan-2022

Shares Held at Open: 3,432,000

What does TMR do?

Tempus Resources (ASX:TMR) is an exploration company focussed on gold in Canada and Ecuador.

What is the macro theme?

Gold is considered a safe-haven asset that performs well when the overall market sentiment is negative.

Historically the gold sector outperforms other asset classes in times of increased volatility (i.e bubble crashes, Inflation or geopolitical tensions).

With inflationary pressure popping up all over the world and heightened geopolitical tensions due to supply-chain issues. We think that gold serves as the perfect hedge against an unexpected economic shock occurring.

Why did we invest in TMR?

Fast Pathway to production

TMR’s Canadian assets have had historical production of over 230,000 ounces and comes with a fully permitted mine. The project also has existing processing infrastructure in place so any new discoveries can be quickly put into production, especially if the gold price goes on a run.


TMR’s Gold project in Ecuador is a nearology play, the asset sits adjacent to CA$2.6B capped Lundin Gold’s Fruta del Norte project. A discovery here could lead to a positive re-rate in the TMR share price.

Capital structure

Company highly leveraged to new discoveries with only 125M shares on issue. With a market cap of $15M and $4.3M in cash TMR has an EV of ~$10.7M.

What do we expect TMR to deliver?

Objective #1: Make new discoveries at the Canadian gold project.

  • High impact drilling with a focus on discovering new gold veins over the project area.
  • In particular further drilling of the areas around the newly discovered Blue-Vein.

Objective #2: Upgrade the JORC resource at the Canadian gold project.

We want to see TMR complete another round of drilling at the Blue-Vein discovery both infill and extensional. Off the back of these results, we want to see TMR upgrade the JORC resource for its Canadian gold project.


JORC resource estimation commenced

JORC resource completed

Objective #3: Re-start exploration at the Ecuador Gold project, and identify drill targets.

  • We initially invested hoping to see TMR aggressively explore its gold project in Ecuador, but with COVID getting in the way, exploration of this project has been difficult.
  • In 2022 we want to see TMR complete a large scale soil sampling program in H1-2022 as part of target generation works which we hope will lead to a maiden drilling program either late in 2022 or early 2023.


Soil sampling works completed

Drill targets identified

What could go wrong?

Exploration risk

TMR has no established economic resource, this means the company is dependent on a new discovery being made to make it economically feasible to get its assets into production and producing cash flows. If a new vein or mineralised system is not found at its Canadian project then the project may become stranded.

Financing risk

TMR is doing high-risk high-reward exploration drilling which means they need access to capital that is willing to finance this type of exploration. TMR is heavily reliant on good market conditions and positive sentiment in the gold-space.

Commodity risk

Gold is a commodity that shines in periods of market volatility & negative sentiment. This doesn't happen often and when it does it can be for a very brief period.

Ecuador country risk

In late-2021 a federal election meant a more mining friendly government came into power in Ecuador but there is still a risk that the government and regulators look to make structural changes to the mining industry. The mining industry needs a stable geopolitical environment given it requires long-dated capital investment, there is a risk the government makes changes that deter capital investment and/or make projects uneconomic to explore/mine.

What is our investment plan?

The TMR share price took a beating in the last quarter of 2021, being sold off from its August 2021 high of 29.5c to be now trading at around 12c.

This has been disappointing for us and a lot of long term investors - we have been holding TMR for almost 2 years now, and have not sold a share. Our average entry price is ~18c across four separate investments.

Hitting our above objectives this year combined with a positive gold price should see TMR’s share price re-rate, given the low number of shares on issue (~125M). In 2022 we will look to sell about 20% of our holding if TMR trades above 30c.

Disclosure: The authors of this memo and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 3,432,000 TMR shares at the time of publication. S3 Consortium Pty Ltd has been engaged by TMR to share our commentary and opinion on the progress of our investment in TMR over time.

Investment Milestones for TMR

✅ Initial Investment: @ 20c
🔲 Top Slice
🔲 Free Carry
✅ Increase Investment: @ 34c
🔲 Free Carry
✅ Increase Investment: @ 14.5c
🔲 Free Carry
✅ Increase Investment: @ 17.86c
🔲 Free Carry
✅ Increase Investment: @ 5c
🔲 Free Carry
🔲 Take Some Profit
🔲 Price increases 300% from initial entry
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years

Our Past Commentary on Tempus Resources

Date Title
09-Jan-2023 $ TMR intercepts 28.1g/t of gold over a 28.5m, thickest vein we've ever seen
15-Nov-2022 $ TMR’s gold project visualised in 3D
22-Oct-2022 $ 0.059 Weed and gold, the unloved investment thematics
19-Sep-2022 $ TMR record breaking drill hits - another step to restarting dormant gold mill
20-Aug-2022 $ 0.078 Following a company's progress and why context matters
16-Aug-2022 $ TMR announces potential new “Layer of Icing in the cake”
09-Aug-2022 $ TMR announces 523g/t gold hit
27-Jun-2022 $ 0.078 Market Mood Swings, Price Discovery & Enterprise Value
22-Jun-2022 $ Visible gold to kick off the new drilling season
21-Feb-2022 $ 0.100 Why we invest in Oil & Gas and Precious Metals
12-Feb-2022 $ 0.115 Energy Transition Metals, Raw Materials, McKinsey, Supply and Demand Economics
28-Jan-2022 $ TMR’s “Blue Vein” discovery mineralised along strike - Exceeding what we wanted to see.
14-Jan-2022 $ 0.125 How do Fund Managers Invest in Small Cap Stocks?
27-Nov-2021 $ 0.130 New COVID strain, Santa Rally, Market Thoughts
25-Nov-2021 $ TMR’s Blue Vein mineralised at depth - now to see what's along strike.
30-Oct-2021 $ 0.170 The fallout from the VUL short attack explained
26-Oct-2021 $ TMR discovers a new gold vein - with bonanza grades. Now to start drilling it to see how big it is...
02-Oct-2021 $ 0.190 Evergrand, Gold and Traditional Energy
30-Sep-2021 $ 0.175 TMR intersects unexpected visible gold - “accidentally” discovers potential new gold vein
18-Sep-2021 $ 0.210 Why uranium stocks are soaring, one good movie recommendation
13-Sep-2021 $ 0.205 Quick fire commentary on the six stocks making progress today
21-Aug-2021 $ 0.265 Market fluctuations and portfolio news and quick takes
19-Aug-2021 $ 0.250 TMR raises $6.28M at ABOVE current share price. Ten drill results coming next. Drill season is ON.
14-Aug-2021 $ 0.295 Bookmark it, a new Pick of the Year is coming next week
10-Aug-2021 $ 0.260 TMR out of the blocks with Bonanza grade gold hit on new seasons first hole. More expected next few days
07-Aug-2021 $ 0.255 Market swings back up as small caps scramble towards the end of the year
02-Aug-2021 $ 0.190 New geophys survey suggests TMR’s project is a monster.
24-Jul-2021 $ 0.200 Why stocks go into "Quiet Execution Mode", how to spot a cap raise, stock "Confession Season"
21-Jul-2021 $ 0.170 TMR season opening drill results due next week plus recovery rates revealed
03-Jul-2021 $ 0.175 End of Financial Year, and what happened to 88E's share price?
26-Jun-2021 $ 0.185 June tax loss selling is behind us, KNI IPO expected in August
21-Jun-2021 $ 0.180 TMR reveals visible gold, summer drilling campaign has begun
12-Jun-2021 $ 0.180 What did our investments do this week? CPH, ONE, TMZ, 88E and more...
27-Apr-2021 $ 0.210 Our Portfolio Performance from January 1st to March 31st 2021
26-Apr-2021 $ 0.170 We Just Tripled Our Holding in TMR
08-Feb-2021 $ 0.280 TMR returns “Bonanza” Grade Gold results
07-Jan-2021 $ 0.265 Our Stock Picks for 2021
16-Dec-2020 $ 0.230 TMR Observes Visible Gold over a 2 metre Interval - Assay Results to Follow
30-Nov-2020 $ 0.245 TMR’s 6000m RC Gold Drilling Continues – Honing in on Resource Upgrade
09-Jun-2020 $ 0.230 Drilling Set to Commence at TMR’s High Risk, High Reward Ecuadorian Gold Play
04-May-2020 $ 0.175 TMR Now Fully Funded for Canada and Ecuador Next Door to Where Newcrest Has Expanded its Stake
24-Feb-2020 $ 0.230 TMR Secures Final Permit Ahead of Highly Anticipated Drilling
18-Feb-2020 $ 0.220 High Risk, High Reward? This $9M Capped ASX Explorer’s Neighbour went from 30¢ to $40

Discover High-Risk,
High-Reward Stocks

Join thousands of other Investors following our stock commentary for Free