Mining has started at the Aappaluttoq ruby and pink sapphire mine on schedule and budget, marking a significant milestone in True North Gems' (TGX) history. With specialised process equipment currently being shipped, the mining underway will form a stockpile of raw gemstone-bearing material for subsequent processing towards the end of Q116. While sales contracts are being finalised we suspend our small FY15 revenue assumption as it has a negligible effect on our base case value, reducing it by only 2.6%. Sales contracts for Aappaluttoq material remain the key near-term catalyst to re-rating True North’s shares.
