TGS - Tiger Resources

[burglar]

Copper prices, US$/tonne courtesy of London Metals Exchange:

 

[springhill]

hi springhill,

That's a lot of copper.
Now I need to know the commodity price of copper.
And the soveriegn risk in DRC!

Off to research!!

Some links that may help with your assessment of DRC.
http://www4.carleton.ca/cifp/app/serve.php/1221.pdf

http://www.coface.com/CofacePortal/...he Democratic Republic of the?extraUid=572108

http://www.euromoneycountryrisk.com/Wiki/Dem-Rep-Of-the-Congo

 

[springhill]

JUNE PRODUCTION AT KIPOI SETS NEW RECORDS

HIGHLIGHTS
 Record of 3,853 tonnes of copper in concentrate produced in month of June 2012
 Concentrate grade of 26.2% exceeds nameplate capacity
 Stage 1 HMS plant on track to achieve production level of 35,000 tonnes per annum

During the month of June 3,853 tonnes of copper was produced in concentrate, exceeding the previous record production achieved in March of 3,506 tonnes. Copper produced in concentrate for Q2 2012 was a record 10,233 tonnes.

 

[springhill]

Cop a load of these copper drill results!!!

Tiger Announces High Grade Results at Kileba

Highlights
● Significant intersections from the final 40 holes of the 64-hole Priority 1 programme at Kileba include:
 KLBDD068: 63.4m @ 2.71% Cu (43.8m to 107.2m)
 KLBDD074: 56.5m @ 3.17% Cu (36.0m to 92.5m)
 KLBDD085: 50.0m @ 2.38% Cu (22.0m to 72.0m)
 KLBDD086: 63.5m @ 3.03% Cu (44.5m to 108.0m) including 18.3m @ 5.48%Cu (73.0m to 91.3m)
 KLBDD092: 107.1m @ 1.61% Cu (from surface) including 52.2m @ 2.40% Cu (0.0m to 52.2m)
 KLBDD093: 69.0m @ 2.74% Cu (22.0m to 91.0m) including 24.2m @ 5.0% Cu (22.0m to 46.2m)
 KLBDD094: 49.0m @ 2.65% Cu (from surface) including 38.0m @ 3.26% Cu (0.0m to 38m)
 KLBDD097: 36.0m @ 1.95% Cu (from surface) Including 5.0m @ 5.63% Cu (20.5m to 25.5m)
● Assay results confirm the continuity of copper oxide mineralisation at Kileba.
● Mineralisation remains open at depth and along strike to the northwest and southeast.
● The Priority 2 DD programme at Kileba of 2,824.5m for 29 holes was completed in July. Assay results are pending.

 

[tinhat]

I had a long chat with a mining analyst during the week mainly about gold and copper. He mentioned TGS as a highly speculative stock. Great copper resource but in the Democratic Republic of Congo. High sovereign risk, social unrest. Also, a forced joint venture partnership with a state owned company.

Coincidentally, I put a buy order in on Friday 15/2/13 and while it was sitting in the market I got an email from "Under the Radar" which featured Tiger. I don't normally read their emails but obviously this one caught my attention.

Tiger tiger burning bright
The copper you produce will set your share's
Alight

Radar is noticing that the speculative excitement is moving rapidly into the copper mining minnows. Earlier this month I noticed Inca Minerals quadrupling in two weeks after it came out with data that could only be described as preliminary, indicating it might be onto a giant copper deposit in Peru.

Gold does have more romance about it, but as industrial metals go, there aren’t any that are more essential than copper, which is used for building construction, power generation and transmission, electronic product manufacturing, and the production of industrial machinery and transportation vehicles.

Just as important, copper is getting very hard to find.

One company we will be talking more about in our Spec Series, which kicks off Thursday next week, is Tiger Resources (TGS), a copper producer in the Democratic Republic of the Congo (DRC). Leaving aside the inherent sovereignty risk, this company now has funding for its expansion ($80m via a South African bank) and is set to produce copper at 70 cents a pound, which it will sell for about $3.60 a pound.

Its Kipoi mine is expected to be one of the 15 highest-grade mines in the world with at least 50,000 tonnes a year copper production.

There is abundant exploration potential to boot with this company, but there is no doubting the risk you take on when you put your money into a company whose operations are in the DRC.

At 35 cents, it’s definitely a good punt, in Radar’s view.

Best wishes,

Richard Hemming
Editor

Bought at $0.355

 

[tinhat]

The securities of Tiger Resources Limited (the “Company”) will be placed in Trading Halt
Session State at the request of the Company, pending the release of an announcement
by the Company. Unless ASX decides otherwise, the securities will remain in Trading
Halt Session State until the earlier of the commencement of normal trading on Monday,
22 April, 2013 or when the announcement is released to the market

 

[tinhat]

So this is what is meant by sovereign risk:

http://resourceinvestingnews.com/53803-drc-bans-exports-of-copper-and-cobalt-concentrates.html

DRC Bans Exports of Copper and Cobalt Concentrates
Wednesday April 17, 2013, 10:15am PDT
By Vivien Diniz - Exclusive to Cobalt Investing News


The Democratic Republic of Congo has banned exports of copper and cobalt concentrates, forcing mining companies to export value-added minerals.

The order signed by Mining Minister Martin Kabwelulu on April 5 gives, companies 90 days to clear their stocks before the ban comes into force. “Little by little, within the next three months, we need to no longer export concentrates,” Kablwelulu told Reuters.

Last year, the Congo was the eighth largest copper producer, with copper production around 500,000 tonnes per year. The country was also the larges cobalt producer in 2012.

Unaffected by the ban is the Congo’s largest copper producer, Freeport-McMoRan (NYSE:FCX), which already processes its copper inside the country. As far as Freeport’s cobalt production is concerned, the company must prove that its cobalt hydroxide produced at the Tenke Fungurum project is a finished product in order to avoid the ban. This could potentially impact the company’s recently acquired Kokkola cobalt refinery in Finland.

 

[tinhat]

TGS in trading halt. The share price has rocketed up in the last couple of months. My average buy price is now 0.30. Being in the Congo, who knows what the news will be! I am assuming a capital raising.

 

[sikboy]

TGS dropped 25% in one day. I can't find any news why the massive drop in share price. Does anyone have any current info on this stock?

 

[superman]

Just picked up the stock for $0.054. I think if they can work out their financing issues they will go really well. See what happens. Anyone else dabbling in TGS at the moment?

 

[sikboy]

They have been in a downhill
Spiral for a while now. You might be catching a falling knife. I'm on he sidelines on this stock at the moment just watching it.

 

[tinhat]

Just picked up the stock for $0.054. I think if they can work out their financing issues they will go really well. See what happens. Anyone else dabbling in TGS at the moment?

Yes, I own. UBS are bullish with a target o $0.30. Macquarie are bearish and I believe they have a target of $0.03. So that is quite a range in valuations! They need to demonstrate they are on-top of a few things before they will be re-rated by the market:

1. Maintain nameplate production of cathode through the SX-EW plant.
2. Roll over their debt into a long term facility.
3. Get themselves on grid power (currently doing this).
4. Produce a plan of how they are going to expand production (duplicate the SX-EW), pay down debt and remain cash-flow positive and at what copper price this can be done.

Then there is the underlying geopolitical sovereign risk that will always be present with this stock.

This is a company that overstretched itself and then hit a perfect storm of trouble and that has been reflected in the share price.

 

[pixel]

Re-rating seems well underway. Pity we missed the break above 8c.



The break into double digits may prove difficult in current market conditions, but I have it on my watchlist for a pullback.

 

[tinhat]

Re-rating seems well underway. Pity we missed the break above 8c.

The break into double digits may prove difficult in current market conditions, but I have it on my watchlist for a pullback.

Copper might be due for a pull-back too. The market is still anticipating a favourable announcement on a longer-term roll-over of debt, but given how much the share price has risen lately it might be a case of buy the rumour and sell the fact when the announcement finally comes out, or it could be the catalyst for another spurt in share price.

 

[tinhat]

TGS management have entered into an agreement to sell its sole opperation, the Democratic Replubic of Congo copper processing plant and mine to Sinomine Fuhai (Hong Kong) Overseas Resource Investment Co., Ltd. The deal will see the company's mountain of debt paid off with a few million dollars left over to share between the two billion shares on issue. Shareholders will be lucky to get one or two cents per share returned if the company decides to return capital to its shareholders. What is even worst is that another maximum of $20 million (about a cent per share) of royalties will be paid over the next three years meaning Tiger Resources will live out another three years as a zombie company probably waiting for someone to reverse take-over a worthless listed company.

The management (past and present) have taken a damned good project and completely destroyed the shareholders equity in it by overburdening it with a sticking pile of debt and what appears to be hostile lenders (including the World Bank) looking to force a fire sale to get their money back. The lenders have been accepting shares in lieu of cash as interest payments but obviously don't care about getting anything back from those shares.

The new CEO was brought in last year to clean up the mess - both the debt mess and the non working plant. It seems they have got the plant sorted out now but they have no working capital to recommence mining ore to feed it with.

There was talk of a capital raising. Even if they had to dilute the crap out of it by issuing another two billion shares at 1c this would have at least left shareholders with an asset with some value and debt reduced to a manageable level. This sale is supposed to be the best finance deal they can come up with? [edit] Actually that won't work as it would only raise $20 million. Crickey!

The shares were in the doldrums at 4.9c when it last traded in Feb 2017. Since then the price of copper has risen substantially.

I'll be voting NO against the sale. I'd rather loose 100% of my investment than agree to this deal which will leave shareholders owning a zombie company that will hang around for three years to extract another 1 cent per share of income. No thanks. I just have to hold out the slim hope that one of the major shareholders can put together a superior deal.

Another speckie disaster that I should have pulled out of long ago.