In February 2016 I first blogged about Metal Tiger (see here).
It has been a long wait, but it looks like after 27 months the share price is going to deliver for longterm shareholders.
The investment opportunity that is going to deliver is the investment in MOD Resources.
At the MOD Resources presentation held in Walsall on the 19th May 2018 the enthusiasm of Jacques Janse Van Rensburg (MOD Resources representative) was evident to all who attended (see here).
Some Tier 1 copper companies have copper mines that ar closing or the copper grades are declining. This is happening when the demand for copper is increasing because of the electric vehicle revolution etc and the price of copper is predicted to increase.
MOD Resources have an extensive drilling campaign in Botswana. MTR have a JV with MOD for some licences areas having 30% of the JV and also have a percentage of the whole business.
So what’s happening to believe MTR/MOD share price is due for a re-rate?
- MOD have carried out a share consolidation. Why?
- MOD are going to list in the UK. Why?
- Why have MOD/MTR significantly increased their drilling programme? Are they worried a ‘low ball’ offer is going to arrive and want to prove up as much of their licence area before this happens?
- Why has Sprott the Warren Buffet of the mining sector invested at a much higher level than the current share price? What has their extensive due diligence concluded?
- Announcements from MOD and the recent presentation by MOD indicates the information from the airborne surveys has been proven to be a good indication as to what is underground in the T3 area. The airborne survey indicates that T3 is one of many such copper prospects. What will happen when T3 is replicated?
- Why have MTR increased their stake in MOD?
- Why did MOD Director have to at short notice fly out to Botswana and miss the 19th May presentation? Nothing has been announced to the market. Could it be an investor wants to invest, or could it be a company considering making an offer?
So what do I think is going to happen next?
A) MOD/MTR will streamline the business, making it easier for a Tier 1 company to make an offer.
B) Drill results will significantly increase the copper resource as the air bourne survey results are translated into copper finds that retail and institutional investors understand.
C) Significant holder in MOD/MTR shares will be announced.
D) MOD will make public as quickly as possible good copper news. The more news in the public domain the higher a low ball offer will be.
The MTR share price has started to move upwards. Why is this happening now when it has stagnated for so long?
The only risk I can see is that a low ball offer comes in and is accepted. Whatever happens long term holders are going to watch the share price rise.