Category Archives: Copper

#MOD #MTR Botswana PFS will be published next week.

MOD Resources exploration programme in Botswana is going into overdrive in 2018.

The latest announcement from MOD is very encouraging (see here).

  • Widespread copper zinc soil anomalies to be drilled and tested
  • Revised resource estimate on track
  • Drilling T-Rex continues
  • Drilling wider T3 dome later in Q1

     

The PFS for T3 is due to be issued within the next 4 working days (4 days when exclude Australia Day).

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The price of copper has increased since the last report, with the increase in resource and using a copper price of c$3 the NPV for the T3 prospect should significantly increase.

Investors will be taking their positions ready for the release of the PFS. The PFS will not be released on the 26th January as Australia Day so has to be issued early next week.

 

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Shares to watch in 2018? #MTR #THR #KCN #MOD #RRR #RGM

Three companies with share prices I predict will more than double in first four months of 2018.

1. Metal Tiger (MTR). Share price end of 2017, 2.32p.

Asset Trading Division – Value generated by the Asset Trading Division not yet recognised by the market. c£18m available in liquid assets with c£9m of this being cash. Stella performance in 2017, funds available to accelerate  further value enhancement.

Chatree mine Thailand – Metal Tiger BOD has acquired 8.13% of Kingsgate business, whose shares this year dropped to an all time low due to the Chatree mine being closed by the Thailand Government.

Metal Tiger have the contacts, personnel and resource to reopen Chatree. MTR are in the process of taking the appropriate action to ensure the value of their 8.13% stake significantly increases.

KEMCO IPO – Metal Tiger in Q1 2018 are spinning out their Thailand assets into a separate business.  Thailand business value isn’t yet reflected in the Metal Tiger share price.

Botswana copper – JV prospect with MOD Resources. Resource continues to grow as prospecting progresses. Copper contained in T3 (one prospect area) with each updated estimate contained copper increases. In 2018, with more news due, it is likely this could become a recognised tier 1 resource. Major copper producers will make the appropriate moves as copper is located in a safe jurisdiction with a government that is pro mining.

All elements of the Metal Tiger offering are coming together at the same time. Positions will be taken early 2018, ready for the significant news and share price upside by the end of 2018.

 

2. Thor Mining (THR). Share price end of 2017, 2.89p.

The following link provides an update on Thor projects (see here).

Thor is fully funded for 2018.

Pilot Mountain is a significant Tungsten prospect in America. Interesting as this would, when in operation be the only Tungsten mine in America. This would reduce the impact of China’s dominance in the market.

News due regarding Kapunda copper project and  Molyhil Tungsten/molybdenum project in Australia. Pilot Mountain news regarding a scoping study is also due.

A broker ringing around high net worth individuals encouraging them to sell their holding. Why would a broker do this when news is imminent and share price is rising and will continue to do so? This could indicate a major short position

Any good news mixed with a broker closing a short position will result in a significant spike in the share price.

 

3. Red Rock Resources (RRR). Share price end of 2017, 0.925p

Red Rock Resources plc is a natural resource exploration and development company managing  a diverse portfolio of mining and oil and gas projects and investments around the world.

Steelmin in Bosnia has an existing smelter complex that RRR has financed with a view to getting back online Q1 2018. Steelmin’s existing projections are €35m revenue in first full year of operation.

Andrew Bell (Chairman) in December 2017 bought a significant tranche of shares on the open market. This is a good indication the Chairman believes significant share price upside is going to happen.

For details of other key projects read the ARA (see here).A3E14EE6-E244-4F9F-85A5-20AAFFA03123

 

Six stocks predicted to multi bag in 2018

1. Kingsgate (KCN.ASX).  Share price end of 2017, AUD$ 0.40

Current BOD are not delivering value for shareholders. Pending changes will result in a refocus on Thailand and the reopening of Chatree mine. Previously when mine operating, Kingsgate paid between 10 cents and 35 cents a year in dividends.

Once the mine is reopened, dividends could again be paid to shareholders.

Once business is back on track the share price could easily reach $5, this being less than half previous highs.

2. MOD Resources (MOD.ASX). Share price end of 2017, AUD $0.051

Botswana copper licence area is significant. Above refers to the MOD JV area. MOD have extensive licence areas 100% owned by MOD (see here).  DD654EC3-8F35-4A41-A569-C523B78923F6

3, 4 and 5. Metal Tiger (including KEMCO IPO upside), Thor, Red Rock Resources

See above.

6. Regency Mines (RGM). Share price end of 2017 0.525p.

Only one of the six areas of operation needs to deliver and significant value enhancement will be achieved.

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Mambare – cobalt price went from $32,500 per tonne, reaching a peak of  $75,000 in 2017. The prediction is because of electric vehicle battery requirements the price of cobalt will continue to increase in 2018 (see here).

Curzon – gas production commences 2018 and is easily scalable.

Coal – operation is for metallurgical coal. Key for steel production. Steel production required for the American economy.

Modzfelt – rare earth elements opportunity.

EsTqeq – electric vehicles and battery subsidiary.

Regency share price is suffering due to sentiment being low due to:

1. YA loan.

2. Being over bullish with announcements regarding progress.

Once resolved and focus is on Curzon, coal opportunities  etc the share price will move North very quickly. Regency could surprise many.

 

2018 is going to be a good year for the resource sector with the potential for significant gains to be made investing in small market cap resource businesses.

The 6 businesses mentioned in this blog I believe highlight some with significant potential.

Metal Tiger share has minimum of 72% uplift potential #MTR

Metal Tiger Asset Trading division has done very well this year, with assets now having a value of c£10m. Comprising of Thor Mining £1.5m, MOD £3m, Lion £1m, Kingsgate £3.5m and Lion and Thor warrants of c£1m.

Assume cash in bank of c£6m and this equates to 1.5p per share.

The 30% Botswana JV with MOD Resources, also has a value of £24m equating to 2.2p per share.

Botswana and the Asset Trading division has a combined value per share of 3.7p, 72% above the current share price of 2.15p.

These figures on their own highlight the share price has considerable upside potential.

Now consider:

1. Thailand assets, detailed in brokers note (see here). Metal Tiger shareholders will get a free ride when KEMCO IPO happens in February and KEMCO shares are “gifted” to MTR shareholders.

2. Kingsgate Board spill, see here. This booklet highlights why MTR believe they are best placed to create value for Kingsgate shareholders. Then consider the potential financial implications.

  • Current Kingsgate share price is 42 cents – share price could easily reach $5 if Chatree mine reopens. $5 being less than half previous Kingsgate share price highs.
  • Kingsgate used to regularly pay between 15c and 35c in dividends per year.

3. Botswana resource increasing all the time. This announcement indicates what has been happening and gives an indication of how quickly the value of the asset is increasing (see here).

The Thailand, Kingsgate plays and Botswana upside are at the current Metal Tiger share price, free rides for investors.

With the free rides and the 72% discount, the Metal Tiger share price looks poised for a rerate. 

 

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Why convert £480k of MTR warrants now?

Metal Tiger Director converts warrants, thereby investing £480k into the business (see here).

Why would Terry Grammer invest just under £1/2m now, when the KEMCO IPO isn’t until February 2018? Why didn’t he wait another three months and use his capital elsewhere?

Whilst this development was expected (see here) in reality you would have expected the timing to be nearer the February KEMCO IPO date. We know MTR have funds, therefore cash flow isn’t an issue.

It would therefore be logical to assume MTR have another use for the funds.

Longterm holders await with interest the next development in the MTR journey.

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#MTR – everything is aligned for a share price rerate.

Many analysts, chartists, bloggers and twitter posters are predicting the Metal Tiger share price is going to re-rate upwards.

Many follow what analysts and chartist ‘experts’ say and this can become a self-fulfilling prophesy. The herd arrive and the share price goes up.

The Swiss Cheese model suggests that when everything aligned the unexpected happens. The share price rise could therefore when it happens according to the theory be significant.

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We have for several days now had share price rises of 3%+ a day with a c14% rise over the last week.

 

1. Resource  increases

These have been happening for a while and are covered in these two blogs.

MTR stunning results under T3. link

MTR results due. link

MOD Resources our partner will be issuing additional data in the very near term (possibly this week). This information is expected to significantly increase the T3 resource and translate into better NPV and IRR figures.

Obviously the price of copper breaching the $3 a pound level for the first time since November 2014 (see here) also significantly increases the potential returns from the T3 prospect.

 

2. Strong fundamentals, business strategy and leadership

Charles Hall (Chairman) and Michael McNeilly (CEO) interview highlights the changes that are taking place.

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This link takes you to an interview with Charles and Michael.

Metal Tiger is a private investor friendly business. It was no surprise when Charles a private investor with a T1 holding was appointed Chairman.

3. Thailand IPO 

The Thailand IPO will be announced soon.

Metal Tiger shareholders will be ‘gifted’ shares in the new business KEMCO.

The positive noises coming from Kingsgate and the Thailand Government regarding the Chatree mine are also a positive for those involved in mining in Thailand.

 

Conclusion

The cheese holes are aligning, with many aligned and long term holders are about to reap the rewards.

Those that hope to benefit from keeping the share price low will soon be shocked by a significant sp re-rate. The share price re-rate will be quick and the impact devastating for those who haven’t realised it’s coming.

 

Metal Tiger investing in #Thailand. #MTR

The Thailand IPO is due to happen in June/July 2017.

This will be when Metal Tiger shareholders will be ‘given’ shares in KEMCO the new Thai company.

Not many companies you can invest in knowing that in the very near future you will be the beneficiary of shares in another company. What is even more compelling is the current share price of Metal Tiger doesn’t take into account any value for Thailand.

KEMCO will be launched in June/July and this will be followed by events that will potentially have a positive impact on the share price. These being:

1. Thailand new permitting requirements goes live in August.

2. MTR apply for relevant permits August.

3. Kingsgate started their 3 month consultation period regarding the closure of their Thai mine at tthe beginning of April. Positive outcome announced July/August would have impact on sentiment towards KEMCO.

4. Directors and Major shareholders of MTR have been exercising their warrants. If this continues it is a clear indication all are preparing to ensure they are entitled to as many ‘free’ KEMCO shares as possible.

5. Announcement about key investors who have taken part in the KEMCO IPO.

Thailand venture is approaching a 3 month period when announcements are expected that will have a positive impact on market sentiment.

 

We also have Botswana with the current delay associated with environmental permits due to come to an end as announcements on applications submitted and awarded released to market.

 

Tiger shareholders who have researched the business can see the bottleneck of news that is coming. Investor sentiment could change overnight with the announcement of any one of the above events.

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Chartists all predicting significant uplift in #MTR share price

The Metal Tiger share price is currently 2.95p.

The following Chartists all predict a significant uplift to the share price is imminent.

Bonkers99

Predicting share price will increase with a target of 7p – c13p

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Nic Trades

Predicting share price will rise to a target of 4.1p to 5.87p

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Emergo Charts

Using the Elliot Wave Theory predicting share price of  4.17p – 4.75p.

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Zac Mir

In this video Zac predicts share price will test 4.5p.

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The Chartists are therefore predicting an uplift of the share price of between 39% and 340%.

This is also supported  by the fact that all the indicators are that everything is becoming aligned fir a share rerate (see here).

 

This graphic indicates the near term news and events that could push the share price higher.

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Finally this chart indicates the disparity between the MOD Resources share price and Metal Tigers.

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All the indicators are the current Metal Tiger share price of 2.95p makes no sense and a rerate is going to happen.