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#MTR share price movement is for a reason.

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?

  1. MOD have carried out a share consolidation. Why?
  2. MOD are going to list in the UK. Why?
  3. 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?
  4. 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?
  5. 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?
  6. Why have MTR increased their stake in MOD?
  7. 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.

 

 

 

 

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Regency Mines coal interests and the Trump card turns it into a ‘gold mine’. #RGM

Regency Mines has a significant coal mining interests in the United States. The Rosa coal prospect is metallurgical grade coal used for the production of steel. Below is an abstract from a recent analyst note (see here) regarding Regency Mines coal interests.

 

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The price of metallurgical coal has been rising steadily since 2016.

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We now have Trump putting significant tariffs on steel imports (see here). These tariffs for steel can be up to 25%.

What will the impact be on the value of Regency Mines metallurgical coal interests located in the United States? It would be reasonable to assume steel production in the States will increase, increasing the demand for Met coal driving up the cost of Met coal.

Regency Mines in the analyst note they commissioned, stated they expected early profits to come from their Met coal interests.

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With the Trump news yesterday you would expect this to be a significant catalyst to:

a) remove barriers, preventing early production of Met coal from happening.

b) increase the early profits RGM are expecting from their coal interests.

 

It looks like the long awaited returns from Regency Mines coal interests are about to materialise. Trump is turning Regency Mines American coal interests into a ‘gold mine’.

#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.

 

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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Is Regency Mines a steel at this price? #RGM

Disclosure: This blog is the work of Sunil Mark-Singh (Silky). Sunil holds Regency Mines shares.

Overview:

Regency Mines Plc are a small cap resource exploration company creating value mthrough strategic investments and project development at bottom of the global commodities cycle.

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Regency Mines #RGM update due.

The current Regency mines market cap of £3.5m has no relation to the assets of the business.

Regency have a diverse portfolio of assets covering different commodities and jurisdictions. A portfolio that offers significant opportunities and manages the potential risks associated with businesses that have one business in one area.

The following graphic indicates the diverse nature of the business, its potential and the minimum expected revenue.

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The slight delays to the coal projects are just that. A much larger deal is anticipated from that previously envisaged.

We know Legacy Hill have been carrying out due diligence. We will soon know the partners involved in the bigger project deal.

Rumours are circulating that a large coal deal is about to be announced. Longterm Regency shareholders await the news with anticipation.

The share price will react on the coal news and the bashers of the stock  will disappear into the either.

We then have the following news coming:

1. Conclusion of the deal from the HHL shares sale to Alba.

2. Mambare Nickel/Cobalt News.

3. Motzfeldt news.

Regency Mines market cap will then IMHO be much higher than the current £3.5m.