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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’.

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#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.

 

#MTR Kingsgate game of cards

Metal Tiger has been a sleeping giant for a while.

Interest has been sparked and investors are now taking more interest in the business.

This blog highlights some of the Metal Tiger Business opportunities (see here).

Since then Metal Tiger have indicated they are investing in Kingsgate. This blog provides some background information on Kingsgate and the Chatree mine and indicates MTR are not the only business who see Kingsgate’s challenges as an opportunity (see here).

Metal Tiger have previously stated they intended to curtail their asset trading activity and would sell investments at the appropriate time. We have seen this most recently with Greatland Gold (GGP).

We can therefore conclude that Metal Tigers investment in Kingsgate is possibly a strategic investment.

MTR have been steadily buying KCN shares in the open market. Currently have 5.34% of the shares plus whatever they bought on the 18th October.

Why are Metal Tiger interested in Kingsgate?

Obviously since the announcement of the closure of the Thailand Mine, Kingsgate shareholders have seen the value of their shares plummet.  Many large shareholders will have watched the share price drop from c$6 a share to c24c. Those who bought in at AUS$4 will have experienced a 94% drop.

If the mine re-opens and KCN shares increase in value to $2, this being a third of previous highs, based on today’s share price this would be a 440% return. This doesn’t take into account Kingsgate’s Chile assets or the profits MTR will have already potentially made buying KCN shares at a much lower price.

News on Chile asset due in December. This is expected to have a positive impact on the value of KCN assets.

So looking at conservative figures, MTR potentially looking at a minimum of a 500% return in a relatively short period of time. This is all dependant on the Chartree mine reopening.

What do Metal Tiger have to offer that could facilitate the opening if the Chatree mine?

1. Contacts

  • CEO lives in Thailand and is married to a Thai. Has great contacts in Thailand.
  • Terry Grammer lives in Thailand. Why in the last couple of weeks did he invest just under a half of a million pounds in MTR?
  • Mark Potter recently became a Thai national and lives in Thailand. Mark has exceptional contacts in Thailand.
  • Extensive network of contacts in government departments.
  • Team on the ground with extensive experience in obtaining mine permits. For example Surapol Udompornwirat a Thailand permitting specialist. Surapol previously worked for Kingsgate.

2. Reputation

MTR have a good reputation in Thailand. This is completely opposite to Kingsgate’s reputation.

Everybody knows that to operate in Thailand you need to respect the Thai culture.

3. Liquid Assets/funds

MTR have in recent weeks built up a significant war chest with for example £480k from Terry Grammer and returns from their asset trading division,

4. Sprott / Rick Rule

The Warren Buffet of the mining sector has made a significant investment in MTR. Why recently was MTR CEO at a meeting with Rick Rule of Sprott? Sprott will be on side with the KCN play.

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What happens next regarding KCN?

1. MTR decide not going to achieve their goal and exit their position with a substantial profit?

2. MTR continue to buy and at the appropriate time make their move.

a. Put somebody on the board?

b. Replace the board?

c. Package up KEMCO/KCN?

d. Use contacts/expertise to get Chartree mine reopened?

e. KCN take measures to repel MTR action. All they can do is take on debt to make business less attractive, buy back shares to make cost for MTR greater, convince shareholders that they rather than MTR are the best option for shareholders.

KCN have informed ASX that they intend to buy back 10% of the shares. These will be cancelled pushing up the share price. Unfortunately for KCN they now have to wait 2 weeks and can then only purchase 2% of the shares every 30 days.

This means MTR have a two week window to buy on the open market before KCN can do the same. I am therefore expecting MTR to buy everyday on the open market.

MTR can buy about 15% of the traded volume in a day without moving the sp up or down. The fact they are currently buying c20% in the open market indicates they are being fairly aggressive.

If MTR stop buying we can conclude they have reached their goal or have an off market agreement with a major shareholder.

This is getting interesting, with MTR currently in the driving seat for the next couple of weeks.

I await KCN’s and MTR’s next moves with interest. It certainly looks as if MTR are holding all the Aces in this game of cards.