Tag 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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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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#MTR fund raising and MOD Resources.

Metal Tiger placing has created some unrest amongst smaller private investors with many believing the dilution of their shareholdings has benefited the BOD and major investors.

In fact the BOD and major investors have also seen their shareholdings diluted.

So why has the Metal Tiger placing happened when the share price so low?

What we do know is MOD have said they intend to drill the life out of T3. To do that they need funding.

We now have A$5.46m (c£3.19m) raised by MOD resources with institutional investors partaking. MOD Resources are ready to start drilling T3 in early January 2017.

What would have happened to the MTR share price if they hadn’t already had their placing? In all probability the MTR share price would have gone down as investors would know MTR need to fund 30% of the T3 exploration. This scenario would have resulted in the MTR placing being at lower levels than has already occurred.

It looks like MTR had no choice but to raise the necessary funding when they did.

We know the CEO of MTR and MOD BOD members, together, attended meetings with potential funders during MOD boards recent visit to the UK. Is it possible as a result of these meetings, institutional investors indicated willingness to invest in MOD?

If that’s the case this could explain why MTR offered warrants as part of their placing and MOD haven’t.

It is going to be interesting to see what happens to the share price of MTR as a result of this news.

Investing is about the transfer of wealth from the impatient to the patient.

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#MTR getting closer to an offer?

The Quarterly Activities Report issued today contains information that indicates MTR’s strategy of proving up resources and transferring increased asset value into shareholder returns is moving closer to fruition.

The report states:

1. MOD/MTR joint venture is receiving interest from third parties, including major mining organisations and investment funds.

2. Metal Tiger have recently received interest in their 30% position in the JV and the company continues the liaise with third parties.

We also have the General Meeting today passing both resolutions, moving the company closer to the position of being able to distribute assets too shareholders. The court order will follow.

The following events are IMHO reasons to believe the company is moving closer to fulfilling their strategy of returning value to shareholders:

  • Weak pound, whilst it lasts, makes now a good opportunity for overseas investors or companies to make an offer for MTR’s investment in Botswana.
  • JV have changed their strategy and are focusing prospecting the T3 dome. Is this to maximise the known potential of the area before a formal offer us tabled?
  • Both MOD and MTR are receiving interest from major mining companies or investment companies. This is the first time we have been informed both companies are being pursued.
  • Recent RNS stated:

1. Reinterpretation of magnetics data has resulted in drilling being refocused on the T3 dome. It must be significant when MOD have previously stated that other zones are potentially better than T3. I wonder what MOD have seen that has made them change their plan?

Or was this a subtle way of letting any potential buyer know that MOD/MTR intend to keep increasing their knowledge of the T3 area and the JORC information released to date is only part of the story?

2. Deep IP hole arisings had visible copper mineralisation and the assay results are now awaited.

MOD mentioning what they have indicates they expect the assay data to be significant. If they didn’t, why have they mentioned in an announcement to the market?

It is definitely a good way of letting any potential buyer know that the JORC information is only the tip of the resource.

 

MTR made an investment of $100k in Botswana. The returns look as if they will be substantial when you consider that T3, if this is the area of any offer, is less than 1% of the JV licence area.

T2 apparently is a more promising prospect.

Mining company strategy – preparing for commodity cycle bounce.#MTR #KGLD #GGP

Interesting graphic indicating how small mining companies can take strategic actions to prepare themselves for future opportunities as the commodity cycle moves to the next phase.

As the market bounces from the bottom of the commodities cycle, those companies that have prepared themselves for the upswing will be in a very good position to maximise shareholder returns.

Strategic positioning carried out by several AIM companies will enable them to make strategic acquisitions that will maximise shareholder returns as the market recovers.

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