By HotStockRockets | Friday 16 June 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Metal Tiger (MTR) has updated on interests in Botswana and Thailand – with on the former CEO Michael McNeilly “excited by the strong mineralisation intersections in the geotechnical holes drilled to help plan the open pit design” and on the latter noting the project “not only warrants the further technical work required to commence an optimised reopening, but holds the potential for significant Mineral Resource increases and enhancement”.
The Thailand conclusion follows receipt of the final draft SRK Consulting Competent Persons Report. It is particularly noted;
“Whilst the Project NPV has fallen, against the 2013 study, to US$45.9M, sensitivity analysis shows this is largely due to the increased provision for up-front capital cost and operating costs based on international dollar terms. The management can see potential for cost savings by utilising Thai engineering capability at competitive local rates and will obtain detailed costings for future valuation updates. We are further encouraged that sensitivity analysis shows that a modest reduction in operating costs combined with a recovery in metal prices offers strong valuation upsides for project optimisation.”
The business is now working with SRK to put in place the work programmes required to take the level of understanding to a pre-feasibility study level and the final Competent Persons Report is intended to be included in an admission document for a spin-off on AIM (KEMCO Mining), now “expected to occur by the end of Q3 2017”.
Meanwhile, there should be further near-term news aplenty from the T3 project in Botswana – with that update adding “all outstanding drill hole assay results for Zones 1, 2 & 3 expected by end of June”, “updated mineral resource estimate to include Zones 1 & 2 expected for completion in July” and also next month drilling at T3 and elsewhere along the T3 Dome expected to resume.
The shares currently remain somewhat depressed at below 2.5p, capitalising the company at circa £23 million. With though the noted number of upcoming potential catalysts, the stance remains buy.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |