Author stories http://www.proactiveinvestors.co.uk Proactiveinvestors Author stories RSS feed en Tue, 12 Dec 2017 10:18:10 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) In The News - Metal Tiger http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29081/in-the-news-metal-tiger-29081.html COMPANIES
Metal Tiger
LON:MTR 


More Positive Drilling Results at T3 Add Confidence to Potential U/G Development
Metal Tiger has announced the assay results for eight more holes from the T3 deposit on its 30%-owned Kalahari Copper/Silver JV in Botswana (MOD Resources holds 70%).
COMMENT: Of the eight holes, seven hit mineralisation (six of which included multiple intersections), extending the deposit down-dip of previous drilling and adding to the potential for the future development of an underground operation, which could augment production from the currently-planned open-pit project.
During 1Q18 the company is planning to announce an updated resource for the T3 Project, and also to release the PFS for the open-pit project, with the DFS to follow by the end of the year. The JV is targeting an open-pittable mineable inventory for the PFS of 25Mt at a grade of 1.1-1.2% Cu, containing around 275,000t of copper.
The JV has stated that it is considering the possibility of developing an underground operation simultaneously with the open pit, and is focused on increasing the production of profitable copper rather than mine life. It also notes the potential of the other satellite deposits in the area, such as the T1 deposit (100%-owned by JV partner MOD Resources), to supply higher-grade material to a central processing facility at T3. This suggests that the focus is on adding higher-grade underground material to increase the grade processed and copper output.
Exploration at T3 is continuing to deliver encouraging results and we await the results of the resource update and PFS with interest. We maintain our Buy rating and our target price of 3.6p. For further details see our initiation piece Metal Tiger — Earning its Stripes, 9 November 2017.

T3 is already an attractive project. The scoping study of December 2016 indicated the potential for the project to produce 22,000tpa of copper, with associated silver, at a C1 cash cost of US$1.29/lb and capex of US$135m, equivalent to a very competitive capital intensity of US$6,200/tpa. At a copper price of US$3.00/lb (cf the current price of US$2.97/lb) the pre-tax NPV10 was US$297m and the IRR 42%.


T3 resource update and PFS on the larger open-pit project due in 1Q18. An interim resource update was announced in August 2017, increasing copper from the 350,000t used in the scoping study to 409,000t. The ongoing infill drilling programme for the open-pit resource is nearing completion, with results planned to be released in January 2018. The PFS, also expected in 1Q18, will consider a throughput rate of 2.5Mtpa, 25% higher than that in the scoping study of late 2016.


Underground potential now the subject of a 30-hole drill programme. A three-rig drill program of around 30 holes is now planned to test the underground resource over a strike-length of 1.7km, initially to a depth of approximately 350-400m. Intersections from the latest announcement included 7.2m @ 1.9% Cu and 5.9m @ 1.7% Cu, with associated silver. Mineralisation dips shallowly to the north-west and is considered likely to be mineable using a room and pillar method. We anticipate that initial study work will be completed on the underground potential during 2018.


Kingsgate to hold a General Meeting on 9 January 2018. Kingsgate Consolidated (KCN AU | Mkt Cap US$69m), in which Metal Tiger holds a 6.7% stake valued at US$4.6m, has called a General Meeting for 9 January 2018. Metal Tiger requested the meeting and is seeking shareholder approval to replace three of Kingsgate’s four directors with five new Metal Tiger appointees. Both companies appear aware of the value of the Chatree mine in Thailand, but have a different view on how to best realise this for shareholders. Metal Tiger believes that it could come to a negotiated settlement with the Thai authorities that would allow a restart of the operation, while Kingsgate is pursuing compensation for the loss of the project under its political risk insurance cover and through arbitration under the Australia Thailand Free Trade Agreement.


BUY rating with a TP of 3.6p. The company’s current market cap is equivalent to approximately US$28m and our TP is based on a risked SoTP value of US$49m. This comprises US$13m of cash and investments, an adjustment of US$15m for corporate overheads, US$10m for the company’s other interests and a risked value of US$41m for its 30% interest in the Kalahari Copper JV.

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Thu, 07 Dec 2017 13:45:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29081/in-the-news-metal-tiger-29081.html
In the news: Metal Tiger & Cassini Resources/Oz Minerals http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28989/in-the-news-metal-tiger-cassini-resourcesoz-minerals-28989.html
FROM THE BROKING DESK
There are a few things worth mentioning this morning. First off is an announcement by Metal Tiger*† (MTR LN : 2.2p : US$27m : Buy : TP 3.6p) that it has requested that Kingsgate hold a shareholders meeting to consider changes to the Kingsgate Board. MTR owns 6.7% of Kingsgate and is seeking approval to remove three of the four existing directors and replace them with three MTR directors and two independent directors (nominated by MTR). We put out an initiation piece on MTR last week. It can be viewed here.


Also, Metal Tiger - LON:MTR and its JV partner MOD Resources announced the results of six additional holes from their T3 Copper Project in Botswana. MTR has a 30% interest in this. The results point to the extension of mineralisation to the east and west of the main area of mineralisation on which a scoping study was completed towards the end of last year. Four holes tested mineralisation to the east of the planned pit and intersected multiple veins of copper mineralisation between 186m to 448m downhole (including 3m @ 1.4% Cu). The two holes drilled to the west returned multiple intervals between 235m and 492m downhole (including 4.5m @ 4.0%). The results continue to suggest that the project has the potential for underground mining (particularly to the west), in addition to open-pit mining, on which a PFS is planned for completion by the end of this year. Drilling is continuing apace, with a sixth rig now on site.


There was another noteworthy announcement from Cassini Resources (ASX:CZI, US$17m). Oz Minerals is now sufficiently excited by the results of a scoping study into Cassini’s West Musgrave Nickel-Copper Project that it will move to the next stage of its earn-in on the project, putting it firmly on the map. Oz will earn a 51% interest in the project through spending A$19m within 18 months, and will also manage the pre-feasibility study. Oz can earn up to 70% in the project in return for funding all study work up to a decision to mine.


The West Musgrave Project is located in east-central Western Australia. The scoping study on the Nebo-Babel deposits indicated that a large-scale development with 10Mtpa throughput returned the best results. The project would produce around 22,500tpa of nickel, 27,500tpa of copper and 850tpa of cobalt. It’s expected to have attractive C1 costs of around US$1.45/lb nickel in concentrate. With pre-production capex of some US$600m, the study returned a post-tax IRR of 20-25%. The pre-feasibility study is pencilled in for completion by mid-2019, with the DFS a year later.

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Wed, 15 Nov 2017 11:39:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28989/in-the-news-metal-tiger-cassini-resourcesoz-minerals-28989.html
In the news: Plateau Uranium http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28994/in-the-news-plateau-uranium-28994.html FROM THE BROKING DESK
We have some encouraging exploration results from Plateau Uranium’s†† Macusani Uranium Project in south-eastern Peru. The first hole drilled into a new location, Falchani, at which radioactivity is elevated over a 2km2 area, returned assays that showed two significant zones of mineralisation, the first being uranium-rich and the second, deeper zone being lithium-rich. The hole returned 45m from surface grading 633ppm (0.0633%) U3O8 with minor lithium, and also 51m grading 2,712ppm Li (equivalent to 0.58% LiO2) from 95m to the end of the hole at 146m.


As the company highlighted, these results are significant. The uranium grade is twice that of the current resource, while the lithium grade in the lower hole is 6x that of the current resource! Plateau has outlined 124Mlb of U3O8 and 176,000t of LiO2 in resources elsewhere on the project, and completed a scoping study on a uranium heap leaching project in January 2016. However, given the increasing appreciation of the potential for the project to produce lithium along with uranium, the focus has now moved to a tank leach project. In addition to exploration, current work is concentrated on metallurgical test-work to optimise both lithium and uranium production.

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Thu, 16 Nov 2017 10:40:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28994/in-the-news-plateau-uranium-28994.html
In The News - Wave Swell Energy http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29005/in-the-news-wave-swell-energy-29005.html FROM THE BROKING DESK


Wave Swell Energy*** got a fair bit of coverage in the Australian press this morning, with articles such as this. We’re assisting Wave Swell in a capital raising at the moment. The company is developing its wave energy generation technology, and is carrying out commercial trials off Tasmania's King Island ahead of a potential listing. Full details on the company can be found on its website.
The company has signed an off-take agreement with Hydro Tasmania for an initial 200KW trial unit, which it will operate during 2018 after its first funding goals are reached. Wave Swell CEO Tom Denniss has said that all energy generated will initially be provided to the King Island grid and Hydro Tasmania. Current tests put forecast generation costs at A$100/MWh, or A¢10/KWh. Typical solar systems cost around A¢13/KWh and wind about A¢7/KWh, not including grid costs. “This is really about ensuring independent verification, and Hydro Tasmania verifying that we can produce at the low cost of A¢10/KWh," Mr Denniss said.


It has built “big concrete caverns” that use the constant back and forth flow of the ocean to generate energy. “What sets this apart from other wave generation technology is its lack of moving parts," Mr Denniss commented. Its blocks are located in water depths of around 10m, and typically up to 500m offshore. They connect to the mainland via undersea cables and provide energy to the onshore grid via a transformer unit. The units can also be used as breakwaters or as an artificial reef, with trials demonstrating an increase in marine life where they are installed.

Wave Swell is still looking to investors to raise A$8.3m over the coming months, having secured A$2m in investment to date. It has set a goal of raising A$10m in total funding, Mr Denniss told Fairfax Media. “We are targeting anyone for funding, from energy companies, construction companies, or individuals who see upside in investing.”

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Mon, 20 Nov 2017 09:19:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29005/in-the-news-wave-swell-energy-29005.html
In the news: Great Boulder Resources, Mineral Sands, Metal Tiger & Mining Indaba http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28980/in-the-news-great-boulder-resources-mineral-sands-metal-tiger-mining-indaba-28980.html FROM THE BROKING DESK


We want to highlight some great exploration results from Great Boulder Resources (ASX:GBR: A$0.70 : US$37m). Some of you may remember that this company’s CEO, Stefan Murphy, worked with us here in London and in Perth before taking up his position with GBR just over a year ago. The stock tripled on the announcement of the results, which confirmed potentially economic mineralisation over significant widths in at least four of the nine scout RC holes drilled at the Mt Venn prospect, which is located on the company’s Yamana Project, in which it is earning a 75% interest in return for spending A$2m over five years.


The project is located on the Yamana Belt, east of Laverton, in WA. It benefits from being 25km from the Gruyere Gold Project that is being developed by Gold Fields and Gold Road. Highlights from the results included 48m grading 0.75% Cu, 0.20% Ni and 0.07% Co, and 61m grading 0.50% Cu, 0.15% Ni and 0.05% Co. The holes confirm the presence of copper, nickel and cobalt mineralisation alongside the pyrrhotite that is responsible for much of the extensive EM and magnetic anomalies at the Mt Venn prospect. We await further news with interest.


Elsewhere, a few general reminders. We’ve put out a couple of reports over the last few weeks. First, Jim Taylor released Mineral Sands — Shifting Up A Gear, October 2017. This 76-pager looks closely at the mineral sands space, a small — but significant — part of the mining sector. Over the past 18 months the industry has moved through an inflexion point, creating an extremely favourable outlook. In the piece we have full reports on six companies: Iluka Resources, Base Resources*†, Kenmare Resources, Mineral Deposits, MZI Resources and Sheffield Resources.


This was followed by Jim’s initiation piece Metal Tiger (LON:MTR) *† — Earning its Stripes, 9 November 2017. Metal Tiger plc (MTR) is an AIM-quoted company that owns a portfolio of direct and listed minerals investments. Its main asset is a 30% interest in the Kalahari Copper JV, which it owns together with the ASX-listed MOD Resources. We started coverage with a Buy rating and a target price of 3.6p. We’re marketing MTR’s CEO Michael McNeilly in London on Tuesday and Thursday this week. Please let us know quickly if you’d like a meeting.


Finally, we’re partnering with Mining Indaba in its launch of the Junior Mining Showcase in Cape Town over 5-8 February 2018. The showcase will be a dedicated, deal-making zone with restricted access. It will group over 60 junior miners in one place.
 

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Mon, 13 Nov 2017 11:51:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28980/in-the-news-great-boulder-resources-mineral-sands-metal-tiger-mining-indaba-28980.html
In The News - Metal Tiger http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28967/in-the-news-metal-tiger-28967.html Jim Taylor released a new initiation piece yesterday: Metal Tiger (LON:MTR)*† — Earning its Stripes, 9 November 2017. Metal Tiger plc (MTR) is an AIM-quoted company that owns a portfolio of direct and listed minerals investments. Its main asset is a 30% interest in the Kalahari Copper JV, which it owns together with the ASX-listed MOD Resources. Within this, the Copper-Silver T3 Project is currently the subject of pre-feasibility study (PFS) work towards the development of an open-pit copper mine, with the study expected by the end of year It also owns a portfolio of other direct minerals interests, including a lead-zinc-silver project in Thailand, and a significant portfolio of cash and shares.

We started coverage with a Buy rating and a target price of 3.6p. Our target price (TP) indicates more than 50% upside from current levels. At June 2017, 45% of the company’s market cap was accounted for by cash and shares. Our TP is based on the risked NPV10 of the T3 Project assuming a copper price of US$2.72/lb (US$5,995/t). We note that a 10% increase in the assumed copper price to US$3.00/lb (US$6,612/t) increases our TP by 19% to 4.3p.

By lucky coincidence, we’re marketing the company’s CEO, Michael McNeilly, on two days next week: Tuesday 14 and Thursday 16 November. Interest in this is proving to be high, so please let us know quickly if you’d like a meeting.

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Fri, 10 Nov 2017 09:17:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28967/in-the-news-metal-tiger-28967.html
In The News - Weatherly International & Metminco http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28901/in-the-news-weatherly-international-metminco-28901.html FROM THE BROKING DESK


Weatherly International*† has announced the rescheduling of repayments to Orion. The first two repayments under Facility B have been pushed back by two months each, with the remaining terms unchanged. The payments under Facilities C & D have been deferred by four months. The current combined payment schedule includes US$21.8m on 31 December 2017, US$9.7m on 31 January 2018 and US$9.7m on 28 February 2018. Weatherly and Orion have also agreed that future missed interest payments will no longer be capitalised and added to the principal, but will instead be due at the same time as the principal. Any unpaid interest will accrue at LIBOR +12%. This stands in contrast to LIBOR +2% for the Orion facility announced in July.
The current total of US$41.2m owing from 31 December 2017 to 28 February 2018 compares to US$3.5m of operating cashflow for the six months ended 31 December 2016. Over these six months the average sales price and C1 costs were US$4,916/t and US$4,603/t, respectively. Prices and costs have both since risen, with hedging expected to provide a realised sales price of ~US$6,050/t in the December 2017 quarter, while C1 costs increased to US$6,344/t and US$5,402/t in the June 2017 and September 2017 quarters, respectively.
The company continues to manage its cashflow with hedges on the price of copper. The company appears to be fully hedged for the December 2017 quarter, with 4,650t hedged between US$6,000-6,077/t, and a further 2,100t under options to Orion to purchase at US$6,000/t. The combined 6,750t under hedging and options for the December 2017 quarter compares to production in June 2017 and September 2017 of 6,344t and 5,402t, respectively.

COMPANIES


Metminco*†


ASX:MNC | A¢5.6 | US$5m | Speculative Buy


Feasibility Study Confirms Miraflores as a Robust Project
Metminco has announced a detailed summary of the feasibility study into the development of the Miraflores Gold Project in Colombia. This follows the announcement two weeks ago of a maiden reserve at the project, which also included the main findings of the study. The reserve included 4.3Mt of ore grading 3.29 g/t Au and 2.57 g/t Ag, containing 456,000oz Au and 357,000oz Ag. The feasibility study showed production of 45,000oz pa Au and 23,000oz pa Ag over a mine life of 9.5 years. At a US$1,300/oz Au price, the after-tax NPV8% was US$72m, with an IRR of 25%.
COMMENT: The feasibility study announcement provides a detailed summary of the project. Earlier in 3Q17 the company received approvals to complete up to 2,000m of underground development, and it is currently evaluating options to finance this work. The company is also advancing the Environmental Impact Assessment, the approval of which is required prior to the main project development. Metminco aims to commence front-end engineering design (FEED) studies in March and to have them completed around mid-2018. Miraflores appears to be a robust project that more than supports the current market cap of just US$5m. We continue to recommend Metminco as a Speculative Buy.

Miraflores is 100%-owned, subject to up to A$13m of deferred acquisition payments — Metminco acquired Miraflores from RMB in May 2016. A total of A$6m of deferred cash payments remain outstanding over the coming three years: A$1m in June 2018, A$3m in 2019 and A$2m in 2020. The last two of these payments would be triggered earlier by a production decision, meaning that — if the project progresses as expected — the company could be obligated to pay the full A$6m around the middle of next year. A royalty of up to A$7m is also payable from project cashflow.
Feasibility study delivered an NPV8% of US$72m and an IRR of 25% at US$1,300/oz — The results of the study were announced in October 2017. Reserves were 4.3Mt of ore grading 3.29 g/t Au and 2.57 g/t Ag for a contained 456,000oz Au and 357,000oz Ag. Underground mining using longhole stoping with backfill was planned in conjunction with a gravity concentration, flotation and cyanidation processing route. The feasibility study showed production of 45,000oz pa Au and 23,000oz pa Ag over a mine life of 9.5 years. At a US$1,300/oz Au price, the after-tax NPV8% was US$72m, with an IRR of 25%.
Permitting and associated approvals key to timeline — The EIA approval process includes approval of the feasibility study and the completed environmental baseline studies, the approved development plan and the Social and Environmental Management Plan (particularly focused on the relocation of up to 70 homes and a number of illegal miners). It also incorporates the process of consultation and assessment of the impact of the project that forms the project’s Social Licence. The project’s design includes underground mining and dry stacked tailings, limiting its surface footprint, a factor that is hoped to help speed the EIA approval process.

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Mon, 30 Oct 2017 11:14:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28901/in-the-news-weatherly-international-metminco-28901.html
In the News - Amani Gold & KEFI Minerals http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28908/in-the-news-amani-gold-kefi-minerals-28908.html FROM THE BROKING DESK


Amani Gold†† has announced its September 2017 Quarterly Activities and Cashflow reports. Much of the Activities Report summarises previously-announced plans for further exploration around its DRC-based Giro Gold Project, including up to 30,000m of RC and diamond drilling at Kebigada, 6,345m of RC drilling at Douze Match, and additional drill programmes planned for newly-defined target areas. With progress in place, management has now announced that the first 3,645m of drilling at Douze Match is to be completed in the December 2017 quarter. First results of that programme had been expected by the end of October, but management has reiterated that it still intends to publish a maiden resource on Douze Match in 1Q18, indicating that it is still on track to meet this milestone.


Drilling at Kebigada is still expected to be completed in 1H18, though it has yet to commence. This will start once Amani has complete access to the area of drilling. The company is currently working with the Governor of the Haut Uele Province to relocate illegal, artisanal miners, as well as the illegally-established Giro village set up to support artisanal mining in the area. The initial stages of the relocation are expected to be completed within two months, at which point the infill drilling can commence. Amani expects to progress its drilling programmes at Adoku and in the immediate area surrounding Kebigada in the current quarter.


Amani had previously paid US$250,000 for the exclusive right to negotiate an interest in the Tendao Project, which borders its Giro Gold Project. The company has now ceased due diligence activity while a DRC state-owned mining company and the present licence holder resolve contractual issues. Amani may reengage if clear commercial and legal structures can be established.


Amani’s Cashflow Report shows the receipt of A$15m as part of the previously-announced Luck Winner transaction. It also shows spending of A$4m on exploration, with a balance of A$11m at the end of the September 2017 quarter. Management has budgeted for A$5m of additional exploration in the December 2017 quarter. Still outstanding is Stage 2 of the Luck Winner transaction, under which, subject to shareholder approval, Amani will receive A$10m in exchange for 200m shares and 250m options exercisable at A$0.07/share for two years.


COMPANIES


KEFI MINERALS
LON:KEFI, | 4.5p | US$20m | Buy | TP : Under Review


Projections for Expanded Production
KEFI Minerals has announced projections for expanded production from its Tulu Kapi Gold Project in Ethiopia. This follows an announcement on 6 October in which the company said that it is now planning to build a plant with a capacity of 1.9-2.1Mtpa, 25% larger than previously envisaged. The additional capex required for the plant and infrastructure associated with this is estimated at US$12m, although the company noted that this has been offset by expected capex savings related to a move from a fixed-price, lump sum project construction to an open book, cost-based arrangement with incentivisation based on target costs and schedule. The company also stated that it will be further offset by Oryx offering to expand its facility from US$135m to US$140m. The larger throughput enhances the project’s flexibility to switch between bulk mining and selective mining as appropriate.


Oryx Management is continuing to work towards closing the funding package this year and has submitted a draft financing agreement to the Ethiopian authorities for approval. Oryx expects to raise US$140m towards the project’s financing requirement and the government has agreed to fund offsite infrastructure to a maximum of US$20m, for a total of US$160m. With respect to the residual capital requirement, KEFI has previously stated that it is considering offering third parties a stake in the project. It commented that it is in discussions with a number of potential project-level investors and that it will now bring these discussions to a head.


COMMENT: As a result of the increased throughput, gold production during the project’s first three years of operation is planned to increase from 115,000oz pa to 144,000oz. Forecast all-in sustaining costs (AISC) are planned to be slightly lower than previous estimates at US$773/oz. The announcement stated that the post-tax NP

V8 of the project, assuming a gold price of US$1,250/oz, decreased by 24% compared to the updated DFS of May 2017 (US$97m to US$74m).
We expect to update our valuation and target price as a result of this announcement and will provide a more complete commentary later. Our previous target price of 9.0p was based on a risked SoTP NAV for the company and assumed a gold price of US$1,250/oz and a 0.75x P/NAV8 multiple for the Tulu Kapi Project. It also reflected allowances for the underground potential at Tulu Kapi, other exploration assets and G&A costs. To view our previous report on the company, please click here.

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Tue, 31 Oct 2017 13:08:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28908/in-the-news-amani-gold-kefi-minerals-28908.html
In The News - KEFI Minerals & the Mineral Sands Sector http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28924/in-the-news-kefi-minerals-the-mineral-sands-sector-28924.html FROM THE BROKING DESK
As hinted at earlier this week, Jim Taylor has put out KEFI Minerals (LON:KEFI)  — Tulu Kapi Development Update, 1 November 2017. KEFI is now set to develop the Tulu Kapi Gold Project in Ethiopia with a throughput 25% above that used in the updated DFS of May 2017. This will raise average production over the first three years of the project’s life from 115,000oz pa to 144,000oz pa and increase the flexibility to switch between selective and bulk mining.


We reiterated our Buy rating and revised our target price down from 9.0p to 8.0p. We adjusted our model to reflect the current finance structure. We’ve assumed that the company will raise US$25m in equity at a price of £0.05/share, resulting in the issuance of 383m shares, equivalent to 115% of the outstanding share capital.


Jim really has been busy — he released this last week: Mineral Sands — Shifting Up A Gear, October 2017. This 76-page tome has a detailed looked at the mineral sands space, a small — but significant — part of the mining sector. Over the past 18 months the industry has moved through an inflexion point, creating an extremely favourable outlook. Product prices have risen, reflecting stronger housing and construction markets, particularly in developing regions, robust demand for paints and plastics and positive end markets for zircon.


Further positive factors include the draw-down of previously-built inventories, production outages and some capacity cutbacks in China. The space is also benefiting from industry consolidation and producer supply discipline. The medium- and longer-term outlooks for prices of both titanium feedstock and zircon are positive, with robust demand expected and limited new supply on the horizon. In the piece we have full reports on six companies: Iluka Resources, Base Resources*†, Kenmare Resources, Mineral Deposits, MZI Resources and Sheffield Resources

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Thu, 02 Nov 2017 10:43:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28924/in-the-news-kefi-minerals-the-mineral-sands-sector-28924.html
In The News - Metal Tiger http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28950/in-the-news-metal-tiger-28950.html FROM THE BROKING DESK


We are marketing Michael McNeilly, the CEO of Metal Tiger*† (LON:MTR), in London on two days this month: Tuesday 14 and Thursday 16. Metal Tiger is an AIM-quoted investment company whose main asset is a 30% stake in a JV in Botswana on the Kalahari Copper Belt, with the remaining 70% owned by ASX-listed MOD Resources (MOD AU). Within this, the Copper-Silver T3 Project is currently the subject of pre-feasibility study (PFS) work towards the development of an open-pit copper mine, with the study expected early next year.


T3 has a current JORC-compliant resource estimate, updated last August, of 36.0Mt @ 1.14% Cu and 12.8 g/t Ag, containing 409,000t copper and 14.8Moz silver. A potential major strike extension to the deposit was released in early October, which highlighted that the intersection of visible copper mineralisation has extended by 300m to the west and north-east of the planned pit to 1.5km along-strike. Seven rigs are now operating on-site. The throughput of the project being considered in the PFS is to be increased by 25% (from 2.0Mtpa to 2.5Mtpa). Confidence in an increased mining inventory and an improved copper price have led to the consideration of a larger project, which will be designed to allow for an expansion to 4.0Mtpa should further additions to resources justify it. Other study work, including metallurgical test-work, water bore testing, environmental approvals and stakeholder engagement, is also underway.


Metal Tiger is also active in Thailand, with a 72% interest in an entity that has a pipeline of multi-commodity exploration projects. The main focus here is a number of brownfield silver-lead-zinc mines in the Kanchanaburi Province in western Thailand. MTR is looking to have the assets designated as a government-approved ‘Minerals Development Area’. This change of status should ease the path back into production. While the assets are fairly small, they are high-grade and a recent CPR valued them at around US$40m.


The group has a host of other investments. These include a 6.6% stake in Kingsgate (KCN AU), whose focus is the Chatree Gold Project in Thailand, and an interest in Logrosan Minerals, which has a portfolio of tungsten and gold assets in Spain and Finland.


Metal Tiger has a market cap of £24m, with cash of around £4m and £6.4m in shareholdings. We’re expecting interest to be high in seeing the company, so please let us know quickly if you’d like a meeting.

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Tue, 07 Nov 2017 11:40:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/28950/in-the-news-metal-tiger-28950.html