viewTower Resources PLC

Recapitalised Tower Resources hailed by City broker

Peel Hunt highlights that Tower now has a stronger balance sheet

Tower’s £5.2mln placing paves the way for material progress, Peel Hunt says

Tower Resources (LON:TWR) is now suitably capitalised to execute a new strategy focussing on lower risk exploration, City broker Peel Hunt highlights.

Peel Hunt, in a note today, repeated a ‘buy’ recommendation though the price target was reduced to 0.33p from 0.5p; nevertheless it still implies some 65% upside to the current price of around 0.2p per share.

The lower price target factors in some uncertainty over the timing and ultimate outcome of exploration drilling, meanwhile, the broker’s valuation (RENAV, or ‘risked exploration net asset value) of 0.49p per share indicates the significant additional upside.

Importantly, Peel Hunt highlights that as a result of the placing Tower now has a stronger balance sheet.

“Tower’s recent £5.2mln placing paves the way for the company to make material progress across its asset base,” said analyst James Carmichael.

“It is now funded for entry costs and early-stage work on the Thali PSC (previously Dissoni), offshore Cameroon, as well as the initial stages of a new Namibian strategy and work commitments across the rest of the portfolio.”

Quick facts: Tower Resources PLC

Price: 0.3278 GBX

Market: AIM
Market Cap: £4.08 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tower Resources PLC named herein, including the promotion by the Company of Tower Resources PLC in any Content on the Site, the Company...



Tower Resources CEO updates on Cameroon farm-out and £500k fundraise

Tower Resources PLC's (LON:TRP) Jeremy Asher speaks to Proactive London's Andrew Scott soon after announcing they've raised £500,000 to provide working capital while waiting for a farm-out agreement for its Thali block in Cameroon to complete. Asher also talks to the recent coronavirus...

on 9/3/20

2 min read