By Dan Stratful (AFA)
Tiger Resources (TGS: TGS) yesterday reported further encouraging drilling results from its diamond drilling programme at its Kipoi Copper Project. The drilling results were on the back of record copper concentrate production in the month of June 2012 and record quarterly production for the quarter ending June 2012.
TGS's full year result for the year ending 31 December 2011 (FY11) was a year of significant change as it transitioned into commercial copper production with its first shipments of copper concentrate from the flagship Kipoi Copper Project.
At the Lupoto project a maiden resource was declared which showed both Indicated and Inferred resources. A recent production performance update at Kipoi has shown record copper production in the month of June 2012, as early teething issues were resolved and the production performance was a significant step-up.
In the first half ending 30 June 2012, TGS has reported 18,000 tonnes of copper production which leaves it well on the way to meeting its annual average production target of 35,000 tonnes. TGS will continue to ramp up production at its Kipoi project in FY12 in order to reach its goal of producing 35,000 tonnes of copper metal per annum.
Share price catalysts in the near term include more successful drilling results and a resource upgrade at Kipoi, and a Stage 2 definitive feasibility study at Kipoi.
While copper demand faces short term headwinds due to subdued global economic growth, medium term demand for the red metal is expected to remain robust.
TGS shares may suit speculative investors comfortable with is sovereign, political and single commodity risk.
About Tiger Resources:
TGS is an Australian based copper & cobalt producer with key projects in the world-renowned Africa Copper Belt in the Democratic Republic of Congo. TGS has interests in a number of highly prospective projects covering 1,550sq km, with excellent growth potential, and its 2 key assets include the flagship Kipoi project (60% stake) and the Lupoto project (100% stake).
Status: SPECULATIVE BUY
TGS's shares today traded at 31c
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