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
In accordance with the Financial Advisers Act 2008 ("the Act") Sharechat is "Class Advice" and any advice or recommendations contained on this webpage is not "Personalised Advice" as defined by the Act. This means Sharechat does not take into account an investor's particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor's who require "Personalised Advice" should contact an Authorised Financial Adviser (AFA).
Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.
Comments from our readers
No comments yet
Add your comment:
NZ dollar faces more downside as improving US economy spurs greenback supporters
NZ Sugar Company boosts profits on higher exports and lower costs from Chelsea factory
Greymouth Petroleum shucks off disaffected shareholder
Lance Wiggs's Punakaiki Fund mulls $50 million IPO to invest in high-growth companies
Ecoya ekes out small annual profit, EBITDA up 26%
Snakk raises $6.5M in over-subscribed issue
NZ trade surplus misses expectations
SFO charges seven people over mortgage fraud
While you were sleeping Cautious calm returns