Metal Tiger (MTR.L) why share price at current level and why about to rerate

The Metal Tiger share price was many years ago at much higher levels than it is now. At that time MTR’s asset base was significantly less than the current position.

Author @GreetsEcho

Logic would, therefore, dictate that the share price should be much higher.

Question I keep asking myself is why has billionaire Rick Rule one of the most influential people in the mining industry, personally bought 3.94% of Metal Tiger?

Many of these bought at the 3p level, a price some 50% above the current price.

We know Rick knew and respected Terry Grammar, a person who helped build the foundations of Metal Tiger with Michael McNeilly (CEO) and Charles Hall (Chairman).

Terry during his lifetime had a history of discoveries. What did Terry, Michael and Charles say to Rick that resulted in him personally acquiring 3.94% of the business? Paying more than the current share price for his shares.

Rick Rule and Terry Grammar

One thing for sure is Rick will have carried out his due diligence before investing.

I was always told follow the money and the experts.

So why has the share price dropped to the current levels when it was trading at over 6p?

Shorting?

AIM market is full of people making a good living off the back of others. It goes on, has it with Metal Tiger? Who knows.

Are the rumours true that a company was being shorted and the company was running out of funds. Those shorting waited for a placing so they could take part to cover their short position. Metal Tiger however provided the funds negating the requirement for a placing. Those with short positions then had no option but to buy shares on market resulting in share price going up.

Those involved allegedly held a grudge against Metal Tiger and did what they could to keep the share price low.

Is this fact or fiction? Only those involved really know.

Audacious Bid for Metal Tiger

Ex Director of Metal Tiger tried to acquire the business at a knockdown price.

As the BOD should work for their shareholders not themselves. This knocked confidence in what investors thought about MTR.

This drama was soon addressed.

Kingsgate aggressive takeover

Metal Tiger made a failed attempt to gain control of Kingsgate who had a mine shut in Thailand. MTR with offices and connections in Thailand believed they could get the mine in operation again.

Unfortunately some of those who said they would back Metal Tiger on the day of the EGM didn’t back MTR and the bid failed.

This again knocked Investors faith in Metal Tiger.

MOD Resources

MTR’s investment in Metal Tiger has been very profitable. However for several years this was a drain on the companies management time and funds. Little progress was made for a years whilst MOD steadily ran out of funds.

The above is all in the past. These hiccups are behind us and we now have a robust business with funds and an enviable portfolio of investments.

Metal Tigers current portfolio of investments.

So why is Metal Tiger share price still at the c2p level?

Metal Tiger have been steadily acquiring future royalty streams. The minimum value of these royalties is more than the current mcap. For this reason alone the share price of Metal Tiger is wrong.

Investors are getting the upside to all other investments for nothing, for example Greatland Gold shares are worth £900k+ and you also have the value of the warrants.

Looking at trading patterns it is clear the share price is on an upward trajectory. Today the shares during the morning were oversold before bouncing back into the blue in the afternoon.

We then have the share consolidations. Look what has happened the last three times the share price has had a downward dip. The share price has gone to levels above the previous drop.

You don’t have to be a rocket scientist to know where the share price is going in the next few days.

Conclusion

Metal Tiger has come of age and is about to deliver for shareholders.

The ARA is well worth a read if you want to know about investments that have happened this year and the value of the business at the end of 2019 (see here).

So much news is due in the coming weeks it is inconceivable the share price will remain at these levels.

Simon Thompson of Investors Chronicle has Metal Tiger as one of his top shares to watch in 2020. (See here).

I wonder why Investors Chronicle have MTR as a share to watch?

Why has Rick Rule, Mike Joseph and many long term holders who have done their due diligence accumulating MTR shares?

When the share price drops it is as Warren Buffet says the transfer of wealth from the impatient to the patient.

Hopefully, my patience will be rewarded as will the beneficiaries of Terry Grammar’s trust.

Author @GreetsEcho

Source Link greetsecho.blog/2020/06/09/blog-about-metal-tiger-why-share-price-at-current-level-and-why-about-to-rerate-mtr/


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