With the spotlight clearly on Metal Tiger we review the company fundamentals before big news is released and ask is a rerate on the cards ?
Metal Tiger Plc is natural resource investor and is listed on the London Stock Exchange AIM Market (LON:MTR).
Business Model & Strategy
At present Metal Tiger has project interests/options in Spanish Gold & Tungsten; Thai Gold, Copper, Antimony, Silver, Lead, Zinc; Botswanan Copper & Silver; Russian Gold Tailings; and, Tanzanian Gold & Uranium. The Direct Projects investment division also has working collaborations to identify new investment opportunities in Russia (platinum focus) and Turkey (gold focus), in association with experienced incountry partners.
The Direct Equities division invests in undervalued natural resource companies listed on Londons AIM, the ASX and the TSX. Through trading of equities, warrants and royalties Metal Tiger aims to generate cash for investment in our Direct Projects division.
Metal Tigers target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide where possible, with a cyclical recovery in the exploration and mining markets.
Management Team
Mr Terry Grammer, Non-Executive Chairman
Terry has over 40 years experience in mining and exploration in Australia, Africa, Southeast Asia and New Zealand. Having discovered the Cosmos Nickel deposit for Jubilee Mines NL he was awarded the AMEC (Association of Mining & Exploration Companies) joint Prospector of the Year Award. Terry was previously a director of Sirius Resources NL (ASX:SIR) and was appointed to the Board of Metal Tiger on 15 Sept 2014.
Mr Paul Johnson, Chief Executive Officer
Paul is a Chartered Accountant and his previous roles have included senior management positions at FM Global and Capita McLarens. Paul was previously a Non-Exec Chairman of ECR Minerals Plc (LON:ECR) and co-founder of MiningMaven, a natural resources investor communications service.
Mr Cameron Parry, Non-Executive Director
Cameron has extensive experience in public company management, corporate finance and project acquisition. He has been involved in start-ups as well as pre and post-IPO companies across industries including agribusiness, biotechnology, mining and IT.
Mr Alex Borrelli, CFO, Non-Executive Director
Alex is a Chartered Accountant and has been active within the investment banking sector for over 20 years. Alex is currently Non-Executive Chairman of AIMListed Berkeley Mineral Resources Plc (LON:BMR).
Direct Equities
Metal Tiger’s Direct Equities division was created to enable the company to become cashflow positive and profitable through the generation of capital gains from investing and trading in resource equities and other resource financing instruments.
The gains achieved from the Direct Equities division are re-invested in the Company, its operations and its Direct Projects Division.
Metal Tiger has a broad spectrum of investing opportunities but the Company is focused in three areas:
Strategic Investments – larger scale investments negotiated directly with the board of investee companies.
To date Metal Tiger has invested £1,250,000 in total in equity funding provided to Ariana Resources (LON:AAU), Eurasia Mining (LON:EUA), Kibo Mining (LON:KIBO) and ECR Minerals (LON:ECR).
On Market Portfolio – smaller scale investments purchased through the Company’s dealing facilities and subject to an investment entry cap of 10% of Metal Tiger’s last reported net assets per investment.
Through the On-Market Portfolio we hold a range of London Stock Exchange AIM resource company shares, and are researching opportunities in the TSX and ASX markets.
Alternative Investments – investments which can include warrants, royalties and other non-equity interests which we would define as readily tradeable.
We see significant growth opportunities in this category and are currently targeting new investments in this area, particularly the purchase of long term warrants and royalties.
Investing to generate and distribute strong returns
The company’s driving objective is to invest in high potential opportunities and through prudent investment develop assets of real commercial value.
We recognise the highly cyclical nature of the natural resource equity market, and whilst we can’t determine the length of cycles, we do recognise that it is vital to distribute wealth generated to investors. Therefore Metal Tiger is seeking to builds its interests and,
when appropriate, redistribute any material gains to shareholders.
Direct Projects
Metal Tiger has built a portfolio of project investments and collaborations which include Joint Ventures (JV’s) with third parties:
Thailand: Precious and base metals exploration, development and potentially production interests are within the portfolio or remain the key objective of the Company. Longstanding experience in-country, a recently acquired diversified portfolio and an exceptional local operating team make Thailand highly interesting.
Spain: Gold & Tungsten exploration, two granted licences and one licence application in Logrosan, situated in Extremadura, Spain. Drilling to date has identified two potentially substantial Tungsten deposits and identified gold mineralisation. A standstill agreement over a further gold prospective licence has been agreed.
Botswana: 30% interest in licences held in JV with MOD Resources (ASX:MOD) holding significant prospectively for Copper and Silver mineralisation over a substantial strike length. Working with MOD to undertake ground exploration and drilling/extensive surface sampling to confirm mineralisation rapidly is now underway.
Russia: Option to participate on equal terms with Eurasia Mining (LON:EUA) on a gold tailing near term production opportunity in Russia. This is the first deal to emerge from the MTR/EUA collaboration agreement signed in December 2014.
Tanzania: Gold and Uranium exploration projects in Tanzania working in partnership with Kibo Mining plc (LON:KIBO).
Collaborations: In addition to existing Direct Projects, Metal Tiger is in collaboration with Eurasia Mining (LON:EUA) in Russia and Ariana Resources (LON:AAU) in Turkey, with respect to new precious metal opportunities in-country.
