Canaccord Genuity

Tiger Resources (ASX:TGS) has produced first copper cathode (100% copper sheets) from its new Kipoi plant. We forecast that all in sustaining costs to produce copper is US$0.93 per pound in CY15. The current spot price is US$3.18. We have a 12 year life of mine however there is a high probability that this would be extended with further drilling. First copper cathode production proves that the process works and that cashflow will increase markedly. The stock is trading on 3.9x CY15 PE and should now become a nice little earner. We note that the company's AGM presentation of 20 May (page 31) mentions Pay dividends' as part of Tiger's future. The company's presentations can be found here (VIEW LINK)


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Canaccord Genuity

Copper inventories are down 26% on the LME in the last month, so there seems to be increasing demand from limited supply in the near term. This has also resulted in the price increasing from US$3.00 lb to $3.18 lb. In the longer term we see a copper deficit, especially in 2016. As a client mentioned today, when was the last time you saw new large copper mine come on line?

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James Marlay

Good news for Tiger Resources, I saw this release come out yesterday and there is a little video of the production process here: https://www.youtube.com/watch?v=hDvAJkdNrj8 . Does Canaccord have a view on the outlook for Copper?

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