Tiger pounces higher on resource upgrade

Tiger Resources jumped within striking distance of last October’s 4½-year high of 39.5 cents after the latest drilling results prompted management to more than double the estimated amount of ore at its flagship Kipoi mine.

Tiger Resources (TGS) jumped within striking distance of last October’s 4½-year high of 39.5 cents after the latest drilling results prompted management to more than double the estimated amount of ore at its flagship Kipoi mine.

The stock rallied 7%, or 2.5 cents, to 38 cents at 3.18 AEST when the emerging copper producer reported a 112% increase in estimated ore reserves to 394,500 tonnes of contained copper for the principal deposit at Kipoi in the Democratic Republic of Congo.

The copper grade as also improved by 10%, which means lower operating costs. Management’s production guidance for 2014 is 39,000 tonnes of copper in concentrate at an average operating cost of 30 US cents a pound. The spot price for copper is around $US3.30 a pound.

The stock has doubled in value since we highlighted it in July last year, and there are a number of reasons why the stock is likely to continue to do well in 2014.

Management has an enviable track record of under-promising and over-delivering and Kipoi is shaping up to be one of the world’s lowest cost copper producers. Further, Tiger has a strong balance sheet and no funding issues.

Tiger is part of the Uncapped 100.