Tiger Resources clouded by short-term risks

Until the acquisition is approved by the Congolese government and the expensive debt is refinanced, the junior copper miner isn’t an attractive proposition to new investors.

Tiger Resources’ (TGS) proposed deal to buy the 40% of the Kipoi copper project that it doesn’t own from Congolese government-backed miner Gecamines is a clear positive for the copper junior, but this is probably not the time to buy a position in the stock.

The full ownership (excluding 5% which has to be ceded to the Congolese government) lifts the valuation of Tiger as the deal is priced at a sharp discount to the value of Kipoi, but the transaction materially increases the risk for investors.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles