Sign up USA
Proactive Investors - Run By Investors For Investors

Investors get their teeth into Metal Tiger

Metal Tiger shares shot up today after the small-cap mining specialist told investors that it’s on the road to growth and is now able to self-finance activities.
Investors get their teeth into Metal Tiger

Rocked by a three-year-old downturn in metal prices, investors in small cap mining stocks have been licking their wounds of late.

The same can't be said for AIM-listed Metal Tiger. Despite starting its new life at what many consider to be the bottom of the resource cycle, the firm has wasted no time rooting out opportunities.

Since its launch in mid-2014, the company has invested in three junior AIM stocks which it believes are on the cusp of major commercial development.

It has put £450,000 into Kibo Mining, £150,000 into Eurasia Mining and £75,000 into Ariana Resources.

Exploration joint ventures with third parties include gold, copper and antimony interests in Thailand, gold and tungsten in Spain and gold and uranium exploration in Tanzania.

Quick and confident progress in what's become a drawn-out bear market where traditional types of funding remain severely limited.

"Our goal is to take advantage of what we believe are the tremendous buying opportunities currently out there," chief executive Cameron Parry told Proactive Investors.

"Despite the challenging market, good companies remain good companies, and quality projects still need funds. From a contrarian perspective, the time to invest in those companies and exploration projects is when valuations are extremely low and general interest in the resource sector is minimal."

Although the firm wouldn't miss a bargain, Metal Tiger has made a large portion of its investment at mid-market prices, a move which Parry says shows respect.

"Injecting funds can be quite timely for these companies. We want to show respect for their value and don't want to break momentum or create a drag on their share price by investing at a heavily discounted price."

And, given that the market isn't paying any sort of premium for companies, the business finds itself in a fortunate position.

Overall, there are three core factors upon which Parry and his team, which includes ASX Top 200 Sirius Resources' (ASX:SIR) Terry Grammer as chairman, and ECR Minerals' (LSE:ECR) Paul Johnson as the other executive director, judge whether or not to get involved in a project or company.

First, the team finds people they believe can get the job done and build value, ie the quality of management.

Then it's a case of looking into the stage and development of the company or projects.  The third factor is the financial opportunity and the deal.

"While others are being defensive, we are being aggressive and I'm really bullish about our window of opportunity," adds Parry.

Today, the firm told investors that it is on the road to growth and is now able to self-finance activities.

Shareholders are starting to take note - shares are up 14% today and with a market value of just under £2mln - there's plenty of room for growth.

"Anyone who wants to get a feel for the type of company Metal Tiger is just needs to look at what we've done already in a relatively short space of time.

"We continue to work hard to innovate, invest and create value for shareholders."

View full MTR profile View Profile

Metal Tiger Timeline

October 01 2018

Related Articles

coffee beans
April 26 2018
The company’s focus is the Arapua fertiliser project, located about 400km south-east of Brasilia in the State of Minas Gerais, a major agro-industrial centre.
July 18 2018
A new joint venture is also being set up on a 70/30 MOD/Metal Tiger basis to continue exploration
September 27 2018
Rainbow's Gakara project is one of the highest grade rare earths operations in the world

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use