Tiger has completed a share placement to raise $20m and sourced an additional US25m off-take pre-payment. Macquarie has tempered near-term production forecasts, remodelled debt repayments on more aggressive terms and increased dilution.
The broker remains positive on the stock and would buy on share price weakness. The Outperform rating is maintained.
The target is lowered to 53c from 66c because of the restructured debt repayments, which will entitle Gecamines to its full dividend earlier than previously expected.
Target price is $0.53.Current Price is $0.33. Difference: $0.21 – (brackets indicate current price is over target). If TGS meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges – negative figures indicate an expected loss).