Tag: TGS

The company reported a 6.0% lift in quarterly production, ahead of the broker’s forecasts. Guidance for 2015 has been reiterated.

Operational changes and the balance sheet consolidation of its Kipoi project have led Tiger to build up a large working capital deficit. In simple terms, Tiger is unable to meet its current debt repayment obligations, the broker notes.

Macquarie rates the stock as Downgrade to Underperform from Outperform

TGS – UBS rates the stock as Downgrade to Neutral from Buy

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.

Production of concentrate at Tiger’s stage one plant was below expectation due to maintenance and modification, and sales were in line with production. But the stage two SXEW plant is 92% complete and once operational should generate strong cash flows, the broker notes.

Tiger has released its revised Definitive Feasibility Study for stage 2 of the Kipoi copper project in the Congo. Strip ratio and grade have improved and mine life has been extended two years. Operating costs have reduced. TGS remains the broker’s preferred copper junior, offering strong earnings margins and substantial production growth potential over the next five years.