afr

They're a few days behind in the MQG news, but I'll forgive them. They seem to be ahead of the news with respect to financing, but I'm ok with that too... :)

http://www.afr.com/p/personal_finance/portfolio/tiger_resources_tipped_for_success_qDtoGhGc22WAwjDgC2y5kL

Analysts at Macquarie have initiated coverage on copper producer Tiger Resources with an “outperform” ­recommendation and a 12-month share price target of 60¢, a 100 per cent premium to its recent trading range.

While the implied share price upside seems bullish on face value, Tiger has met or exceeded all milestones to date and the financing is in place to achieve the broker’s staged production projections.

Tiger’s Kipoi copper project is located in the Democratic Republic of Congo, with 40 per cent of the asset owned by a government-controlled mining company.

The first stage of the project, which involved the production of a basic ­copper concentrate, has been in ­production since 2011.

In the 12 months to December 31, 2014, Macquarie expects production to be in the vicinity of 48,000 tonnes, ­generating revenues of $283 million, a net profit of $63 million and earnings per share of 9.4¢. But the real boost comes in 2015-16 after the completion of a solvent-extraction electrowinning circuit that is capable of producing 50,000 tonnes per annum of high-grade copper cathode.

Some finance will be required to take the project to this stage, but cash flow from the existing operation will account for a significant proportion of the cost.

Based on current modelling, the Kipoi project should have a mine life of another nine years.