Dear management,
Please be advised that i am writing this email on the behalf of myself and a number of other retail shareholder who have a direct interest in the success and prosperity of the Tiger Resources.
As many of us stem from different professional background, we seek to provide a variety of different ideas and views to assist TGS management in leading the company into the right direction.
In the early half of 2016 we lobbied for the company to look into the viability of cobalt production, which ultimately lead Michael Griffin to commission an independent study into the matter. The study returned positive results, further strengthening the need for shareholder input.
Today we lobby for something different. We seek for the company to provide an ‘Operational Update’ to the ASX to clarify the path it is taking post October 2017.
As per your Quarterly report Ending 30 June 2017. You have advised that
“Mining activities at the Kipoi Central pit were suspended during the quarter” and that “existing stockpiles of heap leach feed material will be fully depleted by October 2017” “until the re-commencement of mining from Kipoi Central.”
With no further mining being undertaken and with stockpiles weeks away from depleting, we would expect this to lead to a halt in copper cathode production, which in our view would be detrimental to us as shareholders as there would be no way of offsetting the consistent rise in capitalised interest on the loans, further diluting our ownership should a debt to equity swap ever arise.
The report discusses the possibility of treating third party sources of ore, yet no concrete information has been provided to the market since then.
This raises a number of questions:
- Is the mining halt justified, despite the substantial increase in copper price?
- Has the company entered into any agreements or arrangements to treat third party ore?
- Is the company expected to cease production of copper once stockpiles deplete?
- Will a credit raising occur before the depletion of stockpiles?
The lack of communication to the market has kept a large number of shareholders in the dark. For transparency and clarity we urge you to provide an update before the stockpile depletion in October. We would also expect that publishing an operational update will also improve the uptake of the credit raising should it be offered to retail shareholders.
It should also be noted that the Listing Rules, including Listing Rule 3.1, continue to apply while an entity’s securities are in a trading halt or voluntary suspension.
Kind Regards,
*Insert Name*
Holder of xxx,xxx TGS Shares
