More interesting was the last of the key points of the fosters research and I quote:
"It was clear from speaking with both Gecamines and TGS that the relationship between the two partners is strong. Gecamines have ambitious plans to increase output at 100% owned projects to 100ktpa Cu by 2015 (up from ~30ktpa Cu in 2013), and the group’s flagship undeveloped project, Deziwa, is believed to hold >6Mt of copper reserves with the potential for >200ktpa Cu output. Gecamines’ financial position however remains highly geared, with world class assets but debt thought to exceed $2b. Potential funding options to Gecamines to reduce debt and develop projects such as Deziwa may include the sale of stakes in operating assets (e.g. Tenke, Ruashi, Kipoi), an IPO and/or farm-out of assets."
I might have blinkers on but I read this to mean that Gecamines trust Tiger. They have significant under-developed assets that need developing, and come eoy 2016, TGS will have Net Cash of $150mio with the year to follow to add a further $295mio. They'll be cashed up with a JV partner with a large undeveloped asset base screaming for cash, with Tiger in the front of the que ready to take advantage of this.....
TGS Price at posting:
44.7¢ Sentiment: Hold Disclosure: Held
