I have spoken to MSC and been told they are concentrating on the Congo project. Skardon River is something they will look at when Gulf Alumina has solved the transport problem along the river. I think Gulf who are mining bauxite may be a year or more from solving the transport problem. They already have a Chinese buyer for their bauxite and both are very keen to solve the transport problem and sell it. By the way that bauxite was originally MSC's. Anyway the copper project in Congo Republic has real potential and is right alongside Tiger Resources large copper project. TGS is still fomulating the project and wont be in production until 2016 but ours is bigger and our J/V partner is a large conglomerate with loads of cash who will buy all the project's copper at market rates. The key to this is the new guy at MSC who has connections and is accustomed to raising cash. He will raise the money to fund the acquisition and exploration. He also has share incentives to do all this. I ran the numbers over Tiger resources and came up with a project profit of $5.4b. My numbers say that within a few years MSC may have production and an annual profit of $150m. Very early days but they have a significant data base of exploration results from the previous owners which MSC will review and I expect some results in several months. We just have to watch and wait. If Murray can raise the cash then it will just be a matter of waiting for the payoff.
MSC Price at posting:
0.8¢ Sentiment: LT Buy Disclosure: Held
