Macquarie rates TGS as Outperform
Tiger Resources will acquire the remainder (40%) of Kipoi from the DRC state entity, Gecamines.The acquisition will be funded via a placement, entitlement offer and bridging debt.
Macquarie believes this is a long-term positive, as this first deal will likely open additional avenues to expand, but valuation is only modestly increased. This is because construction will now be delayed until the balance sheet improves. Target rises to 52c from 43c and an Outperform rating is retained.
Target price is $0.52 Current Price is $0.32 Difference: $0.205
If TGS meets the Macquarie target it will return approximately 65% (excluding dividends, fees and charges).
The company's fiscal year ends in December. Macquarie forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 315.00.
Market Sentiment: 1.0
TGS Price at posting:
30.2¢ Sentiment: Hold Disclosure: Held
