Tigers Realm Coal Ltd08/21/2013 | 04:00am US/EasternAustralian...

Tigers Realm Coal Ltd

08/21/2013 | 04:00am US/Eastern

Australian Financial Review journalist, Luke Forrestal, published this article on 21 August 2013

Tigers Realm holding up after rocky start

In two years of trading, shares in Tigers Realm Coal, the coal business set up by former Oxiana Resources executives Tony Manini and Owen Hegarty, are yet to climb above their initial public offering price of 50¢. Or back anywhere near it, for that matter.

Over the past 12 months, however, as market conditions for wannabe coal producers have deteriorated beyond expectation, the company has held its value better than most of its peers.

Relative performance charts prepared by Tigers Realm show it is the only coal developer out of a select group of seven to have registered a share price gain from August 13 last year to August 12 this year, adding 7¢, or 20.6 per cent, to 20.5¢.

Over the same period, Guildford Coal fell 71 per cent to 12.5¢, Bathurst Resources fell 61 per cent to 15¢, Cockatoo Coal fell 47 per cent to 6.7¢ and Carabella Resources fell 36.4 per cent to 24.5¢.

By way of further comparison, the S&P/ASX 300 mining and metals index fell 11.9 per cent and the S&P/ASX small resources index fell 36 per cent.

Tigers Realm sees a few reasons for the resilience in its share price, including a shift in strategy to progress a low-capital cost development option at its 80 per cent-owned Amaam North coking coal project in far eastern Russia.

The company's plans were reportedly well-received by the investors and analysts it took to
Russia last month. Four investments banks and broking houses are now covering the stock.

First production from Amaam North is targeted for the second half of 2015, with the project's close proximity to infrastructure one of its main attributes.

Almost 40 per cent of Tigers Realm's issued capital comes out of escrow on August 29, two years to the day after the company's listing.

Minimal liquidation of these shares is expected however, as they are held by major shareholder Tigers Realm Minerals and management. Tigers Realm Minerals comprises management and long-term seed investors.