Two Stocks Under Spotlight: Metal Tiger PLC And Tethys Oil

 Metal Tiger PLC

Metal Tiger PLC (MTR) looks for potential firms to invest in precious and strategic metals that are yet to discover their true potential in the market. The group provides financial and business consultancy to help firms in creating value by investing in natural resource exploration and create value for all the stakeholders. The group aims to generate wealth for Metal Tiger shareholders. The company invests directly in form of equity primarily in UK based companies which are in resource exploration space and a part of AIM (Alternative investment market). The company operates in two segments; one is Asset Trading. Asset Trading captures investment made in UK based resource exploration firms by means of equity-related instruments. The other segment, Metal Projects, is a method for the company to initiate JV’s (Joint Ventures) with firms having interests in rare, strategic and energy metals. The Company has plenty of resources in Thailand, Spain and Botswana. The company is looking forward to exploring companies with similar interests in the Australian Securities Exchange (ASX) and the Stock Exchange of Toronto (TSX).

Recent developments at MTR

The company entered a term sheet with Cobre to acquire a 15 per cent stake in the latter company. Cobre provides MTR with a framework to create value in the near term. Cobre has achieved good results by discovering VMS system (high grade) to identify high-value deposits. Furthermore, country like Australia has a stable environment and jurisdiction. MTR has secured the term sheet, and the company is looking forward to complete due diligence.

Toucan Pty Ltd. holds a range of tenements across the Perrinvale Copper Project in Western Australia and Cobre owns 80 per cent of Toucan.

Traditionally, the exploration drills were focused mainly on Gold mineralisation in the region. With the passage of time, reviewing ground reconnaissance suggests that base metals are great prospects. Cobre funded Toucan will carry out electromagnetic geographical surveys and drilling.

Initially, Metal Tiger would invest A$500,000 in return for 15 per cent stake in Cobre and A$2,000,000 afterwards as part of fundraising via IPO, which is expected to occur during the next year. The total shareholding for Metal Tiger would go to approximately 19.99 per cent upon listing.

Metal Tiger has issued 1,658,720 new common shares of 0.01 pence each at a price of 1.45 pence per share. Cobre has granted a period of 30 days to Metal Tiger for due diligence and document submission.

The company has made an equity investment in Kalahari Metals Limited of USD 1.1 million, it owns 50 per cent stake in Kalahari Metals Limited (KML). KML will soon commence its drilling activities (first phase) at the Ngami Copper Project and at the Okavango Copper Project.Â

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Financial Highlights for Financial Year 18- ended December 31, 2018

The basic loss per share was recorded at 0.28 pence per share in the Financial Year 2018 against 0.02 pence per share in the Financial Year 2017. The loans and borrowings have increased from £49,000 in FY2017 to £52,000 in FY2018.

The company sold 30 per cent stake in the T3 Copper Botswana project to MOD Limited, a resource company, for equity-related instruments and royalties amounting to £16.8million, which resulted in £12.5 million of profit-making by the group.

The company increased its stake in the Kalahari Copper Belt, by investing in Kalahari Metals Limited (KML) thereby acquiring 34 per cent stake in KML by shelling out £859,000. The company also had created an option to increase its stake further in KML to 50 per cent, which will cost around US$500,000, which was exercised post the year-end. The company was able to do fundraising of £6.1 million successfully in August 2018.

The company’s interests in the lead-zinc-silver mine (Boh Yai) were given a boost post the Thai Government finished the Master Plan regarding Minerals Management in December 2018. The company’s continued investments across the segments help the company in finding the right balance in its portfolio of assets with a wide range of exposure to good managements and asset classes, with deep potential thereby creating value for all its stakeholders.

The company had recorded a loss before tax of around £4.0 million in FY18. The NAV of the company was recorded at £18,951,000 in FY18 as against £15,443,000 in FY17. The company’s NAV per share stood at 1.40 pence per share (fully diluted) basis in FY18 as against 1.33 pence per share in FY17.

The company made direct investments into the projects at regular intervals keeping in vision the various asset classes such as equities, derivatives and commodities with good vision and leadership to attain the right mix in the portfolio and optimise the returns.

MTR Post period ended December 31, 2018

The company successfully raised £1 million of funds by opting for private placement facilitated by SI Capital Limited. Also, the company was able to raise funds without any brokerage house being involved, amounting to £2 million, through private placement method backed by Sprott Capital and its associates.

The T3 Copper Project has undergone a feasibility study (definitive) which got completed in March 2019. MOD expects a revision in the resource model of the T3 Copper Project in Q3 FY19, post the ongoing drilling program and metallurgical test work at T3. MOD believes these updates shall benefit the company in upgrading production.

There is a considerable amount of achievement by KML at the Ngami and the Okavanago copper projects. EM (Electromagnetic) surveys are being conducted to explore new targets (high potential), which might result in commencing of drilling (diamonds) activities.

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Metal Tiger PLC Share price performance

Daily Chart as at July-29-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 29, 2019, at 01:44 PM GMT), shares of Metal Tiger PLC were quoting at GBX 1.44 per share; down by 0.68 per cent against the yesterday's closing price level. The company’s market capitalisation (outstanding) stood at £22.72 million.

In the last 52-weeks, shares of Metal Tiger PLC have registered a high of GBX 3.44 (as on Aug 03, 2018) and a low of GBX 1.00 (as on Jan 04, 2019). At the current trading level, as quoted in the price chart, its shares were trading 58.13 per cent below the 52-week high price level and 44 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 390,704. Stock's average traded volume for 5 days was 5,034,143.20; 30 days- 5,014,639.70 and 90 days – 3,893,872.46.

The average traded volume for 5 days went north by 39 basis points in comparison to the 30 days average traded volume. The company’s stock beta was 0.53 indicating less volatility in comparison to the benchmark index.

The shares of the company (at the time of writing) were trading above the 60-days and 200-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

In the past 1 year, shares of Metal Tiger have delivered a negative price return of 52.07 per cent. However, on a year-to-date basis, the stock was up by approximately 16.00 per cent and surged by 26.09 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days stood at 54.79, 56.98 and 58.78 respectively. Also, the stock’s 3-days RSI stood at 66.30. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 69.65, 55.56 and 51.96 respectively.

Tethys Oil AB (0A1V)

Tethys Oil AB (0A1V) is a Swedish company operating in Oil & Gas sector. The company’s operations are mainly dedicated on the Sultanate of Oman, where the licenses are held by the company operating in three onshore blocks. Also, it possesses licenses in two other countries, namely Lithuania and France. The company has two operational sites as of now; one is Gargzdai in Lithuania and second is in Oman (Block 3,4).

Tethys Oil Share price performance

Daily Chart as at 29-July-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on 29 July 2019, at 02:12 PM GMT), shares of Tethys Oil were trading at SEK 79.16 per share. The company’s market capitalisation (outstanding) stood at US$302.06 million.

In the last 52-weeks, shares of Tethys Oil AB have registered a high of SEK 111.72 (as on Aug 13, 2018) and a low of SEK 61.60 (as on May 31, 2019). At the current trading level, as quoted in the price chart, its shares were trading 29.14 per cent below the 52-week high price level and 28.50 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 532. The company’s stock beta stood at 1.10, which means it was 10 per cent more volatile in comparison to the benchmark index.