Friday, October 15, 2010

#jarobuys tiger resources ... cop-copp-COPPER!

next investor lunch event in munich! well, the donner metals guys (zinc/copper in queebec/canada) were introduced by fortuna capital + euroscandic last week, this time there was an axino presents event in a new location near main station. the location itself was fine, the conference room even much better than the old facility, the food great as usual, only the waiters were completely different! unlike the old bavarian mum in the former restaurant they were polite and friendly on the one side but slow like snails on the other => OMG!). what were the most important issues abt tiger? here we go, but watch out since its my own recording + interpretation of david young's (managing director) matter-of-fact tone:
  • copper, copper, copper, copper, silver, cobalt
  • located in the high grade copper belt congo/zambia
  • damned high grades! above 8% Cu ... folks, there are explorers/junior miners in north america out there who try 2 develop projects with copper grades of approx 1% right now => ??? ... ohhh, just looked-up the donner guys ... highest grade? 1.7% Cu ;-( ... gonna hope there is a lot of zinc!
  • congo :-( ... democratic elections 2006 => DRC?!? ... the new 'democratic' government has stolen a world class Cu project from my dear 1st quantum minerals guys ... they still protest like crazy in front of some intnl. business courts but it doesnt look like theyd get the project or any compensation back ... well, 1st quantum still has their zambian mines and pays dividends, so my quantum shares are up 175% since february 2009 cos i was lucky 2 buy these shares after both the congo-crash and the new world order after the crashy october 2008 
  • the chinese invest in the whole area like crazy
  • 1st production from tigers major project (60% tiger, 40% congo) planned for Q1/2011 ... folks, its just 3-5 months away, isnt it?
  • low operation costs ... well, thats important cos in that case there will be prolly some buck or two left in the cash desk 2 bribe/motivate the local government officials or even some local war lords? gonna call that sponsorship 4 local communities?
  • very very strong shareholder base ... im curious if also the nowadays so commodity-crazy paulson's fund enters the tiger story and pushes the share price to new levels like it did in my novagold involvement this spring?
  • well financed
  • much too many shares outstanding + soooo many freaking options available i couldnt count them in a week :-(
  • crazy business model: just start the production in a cheap-cheap-cheap processing plant some copper first (only stolen is cheaper!), withdraw as much copper out of your rocks as your simple plant equipment allows and stockpile all the remaining 'waste' material somewhere in the jungle! folks, that 'waste' is going to contain 3% Cu (not a typo !!?!) and will prolly be used for some future processing in some future much much better (and more costly) plant if they still like 2 do so ... btw, whos gonna do the math? does it really mean a low-low-low recovery grade of only 60%? who knows that 4 sure? of course, im not going to bother my calculator cos what data shoudda put in? and its 2 late anyway ;-)
  • ...
  • what is the biggest risk/problem right now? IMO is that the damned share price which is expensive like hell! hmmmm, what to do if u like the company but dont like the current price? u still remember my peter lynch story? yeah? well, then its easy: 
  1. make some pilot buy immediately
  2. apply 4 companys newsletter + information flow
  3. follow its development
  4. ask mr. market if there will be some general stock market decline on the road and buy more tiger shares then or in case of some other dips ...

OMD! ive blindly bought also few 'nickel/gold' shares of belvedere res, my next finnish mining play! well, there is always some good information in the air if u have so many buddies in the mining business, u know? just think abt the alexco res. idea 2 weeks ago (~encanto potash presentation) => its already 26% up!

any additional insights? maybe later if there will be some major developments :-)

good luck tiger! good luck belvedere! good luck africa! good luck my portfolio :o)

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