ASX:TGS – Tiger waiting to pounce?

5/3/15

Corporate Snapshot

Market Cap (as of 5 March 2015): $80M
Share Price: $0.069
Cash @ 31 December $ 21.6 M

Balance Sheet
Assets @ June
21M cash
80M in debtors and Copper Stockpile
PPE – 302 M
Liabilities 200M

200M Net Assets
=$0.17 NTA per share

NPAT (half year) 5.9M = around 11M for full year

PE – Current – 7.2
PE – Fcst – 4 (based on $20M NPAT)

IMHO (In my Honest opinion):
What do they do: – Copper miner
Currently deferring the capex spend
High stockpiles
directors buying up shares
moving to grid power = lower power costs
mining costs of less than 1.7/pound (current price 2.5)

Should be taking in about 50M cashflow but aren’t ?
risks: they need to secure long term finance

Buy this because…: Low cost miner, set to double production, profitable at current low copper prices, directors buying up shares

Type of Buy: Semi Speculative

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