TIG - Tigers Realm Coal

[Agentm]

i thought i would share some info on this upcoming ipo


many probably remember the success of Owen Hegarty form oxiana /Ozminerals. He has a few ipo's on the go, this one is the first, its the coal assets

i have been following this for some months now, and after seeing the article published in the age, they are obviously gearing up to get the ipo up and running in the coming months..

not sure on how much of the article i should be posting, leave that to the mods.. but its a good read..

Tigers Realm hunts coking coal market
Barry FitzGerald

May 30, 2011

YOU can't have a boom in global steel production without an attendant boom in the supply of steel's core ingredients - iron ore and coking coal. For each tonne of steel the average blast furnace consumes 1600 kilograms of iron ore and 600 kilograms of coking coal.

It is a different story with coking coal. Due mainly to the Queensland floods this year, coking coal is already in short supply. More to the point, even after the Queensland industry - the world's main supplier - bounces back, coking coal is forecast to remain undersupplied for as long as anyone is prepared to forecast.

Unlike iron ore, there is an absolute scarcity of high-quality coking coal development opportunities. And the much-vaunted new supply in Mongolia and Mozambique first has to overcome major infrastructure shortcomings before having much impact on the shortfall.

It's no surprise then that coking coal prices are expected to remain at super-strong levels for years to come. The current price of $US295 ($A275) a tonne for top quality (premium hard coking coal) gives producers cash margins of more than $US200 a tonne.

Read more: http://www.theage.com.au/business/t...coal-market-20110529-1fau6.html#ixzz1NmfyYZgU

 

[Agentm]

been trading a few days


ASX RELEASE

29 August 2011

Tigers Realm Coal Listing Today

$37.5m equity raising and IPO completed

Proceeds to fund drilling and studies at coking coal projects


Shares in Tigers Realm Coal Limited (ASX: TIG) will commence trading on the ASX at 12:00pm today. The listing follows completion of a A$37.5m Initial Public Offering (IPO) and approval by the ASX of the company’s listing application.


Tigers Realm Coal is focused on developing two coking coal projects: the Amaam project in Far Eastern Russia and the Landazuri project in Colombia.

Tigers Realm Coal Managing Director and Chief Executive Officer, Mr. Martin Grant said today, “The float of Tigers Realm Coal is one of the largest resources IPOs this year and given market conditions, is a very positive reflection on the quality of the Amaam and Landazuri coking coal assets and the TIG team.

The company is currently working on an updated resource estimate to incorporate additional drill data from programs already completed. We expect to have this work completed over the next six to eight weeks.”


At the Amaam project in Far Eastern Russia, Tigers Realm Coal is well advanced in preparation activities for the forthcoming drilling program. Drilling is expected to commence in early November 2011. This will be a large program with five drill rigs to further expand and upgrade resources.

At the Landazuri project in Colombia, the company is in the final stages of awarding contracts and drilling is expected to commence in Q3 2011.

Further details about Tigers Realm Coal can be found at www.tigersrealmcoal.com




keep in mind that 45% of the drill results have yet to be included in any inferred resource calculations


177 Mt JORC compliant Inferred Resource and exploration target of an additional 240 Mt - 380 Mt 1

-Current Inferred Resource does not include 3,450m (45% of the 2010-11 drilling program), which is expected to be included in an updated Resource in or about Q3 - Q4 2011

i tend to rate this one not as a explorer, but more as a developer of the resource.

 

[Agentm]

shaw is giving a 50% discounted rate from $1.23


The full 14 page report can be seen here.

Event

Shaw Stockbroking initiate coverage of Tigers Realm Coal (TIG) with a Buy recommendation and a $0.60ps 12 month price target.


Highlights

Tigers Realm Coal (TIG) is earning significant stakes in two large coal project located in far eastern Russian and Colombia. Since listing on the ASX in late August this year the share price of Tigers Realm Coal (TIG) has retreated from 44cps down to 33cps. This has mainly been driven by the
general market malaise associated with the European dept crisis rather any company specific issues.

TIG is now trading at significant discount to our valuation of $1.23ps and our 12 month price target of $0.60ps. We ascribe a Buy recommendation on the assumption that TIG will be eventually re-rated as each significant milestone is progressively achieved. First major milestone recently
announced was a 66% increase of inferred resources to 294 million tonnes at the Amaan coking coal project.

TIG was incorporated in late 2010 with aim of exploring for and developing coal resources. TIG listed on the Australian Stock Exchange on 29 August 2011 after raising A$37.5 million at A50c per share in an Initial Public Offering.

TIG’s largest shareholder is Tigers Realm Minerals Pty Ltd.

TIG currently has two coal projects which are:

· Amaan Joint Venture in far eastern Russia where TIG has a 40% ownership, increasing to 60% once a licence to explore and extract coal is granted and then increasing to 80% upon completion of a bankable feasibility study.

· Landazuri Joint Venture in Columbia where TIG is earning a 60% to 70% ownership in three joint ventures.

The Amaan coking coal JV project is currently at a stage where a 268mt inferred coal resource has been delineated and preliminary technical studies have outlined conceptual parameters for a proposed 5.3 million tonnes per annum mining and export operation. The next steps involve
upgrading a substantial portion of the coal resources base to the measured and indicated categories and completing a feasibility study.


The Landazuri coking coal JV project is currently at a stage where a 21mt inferred coal resource has been outlined and conceptual studies indicate the potential to produce a single coking coal product on an unwashed basis. The next steps involve upgrading the resources using 2,380m of
completed drilling and initialising production utilising road transport.

Recommendation

TIG is trading at significant discount to our valuation of $1.23ps and our 12 month price target of $0.60ps. We initiate with a Buy recommendation on the assumption that TIG will be re-rated as each significant milestone is
progressively achieved.


Peer Comparison

On an enterprise value per resource tonne basis TIG ranks amongst other less developed coal companies. Whilst this method of analyses is rather simplistic, the value of a coal companies is highly dependent on the infrastructure needed to bring coal to market. Typically enterprise
value per resource tonne multiples will improve progressively as coal companies achieve certain milestones related to infrastructure development (funding, permits, construction, etc).

Nevertheless other factors such as margins are also very important – note how CEY was taken over on a relatively low multiple mainly as its business was selling lower margin thermal coal to local utilities.

Price Target

Given TIR’s early stage of development and the number of milestones that have to be overcome prior to the commencement of production at both the Amaan and the Landazuri coking coal projects we believe that a discount to valuation should be applied. At this stage we apply a 50% discount to our $1.23 per share valuation to achieve a 1 year price target of $0.60 per share. This discount rate will be progressively reduced as each significant milestone is achieved.

 

[Agentm]

Hegarty sees value in Tigers Realm Coal

Eli Greenblat

December 29, 2011


http://www.theage.com.au/business/h...-realm-coal-20111229-1pdie.html#ixzz1iR8VAU9c

Resources and mining entrepreneur Owen Hegarty has taken advantage of a near 50 per cent collapse in the share price of newly listed company Tigers Realm Coal to scoop up 500,000 shares in the junior explorer.
Mr Hegarty, who is a director of Tigers Realm Coal and was the founder and chief executive of Oxiana, has issued a change of directors interest to the ASX showing he has topped up his holding in the coal play.
According to the notice, Mr Hegarty dipped into the market to buy Tigers Realm Coal stock on December 22, 23 and 28 when the share price traded between 25 cents and 27 cents. He purchased a total of 500,000 shares for $127,990 - giving him an average purchase price of 25.6 cents per share.
Advertisement: Story continues below
The recent buying adds to his existing parcel of 12.934 million shares in Tigers Realm Coal held through a private company called Shimmering Bronze Pty Ltd. He also owns 4.315 million options.
Mr Hegarty told BusinessDay the weaker share price represented good value.
‘‘It's very good value, there are plenty of people will tell you there is lots of good value out there in the market at the moment, but here is one that I’m absolutely committed to and know plenty about, so I’m happy to continue to get in and support it.’’
Tigers Realm Coal is developing two coking coal projects, the Amaam Coking Coal Project in far eastern Russia and the Landazuri Coking Coal Project in Colombia.
Mr Hegarty said the company’s tenements in Russia in particular would prove highly valuable in the future, although Tigers Realm Coal still had some way to progress as it passed the typical mining hurdles of exploration, feasibility studies and the construction of key infrastructure.
‘‘The potential is bloody huge,’’ Mr Hegarty told BusinessDay. ‘‘And the fact that its very good quality, hard coking coal right near the coast so you can fire it through to Korea, or Japan or China.
"Now okay there's a lot of work to do ... but we know how to do that stuff, its never simple, never easy, but we can see a path all the way through and we know the values that are going to be counted there will be ultimately in the billions because of the sheer scale of it.’’
The company was floated on the market in August with shares offered under the initial public offer at 50 cents each. The share price has fallen nearly 50 per cent since the listing.

Read more: http://www.theage.com.au/business/h...-realm-coal-20111229-1pdie.html#ixzz1iR8SPeH8
​

 

[springhill]

Institutional placement to fund further drilling and technical studies at the Amaam Project

Tigers Realm Coal Limited (TIG) has today launched a placement of fully paid ordinary shares to institutional and sophisticated investors (Placement) to raise a minimum of $5 million and up to approximately $10 million at a price of $0.18 per share (Placement Price).
The Placement Price represents a 5% discount to the volume weighted average price over the 5 trading days up to and including 6 July 2012.
Subsequent to the Placement, it is expected that a Share Purchase Plan (SPP) will be offered under which eligible TIG shareholders may each apply to subscribe for up to $15,000 of TIG shares. The price for the SPP would be the lesser of the Placement Price and a 5% discount to the volume weighted average price over the last 5 trading days of the SPP offer period. Neither the Placement nor the SPP will be underwritten.
The majority of the proceeds of the offer will be applied towards funding drilling and technical studies at the Amaam Project. All net proceeds raised over and above the $5 million minimum will be applied towards the 2012/13 drilling program at Amaam. Net proceeds of the offer will also fund corporate costs and working capital to the end of June 2013 by which time the Amaam pre-feasibility study (PFS) is expected to have been completed and additional drilling results will have been made available. TIG believes that completion of the PFS at the end of 2012 will significantly increase the value of the Amaam project and will provide TIG with an increased range of alternatives for securing funding to progress the Bankable Feasibility Study, planned for completion by the end of 2013.

PORTFOLIO REVIEW
Highlights:
 Tigers Realm Coal to focus effort on large, high quality Amaam Project in far east Russia
 Withdrawal from Landazuri project in Colombia

In January 2012 the Company announced the acquisition of the Amaam North tenement which significantly increased the scale of TIG’s activities and potential resource endowment in Chukotka.
With the increasing focus on far eastern Russia, TIG initiated a strategic review of its project portfolio to ensure that resources are allocated in a manner which will maximise shareholder value.


In light of the recent drill results and prevailing weakness in the global economic environment, the
Company considers the farm-in terms for the Landazuri option agreements are no longer commercially
attractive:
 TIG believes the potential to delineate sufficient tonnages of coal in the short to medium term is limited without substantial additional exploration expenditure.
 The commercial terms of the farm-in agreement are no longer aligned with the project scale or development timeline as a total of US$13.0M in option payments are still payable to the project vendors over the next 12 months as well as substantial exploration expenditure.
 Recent drilling results suggest that strip ratios at Landazuri are likely to be higher than originally
anticipated, resulting in higher cash operating costs than modelled in the scoping study, significantly reducing the economic robustness of the project.

The relinquishment of the Landazuri tenements will:
 Result in significant future cash savings which will be applied towards developing the strategically significant Amaam and Amaam North deposits – as at 31 March 2012 TIG’s cash on hand was $13.65M;
 Reduce TIG’s near term capital requirements – the Landazuri option agreements require US$13M in option payments over the next 12 months as well as substantial exploration expenditure;
 Reduce administrative costs and overheads associated with maintaining operations in multiple geographic locations; and,
 Free up management time to focus on the larger scale and strategically significant Amaam project.




TIG’s vision is to build a leading coking coal company. Based on the scale and quality of its Russian assets, the Company is confident it can achieve this vision with the Amaam Coking Coal Project alone.
Progress at Amaam has been excellent, with recent drilling increasing Inferred Resources1 to 406Mt coking coal with an additional exploration target of 180-280Mt

 

[springhill]

TIG have a company presentation out for those interested.
http://www.asx.com.au/asxpdf/20120717/pdf/427g21kxj16b2s.pdf

 

[Agentm]

TIG have a company presentation out for those interested.
http://www.asx.com.au/asxpdf/20120717/pdf/427g21kxj16b2s.pdf

hey springhill

i will be topping up in the coming weeks

amman north from what i understand could be larger than the ammam prospect (currently 406Mt Inferred Resource) , i recall owen telling me about a number.. lets say 2 billion. remember that number...



Pure play coking coal development company
Large scale, high quality coking coal project well positioned to supply the seaborne market
Strategic land holding in emerging Bering coal basin
Strong long term market fundamentals for high quality coking coal





Project incorporates two coking coal sub-basins held under separate title

Amaam tenement (40%, earning 80%) – 406Mt Inferred Resource

Amaam North tenement (80%) – recently acquired, pending drilling

High vitrinite content (>90%) coal with exceptional coking properties - CSN of 9 and fluidity of 6,500Mddm

Sheltered, deep water port site expected to provide year round shipping

TIG well positioned to further consolidate position


springhill, that last one.. about further consolidating its position there is an aspect i always think about, when they came on the scene with ammam, i suggested in my questions to management that surely that one permit cant be only part of that region that has a high grade coking coal deposit.. my answer was that that my assumption would be correct. when ammam north was added i was not surprised, and to see the
TIG well positioned to further consolidate position statement still standing, it suggests to me the 2 billion number owen talks about is obvious still to reveal itself.


plenty of news to come imho, and i am still not inclined to pass over the latest offer tig has given its shareholders..

 

[springhill]

hey springhill

TIG well positioned to further consolidate position


springhill, that last one.. about further consolidating its position there is an aspect i always think about, when they came on the scene with ammam, i suggested in my questions to management that surely that one permit cant be only part of that region that has a high grade coking coal deposit.. my answer was that that my assumption would be correct. when ammam north was added i was not surprised, and to see the
TIG well positioned to further consolidate position statement still standing, it suggests to me the 2 billion number owen talks about is obvious still to reveal itself.


plenty of news to come imho, and i am still not inclined to pass over the latest offer tig has given its shareholders..

Thanks for that information Agent. Has a few more shares than I would usually like, but a potential quality project can over ride that fact in my mind.
TIG has my attention.

When did you last converse with management?

 

[Agentm]

i attend all the meetings, here in melbourne, and basically everyone at tigers lives in the same postcode as i do

i see a few of the tigers people around a lot, know some from way back at MPI,

the comments from owen came when they were doing the tigers minerals presentation here in melbourne to shareholders and stakeholders.. and manini was doing a short presentation on TIG aspect of the business. owen was playfully interjecting from the floor..

the shareholders are all locked in. there is no exits really, they all see the end game and the quality of the personnel at tigers minerals and tigers realm are staggering.

ammam is a tier one prospect, and if you understand martins background then you know the project was in bhp's grasp one before and management at bhp made some big calls on future pipeline projects, so many projects got shelved.. ammam found its way into tigers realm, and so has ammam north..

imho there is more there... far more to come ...

 

[Agentm]

ammam north turned out nice

they suggested the ammam north costing will be dramatically low... with the base cost price across all of coking coal projects at rio currently at the coking coal price, if they shut down their mones (25% of the market share) then its got a long long way to go before the likes of TIG are impacted,, as tony said at the agm, some 75% of the coking coal operators have to go broke before amman and ammam north are impacted and are no longer viable.. can this be said for the other coking coal microcaps??

the pfs will be revealing.. imho

SIGNIFICANT NEW, HIGH QUALITY, COKING COAL RESOURCE DELINEATED AT AMAAM NORTH


Initial JORC compliant Resource of 26.8Mt including Measured and Indicated Resources of 11.8Mt for Deposit F at Amaam North

Pre-feasibility study on a low capital cost, low operating cost, open pit, coking coal mine at Amaam North is due for completion in Q3 2013

Highlights:

An initial JORC compliant Resource of 26.8Mt has been defined for Amaam North comprising 7.2Mt Measured, 4.6Mt Indicated and 15.0Mt Inferred

This initial Resource is at Project F, a small part of the Amaam North Licence where thick, near surface, shallow dipping coal was delineated in a 40 hole drilling program completed in April 2013

This Resource provides an excellent foundation for the development of initial mining operations at Project F. Ongoing field mapping and drilling programs will test the broader potential of this highly prospective licence where TIG has outlined an Exploration TargetE of 30-430Mt

Work continues at pace on the Project F Pre-feasibility Study (PFS) to be completed in Q3 2013, and Definitive Feasibility Study (DFS) to be completed in Q1 2014

 

[Agentm]

trading halt till next week

cap raising

may be a turning point for the share