Investment-Report

Radar is noticing that the speculative excitement is moving rapidly into the copper mining minnows. Earlier this month I noticed Inca Minerals quadrupling in two weeks after it came out with data that could only be described as preliminary, indicating it might be onto a giant copper deposit in Peru.

Gold does have more romance about it, but as industrial metals go, there aren’t any that are more essential than copper, which is used for building construction, power generation and transmission, electronic product manufacturing, and the production of industrial machinery and transportation vehicles.

Just as important, copper is getting very hard to find.

One company we will be talking more about in our Spec Series, which kicks off Thursday next week, is Tiger Resources (TGS), a copper producer in the Democratic Republic of the Congo (DRC). Leaving aside the inherent sovereignty risk, this company now has funding for its expansion ($80m via a South African bank) and is set to produce copper at 70 cents a pound, which it will sell for about $3.60 a pound. 

Its Kipoi mine is expected to be one of the 15 highest-grade mines in the world with at least 50,000 tonnes a year copper production.

There is abundant exploration potential to boot with this company, but there is no doubting the risk you take on when you put your money into a company whose operations are in the DRC.

At 35 cents, it’s definitely a good punt, in Radar’s view.

Best wishes,