Metal Tiger Part 2

Monday, 17th May 2021 11:00 - by Moosh

Metal Tiger (LSE:MTR) has been roaring up over the last few weeks following an updated tip in an investment magazine, so nothing to do with little old me as I don’t have any pulling power, which actually is just how I like it. There is clearly substance to the rise as MTR has not really responded at all over the last year to the sustained rise in copper price so there is theoretically much catching up to do on that fundamental level.

Aside from this, drilling has now begun in Botswana at the Kitlanya East project and will probably entertain the market over the coming months with regular updates. The region is well known to be copper rich and MTR is already exposed to the benefits of it through its large shareholding in Sandfire Resources (ASX:SFR), which is due to start mine construction this year at the T3 (Motheo) copper-silver project. SFR is cash generative with MTR benefitting from dividend payments. SFR share price also has risen about 50% since its recent lows and on this front MTR price hasn’t acknowledged that either.

Last week MTR also took part in a placing with Artemis Resources (ASX:ARV), thereby increasing its overall holding there, with the drilling campaign at Pilbara, Western Australia now funded. Further updates from this through the year should also serve to complement news from companies across the entire portfolio of MTR.

Trident Royalties (LSE:TRR) is another company held by MTR and last week it gave a bullish update for a number of projects in its portfolio. The TRR share price had a major uplift overall and further provides reasoning for MTR price appreciation.

Things appear to be lining up nicely on multiple fronts for MTR so it is definitely worth adding it to your watchlist and keep an eye on it for news from the Botswana campaign.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.