Metal Tiger plc

(“Metal Tiger” or the “Company”)

Unaudited Interim Results for the six months ended 30 June 2022

Metal Tiger plc (AIM: MTR, ASX:MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to announce interim results for the six months ended 30 June 2022. The interim accounts are unaudited but have been subject to a review by the Group’s auditors.

Key Highlights:

Six months to 30 June 2022

  • Agreement to sell 49% of Kalahari Metals Limited Limited to Cobre Limited (“Cobre”) for consideration of up to £1.5 million with an initial cash payment of £750,000 for 24.5% subject to certain conditions including approval by Cobre shareholders. The proposed transaction necessitated a write down of £423,000 but allows for consolidation of the project under one entity and prevents Metal Tiger from needing to fund joint venture costs directly.
  • £2.2m invested in 7 new passive investments and also completed 7 follow-on passive investments. Fully exited from 17 passive investments and partially exited 10 passive investments.
  • Notable passive investments in the period include C$561,000 into Max Resources Limited (TSXV:MAX) as well as A$250,000 into Helix Resources Limited (ASX:HLX).
  • Reduced leverage and risk by advance paying down A$2.91 million (c.£1.6million) of the SC Lowy loan over the period.
  • Sandfire reported an updated Measured, Indicated and Inferred Mineral Resource Estimate for the 4.7Mtpa MATSA Mining Operations bringing the global resource to 147.2Mt at 1.4% Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag containing an estimated 2.1Mt of copper, 4.4Mt of Zinc, 1.5Mt of lead and 187.6Moz of silver. The Measured & Indicated Resource increased by 14% after mining depletion to 109.0Mt at 1.5% Cu and 3.2% Zn for 1.6Mt of contained copper and 3.5Mt of contained zinc with an estimated Net Smelter Return (“NSR”) of US$130.86/t (using an NSR cut-off).
  • For the financial year 2022, MATSA produced 30,628t of Copper, 38,907t of Zinc, 4,102t of Lead and circa 1.2Moz of silver at a C1 unit cost of US$45.
  • As noted in Sandfire’s June 2022 quarterly report, development at Motheo is proceeding on schedule with first production expected in the June 2023 Quarter. Sandfire has guided a 9.5% upwards revision in the project’s capital costs. In the quarter to September 2022, the Definitive Feasibility Study on the 5.2Mtpa Expansion is due for completion and the Environmental-Social Impact Assessment (ESIA) is scheduled to be submitted to the DEA. Drilling of the A4 Deposit dewatering bores is approximately 30% complete and fabrication of the only long-lead delivery plant equipment required for plant expansion, a 4.5MW Ball Mill is well advanced with delivery on schedule for the quarter to December 2022.
  • Drilling is ongoing at A1, a prospect located 19km north-east of the Motheo Copper Mine with a single diamond drill rig and a total of eight holes completed by the end of the quarter to June 2022. Six 1.4km long Induced Polarisation (IP) surveys were completed at A1 which have delineated two anomalous chargeable zones that extend across the survey area, which are the focus of drilling. Metal Tiger’s 2% NSR covers the A1 prospect.
  • Dividend received from Sandfire Resources Limited (“Sandfire”) (ASX:SFR) of £146,000 and £49,000 used to lower the amount payable by the Company under the Equity Collar Derivative Facility.


Post period end

  • Cobre Limited has announced several significant copper intersections establishing substantial potential over 4km of strike at the Ngami Project in the Kalahari Copperbelt. As at 26 August, Cobre’s share price closed at A$0.565 meaning that post completion of the fundraising in which Metal Tiger maintained its pro-rata position the value of Metal Tiger’s investment is A$25.2 million.
  • Sandfire is working towards an optimised 5-year plan for MATSA underpinned by a safety improvement plan, a programme to improve mine productivity and expand throughput beyond 4.7Mtpa, near mine mineral resource extensions at existing mines as well as an expansive exploration programme.
  • Sandfire’s group cash on hand as at 30 June 2022 totalled US$463 million. Sandfire is due to repay US$138 million under its project financing facility and US$138 million under its ANZ corporate facility during September 2022. This will reduce Sandfire’s debt position to circa US$532 million substantially reducing the overall leverage of the Sandfire group.
  • Sandfire is due to announce a targeted project facility financing, and it is noted that selection of banks is complete with documentation well advanced and final credit approval processes pending.
  • Armada Exploration commenced a ground-based Natural Source Audio-Magnetotelluric (“NSAMT”) survey at the Nyanga project. NSAMT systems calculate ground resistivity by measuring the magnitude of naturally occurring electric and magnetic fields. Resistivity values are calculated from these measurements and used to create 2D and 3D images of the subsurface. Magmatic sulphide accumulations are defined by extremely low resistivity values. The results of this campaign will likely be used to help guide the next drilling campaign.
  • The Company made passive investments totalling £392,000 into three companies post period end.

For further information on the Company, visit:

Metal Tiger plc



Michael McNeilly (Chief Executive Officer)


Tel: +44(0)20 3287 5349

Mark Potter (Chief Investment Officer)






Strand Hanson (Nominated Adviser)



James Dance


Tel: +44 (0)20 7409 3494

James Harris

Robert Collins







Arden Partners plc (Broker)



Simon Johnson


Tel: +44 (0)20 7614 5900

Steve Douglas






Camarco (Financial PR)



Gordon Poole


Tel: +44 (0)20 3757 4980

James Crothers



Rebecca Waterworth



Notes to Editors:

Metal Tiger plc is admitted to the AIM market of the London Stock Exchange AIM Market (“AIM”) and the ASX Market of the Australian Securities Exchange Market (“ASX”) with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company’s target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

Key Performance Indicators



for the six months ended

30 June 2022


for the six months ended

30 June 2021


for the year


31 December 2021




Total comprehensive (loss)/profit attributable to owners of the parent






Net asset value






Net asset value per share *






Closing share price






Share price premium/(discount) to net asset value*






Market capitalisation






Shares in issue at the end of the year






* Based on shares in issue at the end of the reporting period and changes are calculated versus the six months ended 30 June 2021.


The first half of 2022 was a challenging six months for Metal Tiger given very difficult market conditions caused by a variety of factors but, notably, run-away inflation pushing up costs (especially energy), rising interest rates, negative market sentiment, a significant market sell off, the war in Ukraine, continued difficulties with COVID-19 restrictions in China, supply chain disruptions and increasing geopolitical tensions between the East and the West. Commodities across the board fell substantially from the beginning of the year with copper falling to around US$3.60/lb from an inter-period high of US$4.90/lb. Nevertheless, the Board remains very confident of the medium to long term macro picture for commodity prices, especially those critical for the energy transition.

In the first half of 2022, the largest commodity exposure through its project and equity investments was to Copper and Gold. Gold spiked out of its range from circa US$1,800/oz to north of US$2,000/oz before ending the period close to US$1,800/oz in light of rising interest rates and a strong US$. The first half of the year saw a surge in Lithium prices which more than doubled in the period and were seven times higher than at the start of 2021. No doubt, Russia’s invasion of Ukraine has created further pressures on minerals critical for the energy transition, since Russia supplies 20% of global high-purity nickel. Whilst Metal Tiger did not have significant exposure to Lithium stocks, the surge helped support the price of Red Dirt Metals, which the Company fully exited during the period bringing in cash proceeds of £561,000. The Company was fortuitous in that it sold a large portion of its equity holdings prior to the market crashing in order to finance private company Andean Copper Inc. in which the Company invested US$1.2 million over two rounds of financing. Unfortunately, Andean Copper Inc. was unsuccessful in its attempts to acquire a distressed copper asset in Peru and the funds were subsequently returned in full to Metal Tiger in July 2022.

Having failed to deliver on planned drilling at Maria Cecilia the Company partially exited Camino Minerals Corp during the period and has subsequently completely exited the position. Metal Tiger invested C$210,000 in Max Resources at C$0.6 per unit and subsequently invested a further C$351,000 at C$0.26 per unit. In spite of the recent change in the political landscape in Colombia, the Company is very excited by the discovery potential of Max Resources given the high-grade channel sampling and scale potential.

In large part thanks to the Company’s strong and liquid balance sheet, the Company was able to manage and survive the market crash, in particular its leveraged Sandfire position, with some rapid decision making by management. Unfortunately, this resulted in a loss of £9.65 million for the six months ending June 2022. This was largely driven by loss taking and substantial decreases in the valuations of the Active investment portfolio, being Cobre Limited, Armada Metals Limited and Southern Gold Limited (“Southern Gold”) as well as Metal Tiger’s largest single equity position, Sandfire Resources Limited (“Sandfire”). The Company was forced to take urgent measures to reduce its risk exposure against the margin lending facility several times but was able to successfully de-risk the position whilst allowing the Company to maintain upside potential in what the Company internal financial models show to be fundamentally undervalued. At the end of the period, the principal amounts owed by the Company in respect of the Margin Lending Facility were reduced from A$9 million to circa A$6.160 million.

Overall, the Company is impressed by the progress that Sandfire has made with respect to operational improvements at MATSA as well as the progress of the development of the Motheo copper mine. It is our firm belief that, given Sandfire’s robust cash position, production and margin profile, as well as hedging against commodity prices in respect of circa one third of metal production at MATSA, will allow them to meet their debt payment obligations and substantially grow their equity value as they proceed to bring Motheo into production during 2023. In particular, we note the impressive update to the mineral resource at MATSA, which showed a Global Measured, Indicated and Inferred Mineral Resource estimate for MATSA of 147.2Mt at 1.4% Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag containing an estimated 2.1Mt of copper, 4.4Mt of zinc, 1.5Mt of lead and 187.6Moz of silver. We further note from Sandfire’s recent June 2022 quarterly report, that Sandfire is undertaking an extensive exploration programme which ramped up during Q2 2022 targeting both immediate extensions of existing deposits and new discoveries in the surrounding region. On the other hand, mining at DeGrussa is expected to end in September 2022, with processing planned to wind up in October. We note however that Sandfire is continuing to investigate the potential extension of operations through processing of existing stockpiles and mineralised waste on site using the existing plant. Most importantly, we note that Sandfire have managed to maintain the project schedule for the development at Motheo with first production expected in the quarter to June 2023. Sandfire has guided to an upwards 9.5% revision in the project’s capital costs, due mainly to increased fuel and mining costs, with further information to follow on this as part of the DFS on the 5.2Mtpa Expansion, which is due for completion in the quarter to September 2022. Sandfire is well placed to make first repayment due under the MATSA facility of US$118 million at the end of September 2022, together with repayment of their US$138 million ANZ corporate facility in Australia.

Furthermore, we notice increased activity at Sandfire’s A1 prospect from our observations of satellite imagery and we patiently await an update on drilling at A1 which has the potential to be a significant step change with regard to the valuation of the Company’s 2% NSR. Furthermore, we anticipate that Sandfire will commence an infill drilling and extensional drilling campaign at the A4 deposit, which has the potential to increase contained copper tonnage.

On 16 June 2022, the Company announced a deal to sell its 49% interest in Kalahari Metals Limited (“KML”) to Cobre Limited. This deal removed any further funding obligations from Metal Tiger and provided a pathway for Cobre to assume 100% ownership of Kalahari Metals. Further details of this disposal and the impact on the accounts are included in the project’s investment section and results for the period section. It is anticipated that £750,000 will be paid for the initial acquisition of 24.5% in September 2022. This will likely be netted off against Metal Tiger’s recent A$1.47 million investment in Cobre’s A$7 million fundraise at 15c announced in August 2022. Since Metal Tiger’s disposal, Cobre has made a discovery in Botswana and their share price at close of business on 26 August 2022 was A$0.565 valuing Metal Tiger’s holding post the recent conditional investment at A$25.2 million. The Board notes that, in their opinion, this deal provides MTR with exposure to Kalahari Metals, via its 21% holding in Cobre, in a way that is non-dilutive to MTR shareholders. Cobre has demonstrated an ability to access substantial funding and given their strong relationship with Canaccord (who brokered the recent equity fundraising for Cobre) means that Cobre should be able to not only fund an aggressive drill-out of the discovery at the Ngami Project area but also look to make additional discoveries at the Kitlanya West Project area and the Okavango Project area.

Armada Metals Limited (“Armada”) completed its Phase 1 drilling programme, comprising ten diamond holes for 3,240 metres. Whilst no economic discovery was found from the first phase of drilling, magmatic sulphide mineralisation was intersected in all ten diamond drill holes at the Libonga North, Matchiti Central and Libonga South targets along the Libonga-Matchiti Trend. Detailed core logging has confirmed the trend is a dynamic, multi-phased magma conduit system. Post period end, the company announced that it had commenced a ground-based NSAMT survey which will help to identify further drill targets.

Southern Gold during the period appointed Exploration Manager, Robert Smillie as Managing Director and CEO. Based in South Korea he has overseen an ambitious project generation campaign with field work resulting in 29 new licence applications, increasing exploration licences under application to 138 covering an area of 382km2. A sale of 50 million Bluebird Merchant Ventures (LSE:BMV) shares brought in proceeds of £250,000. As at 30 June 2022, the company had A$4.6 million of cash and their mark-to-market valuation of BMV shares was worth approximately A$5.3 million. The Board believes that the extensive application package and diligent project generation work will lead itself to several interesting target areas being prioritised for drilling in due course, setting up what could be a very appealing country consolidation play, pending proof of concept through drilling. Whilst the company will not be seeking to make any further active investments, we are pleased to note Cobre’s recent success and believe that this goes a long way to helping validate the logic behind the Active investment strategy. Indeed, whilst not directly comparable as a result of commodity, country and deposit type, all three investments share similarities in terms of their district/country scale potential.

Finally, Metal Tiger undertook steps in the first half of the year to explore options and identify solutions that will potentially allow for the correct regulatory status to be applied to Metal Tiger and one which would be suitable to its classification as an investing company. Assuming favourable clarification of our regulatory status, we will explore UK listing options that would potentially be a better fit for the Company’s operational and investing capabilities as well as potentially reduce annual administrative costs. The Company has engaged Simmons & Simmons as legal counsel to assist in these matters and will update the market in due course as appropriate.

Project Investments

The Project Investments segment includes investments into mineral exploration and development projects either through subsidiaries, associates, or joint venture companies, operated by in-country partners who have the requisite knowledge and expertise to advance projects. Following completion of the disposal of Kalahari Metals Limited, this will mark the end of the Project Investment division. The Company will manage any legacy investments within this division as appropriate but will not seek to make further Project Investments where Metal Tiger as a corporate entity must contribute either solely or as a joint venture partner to exploration expenditure.

Botswana – Kalahari Metals Limited

On 16 June 2022, Metal Tiger announced that it had entered into a Share Purchase Deed with Cobre to dispose of up to all of its 49% interest in Kalahari Metals Limited (“KML”).

  • Cobre (or its nominee) will acquire 24.5% of the shares in KML from Metal Tiger (increasing its interest to 75.5%) for total cash consideration of £750,000 (the “Initial Acquisition”) expected to be payable in September 2022, which MTR will use for general working capital purposes;
  • Metal Tiger will grant Cobre a call option for it or its nominee to acquire the remaining 24.5% of Metal Tiger’s shares in KML, exercisable for either £750,000 cash or the equivalent in Cobre shares (based on a 90-trading day VWAP), (the “Call Option”) at the sole election of Cobre, providing Cobre a pathway to 100% ownership of KML;
  • The Call Option will lapse 12 months after completion of the Initial Acquisition, and if not exercised by Cobre, Metal Tiger will remain a 24.5% shareholder in KML; and
  • Metal Tiger will retain certain rights in KML until such time as the Call Option has been exercised.

The transaction, including the Initial Acquisition, is subject to certain conditions:

  • Cobre shareholder approval to the Transaction for the purposes of ASX Listing Rule 10.1 and item 7 of section 611 of the Corporations Act 2001 (Cth), to be sought at a general meeting of Cobre shareholders anticipated to be held in September 2022;
  • an Independent Expert Report concluding that the Transaction is fair and reasonable to Cobre’s shareholders;
  • no legal or government agency restraints preventing the Transaction; and
  • the obtaining of any required approvals to the Transaction by government agencies in Botswana.

Transaction summary:

The parties have agreed to temporarily amend the terms of the existing Shareholders Deed and Loan Agreements between KML, Metal Tiger, Cobre and Cobre Kalahari Pty Ltd (“Cobre Kalahari”). For the period until the earlier of termination of the Transaction, or 12 months following completion of the Initial Acquisition:

  • Cobre Kalahari will have sole control regarding the adoption, approval and variation of KML’s Business Plan and Budget, and KML’s activities will be conducted in accordance with that Business Plan and Budget;
  • MTR waives its rights and is released from its obligations in relation to the Business Plan and Budget;
  • Cobre Kalahari will be solely responsible for contributing any capital and funding requirements of the Company pursuant to the Business Plan and Budget, and any such funding during the initial 12-month period will be provided in a manner that is non-dilutive to Metal Tiger’s interest and will not otherwise impact the Shareholders Deed;
  • Metal Tiger’s two nominee Directors will resign from the Board of KML effective immediately, and Metal Tiger will waive the right to appoint Directors;
  • Certain KML board matters will continue to require approval by Metal Tiger (or its representatives) on the basis that Metal Tiger will have voting power equivalent to two directors (with Cobre representatives constituting the remaining two directors) in considering such matters;
  • In the event that the Call Option is not exercised before its expiry, the parties will promptly amend the Shareholders Deed to restore MTR’s rights (including board representation rights), protections and obligations to the equivalent of those which it held as a 49% shareholder in KML prior to completion of the Initial Acquisition;
  • Cobre undertakes not to change, or seek to change in any way whatsoever, the Group’s accounting policy or practice during the 2022 and 2023 Financial Years; and
  • In the event that MTR receives shares by way of consideration, these will be managed alongside its existing investment in the company.

Shareholder Loans:

Metal Tiger currently has circa US$1.3 million in outstanding Shareholder Loans to Kalahari Metals Limited. The Loan Agreement has been amended such that, on completion of the Initial Acquisition, Cobre will guarantee KML’s obligation to repay the outstanding Shareholder Loans, plus any interest accruing at a rate of 7% per annum. The Shareholder Loan is for a 5-year period with an automatic extension for an additional 5 years in the event that no JORC1 compliant Mineral Resource declaration over any of KML’s tenements (or indeed by a third-party in the event of a Farm-in) has been made within the initial 5-year period. The Loan can be repaid in cash or shares at any time by Cobre, at Cobre’s sole election, and is only required to be repaid early if certain exit events occur (being a JORC Mineral Resource declaration, the occurrence of mining production, an initial public offering (“IPO”) of KML, Cobre’s disposal of 75% or more of it shares in KML, an asset sale, or a change of control of Cobre).


Metal Tiger plc

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