TIR titan resources limited

what's 15000t / annum x us$13,800?

  1. 749 Posts.
    Try again...

    Answer: Titan Resources' annual revenue (according to a mining analyst's article) once its 3 nickel orebodies are in production.

    In the light of Titan's announcement this morning that it is on target to produce nickel from its Armstrong mine in October, I thought I'd re-post some info I read recently on this emerging company's revenue prospects. Editor of "Resource Stocks" magazine, James Hamilton, profiled the company in the Feb/March issue where he had this to say:
    "Cashflow from Armstrong [alone] is expected to be in the order of $1m per month....Should these three orebodies [Armstrong, Zabel and McEwen] come together Titan stands to be producing 14 - 15,000t of nickel per annum, making it a producer of significance...There is still tremendous further exploration potential inside the company...."

    TIR has traded sideways recently in the face of (temporarily) falling nickel prices and the disappointment over BioHeap but IMO it should see momentum rebuild in the lead-up to first production.

    With the Zabel and McEwen mines not far behind Armsrong, Titan should be straddling a real cash cow within the next 6 - 12 months. Armstrong should produce first metal in October and if all 3 orebodies can be brought online quickly as planned, 14 - 15,000 tonnes of nickel per annum is forecast, according to the article. With nickel prices currently around US$13,800 / tonne, based on Hamilton's forecast TIR should reap an absolute windfall once production rolls - not bad for a stock with only 177m shares on issue.

    A very aggressive drilling programme is also currently underway to expand the resource base at McEwen and to follow up the Central Widgie leases. The latter cover the southern half of the former Mt. Edwards nickel mine which produced 954,578 tonnes of ore at 2.72% Ni.

    According to research conducted by respected mines analyst, Warwick Grigor, Titan's cash costs should be only US$1.50/lb compared to US$2.00/lb for IGO and US$1.90/lb for SMY, suggesting Director, Bill Ryan's comments that "at these nickel prices you can make good money" verge on understatement.

    We should have an interesting next 12 months with up to 3 new mines opening and regular drill results to tempt the punters.

    The stock price slumped upon news that Bill Ryan was leaving this year but now seems to be turning up again. Currently the stock is trading around .43 cents, well below its peak of .62 cents late last year.

    No doubt good cases may be made for a few other nickel juniors but TIR is my preferred exposure given its price relative to its near-term potential and its low cash costs. I also like IGO, SMY and WSA though I don't have stock in any of these.

    Conduct your own independent research before acting on any of the OPINIONS given above.

    I hold.

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