PUNT OF THE WEEK: Mining investor Metal Tiger shares up 66% this year

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PUNT OF THE WEEK: Mining investor Metal Tiger’s shares up 66% this year as it prepares for key float

Mewtal Tiger is an AIM-listed firm that invests in mining companies and projects it thinks are undervalued

Mewtal Tiger is an AIM-listed firm that invests in mining companies and projects it thinks are undervalued

What is it?

An AIM-listed firm that invests in mining companies and projects it thinks are undervalued, providing them with financial and business support.

What’s the latest?

It is preparing for Pan Asia Metals – a privately owned lithium and tungsten mining group in which it owns a 7.3 per cent stake – to float on the Australian Securities Exchange. 

Metal Tiger’s shares are up 66 per cent this year.

Who backs it?

Mining-focused investments firm Resource Capital Investment Corporation is the largest shareholder, with a 13.5 per cent stake. 

Management make up many of the biggest holdings, with non-executive chairman Charles Hall owning 2.7 per cent and chief executive Michael McNeilly with 0.4 per cent.

Why should you buy it?

John Meyer, head of research at SP Angel, notes that it benefited from a deal between Sandfire Resources and MOD Resources last year and has ploughed the cash from that into its other investments.

And why shouldn’t you?

But, Meyer says: ‘It will take time and further investment to realise value from the company’s strategy.’

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