ABN 52 077 110 304
8 December 2014
KIPOI EXPANSION AND FUNDING UPDATE
Perth, Western Australia: Tiger Resources Limited (ASX: TGS) ("Tiger") is pleased to provide an update on
operations at its Kipoi Copper Project in the Democratic Republic of Congo and future strategy.
As highlighted in Tiger's September Quarterly Activities Report, the ramp-up of the solvent extraction and electrowinning (SXEW) plant at Kipoi has been successfully completed and the operation continues to achieve nameplate production at an annualised rate of 25,000ktpa.
While the Kipoi Phase 2 expansion to 50,000ktpa continues to represent a low-risk, low capital intensity growth option with attractive returns, Tiger considers it prudent to postpone the expansion until the forecast balance sheet ratios comfortably support the required capital expenditure profile.
Postponement of the expansion will enhance balance sheet strength as net cash flow from the existing
25,000ktpa production will reduce the level of net debt. In addition to the deferral of capital expenditure associated with the expansion, the current SXEW operations will continue to process ore from existing stockpiles at Kipoi, thereby extending the period before recommencing mining activities.
Tiger is reviewing term sheets for long-term financing arrangements with the aim of restructuring existing debt with longer-dated facilities. This will include refinancing the Taurus bridge facility which is due for repayment in mid-October 2015. The Company is confident that this process is on track for completion during the first half of 2015.
Following the refinancing, Tiger will re-evaluate the development timeline for the Kipoi Phase 2 expansion. In the meantime, Tiger's continuing focus will be on maximising efficiencies and cashflow from the installed SXEW capacity at Kipoi.
For further information in respect of the Company's activities, please contact:
Brad Marwood
Managing Director
Tel: (+61 8) 6188 2000
E: [email protected]
Stephen Hills
Finance Director
Tel: (+61 8) 6188 2000
E: [email protected]
Neil Fearis
Chairman
Tel: (+61 8) 9429 7621
E: [email protected]
Nathan Ryan
Media enquires
Tel: (+61 0)420 582 887
E: [email protected]
Company website: www.tigerresources.com.au
Caution Regarding Forward Looking Statements and Forward Looking Information: This announcement contains forward looking statements and forward looking information, which are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements and forward looking information involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, the actual results of current exploration, the availability of debt and equity financing, the volatility in global financial markets, the actual results of future mining, processing and development activities, receipt of regulatory approvals as and when required and changes in project parameters as plans continue to be evaluated.
Except as required by law or regulation (including the ASX Listing Rules), Tiger Resources undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements.
Level 1, 1152 Hay Street, West Perth, WA 6005 - PO Box 379, West Perth, WA 6872
T: +61 (0)8 6188 2000 F: +61 (0)8 6188 2099 E: [email protected] W: www.tigerresources.com.au