Tiomin has 2 projects. One is Titanium project (Kwale) in Kenya, the other is a Copper project in
Peru. TIO hit multiple snafus trying to get the Kwale project into production, from construction cost
escalation to government paperwork. Investors were being jerked around in early 2007 by a string of
good and bad news from the Kenyan government regarding various issues from land titles to
permitting. Kwale once in production is estimated to churn out $40 - $50 million. The project cost
around $200 million and the $155 million credit facility is still in place. Indeed when land title dispute
surfaced in February along with a report of escalating construction costs, a company tried to buy 50%
of Kwale for $35 million but backed off the last minute.
Tiomin owns 50% of advanced Pukaqapa copper project in Peru that boast nearly 2 billion pounds of
copper at 0.6% grade (43-101 compliant).
http://www.tiomin.com/s/Pukaqaqa.asp. Such a project is worth around $30 million in my view.
On April 2nd, Tiomin’s China Partner Jinchan announced $10 million private placement in Tiomin at
15 cents a share (when Tiomin’s shares were trading at 9 cents).
http://biz.yahoo.com/ccn/070402/200704020381830001.html?.v=1
Obviously Jinchan (China’s largest Nickel, Cobalt, and PGM producer) is confident that land title and
permitting issues will be resolved. With a PE of 10, if Kwale is put in production it should be worth
$300 - $500 million.
Company Contact Info: http://www.tiomin.com/s/Home.asp
Presentation Link: http://www.tiomin.com/i/pdf/CP_09_06_Corp_Pres.pdf
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