Jeff Parent B. Eng. FCSI CIM
Tiomin Resources
TIO-T
COMMENT
May 23, 2007
Technical analysis is not going to help on this one. Believe there are farmers holding upper a project in Africa. There is a huge resource that is undeveloped.
Kenya deposit could hold up to 12% of the world's titanium reserves. Very small company to handle such a large find. Have been trying to get agreements since 1988. Political risks. Thinly traded.
Holds 4 large titanium sand deposits in Kenya. Have a fiscal agreement to be signed this Wednesday. With this, expects them to be in production in about 18 months. The potential cash flow is about $35/40 million a year. High risk speculation, but has an attractive speculative appeal.
Doesn't know much about this company, but one of the analysts with his company owns in his fund. May be wrong, but does't think there has been much change in the stock price for 15 years. The new titanium deal could be a monumnetal event and it might be a good time to get in.
Impressed with management. Has gone through a big struggle developing a titanium sands project in Kenya which is now taking off. Have now started a very interesting copper project in Peru. Feels that copper prices have peaked, so may not be as important as it was a year ago. A worthy speculation.
Has been developing a titanium sands project in Kenya. Ready to go into production. Has sold forward 92% of its production. A very fast payback is expected. Just announced two new discoveries. They also have a 49% interest in a copper/gold deposit in Peru.