Near-term upside for Tietto Mins?

Mon 13 Dec 21, 4:03pm (AEST)
Ivory Coast yet to give final green-light

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Key Points

  • Regulatory approvals yet to be granted
  • Bullish signals indicate further share price upside
  • Flagship Abujar project now fully funded

With last month’s $85m capital raise now supporting the project, Tietto Minerals (ASX: TIE) the Gold explorer is now on track to pour the first gold from its flagship Abujar project in Côte d’Ivoire before the end of 2022.

The company’s share price rallied 1.3% on hearing this news last Friday, and if recent research is correct, there’s further near-term up for the stock.

Financial market research and investment analysts, Trading Central believes bullish signals indicate the Tietto share price may rise from $0.42 to the range of $0.48 within the next 18 days.

A projected rally of this magnitude would return the share price to where it was trading 15 October 2021.

With the project now fully funded, Tietto’s managing director Caigen Wang recently told investors Abujar has the potential to be one of the largest gold producing mines in Côte d’Ivoire.

Wang expects Abujar to produce more than 260,000 ounces of gold in the first year and 1.2m ounces of gold in the first six years.

While Tietto has already secured all other mining and environmental approvals for the project, the company is still negotiating the final regulatory step for the project, the Abujar Mining Convention, with the Côte d’Ivoire government.

Early stages of some key platework for the project have already been completed.

Tietto expects the project to cost $280m to develop, with the November cap raise proceeds to be supported by a $196m debt facility from Taurus Mining Fund.

There is a Strong Buy consensus on Tietto, albeit on shallow coverage.

Based on a fair value of $0.60, Morningstar believes the stock is currently trading at a 30% discount to the current price.

Investors may be taking a wait-and-see stance until all-important approvals with the Côte d’Ivoire government are in the bag.

Written By

Mark Story


Mark is an award-winning investigative financial journalist and editor who started his career working for Marathon Oil in London. He has a degree in politics/economics, a diploma in journalism and has completed the Institute of Directors course. Mark has worked on 70-plus newspapers and financial publications across Australia, NZ, the US, and Asia including: The Australian Financial Review, Money Magazine, Australian Property Investor and Finance Asia. Mark is passionate about improving the financial literacy of all Australians through the highest quality content.

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