Tiger suffers investor backlash
Tiger Resources suffered a big investor backlash at its annual meeting yesterday as shareholders voted down the company’s pay report.
About 70 per cent of the votes went against Tiger’s remuneration report, delivering the first strike against its management.
Tiger shares have been battered over the past six months after a mis-timed move to buy out its partner in the Kipoi copper project in the Democratic Republic of Congo in August last year left the company floundering in debt.
Tiger agreed to pay $US111 million to DRC state-owned Gecamines for its 40 per cent stake in the project.
It took a $100 million bridging loan from Taurus Mining Finance to help close the deal, on top of $US75 million in advance payment facilities already owed to Gerald Metals.
The company has since struggled to refinance the short-term debt, and its shares were battered in December when Tiger said it would be forced to postpone an expansion of the project to double its output to 50,000 tonnes of copper a year in light of its debt position.
Tiger’s shares took another hit earlier this year when it was forced to extend the repayment terms of the Taurus facility.
The company’s shares were trading as high as 40¢ a year ago, and hit a low of 3.4¢ on January 30.
Tiger shares closed down 0.3¢ yesterday to 8.6¢.
