copper, page-4

I have heard the comparisons John has made.

Comparing the pair…

1. IGR have about 843m shares on issue and are struggling to stay over 50c and have never cracked 65c. they have a few options outstanding but nothing material – only 21m for a total 864m

2.They have negligible debt

3. So their MC is about $400m at present.

4. They are in production having produced about 100koz so far. Currently on target to deliver about 100koz/year. Their plant can get through a 1.0mtpa and may move to 1.2mtpa

5. grade of about 2.8g/t

6. They have 2.5m oz JORC resource in their main project – Randalls

7. They have similar gold intercepts on other finds that look good – same as our other projects – Spanish Galleon - to increase their resource beyond 2.5moz

8. Cash costs are about $600


Compare that to us…


1. MYG has 464m shares on issue plus 147m options for a total of 611m
We can exclude the current debt as the options will be\ring in sufficient cash to cover that.

2 We will have up to $60m debt

3. Our MC is $37m

4 Our initial production target is 50k oz/p.a. maybe getting to 100k oz/p.a. The scoping study says the plant throughput is 320,000tpa and later presentation have expanded it to 620,000tpa

5. Our grade is better – nearly double theirs at 4.6g/t to 6.4g/t

6. We have a JORC target of 2.5m oz at Deflector plus other targets over time

7. Spanish Galleon plus other targets in the region could really get things going.

8. Our cash costs are similar at around $600



On those above metrics, correct me if I’m wrong.

There are a lot of similarities between the two, so I can certainly see why we are compared to IGR

we have copper and better Au grades, they have no debt and bigger profile.

For us to have a similar market cap of $400m would see a price of 65 cents for MYG and that assumes no new shares are issued (I’m hopeful but this is unlikely) and excludes the cost of the debt.

Here’s where it gets stretchy…

If IGR reaches the broker target price of 77cents that would equate to a market cap for IGR of $665million

If we had a market cap of $665million our share price would be $1.09




I hope you’re right with the $1 prediction. I might just think about retiring if you are.

There are just number of boxes still to tick – ounces, minimal dilution and bigger production profile are the ones that stick out.