hurting, page-6

At a price of 60 cents/share, the company has an approximate market value of $300 million. They have $130 million in cash. The EV ex cash for Intrepid is about $170 million.

Quoting from Mgt:
Intrepid completed calendar 2011 with an 80% economic interest in a metal inventory totalling 15 billion pounds of copper plus molybdenum, 27.4 million ounces of gold and 80 million ounces of silver with an in-ground value at today's commodity prices approaching US$100 billion.

All the risk factors mentioned by another poster: political, ownership, zoning are all valid, although the company still retains enforceable contractual rights under the current ownership structure. (Newmont and Freeport McMoran being two examples of majors continue to work under this structure in Indonesia).

We know the resource is there and its massive. And it has a reasonable chance of getting even bigger. One poster mentioned better opportunities elsewhere. Fine. But how many other juniors have a resource of this potential? Every investor has to assign a probability to the risks and answer the basic question: Does the current price discount those risks given the fundamental potential? In my opinion, the price discounts the risks. In fact, I consider the stock grossly undervalued. The sellers obviously disagree. That's what makes a market.

It's extremely trying for every investor to see this kind of action in the stock (and every other stock in the precious metals space). However, I think if you have a long investment horizon, then Intrepid will deliver. And if you're not patient and don't have the requisite nerves of steel to deal with bear markets, junior mining stocks in general might not be a good place to put your capital.