Not sure if you have looked at IDC's numbers but they are in the HUNDREDS OF MILLIONS OF DOLLARS PROFIT! Not a measly $10-20Million!
There are some big buys and sells going on! Can't complain about that!
Instos are repositioning themselves.......:)
These are the numbers instos will be using to invest in IDC over the coming 4 weeks!
Scenario 1
If IDC's revenue after 8 yrs production at $1650/Oz Gold price Revenue is $2Billion, and profit @ $1.2Billion or $150Million Per Year.
Scenario 2
With the Price of Gold at Current Prices $1800/Oz IDC's Revenue would lift to $2.18Billion over 8 Years and profit would lift to $1.38Billion or Profit of $172Million Per Year:
Scenario 3
With the Price of Gold at $2000/Oz IDC's Revenue would lift to $2.42Billion over 8 Years and profit would lift to $1.62Billion or Profit of $202Million Per Year:
1. Now with an estimated 850Million Shares EPS @ $1800/Oz EPS = $0.215 Price Earnings Ratio 8-10 Times EPS = $1.71-$2.10 2. Now with an estimated 850Million Shares EPS @ $2000/Oz EPS = $0.25 Price Earnings Ratio 8-10 Times EPS = $2-$2.50!
And these profit levels are at the current 2.1Million Ounce JORC Resource, which is only 7.5% the size of the Porgera 28Million Ounce Resource Gold Mine next door!
Even if we only lift the JORC to 5Million ounces, still only 17.8% the size of Porgera, you can comfortably double or triple the EPS and Share Price on the back of the tiny Capex!
Having such a small Capex for a massive volume of gold is incredible! Since the Gold and Silver Grades are so low George and his team only needs to use Gravity Feed equipment!
The Cash Cost is only $660/Oz on such a massive scale, with the current gold price at $1800/Oz and will break $2000/oz by Christmas2012!
That is a profit margin of 272%!
No wonder Black Rock, BHP's Biggest shareholder, Baker Steel, Och Ziff, US Global, Genesis LLC all own 50% of IDC with the management and vendors another 15%!
They employ very clever people, they can see the big picture, with Mt Kare and IndoCHine Mining!
Wont be long before our Australian Funds begin to wake up to our magnificent gold/silver project too! They employ very clever people too!
Cheers Nectar
IDC Price at posting:
11.4¢ Sentiment: LT Buy Disclosure: Held
