static, page-4

Brucey,

I follow IGO closely, currently and often my largest holding. Topped up too soon on the way down. Even being waaaay overloaded I topped up yesterday.

I smell cash (approx $1.50 ps), and gold (perhaps $1 per share). Also IGO is a very low cost miner, hence in my estimates would make NPAT north of $20 mm pa at a nickel price that wouldn't be profitable to other Kambalda miners requiring a pretty severe global recession] and the complete end to the China/India boom]. The nickel mining must be worth MUCH more than the $2 ps currently implied net of cash and Tropicana.

Therefore imo IGO is near as bullet prove a medium term investment.

Then we add the value of franking credits accumulated, various exploration projects and some modest production upside from that forecast.

The only catch is that FY 08 and 09 are heavily hedged, 2400 t each year at around A$18,000.

Bonwick and Marston do not cohabit with rats, imo they will have a clean house. You can only really criticise them for not warning us of grossly exceeding production forecasts the past two quarters, but hey that's a crime I can overlook provided it is repeated.

Imo there is a distressed seller or two, and some hot money (silly enough to buy above $8, no doubt sillier enough to sell below $5) and that is all it is. Anyway I've put my money on this being the case.

EL