BH and TT - good thoughts and insightful historical commentary about IGR.
Btw, The saying you missed BH is the one about the Pope.
ie. Is the Pope a catholic?
The answer of course is the same as the answer to:
"Is gold going to the moon?", and is also the same as the the answer to
"Does IGR represent excellent value at the current time?".....LOL
IMHO, the two main problems IGR faces are
1. An opportunistic take over as the BIG players become ravenoulsy hungry for cheap resources
2. Over dilution by attempting to raise funds in a lending market still not quite enamoured of gold stocks.
No doubt Chris Cairns has plans to thwart a takeover up his sleeve. If he hasn't he should have!
Certainly gold's reputation is growing in leaps and bounds. A rapid transformation is taking place in the markets. The press are finally switching on to it now, and starting to recognise gold's currency role as well as its safe haven status. After all, the planet is drowning in unbacked 'paper' promises to pay, which are actually being defaulted on at alarming rates.
Gold has been nudging $1250 of late, and has been up to $1350 in recent times. If it was to rise to say $1400 and stabilise there as IGR goes into production, the additional $500 per ounce (compared to feasibility studies of around $900) represents an annual kicker of some 50 mill dollars - most of which will essentially report to the bottom line.
In that scenario there will be a quick payback of debt and minimal need to issue too many shares. In any case, the shares will be much higher than what they are now, also leading to less dilution. A mix of debt and equity might be the go!
IMHO, when gold fever really takes hold, and take hold it will, $1400 will surprise to the low side.
To my mind, there is no question that Gold will will take off. Its inflation adjusted price is already well over $2000, and currencies are rapidly becoming 'toast'. In fact the world has entered a state of paralysis with the 'economic levers' and the financial tools of the FED/Us Congress no longer working as they used to.
Economic activity on so many levels has practically seized up overnight. Money poured into the system has been seized by bankers to strengthen balance sheets containing gaping holes - the sub prime toxicity is about to spread to second tier mortgages as massive job losses take hold. Banks are not lending - not even to each other, let alone the private sector.
Through their greed, bankers and their political cronies have all but killed the financial system. To try and fix it, they are resorting to the same policies that caused our problems in the first place. ie Easy credit with more debt piled on top of already disgusting levels of debt. It is seriously scary out there, and getting scarier in a world choking on debt.
For well over over 8 years now, Jim Sinclair has been one of the few who has outlined the destructive path the US centric world has been following. He outlined the insanity behind the use of derivatives right from the very beginning. He has been amazingly accurate with his forecasts, and admits that his target for gold of $1600 will be conservative in the extreme. He has actually applauded a recent analysis by another commentator who was calling for price targets of between $3000 and $5000.
Chris Cairns, if you happen to read this 'nonsense', hasten slowly I say. More 'stunning' exploration results while the world tunes into gold won't do us any harm at all.
Cheers Nev
IGR Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
