intrepid wins best of breed, page-38

Received this from New York tip sheet:

We believe that the Australian gold miner Intrepid (ASX Code: IAU) is severely undervalued.

WSF urge you to look closely at IAU under 40c. From the current price of approximately 36 cents, the price could triple and still be undervalued. How long will it take to get there and past? WSF doesn't know but here is the summary:-

1. Number of shares 427 million
2. Cash – USD 40 million
3. No debt and no hedging
4. Paulsens mine – producing 70-80,000 ounces Au pa, generating approx USD30 million at USD900/oz. Mine life expected to be extended for at least 3 years
5. Tujuh Bukit oxide – equivalent to Martabe which has just sold for USD211 million with an NPV of over USD500 million. Expect resource of 4 million oz Au eq. Cap cost USD300 million. Annual production 150,000 oz pa. Cash cost < USD300/oz
6. Tujuh Bukit copper porphyry – expect farm-in deal with major. Hypothesis is that it is equivalent to Batu Hijau - > 10 million oz Au, > 10 million tonnes Cu. Expected share – 35%. Free carry to Bankable Feasibility Study.
7. Possibility of more than one Martabe equivalent and Batu Hijau equivalent
8. Capable management team
9. Considerable liquidity in share trading
10. Target – over AUD1.00

Don’t delay. This type of opportunity will not hang around.