wow, what a wonderful week for idm, page-12

It has been a wonderful week.

i was disappointed that as an original holder we have gone from 160 million shares on issue to what will probably be about 520 million when Macquarie take up their options.

the 520 million will be made up of

174 as at investor presentation June 2009
100 from Institutional placement 23/7/09
25 from SPP 24/7/09
120 from Bligh Capital (if placed at 15 cents)
100 via options to Macquarie


Having done a few more numbers things are looking up.

for this stock to get to 30 cents it would be valued at $156million and would need NPAT of about AUD$20million. A very realistic prospect given the EBITDA forecast in the investor presentation was for US$26million in the first year.


To move beyond 30 cents is still also probable in the medium term given the possible given the conservative metrics used in the forecasting, the likely upscaling in production and the value added from turning Chromite into Chromium down the track.

IDM could certainly be a $300million+ operation in time.