ann out resorce doubles, page-45

I do not see cash likely to now be a problem.
Particularly given the complete commitment ongoing from the major share holders
However, my best bet is that they will raise via a gold loan or through a company like FrancoNevada (US $ are available apparently)
If I was the Board of IDC I would consider a share reduction of approximately 25-30% which would be voted through by the majority of share holders.
A a share holder myself I would welcome this.
Thats what RRL did and it really did sort things out when they went to arrange for finance.
Putting it simply, those who are first in time do not necessarily offer the greatest value building to the project.
An alternate path would be a rights issue but the way retail IDC share holders have treated this company that might be a joke.
So thats another good reason why I would support a share reduction, disjunctive as my logic may appear on its face.
I see them starting of a very high grade underground operation at about $400 per oz.
More than likely, through an adit which will be in place before the mining lease is granted.
I don't think they will go right to what was envisaged in the PFS
Rather they may go small at first and stage the development of benefaction plant
They can do this with the high grades they are talking about
....and when I say "small" I am not talking about volumes of gold produced, I am talking about infrastructure.
I would expect the company to start off around 110-130,000 k oz per annum.
This would generate a very high return over the first 2 years which in turn, could pay for the later stages of plant.
RRL will almost self finance the later stages of development IMHO.
So yes, your thesis about low volumes and high returns initially accords with what seems logical and best practice in these current times.
The plant can all be acquired ready made, I suspect they will buy new because its all so so so cheap now.
The entire market is flat for both labor and plant.
A lot of people don't realize that development cots are probably half to three fifths of what they were 18 months ago.
There has been a general study undertaken over the last 18 months on land owners
Clans have been identified along with members
There will be a few things to tidy up but the way they are going they have completed the main body of geological work.
The LO study will not interfere with the application for the mining lease.
Likewise, the entire administration in PNG is supporting this project 100%, from the prime minister down to the land owners
There will be individuals who winge and complain and say they are the only land owners etcetera but in the end it will all just sort itself
As for dilution, its always been a sad indictment on the IDC share holders in Australia that they did not support this company.
They want the benefits without the commitment.
Typical of Australians.
No balls.
They have persistently shorted their own market then had the temerity to winge about the share price.
This has led to unnecessary dilution about which many indolently complain.
Yep, thats the truth.
If IDC was on the TSX is would be another story completely.