green mail, page-88

you have got to hand it to the boy's running TMR, they have picked up 64% of IBR for a song, and then it appears they extend the offer to the max. without giving any of those 64% acceptors the opportunity to withdraw their acceptances - these TMR boys are smart, have a look at my rough numbers:-

firstly from IBR's last quarterly activities report they have 117 million shares on issue, plus 14 million options all presently in the money. So on a fully diluted basis (assumes all the in the money options are converted) that’s 131 million shares. Now IBR has $9 million cash in the bank and the conversion to ordinary shares of those outstanding in the money options adds another $5 million cash, total $14 million in cash. Take IBR’s last sale price 97 cents (you can’t use that b..s.. bid price which the market itself is “heavily” discounting) times 131 million shares equals $127 million market cap, less the $14 million in cash equals net $113 million, divided by 4 million ounces of gold equals $28 per ounce. So let me get this right, IBR directors believe they have 4 million ounces of gold and are willing to sell it all for $28 per ounce?? This is giving it away, especially for a gold company funded into production, no wonder TMR is so keen.

secondly, crunching some further numbers, from the above point, $127 million market cap, less the $14 million in cash equals net $113 million, less $25 million for existing mine development (a figure directors previously put on it) and say less a further $10 million for new plant and equipment (that would be conservative) equals net $78 million divided by 4 million ounces of gold equals $20 per ounce. For a gold company funded into production - what an absolute bargin.

Renegade you are spot on 1 IBR is worth 10 TMR especially on the above numbers - no doubt about it TMR have stolen the 64% acceptances they have received to date.