Ann: IRC: Signs Exclusivity Deed for potential acquisition, page-4

Cheer Up D1326 - there is not much point despairing on SP drop on micro-volumes in the age of "instant gratification"... I hold 15 stocks (developing mines or considering it based on substantial deposits) and all of them are struggling... as people have sometimes quite a serious reasons to sell (including returning funds to the banks, divorce, etc) and if the seller is a fund handling someone else money... well... their reasons may be much more "complicated" and only experienced market psychologists may have an answer... Having substantial holding of MRP and on an announcement of the merger I was collecting the IRC shares which were undervalued (from $0.135 down to $0.11) and now I am collecting quietly MRP @ 0.069 as comparing to IRC $0.135 (based on 1.8227 MRP for 1 IRC shares merger condition) it should be valued at min. 0.074... We have very experienced managements and the merger makes a lot of sense, including the latest move into take-over of Coolgardie mill as well as gold deposits... and "focusing" on restarting the production on Gold Price uptrend (currently AUS$1841 /oz). I will quote my opinion expressed on IRC site: 
https://hotcopper.com.au/threads/ann-resources-rising-stars-investor-presentation.4633341/page-3?post_id=37407371  

Some see problems while others opportunities... 
In my opinion it is an Excellent plan and the challenge is manageable by future "Horizon" joint and v. experienced as well as a clever management...  
It reminds me of NST story (which I was holding) ... and that's the way to go about growing... you need guts and experience and Horizon will have it all...
Just read the Paulsen gold mine of which NST grew ...as they purchased a "depleted mine" and grew to today's arguably the best gold mining business in OZ:

"The mine was expected to cease production in early 2010, when its currently known resources were depleted. Intrepid was aiming to extend the mine life by further exploration drilling. In the first half of 2009, the mine has produced 44,656 ounces of gold. The plant was placed in care and maintenance in February 2010, but recommenced production in June.^[10]

Intrepid sold the mine to Northern Star Resources in July 2010 for A$40 million.<sup>[2]"

https://en.wikipedia.org/wiki/Paulsens_Gold_Mine</sup>

Share

IRC Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held