npv 9billion igc 1.28, page-7

Moneychaser,

Thanks for that analysis. Yes the presentation is for NKP's project only not everything combined. NKP has 74% of the 2 Northern Reefs and a farm in to take 59% of the 3 Sonthern reefs (which IGC has 15%)

Therefore the NPV would be much higher if you took 100% of all the 5 reefs. I agree that the valuation is much higher than $1.28 in this case.

Also basing on the P2 reserves ($90 per ounce) the value is way above $1.28 as you said ... up to $7.

I do however think that your NPV of $5 is abit high...usually NPV full factorisation is only on a production stage. Both IGC and NKP are only up to Inferred resource stage. Yes you have taken a 30% discount...and the end result still gives $5. I think only 25-30% of this $5 value can be taken into account as production is far far far away. The main risk is obviously the huge finance involved and further drilling to prove up the resource.

25% of $5= $1.25
30% of $5= $1.50

Also this does not take into account of a takeover premium which you could say... at least 40%.

This would take it to $1.75-$2.10.

I do agree with a $5-$7 valuation in the long term (3-4 year price target) however $1.25 to $1.50 seems around the mark.

Moneychaser...if we can get $5 I would be laughing all the way to the bank...I would definitely not complain here hehehe

I would be happy with $1.28 though too

If indeed there is a corporate action for IGC...I would invest more in NKP for the long term

Thanks for your contribution

Dippa