I'm very aware of HIG, I actually hold their stock as well, but Mt Kare is completely different to Star Mountains and Frieda River despite being in the approx location
first of all, HIG's assets are predominantly copper focused with gold and/or silver as by credits, the tonnage is massive, with relatively low grades, therefore, the plant required to process the mass amounts of dirt needs to be very big, with that comes, billions of capex dollars...so, despite the resource being very valuable, the capex figure is the main reason why Frieda River has yet to proceed to development..
Just to be clear, I think Frieda will eventually be mined, hence my position in HIG, however, its not exactly at the front of the queue of development projects for Xstrata
lastly, it needs to be stated that just about ALL of IDC's intercepts to date have been within 200m of surface and thats our biggest advantage, not only is it near surface, but its a great grade and thats where the money is made
I'm slightly surprised with the trading action of IDC,thought it would have run a litttle more, but our time will come
IF Mr.Burgess is correct and our Bonanza zone returns exactly that...Bonanza grades at intervals >10m then 11.5c will seem like 'that one that got away' for those who sit on the sidelines, Prominitz is aggressively moving this company toward production, when that time comes, we will definitely have beaten the market and bank interest
regarding my post re. the conveyor belt and its reply from shadowboxer I think....
you are right, in that, perhaps trucking it to Porgera's mill is a solid option, or developing our own crusher on site and conveying it to the process plant, either way, my point was that being on Porgera's back door ensures at some point in time, our share price has a big big chance of being at a premium for that very proximity....weather the market wants to believe Barrick are interested or whether Barrick are actually genuinely interested, we should see a premium some way or another
the only chance of IDC slipping below 10c is if the bononza zone is not 'bonanza', and thats not likely IMO
2-3 years out, with gold at 1800/oz, prod 150k oz pa thats 275m revenue, due to the very high grade gold accompanied,it should ensure a C1 cost below 600/oz
giving us 180m EBITDA
NPAT in the early stages might only be around 30m, but that already gives us a MC of 300m on a P/E of 10 and providing they can grow the resource toward 5m oz im sure the market will be prepared to pay 15x earnings
the long term view of 4-5 years suggests clearly a 300% gain from here, barring no overly large CR...with the more than likely scenario that balloons out toward a 1000% gain
of course the challenges and risks stand in the way, from political, credit and gold/market risk, and thats why its 90m at present, but making money isnt easy, it doesnt come without risks, providing you understand the risks and balance your portfolio, those who make the better decisions stand to be most successful, and IMO, IDC is a no brainer when you consider the risks v rewards, and im glad the majors like BlackROck, Baker Steel and of course Capital Group believe so too
IDC Price at posting:
11.4¢ Sentiment: Buy Disclosure: Held
