Now before DOM followers get too narky on me, please be aware im a BIG fan of DOM and reckon it has $1 written all over it, and wouldnt be suprised to see $1.50/$2 after they find more gold at Challenger.
However, as people following my previous posts on DOM know, i did sell after its big run to buy COE. It subsequently run so i sold it (COE) to buy IBR (unfortuantely the latter after most of the run at 45, and more recently in the 60s).
Both DOM and COE have since continued to rise, while IBR has stagnated a little, until today at least.
But I thought id do a little comparison with DOM which may show just how undervalued IBR is...potentially a comparison with a non-producer like BSG (which recently sold its Georgian operations) is also worth while.
Firstly market cap:
DOM has a market cap of around $90 million fully diluted, which incl 3 million options.
IBR has a market cap fully diluted of $50.5 million which incl 10 million options.
Secondly gold resources:
DOM has a last stated reserve of around 300G oz at around 8.3 g/t within a total resource of around 377G oz.
IBR, has a total GOLD ONLY resource of 1.07 million oz (i have excluded silver and copper). This is in the indicated and inferred resource category. Firstly, resource is obviously not as good as a reserve and further you ideally want to see the majority in measured and indicated. The majority of this is at around 4.86g/t, however significantly, approx 200G oz is at 6.4g/t which is more comparable to DOMs grade. From these resources I have EXLCUDED Portugal, and also the 'tailings' in Armenia which are yet to be confirmed in size, grade and metallurgical viability.
Thirdly
DOM is currently forecast to produce at 90G oz per annum, though 100g oz is more likely.
IBR is scheduled to start producing within 6-12 months at around 60G oz per annum, with inveestigation into increasing to 150G oz.
Fourth, re in mine exploration potential:
DOM have very good potential to find more gold both at depth in M1 lode, and much more gold from the M2/M3 lodes and likely at similar or better grades to current reserves.
IBR have stated in their announcement today that the Armenian deposits are open in ALL directions and have given a clear indication that more gold is likely to be found.
Fifth, other projects:
DOM have some decent 'other projects' incl mienral sands, and coper potential. They also have some very good JVs with other companies incl Minotaur.
IBR doesnt have much int he way of otehr projects, being a couple projects in Portgual, but what it does have is a significant resource base already at these deposits. They may be slightly low grade, but further exploration should find significantly more gold to make a low grade operation feasible.
Sixth, hedging:
DOM has majority of this years gold hedged (at 100G oz prod, approx 80%). This is nobig deal in l/t, but worth considering.
IBR has no hedging in place, and with the minimal CAPEX required from here to get production going, it is likely any hedging can be kept to a minimum...if any required at all.
Seventh,
Both DOM and IBR have top quality management teams which are VERY conservative. IBR's Matthew Wood interestingly enough was involved with DOM's Challenger gold deposit.
Hopefully after reading the above you will come to the same conclusion that I have, ie that IBR is significantly undervalued, and like me will partake in the almost certain capital gains to be experienced over the next couple years.
A quick note, BSG has a market cap over 300 million. It has around 3.07 million AU equivalent oz compared to IBRs 1.4 million AU equivalent...interestingly BSGs total GOLD ONLY resource is lower than that of IBR. BAS resource likely to get much bigger though but then again so is IBRs.
Well that was fun, now ill wait for the technical guys to shoot me down in flames :-)
Cdchi1
- Forums
- ASX - By Stock
- IBR
- a comparison with dom
IBR
iberian resources limited
a comparison with dom
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)