CleverI agree with the general thrust of your comments re gold...

Clever

I agree with the general thrust of your comments re gold miners and explorers.

In fact the down trend has been happening since Q1 2011.

Its been tough for all gold juniors.

I respectfully disagree with you about the price of gold (alone) being the determiner for growth of SP of gold equities.

Rather, its those (damn) ETF's who sell simulated gold who are equally the cause of the depressed gold market.

One does not need to be too smart to understand that if the number of Au oz for "trade” was quartered the price of "gold" would rise significantly.

On the other matter of fund raising various people here have contributed to the discussion and in so doing have created a rolling mis-statement as to the position of IDC with respect to current finance issues at Mt Kare.

From what I have seen and now understand this mis-stating arises from a lack of precision in thinking and expression and understanding of the subject matter.

Le Derp and others assert on 1 May 2013 that IDC must raise 4.9 million dollars working capital.

This is entirely misleading in the context of the company’s previous announcements.

On 05/05/13 @ 21:17 Le Derp further confused the issue by stating that

“..............So tell me i am curious.... what financial alternatives does IDC have?
Sell assets?
How much is that worth?
Debt?
Possibly but a bit risky for the bank as IDC has no cash flow for at least 2 years.
Sell a stake?
That is the same as capital raising which is selling a stake via issuing shares.”

Needless to say, Le Derp’s fundamental propositions, in his own words, was that SELLING A “STAKE” IS THE SAME AS A CAPITAL RAISING WHICH IS SELLING A STAKE VIA ISSUING SHARES”

Le Derp’s very loose and wobbly thinking in the previous sentence indeed rolls ever onward from there because it is superficially adopted by others who, reading with superficiality, ASSUME THAT A REFERENCE TO A “CAPITAL RAISING” IS IPSO FACTO, a reference to the sale of equity LEADING TO A DILUTION OF SHARE VALUE.

Needless to say there is a huge distinction between a secured agreement for finance and the selling of equity (an increase in share script) in the company.

Obviously, also, non of these individuals could have been reading IDC’s announcements because the real number for a cash raising is $25 million, the purpose of which is to complete the BFS which is the last major steps before a decision to mine and the raising of capital for the commissioning of the mine in 2015

So, the original discussion on the subject of capital raising for IDC in Q2 arose from two separate comments, both of which proceeded with headings that themselves failed to properly define the subject matter or context with appropriate heading.

One heading reads reads “re $3.5 in the bank $4.9 needed”

Its probable intended expression was “no equity raising required”.

The issue as I understood it was not whether a “capital raising” was required, clearly its will be in the weeks to come and this much was acknowledged by Stephen Promnitz.

I too acknowledge the need for a capital raising (but I denied that an equity raising was the only method available to the company as an option.

NO, the issue is whether an “equity raining: will be required.

My concern was whether or not the only means of raining capital was by a (dilatory) equity raising, as is the concern of other share holders here.

What was stated on the 31st of March 2013 by Steve Promnitz in the announcement attaching to the quarterly report was “The IDC Board is actively reviewing a range of financing alternatives to support the next phase of drilling and work at the Mt Kare Project.”

The comments in the IDC Q1 2013 announcement should be read in context with two other statements made by the company.

On the 13th May 2013 IDC stated in (http://www.pngindustrynews.net/storyview.asp?storyid=798350773) the following comments:-

”It doesn’t matter who has this project or which government is in place, there’s a momentum behind it that means it’s going to happen. And that’s been demonstrated by the quality of Indochine’s investor support and the fact that it’s been able to continue to raise equity capital when needed, even in tough markets,” Promnitz said.??“So it’s up to us to be both good stewards and to demonstrate just how big it can become and ensure there’s a fair and equitable distribution of benefits.”??Speaking of investor support, IDC’s largest institutional holder, Baker Steel, has illustrated a plan for gold equities to differentiate themselves from the pack; not just companies trying to develop a mine but as genuine investments with upside over and above holding a gold ETF (exchange traded fund), which is gaining increasing popularity over gold stocks in a volatile capital market.??This method basically involves gold companies explaining themselves to the gold markets in terms of ounces instead of dollars. That is, explaining costs as an ounces of gold in the ground equivalent cost, and subtracting this cost to show how much gold that leaves as profit for investors. This rewards investors not in dividends but in gold bonds that are going to be worth more in the future.??“Baker Steel founder David Baker said the focus on shareholder returns is not just about getting the share price up or paying dividends, but going the extra mile,” Promnitz said. ??“Gold companies need to be good stewards of gold resources and look at how they can deliver returns and explain how the resource looks in gold ounces. ?“They need to show how you’re going to deliver a return in a gold bond to shareholders, because federal governments keep printing money and devaluating their currencies; whereas gold can hold its own.??“So if you buy Indochine shares, you’re in fact buying an ETF; but not something that just sits there statically, it’s something that will actually grow over time.”??IDC is implementing this strategy, not just because it’s Baker Steel’s idea as its largest institutional shareholder, but because everything IDC has done with Mt Kare has involved taking an entirely different approach to getting things done in PNG and at Mt Kare. ??“Therefore, his strategy fits hand-in-glove with our approach of differentiating ourselves as a company,” Promnitz said.??When IDC started this project 22 months ago, investors were not keen on PNG, certainly not in the Australasian region, so the company got its funding from the US, the UK and Europe. ??Now IDC has delivered a pre-feasibility study, has identified these bonanza zones and has completed a landowner investigation study, reaching a point in its development where it has reduced the prevailing risk that people were concerned about in PNG. ??Entirely separate to IDC, Promnitz noted that PNG had “a good democratic election” mid-2012 that’s put together quite a stable government for the next five years. ??All this has elevated investor confidence in IDC, to the point where in mid-January Wilson HTM Investment Group initiated coverage on Indochine’s stock. This launched with a very healthy piece written on it and a price target of 28c, a long way from 11-13c where it is now. Late last year, Melbourne firm Evans and Partners also initiated coverage on IDC as one of its top three stocks. By March, another well-known global equity house is also expected to have initiated coverage.??“Given that we’re increasing our marketing to the Australian domestic space and marketing more heavily into the Asian market, investors can see we’ve a track record of delivering on our promises and have sufficient institutional financial support for them not to be concerned the project isn’t going to happen,” Promnitz said.??“This project has just got to a stage where the momentum is making it happen – local people, government, investors, regulators, geological information – it’s all starting to crystallize into quite a robust project.??“That’s why we’ll be at Mines and Money Hong Kong, as part of integrated marketing into Asia.” ??As part of this process, IDC has successfully completed a $7 million capital raising which will support the ongoing drilling and technical assessment IN THE LEADUP TO UNDERTAKING A $25 MILLION RAISING FOR THE BFS AT THE END OF MARCH.??Promnitz said this latest raising was to ensure IDC had the flexibility to continue operating at a rapid tempo, with enough results coming out about its bonanza zones so that people could actually see not only the sort of numbers involved but so the company can effectively market the project and broaden the base of people listening to the development story.??“Our results have generated a lot of interest, both in funds and the corporate space,” Promnitz said. “That’s why we went to our current largest holders to raise this small amount of money to keep drilling on these bonanza zones, assess their extent and get the results out BERFOR WE DO OUR LARGER RAISING FOR THE FULL BANKABLE FEASIBILITY – which includes all the engineering and infrastructure evaluations for the project.”??“There are people in the current market who think capital is impossible to raise for a junior company. Naturally, we’re concerned about that. It hasn’t been an easy last year and I can’t see it’s being particularly easy this year either. So we need enough time to differentiate ourselves so that people see that this is a project worth supporting............................”
The other publication came by way of the Eureka Report on 01/05/2013 as follows.
“.............................
Indochine Mining (IDC)
The $40 million market cap junior must sit at the top, if not near the top, of the takeover list as it ticks all the boxes.
Cash is starting to run a little tight for Indochine, even though it completed a $7 million capital raising in January, as its Papua New Guinean project is capital intensive.
The miner has around $3 million to $4 million left in the bank and will probably need to raise more funds soon to advance its flagship Mt Kare development. The 58% collapse in its share price this year to a record low of 0.5 cents essentially means an equity raising is out of the question.