Hi All, My Broker sent me this information this morning a tad...

Hi All,

My Broker sent me this information this morning a tad outdated but still very relevant - I think I'll hold onto this stock for a little while longer.

please DYOR



Company Name: INTREPID MINES
ASX Code: IAU
Headline: Cheap below A$1.70 - value anywhere up to A$3.00
Note:
Market Cap: A$546m
Recommendation: Buy
Share price: A$1.265
Price target: A$1.25 (but now under upward
revision to A$2.00)
Up/(down) to target: TBA
Fair value: A$1.25 (sum-of-the-parts,
and under revision to A$1.70)

Subject: Release of gold-copper porphyry
sulphide resource



Key points:

* Point 1 - Intrepid has released an initial Resource Statement for the Gold-Copper porphyry at Tujuh Bukit (IAU 80%). At a 0.2% Cu cut-off (or 0.2g/t Au cut-off) the resource of 500Mt contains 8Moz of gold and 4.4 Billion pounds of copper. At US5 cent per pound for copper and US$60/oz for gold, IAU's value is A$1.70/share - at exchange rate parity. At our long-term exchange rate of A$/US$0.72 it's A$2.40.

* Point 2 - If you allow US10 cents per pound for copper in the resource and US$100/oz for gold the value is A$3.00/IAU share at exchange rate parity. If you opt for a higher cut-off grade, with the Run-of-Mine grade averaging 0.6g/t Au and 0.5% Cu, the value is A$2.60.

* Point 3 - Continued drilling is expected to increase the resource above the current level, and the value per resource ounce of gold and pound of copper will also rise as the status is upgraded from inferred to indicated and measured.

* Point 4 - Intrepid is advancing the Feasibility Study into the development of the project producing 150koz per year of gold equivalent, based on its 3.2Moz gold-silver oxide resource cap at Tujuh Bukit (IAU 80%).

* Point 5 - Our immediate target is now A$1.50, with A$1.70 the target once the Forestry classification is changed, and $2.00 the target risking a modest increase in the resource base expected to be released in Q1/Q2 of 2011. We can justify a value up to A$3.00 under favourable circumstances, and expect to lift our valuation and target price with continued exploration and evaluation news, and resource upgrades as news is released.

* Investment view - It's difficult to generate a value below A$1.70 per IAU share, although investors may apply a discount until the forestry classification is changed to permit open pit mining. And a fall in the copper and gold prices would be expected to have a negative impact on the share price, although in our view the valuation would remain valid. We expect the sulphide resource to increase, the Feasibility Study on the oxide gold-silver to prove positive, and exploration of other targets within this cluster to also provide further value. This latter is not in our valuation - at all. But don't get carried away - look at the weighting in your portfolio.

* Action - Buy

Additional Details:

DISCLOSURE - An analyst, or a member of an analyst's family, who prepared this report may hold shares in Intrepid Mines Limited.