Death plunge?, page-23

Hi all, IMO! There has been a fair amount of kerfuffle about the pricing of capital raisings by IDC. I think that the following might spread some light on just how difficult things have become for IDC. First of all there is no correlation between what a "sophisticated" investor will pay for a share and the relatively short term movement in the share price. For example not long ago GRY made a $31.3m placement at $0.60, currently the S.P.is $0.165. OBS made a $14.4m placement at $0.70, currently the S.P.is $0.33. AMX raised 16.5m at a S.P.of $0.55 the S.P. fell to $0.075, before the company was taken over at a S.P.of $0.16.(IMO they were lucky to get that!) Check the records of any of the goldies and you'll find the same thing. The classic is ,of course ,a ridiculously expensive investment by Shandong Gold of $250m in FML to gain 50% of the company, they paid $0.05 per share when the market S.P.was $0.03 and money was tight! Shandong's investment is now worth about $49m. Clearly anybody who assumes the sophisticated investor must "have it right" is taking a real gamble. What has this to do with IDC? Firstly OBS, GRY and AMX have effectively proven up gold resources of 3m to 5m ozs at reasonable grades, all relatively inexpensive open cuts . The cash raisings were large and gave real impetus to their exploration programs. Their chances of building their resources is excellent. If the G.P. picks up they are in the box seat for development . IDC 's position is not so rosy. A series of small cash raisings has not enabled IDC to make significant progress on Mt. Kare. Management has not advanced the exploration, so IDC is still stuck in the conceptual stage. In order to advance IDC they will require significant funds, much bigger than the capital raisings made to date! Who will provide the funds and at what cost to the poor old retail shareholder? IMO IDC is looking sicker and sicker, they have to find a lot of gold very,very quickly. or IDC won't survive. BOLTA!