re: price weakness When this one fell back under 70c I did some research on it. Pattersons have recently done a research note on it, downgrading FY07 production very significantly, but they still value IBR at about $1.00.
Stage I recoveries are going to vary enormously depending on ore type, so cashflow may be be minimal for the near future.
The resource looks interesting, but it will probably take another six months to get a handle on mining costs, including at newly acquired deposits, and likewise the cost of the upgrade to a CIL plant. Interesting whether they will be able to debt fund the expansion when a decision is made in late 07 of thereabouts.
Bottom line is there are too many uncertainities involved, but this could be balanced by news flow over the next few months.
I'm putting it on my watch list to see if can achieve a base.
angus
IBR
iberian resources limited
