IGR announced on Thursday that the repairs to the crusher were "successful" with "operations back to normal production levels." However, we are only two weeks into this quarter.
So I agree, the placement is a prudent move by IGR in case there are more crusher issues etc. later this quarter. Raising $25 million gives the company the ability to pay off its debt PLUS have close to $30 million in cash.
However, the bigger a company the less beneficial to the share price a major exploration discovery or increase in gold production.
Example: If IGR were gobbled up by NCM, then even if the IGR ground proved up a major discovery or doubled gold production and lowered costs it would be insignificant for the NCM share price and so irrelevant for IGR investors who now had NCM scrip.
Bigger is better doesn't always work.
Just look at those massive US banks and all their issues - though I guess they have one major benefit - the spin is they are "too big to fail" so profits are privatised while their losses are socialised.
The ideal scenaio imo is for IGR to have fixed once and for all its crusher and other equipment issues, profitably produce the budgeted gold, for the Cock-eyed Bob trial underground mining to prove successful and for IGR shareholders to fully benefit in this PLUS IGR's huge exploration upside eg. Imperial.
IGR Price at posting:
32.5¢ Sentiment: Hold Disclosure: Held
