IBG - Net Present Value

Howdy all

Page 7 - Diggers and Dealers Conference Presentation lists at the top IBG Net Present Value (NPV)

NPV is an indicator of how much value an investment or project adds to a company. In this case what Citronen will add once EL/Funding/Production in place. There are some interesting numbers here.

IBG - NPV US$609 million (post tax US$354 million)
+ US$1B @ $1.50/lb Zn and + US$2B @ $2.00/lb/ Zn

Once in production in theory Market Cap and NPV should move together or closely match.

Now I am no rocket scientist but this is a presentation that JD has stood up in front of a lot of hitters and put his word behind. Glencore, Nyrstar and NFC believe the numbers they are just watching the Zinc story play its tune.

So in 2017 if we are in early production stage and Zinc is possibly US$1.50/lb our company could be worth US$1 Billion Dollars.

That equates to approx $2.65 Australian Dollars per share with today's shares on issue.

Good enough for me to hang around. Plus the added incentive thanks to ATO of 50% less capital gains if I hold my shares for 12 months or longer.

IBG are buy don't sell rating from me.

See you at the Top Folks.

djr67