IBG SP / VALUATION THOUGHTS, page-215

Thanks for the rebuttal mate but there's a couple points you've made here that simply aren't correct or I feel need addressing;

2). Zn price isn't always this high
This is true, just like stocks, commodities such as Zn fluctuate in price - this is why IBG used a conservative assumption of US$1.30/lb in their BFS. No one knows that the future price of Zn will be (or we'd all be rich), however I think you're failing to recognize the effect future increased demand might have on the future price of Zn. What's the point of extracting iron if its just going to corrode?

3). The deposit is not world class otherwise it wouldn't still be in the ground
The definition of 'world-class' can be thrown around a lot so I can see where you're coming from, but the whole point of IBG as a company is to extract the materials they are sitting on. The reason they have not been able to extract this material from the ground in the past is because (a) its in Greenland (historically met with lots of social and political resistance), and (b) the transport of products is difficult/risky. According to BHP (2006), a "world class mine" is something that provides outstanding quality to the public, can make lots of money for investors, is a deposit with very big mineral endowment and has an NPV > $250 mil. I'd say IBG ticks a few of those boxes.

4). Their will be no Pb production
Sorry bud but this comment is simply not true. Nowhere in any of IBG's public announcements state that there will be no Pb production. It would be grossly irresponsible for IBG to be sitting on 133.8Mt of ore reserves of which 0.5% is Pb, just to ignore it or send it to waste. In all of their revenue calculations, assumptions, and NPV results, they account for the price and production of Pb. Keep in mind that just because Zn is the largest contributor to revenue, doesn't mean that they will be ignoring Pb (see Fig 3 and 7 below, from p.10 and 15 of the BFS, respectively).



In the bottom right of their PFD (Fig 7) you'll note that "Lead Concentrate" is one of four major (by)products. Despite not being IBG's main product focus, it still has intrinsic value of US$0.95/lb and an annual extraction rate of 300ktpa; meaning it contributes to revenue.

5). Appointing directors doesn't make a mine more economic.
Yeah lol never said that but it definitely makes the company more economic, especially one with great geopolitical ties with the US, UK, Greenland and Aus.

I'm all for, and actually encourage criticism, but it seems like you'll need to do a bit of research before making future comments. The BFS is a good start.