Hey GuysProbably important if everyone sticks to the facts.If...

Hey Guys

Probably important if everyone sticks to the facts.

If you watch this video of Mr Promnitz after he completes his presentation in July 2011 about IndoChine's assets. He is asked a question about cash and his response is clear.

If you click to 18Min 15 seconds into the preso, he states that IndoCHine went to the market to source $20million so that they dont have to keep going to the market every few months for more money. In his words, IDC is right for the next 18 months.

So I cant see them going to the market before October/November 2012. By then the share price will reflect a small gold company that has a 4+million ounce deposit with a completed BFS. eg Much higher than its current share price position.

If we use BDR as an example of a small cap gold explorer, they only have 2million ounces of gold JORC resource, but finished their PFS and BFS. Their market cap is $540million!

IMHO if we compare IDC to BDR like for like, once IDC completes their PFS and BFS by mid 2012, their Market Cap will also reach $540m or over $1 per share.

When it gets to this sort of level, if IDC needs to issue $20-30m to continue to drill and start up their gold mine and processing equipment, they will only have to issue 20-30million shares. Where as if the share price was at its recent capital raising of 30c, they would have had to issue 100,000,000 shares. Thats a huge difference in the amount of share dilution.

By having the $22million in cash at bank they dont have to issue anything until well into late 2012, thus allowing the IDC share price to rise significantly in that time, hence protecting the shareholders from over issuing shares.

Click on the link below and see what I mean!

These guys are professionals. Otherwise they wouldn't have had such big investors invest in them in the last 12 months.

The reason why IDC is still way too cheap, less than half the price it was when they officially signed up Mount Kare and the share price hit 39.5c on the 7th of March 2011 is external fears about a US recession, which wont happen given all the economic indicators, the EU Credit Crisis, which are being addressed this week and China's "hard landing" which was proven wrong today with the HSBC Chinese PMI coming in at 51.1 last night, showing an increase in Chinese manufacturing in September.

As these fears continue to abate, we will all the cash that has been sitting on the sidelines since April 2011, return back to the market, lifting it considerably over the next 6-12 months.

Its current 18.5c share price is still only 47% of its high in March 2011, yet the price of the mineral they have 4+Million ounces of has risen from $1200 per ounce to $1650 per ounce in that time.

Its important that we understand these facts and continue to accumulate as much as we can, while we can.

If you dont have time to watch the entire preso, move the cursor to 18min 15sec where Mr Promnitz answers the question from the audience about cash and cash burn. :)

I hope that helps allay your fears guys.

Cheers Nectar


http://au.finance.yahoo.com/video/abn-ceo-interviews-21323385/indochine-mining-asx-idc-25888164