its not just about the pog

Guys,

I know it is a bitter pill to swallow, that the drop in the sp of IGR is out of all proportion to the fall in the POG. To a large extent this is true, as it is being borne out by observation.

In a very crude way, the POG will ultimately determine the success or otherwise of many goldies, but trying to predict the POG this time next year and equating this with the surefired success of IGR is pointless. I can understand the desire and tendency to equate 'High POG = success', but ultimtaely the POG is out of IGR's and our control for the time being.

Essentially (or eventually) IGR will have several base-case scenarios and several various pit shells designed according to various gold prices. Small changes in the POG can have a very profound impact on pit optimizations, hence the final design and how much ore can be mined. But essentially, it's the day-to-day running of the plant and mine that determine success or otherwise, or basically, factors that IGR can control (other than the cost of materials etc).

Instead of trying to work out the POG in a years time, spend time thinking about what the likely cost of diesel, cost of labour, cost of steel could rise to. All these somewhat mundane parameters will have a direct and immediate impact on the operations. It even goes all the way down to individuals. Are the grunts in the mill motivated to maintain equipment on a long-term basis, or are they just a bunch of money-grabbing contractors who just want to make sure the mill lasts through to the next shift before they fly out?

Gold is a tricky beast to make money from, if the POG reaches $2000/oz, and you have a great resource, 3+ g/t at shallow depths, but you have an abortion of a mill that can't put enough tonnes through, then it all comes to nothing. Or if you have all the above boxes ticked, but your diesel bill is $4.5M per month, then you're back to square one as well.

Essentially, it is a whole chain of parameters that need to be in tune with each other for goldies to make any money at all. Fundamentally, I don't think a lot has changed with the company, but don't forget to factor in that several goldies have fallen flat on their faces recently, generating some fairly negative press and generally spooking investors. SC as a project looks decent enough, but they have a hell of a lot of work to do yet to get it over the line. Put another way, their project looks a hell of a lot better then some of the other crud being offerred up at present. Their cash position isn't too bad, I expect then to sit on it for a while yet before making any company making/breaking decsions though.