It is both interesting and concerting that nobody picked up on 2...

It is both interesting and concerting that nobody picked up on 2 things stated in the first post of this thread.

1. The overall number of shares I stated would be around 750 mill was incorrect. I hurriedly misread the announcement as being two captial raisings rather than in two tranches. my mistake, so enough said.

2. Nobody addressed the HK finance issue as I said was alluded to. In fact everyone is too busy discussing share dilution as good or bad but necessary.

Here is an excerpt from an email from CC I received after a discussion with him (on financing and takeovers) on his trip to HK in the July period.

...............................

Dear Suricat (obvious name change)

BFS is done and looking good - the Board has to review and endorse the study before we release to the market. I expect this will happen in the next 2 weeks.


Yes, definitely see Integra going into production with strong cash flows to drive growth through exploration, discovery and possible acquisition (if it makes sense).


Takeover - well we can't control what other companies might or might not do. Having said that, there has been much discussion of consolidation of the junior gold industry around Kalgoorlie and all I will say is that Integra has the best quality, highest grade unmined open pitable resources in the area. I would definitely not want to see a takeover before we have realised full value for our shareholders.


I have just returned from a second trip to HK. I am impressed with:


1. The depth of understanding of the Australian resources market

2. The massive amount of funds available there (I was told that HK as a city of 6 million had 6 x more billionaires than all of Australia)

3. The appetite for gold stocks

Anyways, if we need to do an equity raising for project development, I am confident a good proportion will come from HK.

I also hold options expiring at the end of this year and would sincerely hope that the exercise represents good value for all holders.

.............................................


Okay...a pretty mundane email and not much we don't already know. However, 2 things stick out.

1. I would definitely not want to see a takeover before we have realised full value for our shareholders.

Q. How will we see full value if share dilution continues? Full value comes from either increased sp or dividend. I am beginning to rule out dividend based on the number of shares we might see by 2011/12.

2. I am confident a good proportion will come from HK

Q. Okay...where is it?

Now either CC has not been able to sell the IGR story overseas, or the cap raising was for an overseas (chinese) partner through agency here...or..CC has something else up his sleeve for the future. Or...just perhaps...there is something else which I and you don't know. The cap raising I feel was not for Chinese buyer, so the question remains why go to HK? Twice I believe!

Obviously the options are not looking good at the moment, so if a proverbial rabbit was pulled from the hat just before expiry this would smack of manipulation. I am confident CC has too many ethics for this to happen. Hence I have been offloading options and putting the profits into other ASX stories. Broadening my horizons so to speak and getting some real bargains in the deal. (free carried)

I will keep a vast number of my IGR shares and see how the IGR story unfolds over time, but options have been reduced considerably. My choice in investment terms...so I don't expect praise or a kick in the guts for my comment. thanks.

What I would like to know is why so many people believe cap raising is the best way to go. In July, CC said himself "The project provides some $32m of profit per year for the first 4 years, not considering the value of the 10-year mine plan." Why not borrow against that rather than dilute shareholders? Pertinent question and one which I think needs real discussion rather than emotional..."well if you don't like it get out" type sentiment.

I do agree that some cap raising is necessary, but as a former CEO myself, I do think other finance arrangements can be better at times, esp when loans and funds can be paid off quickly or parners can be brought into the fold and shareholders can be better informed and kept happier.

My sentiments...I continue to hold some and sell some, but I am not a buyer at present as there are other stocks out there worthy of interest with much smaller capital bases. Remember IGR was there once upon a time and as Relode got little interest. It changed as the story unfolded as as CC took charge. Now I feel it is stagnating slightly in investment terms. The diehearts will obviously disagree, but then I am charge of my investments and I have freedom of choice. After all EVERYONE on this board is here to make money, not write a book about a company. I think there are other IGRs in the making out there, and since I hold IGR already, it is time to diversify and find the new kids on the block.

suri