While I hold both SLR and IGR I don't see any great need for them to merge and would probably be happier for each of them to go it alone. I feel fairly confident IGR will have plenty of ore to feed their mill once its up and going, and with recent drill results by Silver Lake targeting extensions at Daisy Milano I feel they're also in reasonable shape for extending this resource and improving their ore supply. The fact that their in the same location could add some benefits - but on the immediate front I don't see IGR needing to find additional feed for their mill.
In a merged body SLR might be in a position to put some better ore through than they'll be getting from some of the pits they are opening up but the SLR mill is still a fair trucking distance from Mt Monger as I understand it (I could be wrong on that). (and on that note how far is the SLR mill from Maxwells??).
Les Davis has done a brilliant job on the operational front so far so I'd assume he'd be a great person to have on board when getting a mining operation going for Integra but on the other hand any merger is always fraught with risk - different management styles and priorities can cause joint efforts to break down or focus to get lost.
Both have the potential to improve significantly on their own - maybe down the track a merger would make sense when Integra has its operations bedded down and SLR has proved up adequate resource extensions.
IGR Price at posting:
24.0¢ Sentiment: LT Buy Disclosure: Held
