great quarterly...strangely subdued response

Well I gotta say im completely baffled.

IGO did not move today after the quarterly...which for me was a great topping up opportunity. But why it didnt move is a mystery...possibly the weak nickel price, fear about falconbridge, who knows, but the market remains a mystery.

Lets look at just some of the positives out of the report:

Qtrly profit: 9.9 million pre tax or more than double the Sept qtrl and 30% higher than what i forecasted...this DESPITE the strong AUD. So assuming after tax this is around 6.5 mill, that would put it on an annualised PE of around 4...(Macquarie analyst, is IGO still overvalued??? I think not)

Head Grade: Broke 4% again...and looks like staying above 4% for at least 1.5 years with high grade victor south coming on stream.

A little surprise: When victor south starts up, IGOs share of prod will be 70%...this is surprising, i thought it remained at between 64-66%...if you do the sums, thiws will make a MUCH bigger difference than it sounds...VS should start early in 2004/2005.

Cash balance: Over 11 million, though with retirement of debt, probably closer to 9 million now...but not including over 7 mill of receivables...

Lomng exploration: Some pretty decent and encouraging stuff that i wont go into...

I havent read the latter of the report, but the above is enough to justify that IGO should ALREADY be at my 2004 price target of $1.40.

Cdchi1

*reposted on ozestock*

Disc: hold lots