Lapdog,The MD has said more than he ought to have. His email,...

Lapdog,

The MD has said more than he ought to have. His email, wisely or unwisely reposted here, has admitted many things to people who can take his facts (because we must believe he is stating facts and not opinions) and use them to analyse the future performance of the company.

For instance, he says the 50K Oz stockpile (which I contend is not very profitable) is nominally worth $27M of profit to the company. That is to say, the stockpile is worth roughly $70M for the 50,000 ounces contained gold. After already having the extraction capitalised ($13M) he is admitting that of the $70M in contained Au, he expects to make $27M from it - meaning it will ipso facto cost him $44M to process that ore.

$65M / 50,000 = $888/Oz cost of production. Lets say a clean $800 per ounce because my "facts" are probably a bit rubbery.

Thus, CC has in fact given you a heads-up that when the company finishes its 4g/t dirt and eats upon its 1.65g/t stockpile the cost of producing that stockpile will be around AUD$800/Oz. This is a significant variation from current quarterly costs and arguably, Chris Cairns should have released this to the stockmarket versus responding in an email some other poster could liberally spray on to HotCopper. I mean, its now a matter of public record - assuming of course that the email wasn't entirely made up. Who's to know?

If he keeps his costs fixed with the 25% throughput upgrade and produces 1.25Mtpa @ 1.65g/t then the costs will be driven down to $650/Oz, right in the middle of the rest of his peers.

If he can get Majestic through 1.25Mt paat 2.25g/t for $44M he'll be producing gold for $500/Oz.

Commercial reality or not, there's a dispute here about what is the sustainable long term future earnings potential of IGR and so far I can't see anyone refuting my figures - only confirming them.