newcrest fundamentals on gold &indochinemining

Hey IDC Holders

While we wait for drilling updates in the shallow high grade zones and the PFS which is expected to be completed in the next 6 weeks, I have stumbled on an excellent presentation released by Newcrest, Australia's largest gold miner!

With a Market Cap of $19Billion their analysts understand the global gold bullion market better than most.

Now lets see how some of their statements in their presentation from May 2012 compares to the fundamentals of IndoChine Mining's Mt Kare project.

We can clearly see from this chart below demand from Central Banks has risen significantly from as little as 2 years ago, and is expected to accelerate going forward.

Again if we compare the percentage of reserves held as gold, China has an incredible amount of hoarding to do to catchup to Western Nations.

China's economy is currently sitting at $US6.5Trillion GDP per annum, roughly 45% of the US GDP of $14Trillion.

Since China's percentage is sitting at a low 1.6%, if it is to reach a similar percentage of gold held as reserves (70%+) a significant amount of gold, tens of thousands of tons must be purchased on the market....

Meanwhile any new deposits that are being found and resource measured are showing that they have to dig deeper, with lower grades and more expensive capex and cash cost/prodn costs than any time in our history.

Compare these stats to Mt Kare...

No wonder BlackRock is now a major investor in a "little" (not for much longer) gold mine developer....

AND No wonder IndoChine Mining won the Discovery of the Year Award at this years Mines and Money Conference in Hong Kong, beating hundreds of Australian explorers in the process....

Cheers Nectar