A massive rerating appears to be taking place in IGR.
Importantly should this rerating continue then raising project finance via issuing scrip can be undertaken without serious dilution.
The stars seem to be aligning for IGR.
1. The feasibility study due in the next moonth or so. 2. The gold price threatening a break out. 3. The IGR share price getting massivrly rerated from the absurdities of a short while ago.
It is worth having a look at information released in August last year about the pre feasibility.
With gold now currently around AUD1200 and costs down IGR is looking at bonanza profits. Even more if the gold price explodes to the upside, as Jim Sinclair, Alf Fields etc. are predicting.
The prefeasibility below was based on AUD950 and showed a very robust project:
"Randall's pre-feasibility study demonstrates A$450 per ounce margin for half a million ounces open pit production grade 3.4 g/t gold, forecast A$504/OZ C1 cash operating cost.
HIGHLIGHTS
Positive Pre-feasibility Study completed for Randalls Project demonstrating superior returns from a low risk, open pit mine development including:
�� Open pit optimisations ‘capture’ 508,000 resource ounces �� ‘Base case’ production of 483,000 ounces recovered �� Diluted open pit production grade of 3.4 g/t gold �� Average production of around 120,000 ounces of gold per year �� C1 cash operating cost of A$504 per ounce �� Net operating revenue of $216 million at A$950 gold price �� Pre-tax return of A$129 million (after full capital depreciation during ‘base case’ production) �� A project pre-tax IRR of 41% �� Targeting a 10-year mine life"
IGR Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
