But wait guys. There’s more....LOLIn regard to the usual...

But wait guys. There’s more....LOL

In regard to the usual suspects that help to explain the demise of a share price, a few words are in order.

Management
The management is actually first class with a proven track record.

Assets
The company assets are brilliant. Something approaching 2 million ounces in the ground mostly in the 'probable' category, and enough proven ounces for nearly 5 years of mine life, at 120000 ounces per year is a good spot to be.

Cash Reserves
The Company's current cash position ($10.35 million) is actually extremely healthy for now and will see them through until better fund raising conditions evolve.

Business Model
The business model has been excellent. Choosing not to rush into production 18 months ago, but concentrating on building the resource base, was an excellent move by management.

Sector
The sector that IGR operates in will very likely be the 'Go To' sector in the not too distant future. Intense anger by the rest of the world will be directed towards the US Treasury, the US politicians, the Federal Reserve, the BIG Banks, the Wall Street Brokers, the conniving Central banks and a vast array of supporting institutions and regulatory bodies, who have all been up to their necks in disgusting levels of greed and dereliction of duty.

Some sort of gold backing for paper currencies will be essential if order and stability in financial markets is to be restored. Companies producing gold (unhedged), and companies with ounces in the ground will do very well in a changed world order.

Sovereign Risk
Actually, there aren't any Sovereign risk issues to worry about in Kalgoorlie or Australia for that matter. What a bonus!

Poor Outlook for the Business
The recent experiment with 'creative' financial products such as Structured Investment Products, Collateralised Debt Securities all laced with derivative protection and grown on the back of dodgy sub prime lending, that no-one understands and in reality is worthless, will be seen by historians as the cancer that almost wrecked the world's financial system.

Real businesses will be sought after from now on, with easy to understand business plans and with a real and quantifiable need for the product that they produce. The business of gold mining is easily understood, especially when gold price appreciation produces windfall gains to the bottom line of producers that just happen to be already operating profitably.

Over Capitalised
$40 mill dollars for a company with 2 mill ounces of gold, $10 mill of cash, a processing plant and a mining camp up their sleeve, plus very strong exploration upside, is cheap by any measure

Oceans of Shares on Offer
Around 400 million shares is respectable although I would prefer fewer. Maybe they should do a Buy Back and soak up a few, then re-issue less shares at a much higher price to raise funds fro mining.

To my mind, the demise of companies such as IGR through events completely out of their control, has provided sensational investment opportunities for those of us still standing after the share market slaughter that has taken place. IGR being priced as a penny dreadful, but already with an established in ground resource of impressive size, almost defies belief.

These opportunities seldom come along in the markets, and when they do we should take full advantage of them.

Cheers
nev


Moved from the "Europe" forum. Original message number: 82