An update to include the following stocks at the request of some friends, some associates and also some posters on both forums, NGF, ATV, NAV, ALK, VRE, FML, CTO, MUN and PRU.
Just wanted to make some observations that I thought were very interesting and support the fact that Integra Mining is significantly undervalued.
Here are some numbers for your comparison:
AND – Andean Resources
• Market Cap $800m • 381m shares on issue • $10m in cash • 1.5m oz resource @ 3 grams a tonne ( only 33% indicated or 500k oz’s in Vein Zone ), an 83% increase over previous estimate • Gold recoveries >90% • Argentina – possible sovereignty issues. • NOT PRODUCING & NOT IN DEVELOPMENT • No Plant • Grade getting better at depth – deep means risk & higher grades required
AVO – Avoca
• Market Cap $556m • 211m shares on issue • $90m in cash • 1.35m oz resource @ 3.6 grams a tonne ( only 65% indicated or 877k oz’s ), an 23% increase over previous estimate • Gold recoveries not known • WA location • NOT PRODUCING but in development • Good grades at depth – deep means risk & higher grades required
DOM – Dominion Mining
• Market Cap $577m • 100m shares on issue • $42m in cash • 1.0m oz resource (50% reserves, 50% indicated ) • SA location • Gold recoveries >90% • PRODUCER but going deeper
NFG – Norton Gold Fields
• Market Cap $162m • 324m shares on issue • $33m in cash • Paddington 1.4m oz resource – 2.6 gram a tonne, 150k oz production per annum, cash cost $501 per oz, Mt Monger 500k oz’s resource – 1.68 grams per tonne, 40k oz prod pa, (all inferred ) • WA location • Gold recoveries not known • PRODUCER
ATV – Atlantic Gold
• Market Cap $42m • 210m shares on issue • $2.6m in cash • Touquoy 654k oz resource – 1.8 gram a tonne, Cochranes Hill 373k oz’s – 2.5 grams (143k oz indicated, 230k oz inferred ) • Nova Scotia location • Gold recoveries not known • Developer, no plant, 90k oz’s over 7 years, in the next several years
NAV – Navigator Resources
• Market Cap $119m • 134m shares on issue • $8.1m in cash • 870k oz resource – 2.2 gram a tonne, (65% indicated), • Gold recoveries not known • Developer, no plant, 100k oz’s pa, Mid 2009 • 90% shallow depths
ALK – Alkane Resources
• Market Cap $81m • 241m shares on issue • $14m in cash • 606k oz resource – Tomingley 2.75 gram a tonne, (73% measured & indicated), 200k oz’s Caloma and growing @ 2.7 grams • Feasibility, no plant, 70k oz’s pa, @ $440 per oz production cost • shallow depths
VRE – View Resources
• Market Cap $96m • 378m shares on issue, 84m options • $40m in cash after selling Nickel asset for $25m • 805k oz resource – 2.00 gram a tonne, (535k oz reserves) • Bronzewing producing 125k oz per annum but not cash positive until June 08. Current forecast $241 per oz margin on sales @ $840 per oz meaning $600 per oz production cost • Low grade, Negative $24m from production in Sept 07 qtr, draining cash
FML – Focus Minerals
• Market Cap $69m • 778m shares on issue, 20m options • $10m in cash • 127k oz resource – @ 4.63 grams (half indicated, half inferred), 12k tonne nickel resource at 2.2% nickel • Gold production in April 08, Nickel production in June 08 • Gold production likely to be small
CTO – Citigold
• Market Cap $295m • 663m shares on issue, 33m options • $9m in cash • 10m oz inferred @ 14 grams (Probable 330k oz’s @ 13 grams a tonne – sounds like Bendigo • Forecast gold production 100k oz’s end 08 @ $470 prod cost, Sept 07 qtr prod was 3900 oz’s • Underground gold production from reefs
MUN – Mundo Minerals
• Market Cap $100m • 146m shares on issue, 46m options • $27m in cash • 326k oz @ 5.59 grams • Forecast gold production Engenho 30k oz’s per annum for 10 years from March 08 @ $475 prod cost, Torrecillas 50k oz’s pa from 2010 • Underground mining
PRU – Perseus Mining
• Market Cap $161m • 131.6m shares on issue, 47m options • $12.9m in cash • 3.4m oz resource, 832k indicated, rest inferred - Ghana • Forecast gold production Ayanfuri 150k oz’s per annum @ 94% recovery and $330 per oz prod cost, Grumesa 35k oz per annum @ $500 per oz prod cost • Detailed Feasibility Study due for completion Nov 08
IGR – Integra Mining
• Market Cap $187m • 374m shares on issue, 50m options • $32m in cash • Estimate1.6 -1.7m oz resource @ above 3 grams a tonne (79% indicated previously, with recent drilling this is likely to be maintained or increased or 1.3m oz’s ), an estimated 45-50% increase over previous estimate • Gold recoveries greater than 95% and Salt Creek as high as 99.5% • Kalgoorlie – centre of the gold world • Not producing but in development, plant being dismantled in early 2008 in preparation for movement to production site and refurbishment • Good grades, all open pits less than 150 metres deep and most of Randall’s are less than 75 metres deep – shallow depth with good grades means low risk & higher margins
I don’t know about you but Integra Mining is severely undervalued and it won’t be long before the market latches onto it. With gold in the spotlight, it will be producers and quality developers that will be sought after. Gold is getting a lot more press.
The IGR resource statement is due out shortly. The above IGR resource figure is only my estimate.
I will complete a spreadsheet table for comparison purposes in the next few days.
This information is not intended to form financial advise, these are just my views taken from recent announcements and presentations to the ASX. Not all figures will be 100% accurate.
