Of note: DB: I'm not convinced. IAMGOLD has purchased a project in Canada that is very low grade with low returns. Maybe that's the opportunity, but not in our book. Baker Steel separates the wheat from the chaff by looking at the quality of the projects. We analyze returns and how the company is going to finance the development—will it use debt or equity? In a high inflation environment, debt would be the logical choice, but we're very reluctant to go down the bank route as this normally entails forward selling part of future production. Recently an Australian company raised $50M of debt and had to forward sell over $300M worth of gold to do that. That didn't seem logical to us.
IDC to him is defiantly not chaff!
IDC Price at posting:
9.9¢ Sentiment: LT Buy Disclosure: Held
