I was at the Riu Conference which was excellent. I had teed up a...

I was at the Riu Conference which was excellent. I had teed up a visit to the IGR office on the Monday before the conference, but CC pulled the plug on the Friday. Very disappointing as this visit was one of the motives for travelling from Sydney to Perth.

In contrast had great hour with Mike Rosenstreich of BSM.

CC's preso was a usual very professional and well delivered to about 150 mainly industry peers present. Nothing particularly new in preso. He did say that they are pushing 4g/t ore thru the plant atm (14kt done the previous day) and would see 3.65 to 4g/t for next 5 months. This will have major implications for profitability of business and cash cost per oz.

This year will spend $15 - 20 m on exploration vs $$15m in 10. IRR will be north of 80% which is phenominal.

$30m gold value on ROM pad which will build to $70m in 1.4mt within 12 mths. Steady state operation is close, with oxygen sparging needing to be added. Becoming more confident that sub $500 per oz cash cost will be achieved after 95% uptime is reached.

Spoke to him on the booth later. We discussed the Baker selldown in IGR and a number of other goldies. BS participation in recent CR was "restricted" by IGR for obvious reasons. They have drill results due from lab probably week after next from 4 new anomalies.

The sell down in the stock is obviously of concern to them with weakness remaining until recent CR 48c stocks find sticky hands. A thought occurred to me later that the IGR directors might use time before results are available to them, to buy some stock for themselves or perhaps convert some options. It would be a good boost for the SP.

They are aware that they need reserve upgrades to improve theie EV/oz. Seems to be a priority.

Will start the decline into CEB around July. Should be oz produced from almost day one.

Some other very good Au preso made at Conference. Standout was SLR. They are really getting a move on.

I had a serious investor from NZ with me at the Conference. He found IGR the best Au offering at the conference and was buying more.

IGR will have 6% of Musgraves IPO with IGR holders getting priority allocation.

What does this all mean?

Discussion with many peers, serious investors etc at the conference suggested that key catalyst to SP increase was increase in reserves. IGR didn't appear as "popular" as some other goldies. Can't quite put my finger on it. Is it jealousy of others; over-confidence in the IGR camp; or something else.

However, I bought another 100000 just before going to Perth and will not be selling anytime soon. The financials that must flow from present and near term production will be sensational. CC needs to keep up regular insto visits to sell aggressively what they have got. Maybe another very high profile chairman might also catch the insto markets eye.

I went to Perth with a lot of questions. A brief chat at the booth left me a little frustrated but the fundamental of IGR are sound and their drill bit will in time take them all the way to a 5Moz resource (my view).