riu conference

Well made it back to Melbourne...and am looking for cash to buy more IGO!

I was extremely impressed by Chris Bonwick and his enthusiasm, not to mention his character. Definitely a bright spark amidst a crowd of mostly poker faces. There were some other interesting people there that I had a chat with (IGR MD who really impressed me, VCN md who had a good story to tell, HER's exec director to name a few).

Unfortuantely I didnt get the chance to visit the IGO office due to an unexpected visit from a relative while I was there.

The IGO story is very compelling. Obviously I cant quote word for word what Chris and I discussed (due to a poor memory from a few to many beers). However the story is the same as what we already know.

Plain and simple...the company is making money and that money will fund exploration, acqusitions and dividends. The obvious in a nutshell.

Of course jumping into the details of the exploration potential really shows the bigger picture. IGO are all about quick analysis of a project and handballing it if its not up to scratch...unlike many other smaller co's which seem to scared of the market reaction to a failed exploration play and sugar coat the negatives and hold the project for years on end. They are also all about exploring many untried areas using new technologies, particularly areas under cover that previously could not be adequately tested.

I came away from our several conversations feeling like this company really has its act together, not only Chris, but the whole team there.

If you've read the presenation on their website, much of its pretty ho hum...you need to hear the guy to get enthused. However one big point is the 'waiting list' for people wanting to work with IGO...it'd be hard to find another resource company in WA that could boast the same.

So why is IGO hanging around at a price with a prospective PE of around 4.5-5? Beats me. Will that change? Probably not based solely on nickel production. Thats already happened and barely a whimper. The upside will have to come from exploration success, both at current mine and in the many exploration projects IGO has.

So patience is required, but in the meantime, the non-performing SP gives you an great opportunity to get set in what will ikely turn into one very big long term growth story. Here's hoping anyway.

Cdchi1