The question is who got these 170 million shares which includes an unexpected 70 million surprise placement?
Who expected these 70 million shares to be placed so soon after the AGM? Who instead expected IGR to give the share price a chance of rising before placing them?
What is annoying is the way shareholders have been diluted out. What are the shareholders who paid 70 cents and kept the faith now thinking? Of course it can be argued that there's no need for shareholders to be diluted. They can top up on market, because the market has consistently responded in a negative manner to IGR's cash raising.
There's a skill in issuing scrip so the company gets a good price for the placed shares and the market responds positively. But instead of taking the market with them, which means a rising share price as cash is raised, IGR's cash raising has been comnsistently met with a negative response from the market.
Compare with the way the market responded to PRU's raising of substantially more money than IGR.
IGR producing 100,000 ounces with 700 million shares plus on issue is neither here nor there unless the gold price is substantially higher than today's prices.
As an example, KCN are producing more gold than that at a significantly lower cash cost than IGR's estimates with 97 million shares on issue. TRY, a dividend paying gold miner for years, will be producing 100,000 ounces plus at a substantially lower cash cost than IGR's estimates and has only 84 million shares on issue.
IGR promote "superior returns through high-grade gold discoveries." It is apparent to me that IGR, after having issued many hundreds of millions of shares, now need to validate their theory that they are sitting on a "new gold camp" for shareholders to get those "superior returns" from IGR in preference to taking their IGR investment dollars and putting them into another gold stock. investing their
I am confident IGR will be able to have further serious exploration success.
IGR Price at posting:
25.0¢ Sentiment: LT Buy Disclosure: Held
