Yet another bank 'saved' to the tune of close to 1 Trillion Aussie Dollars, and another spending program to be implemented by the incoming US President for around 1 trillion Aussie Dollars, not to mention Paulsen's already legislated bailout of over 1 Trillion Aussie Dollars, nor the rescue plans being mulled over for Fannie May, Fredie Mac, AIG, the US Housing Industry, GMH, Ford and a string of other banks......and of course a couple of expensive wars still requiring financing....
And gold goes up another measly 20 bucks (US) overnight!
Unbelievable huh!
Money creation like we are experiencing is super inflationary by any measure, and can't help but evaporate the value of unbacked paper money.....which is where gold comes into its own!
If I was Paulsen, I'd be suppressing the gold price too as otherwise all hell would be breaking loose, and already the markets are as bad as we have ever seen them. However, the coiled spring just keeps getting tighter and tighter.
Smart money around the globe is already investing strategically in the yellow stuff. The shares in the decent gold miners (scarce though they are) and the shares in companies about to become gold miners (although quality projects are scarce too) can't be too far away from being noticed.....And when they do attract attention, I reckon they will be noticed Big Time!
The Aussie gold price is now $360 higher than when the mining feasibility studies were announced by IGR, and they were based on prices around $900.
An initial 5 years of mining at 120,000 ounces per year, at the current gold price represents additional profit of 50 cents per share, and mining was already profitable at the 900 dollar Aussie gold price. The company has already announced the robustness of the existing projects and a healthy internal rate of return, with plenty of explorational and operational upside.
The company trading at 13 cents per share has to represent outstanding value at the current time. I wonder what the price of IGR shares will be when gold breaks Sinclair's $US1600 on its way to a much higher price over the next couple of years? And as it happens, IGR has identified 1.8 million ounces of resources which should provide a much longer mine life than the intially planned 5 years - and as it happens, many targets have yet to be drill tested.
Or am I missing something here?.....LOL
Cheers Nev
IGR Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
