A1M - AIC Mines

[skyQuake]

Way to shake out the share register! Turns out Acorn Capital sold 5m of the 8m shares traded last Thursday. But Acorn have 35m left. Ping, ping go the stop loss orders. Are Acorn selling down or just re-balancing, we don't know.

On last week's Indonesia announcement, after 10 years from production commencement, companies must reduce to 49% ownership, on fair $$ terms, if the Govt has the $$ and the inclination. Intrepid are 80% owners, thus would hypothetically sell 31% of their current 80% ownership, receiving cash or equity in return.

49% of the Tujuh Bukit deposit (even 10 years after commencement) is still a ship load of value. This might all help Intrepid get the govt licence approvals up.

I didn't think the Indonesia announcement was such a big deal, but we don't know what Acorn Capital are going to do.

I might also note that Australia now also has an increased sovereign risk, with 500 companies on a list to pay a MRRT or super profits tax, with foreign investment capital already being diverted to other countries.

Think they are mandated to dump when a soverign risk event like that happens. What percentage they need to sell no idea. Probably given to a broker to sell at best...
Nice bounce today, didnt even reach 82 lows. Probably will be some fast money chasing it today and most of tomorrow.

 

[Logique]

Tremendously disappointing to be blind sided by the Indo Govt announcement, and we're stopped out. Everyone wants to be on the short side while the dust settles. The slight glimmer of hope is that the Buy/Sell volumes differential had narrowed by the end of the week, as it flirts with 82c (hoped for) support.

Let's not forget the repeated reassurance from Indonesia that divestitures after 10 years will be at fair value.

But the chart shows a change in momentum, so (imho) it will take a series of good announcements (are you listening Acorn Capital) and the price of gold to stop falling before we'll see much covering. Taking a longer term view, at some point some brave buyers are going to pick up shares for a steal, in a world class silver-copper-gold deposit.

 

[Buckfont]

Glad I got out March last year at $1.99.

Yes, very dissapointing to see it smashed so severely.

 

[Garpal Gumnut]

Astute money from Canada has been buying recently. Expecting news from ownership discussions. Not before time. Looking for $1.80 then a $3.00 buyout.
Have been on board since 9c late 2008, sold 50% at $2.15. Been a stellar stock.

Bought another 40,000 at $1.26. I am confident a relatively quick resolution to the ownership issue will be forthcoming.

Complete over-reation. In for another 60,000 at 98c average.

chakvetadze,

You have balls mate.



gg

 

[chakvetadze]

Sold the lot for 91.5c as posted on another forum on the day in question. Nice haircut.

 

[Gringotts Bank]

Inverted head and shoulders. Neckline at 62. Bought at 59. Gold index up 2.2%.

59 breaks a longer term down slope trend line from 27/2 - 6/7.

 

[Gringotts Bank]

averaging down to 58.2.

 

[skyQuake]

Trading halt doesnt look good. Worse on a stock that keeps getting sold down daily and has its rallies cut hard.
imo averaging into something like that is suicide

 

[So_Cynical]

Trading halt doesnt look good. Worse on a stock that keeps getting sold down daily and has its rallies cut hard.
imo averaging into something like that is suicide

Yep

There's a time to average and there's a time to hold and a time to take the loss....i cant believe IAU got as high as it did, the ASX300 is littered with 0 revenue producing, over priced mining wannabe stocks.

 

[Sean K]

Dear Jill

TRADING HALT REQUEST

Intrepid Mines Limited (the “Company”) requests a trading halt with respect to its ordinary shares. In accordance with Listing Rule 17.1:

(a) The Company is seeking the trading halt pending an announcement to the market regarding the Tujuh Bukit project in Indonesia, in which the Company has an 80% economic interest.

5 x Directors bought a handful of shares on 16 Jul. Did the same in May and June. Odd.

From the 16 Jul update:

Brad Gordon, Intrepid’s CEO, said, “As we have promised our loyal shareholders all along, we remain extremely active in advancing this world class project and we have been rewarded by very positive results on several fronts. These latest drill results on the main Tumpangpitu porphyry have enabled us to define a new high grade zone on the eastern edges of the target area. However, the depth potential of this resource is still to be thoroughly tested.

So, all good then eh? No surprises. Capital raising? They're loaded aren't they? I thought they had $140m in the bank or something.

Hmmm

Or, could it be the dreaded forestry issues?

Forestry Activities
The Indonesian Forestry Law restricts non forestry activities within protected forests and prohibits mining using an open pit method in protected forest areas. The area of the Porphyry copper-gold resource estimate, and the Zone A, Zone B and Zone C oxide resource estimate areas fall within a protected forest area. Intrepid’s Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. There is no assurance that the forestry reclassification will take place in this instance. PT IMN received an extension of the Forestry Exploration Permit dated 7 July 2014, which allows for exploration activities within forestry areas.

 

[chakvetadze]

Geez you guys are slow. The news was out in Canada last night. Get with the program guys. Stock closed at 39c last night in Canada after gapping down to 33.5c when the news broke.

"Intrepid frustrated by Indonesian shadow interests at Tujuh Bukit

2012-07-20 VANCOUVER ”” Toronto-listed explorer Intrepid Mines (IAU-T, IAU-A) is the latest victim in an ongoing nationalization saga in the South Pacific. On June 28 an unknown entity seized control of its Indonesian joint-venture partner, Indo Multi Niaga (IMN), and subsequently shut-down exploration efforts at the company's Tujuh Bukit copper-gold project ”” on the island of Java ”” three weeks later.

Intrepid first acquired an interest in Tujuh Bukit in late 2007 when the company merged with Australian gold-miner Emperor Mines. The initial alliance agreement was signed in April 2008 between INM and Emperor with a portability clause that outlined the eventual merger into Intrepid.

Foreign ownership of mining tenements was not allowed in Indonesia until 2009 so Intrepid does not actually own any of Tujuh Bukit's mineral concessions, but instead holds an 80% economic interest in the project via a series of contractual arrangements with INM.

Intrepid has been in negotiations with its Indonesian partner to restructure its joint-venture agreement in order to convert IMN into a foreign capital investment company. The companies had reached a preliminary agreement in June 2011 involving the commercial terms upon which share issuance and conversion would be dictated ”” where Intrepid would eventually acquire an 80% direct-equity stake in IMN ”” though Intrepid reported in late April that negotiations had become "slow and protracted."

The situation was further complicated on June 28, when Intrepid announced that new shareholders had not only "joined the register of PT IMN", but acquired a full 80% interest in the Indonesian mining company. Intrepid indicated it would reach out to the new parties, but no information was released on the identity of the shareholders or how new ownership of INM might impact ongoing negotiations.

On July 20, the new controlling interests in IMN ”” which remain anonymous ”” blindsided Intrepid by shutting down exploration efforts at Tujuh Bukit. The Indonesian company booted several members of Intrepid's senior management team off the site, and locked down operations. The timing could not be worse for Intrepid, which has eight diamond drill rigs running, spent US$11 million on exploration expenditures during the first quarter, and was in the process of a resource definition program.

Though Indonesia recently introduced updated mining legislation that calls for 51% domestic ownership in foreign mining operations by the tenth year of production, the policy revision should not have impacted exploration outfits like Intrepid until later in the company's life.

What is taking place at Tujuh Bukit is a question of contract law and the outstanding agreements Intrepid maintains with IMN.

The original alliance agreement dated April 2008 was signed by IMN president and director Maya Miranda Ambarsai and director of operations Andreas Reza Nazaruddin. Ambarsai is listed as an "entrepeneur of gold, tin and coal" and carries a Masters of International Business from the Swinburne University of Technology in Melbourne, Australia. There is limited public information available regarding Nazaruddin, but his name appears on numerous Indonesian press statements from the company and he remains listed as IMN's "principal" on the Indonesian Mining Association website.

Intrepid reports it is in compliance with all of its obligations under the joint-venture agreement, and the company is attempting to kick-start discussions with both the new and original IMN shareholders, though to date the identity and intentions of the new interests remain unclear.

"It makes no sense," Intrepid spokesman Greg Taylor told reporters from Stockhouse. "Effectively we have an Indonesian partner who has a 20% interest in the project, and approximately a month ago we announced, that we had found, that they had sold 80% of their 20% ownership in the project to another Indonesian entity."

According to company reports, Intrepid has spent US$95 million on the project to date ”” conditions indicate required expenditures of US$52 million ”” and was on track to bring the project to feasibility as stipulated in its agreement with IMN.

Based on the original consultancy agreement between Intrepid and IMN, the Indonesian company may already be in a breach of contract. In accordance with section 4.3(f) of the consultancy conditions IMN is obligated to "allow [Intrepid] employees access to office facilities at IMN's premises and Tujuh Bukit KP."

Section 15.3 of the contract supplies conditions for potential arbitration between the joint-venture partners. Failing an amicable settlement, the dispute will be "referred to arbitration in English under rules of Singapore International Arbitration Centre." An arbitration decision would be final and binding on both parties, and would be conducted under Singaporean laws.

There is certainly a lot at stake for Intrepid. The company holds an oxide gold-silver resource totalling 130 million inferred tonnes at 0.6 grams gold per tonne and 18 grams silver per tonne for 2.4 million oz. contained gold and 80 million oz. contained silver.

Intrepid completed a preliminary economic assessment on the oxide deposit in 2011 that modelled a US$204 million operation with a US$446 million after-tax net present value and 54% internal rate of return at a 10% discount rate and US$1,450 per oz. gold price.

In addition, the company is planning 54,000 metres worth of drilling on a series of copper-gold porphyries ”” its Tumpangpitu porphyry holds 1.7 billion inferred tonnes at 0.5 grams gold and 0.4% copper for 15 billion lbs. contained copper and 25 million oz. contained gold.

Swirling uncertainty has taken a toll on Intrepid's share price. The company has dropped 71% or 95 ¢ in value since Indonesia's new nationalization laws were announced at the beginning of March. News of IMN's suspension of activities predictably depressed share valuations further, as Intrepid dropped 36% or 22 ¢ following the announcement, nearing 52-week lows at 39 ¢ per share.

Intrepid remains in an enviable liquidity position having reported US$139 million in cash and term deposits at the end of the first quarter. The company has 524 million shares outstanding for a $212 million presstime market capitalization."

 

[Sean K]

Geez you guys are slow."

Oh dear me. We are slow. I didn't even look at the second page of previous announcements when having a revisit of this stock. Oh deary me!

This company is cactus.

 

[chakvetadze]

This company is cactus.

Please explain.

520M shares, no debt and $138M in cash. To me, that looks like 26.5c in cash backing per share.

 

[Sean K]

Please explain.

520M shares, no debt and $138M in cash. To me, that looks like 26.5c in cash backing per share.

Yep, they look like they will be left with cash.

Buy a bank.

 

[Vader]

Here's a press release they apparently released yesterday (I'm guessing this will be copied as an ASX announcement before the market opens on Monday):

http://www.marketwire.com/press-rel...tion-activities-suspended-tsx-iau-1682248.htm

Intrepid Mines-Exploration Activities Suspended

BRISBANE, AUSTRALIA--(Marketwire - July 20, 2012) - Intrepid Mines Limited ("Intrepid", the "Company") (TSX:IAU)(ASX:IAU) advises that its Indonesian joint venture partner, PT Indo Multi Niaga ("PT IMN"), without prior reference to Intrepid, has suspended operations at the Tujuh Bukit Project in East Java Indonesia beginning immediately. PT IMN has requested several members of senior management, including all expatriate employees seconded to PT IMN from Intrepid, to leave site and this has occurred.

Intrepid is in compliance with, and has always been in compliance with, all of its obligations under the joint venture agreements in place and applicable law. This interruption will impact the Company's timetable for delivery of an updated porphyry resource estimate and, further, may impact work on the updated oxide resource.

Project expenditure, solely funded by Intrepid to date, in compliance with the joint venture agreement, is US$95 million. This includes financing to the original shareholders of PT IMN to allow them to meet their 20% contribution commitments in excess of the initial full carry of A$50 million.

Intrepid is attempting to establish discussions with both the new and original PT IMN shareholders (see Intrepid news release of 28 June 2012) regarding arrangements which would allow the resumption of drilling activity at the earliest opportunity.

Intrepid's immediate objective is completion of technical studies which will demonstrate the financial viability to develop a world class mine for the benefit of shareholders and stakeholders - community, and local, provincial and central government, alike.

 

[Sean K]

Here's a press release they apparently released yesterday (I'm guessing this will be copied as an ASX announcement before the market opens on Monday):

http://www.marketwire.com/press-rel...tion-activities-suspended-tsx-iau-1682248.htm

Intrepid Mines-Exploration Activities Suspended

BRISBANE, AUSTRALIA--(Marketwire - July 20, 2012) - Intrepid Mines Limited ("Intrepid", the "Company") (TSX:IAU)(ASX:IAU) advises that its Indonesian joint venture partner, PT Indo Multi Niaga ("PT IMN"), without prior reference to Intrepid, has suspended operations at the Tujuh Bukit Project in East Java Indonesia beginning immediately. PT IMN has requested several members of senior management, including all expatriate employees seconded to PT IMN from Intrepid, to leave site and this has occurred.

Intrepid is in compliance with, and has always been in compliance with, all of its obligations under the joint venture agreements in place and applicable law. This interruption will impact the Company's timetable for delivery of an updated porphyry resource estimate and, further, may impact work on the updated oxide resource.

Project expenditure, solely funded by Intrepid to date, in compliance with the joint venture agreement, is US$95 million. This includes financing to the original shareholders of PT IMN to allow them to meet their 20% contribution commitments in excess of the initial full carry of A$50 million.

Intrepid is attempting to establish discussions with both the new and original PT IMN shareholders (see Intrepid news release of 28 June 2012) regarding arrangements which would allow the resumption of drilling activity at the earliest opportunity.

Intrepid's immediate objective is completion of technical studies which will demonstrate the financial viability to develop a world class mine for the benefit of shareholders and stakeholders - community, and local, provincial and central government, alike.

WHAT A FARSE!!

A couple of days ago they released an AOK review.

I'm obviously not a holder but feel for anyone who was trusting management.

Why were they buying those pitiful amounts of shares the last couple of months??

 

[chakvetadze]

A farce but not IAU's doing. This latest development is a result of PT IMN's doing. IAU got blindsided. Not sure that qualifies as "untrustworthy management". Before you make comments you probably need to do a bit of basic research. Mouthing off without knowing the facts can be dangerous. I'll be copying your posts and filing just in case IAU want to pursue something later on.

 

[skc]

Is there any information on who's the majority owner of PT IMN?

I wonder what is the legal recourse by IAU and how long that would take... If they trade down to below cash back you'd think there's a case to buy with a free "option" on this being resolved.

A farce but not IAU's doing. This latest development is a result of PT IMN's doing. IAU got blindsided. Not sure that qualifies as "untrustworthy management". Before you make comments you probably need to do a bit of basic research. Mouthing off without knowing the facts can be dangerous. I'll be copying your posts and filing just in case IAU want to pursue something later on.

Do you mean IAU wants to pursue Kennas for "feeling sorry for trusting management"? It could mean that he's sorry for those who trusted the management's ability to handle the JV without it blowing up in their face.

 

[namrog]

I don't get this, or am I missing something..?

IAU's people have been ordered off site by someone with a less than 20% holding ( IMN sold 80% of it's 20% share)

Worse case scenario is that under Indonesian proposals regarding soverign control, then IAU should at least after 10 years production retain 49 % of the opperation..assuming it's going to go ahead at all now..?

I smell some typical Indonesian grabing and corruption going on here, and dare say a few hands will have to be well greased before this is resolved...

There is a lesson for us all to be learned here, soverign risk is real and on the rise...

 

[Steve C]

Down 56% today... ouch, would have been a perfect candidate to short.