A1M - AIC Mines

[So_Cynical]

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

LOL they opened at 19c - with all that cash, crazy stuff...IAU now trading at 2008 prices.

(3rd-January-2008) Intrepid closed at 34 cents today, so a great day for people like me who got in at 24 just a few weeks ago..

Intrepid has so much going for it as i posted previously.

IAU go u good thing.:bananasmi

 

[Sean K]

Wouldn't be surprised if there was a decent dead cat bounce that could have been traded.

Having said that, this is a really bazaar situation. How could this company be blind sided like this from a JV partner that you would think actually wants to take the project forward. There's got to be an ulterior motive here.

Considering these events, I don't know how much work the JV partner could be doing on the forestry issues that prevent them from mining the bulk this deposit anyway.

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.

And:

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.

I've consulted my legal team from Get a Grip and Sons and they have advised that I should be quote 'quaking in my boots'. They are working on a detailed defence against this very dangerous comment.

 

[skc]

Wouldn't be surprised if there was a decent dead cat bounce that could have been traded.

There's 50% just today from 19c open to 30c high. I managed to get in at 20.5c and closed at 24c. Could have trailled the second part a lot better than I did. Oh well.

My guess is that the motive is either higher % ownership, or something nationalistic / protectionism agenda. Interesting to watch it unfold as long as you are not a holder.

 

[Steve C]

There's 50% just today from 19c open to 30c high. I managed to get in at 20.5c and closed at 24c. Could have trailled the second part a lot better than I did. Oh well.

My guess is that the motive is either higher % ownership, or something nationalistic / protectionism agenda. Interesting to watch it unfold as long as you are not a holder.

Can I ask a noob question - what would cause that dead cat bounce? the news is very uncertain so why would people start buying again today?

Thanks

 

[Sean K]

Can I ask a noob question - what would cause that dead cat bounce? the news is very uncertain so why would people start buying again today?

Thanks

Just cash backing is 25c or something.

Plus, it has about 200m ounces of gold equiv in the ground or so and still owns 80% or something.

So, dead cat = oversold knee jerk.

Potentially.

 

[So_Cynical]

My guess is that the motive is either higher % ownership, or something nationalistic / protectionism agenda. Interesting to watch it unfold as long as you are not a holder.

As happens in the developing world, id say the new majority owners of the JV partner want to "renegotiate" their participation...why because its their country and they can.

Can I ask a noob question - what would cause that dead cat bounce? the news is very uncertain so why would people start buying again today?

Thanks

The sellers are either very uncertain or certain they they are uncomfortable holding so they sell.

The Buyers are comfortable buying in the hope of a short term fast trade or just comfortable with the level of uncertainty at that price.

From memory 19c was support back in the dark days of late 2007 - but IAU is a totally different (much better) proposition now.

 

[Sean K]

Anyone else sus about why they have so specifically refer to being in compliance?

Indo Multi Niaga halts work at Tujuh Bukit site, Intrepid says


BY: ROBB M. STEWART From: Dow Jones Newswires July 23, 2012 11:25AM

SHARES in Intrepid Mines tanked 60 per cent after trading resumed today, following news that the minority partner to the explorer of precious metals had halted operations at their Tujuh Bukit project in Indonesia.

Intrepid today traded at 22 cents. The shares entered a trading halt in Sydney on Thursday, at Intrepid's request, ahead of a statement on the project.

That statement was issued the following day in Canada, where it triggered a 36 per cent fall in the dual-listed company's shares on the Toronto exchange.

Intrepid in its statement said joint-venture partner Indo Multi Niaga had suspended operations at the Java island project and requested several senior managers, including all expatriate employees seconded to IMN, to leave the site.

The Australian company said it has always been in compliance with all of its obligations under the joint-venture agreements and applicable law for the project.

Intrepid said, "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."

Intrepid has an 80 per cent equity interest in the project, which covers 11,621 hectares and includes several prospects where the companies are exploring gold-silver and deeper copper-gold mineralisation.

The precious metals miner in late June said new shareholders who had joined the register of IMN collectively own 80 per cent of the capital of the Indonesian company, which holds the mining licences for the project.

Intrepid said it was attempting to hold discussions with the new and original shareholders of IMN for drilling at the site to resume as soon as possible.

About $US95 million ($91.9m) in capital expenditure on the project has been solely funded by Intrepid so far, including financing for the original shareholders of IMN to meet contribution commitments, it said.

 

[So_Cynical]

Anyone else sus about why they have so specifically refer to being in compliance?

Because its going to end up in the courts...under Singapore law i believe, lol assuming that's legal in Indonesia...i have a feeling that the Law in Indonesia wont give a flying F*%k about the Law in Singapore or any decision a Singaporean court makes that wont be binding in Indonesia.

What has been factored into the share price today is that the Tujuh Bukit project is gone.

 

[skyQuake]

Just from the March quarterlies

IAU cash on balance sheet: 139

Expected Quarterly Outflow: 15.6

Cash = 123/
526m shares
=$0.235 cash backing as of 31st June

Slightly less now for working capital costs

 

[Steve C]

Just from the March quarterlies

IAU cash on balance sheet: 139

Expected Quarterly Outflow: 15.6

Cash = 123/
526m shares
=$0.235 cash backing as of 31st June

Slightly less now for working capital costs

As a beginner, can anyone explain the significance of this cash backing calculation?

 

[prawn_86]

As a beginner, can anyone explain the significance of this cash backing calculation?

Basically if themarket cap for a company is trading below cash backing it means that the market thinks that the only thing this company will do is continue to spend money and never get any projects off the ground.

If you were to buy the stock below cash value it means that you are getting every other project they are working on 'for free'.

So it just depends as to if you think their projects have potential to generate income or be re-rated once again by the market

 

[skc]

Just from the March quarterlies

IAU cash on balance sheet: 139

Expected Quarterly Outflow: 15.6

Cash = 123/
526m shares
=$0.235 cash backing as of 31st June

Slightly less now for working capital costs

Earmark $10-20m or so for legal costs...

As a beginner, can anyone explain the significance of this cash backing calculation?

Sometimes the share price reaches a "floor" at the cash backing... as you can imagine a scenario where the company simply abandon the project, dissolve the company and give the money out to the shareholders. Although in reality it rarely happens so the cash backing is further discounted as shareholders don't really have a say in accessing it.

 

[oldblue]

Although in reality it rarely happens so the cash backing is further discounted as shareholders don't really have a say in accessing it.

Yes. Much more likely is that the company will cut their losses and move on to some other prospect/project. Everyone keeps their jobs that way!

 

[Sean K]

So, it took them this event to actually look a little deeper to find out who they were co owners of this deposit with.

Surely they could have made this search the day after they found out the ownership had changed?

Tujuh Bukit, Indonesia PT IMN shareholders and board members named

Intrepid Mines Limited (“Intrepid”, the “Company”) (ASX & TSX – “IAU”) provides an update following on the advice to the market on 28 June 2012 regarding the change in shareholding of its Indonesian joint venture partner, PT Indo Multi Niaga (“IMN”).

The Company has sought to engage the original shareholders of IMN on the identity of the new shareholders, without success. Enquiries made at the Indonesian Ministry of Law and Human Rights revealed that the following additional individuals and entities were listed as shareholders of IMN as at 12 June 2012:

PT Cinta Kasih Abadi
PT Selaras Karya Indonesia Andreas Tjahjadi
Rahmad Deswandy.

The Company is not able to give any assurance as to the accuracy of this information, as the publicly available information is sourced from filings which are the legal responsibility of the Directors of IMN, and there is no assurance that these filings are correct or current.

It's taken a month.

 

[Sean K]

Anyone understand this deal with the Indonesian investor? Have they just given him 5% of the company for NIL consideration? In the hope that his influence in government et al will drive the sp up to where he automatically gets handed a bunch of shares? Like 25m of them or something. They are his once the company gets to $1.00 by the look, so $25m. I'm confused.

 

[namrog]

Anyone understand this deal with the Indonesian investor? Have they just given him 5% of the company for NIL consideration? In the hope that his influence in government et al will drive the sp up to where he automatically gets handed a bunch of shares? Like 25m of them or something. They are his once the company gets to $1.00 by the look, so $25m. I'm confused.

Seems that's the price of doing business in Indonesia..!

 

[shag]

Seems that's the price of doing business in Indonesia..!

yes sink the place or impose a quarantine around it. nothing good has come from it in recent memory. remember east timor....30yrs of terror.
b better when we have a few more yank millitary bases as long as australasia doesnt get screwed out of its antartic territories.

its just a transit route to rort australia, ie drugs, guns and economic 'refugees'.

i assume its greed that pushes risky ventures there like iau. hopefully west africa doesnt go down the same route.

 

[Sean K]

Wouldn't be surprised if there was a decent dead cat bounce that could have been traded..

Perhaps not so much a Dead Cat, but some certainty coming back to it's prospects. 20c back to 35c in 9 days.

Amazing that you have to hand over 5% of your company like this just to stay in the game.

 

[namrog]

yes sink the place or impose a quarantine around it. nothing good has come from it in recent memory. remember east timor....30yrs of terror.
b better when we have a few more yank millitary bases as long as australasia doesnt get screwed out of its antartic territories.

its just a transit route to rort australia, ie drugs, guns and economic 'refugees'.

i assume its greed that pushes risky ventures there like iau. hopefully west africa doesnt go down the same route.

Your rant could include almost any south east asian , south american, african, eastern european, former soviet, or a plethora of pacific islands, Oh and arab countries as well, remember the wheat for oil deal ..
That's just the way it is in these countries, so when investing in these places, it's worthwhile remembering that you can loose the lot, but if you know the game, it's possible to survive and thrive in these places, as a few of the biggest gold mining companies in the world today have proven in places like, let me see, oh yeah Indonesia..!!!
Everyone knows it's corrupt, at some stage you have to pay a price...!!

 

[So_Cynical]

Perhaps not so much a Dead Cat, but some certainty coming back to it's prospects. 20c back to 35c in 9 days.

Amazing that you have to hand over 5% of your company like this just to stay in the game.

I'm Surprised your amazed Kennas...you have worked in Central Africa and travelled extensively, you have seen crazy up close and you should know that crazy doesn't stop at street level it just continues on up the money chain, corruption greed and power perverts these people, in these wild west (anything goes) country's.

Indonesia is what less than 1 decade out of one of the greatest (worst) dictatorships in world history.