IBG - Ironbark Zinc

[ParleVouFrancois]

After I posted an analysis on my blog IBG, I was sent this URL via email, as you can see mining in Greenland is nothing short of one of the most difficult places to do it. Not because of natives or a difficult government, but just the sheer harshness of the environment makes it difficult to mine on Greenland. However the prospect of the largest Zinc deposit in the world and a small market cap are positives, just trying to add some balance to the thread. I would buy in but my capital is all tied up, good luck to the people who buy in, looks to be a winner.

http://www.eastgreenland.com/database.asp?lang=eng&num=428

 

[adobee]

Placement at 24c.. $11.54mill

not bad but I would have thought they could have hit this up around 28c and kept a bit of romance in it for shareholders..

whats next to come on this one , increased JORC ?

 

[Who Dares Wins]

I cannot believe how much discussion there is on Hotcopper about IBG compared to Aussiestockforums.

Its like hardly anybody who follows this website knows about IBG. On hotcopper there are a couple of posts most days!

IBG is hot over there at the moment and here....what a couple of posts in the last year.

The biggest Zn deposit in the world doesn't get a comment here.

 

[Iridiumz]

This stock is in the stage of shooting up, yet no one is discussing or noticing it here

 

[frugal.rock]

This stock is in the stage of shooting up, yet no one is discussing or noticing it here

Crazy, a US LOI had sent this through the roof. Have previously held this stock, but alas not now...

 

[Dona Ferentes]

Ironbark Zinc sustaining a bit of a reappearance, as noticed by @frugal.rock last November. Probably had its early run, and now the tricky bit, of spending the money for meaningful outcomes, has arrived. From the AFR :

[IBG] was looking for $3 million in fresh capital via a two-tranche placement, according to terms sent to potential investors. The new shares were being offered to funds at 2.4¢ each, which represented an 11.1 per cent discount to Ironbark’s last close, and an 18.3 per cent discount to the 15-day VWAP.

Ironbark owns the Greenland-based Citronen zinc deposit, and money raised in the funding round would towards financing a bankable feasibility study for the project.

 

[greggles]

IBG forming an uptrend since late August and moving back towards resistance at 3c. Bullish price action today.

There is a good case to be made that IBG are undervalued on the basis of a peer to peer comparison with other ASX-listed Zinc companies. The company itself has made that argument as you can see below. Project financing for their Citronen Zn-Pb Project in Greenland is currently being sought. Offtake agreements are in place. The BFS is complete.

I'll be watching for a bullish break above 3c.

 

[greggles]

Ironbark Zinc has appointed Mr. Alexander Downer and Mr. Paul Cahill as Non-Executive Directors, effective 1 October 2021. Mr. Downer is, of course, Australia's longest serving Foreign Minister.

The announcement was marked as being not price sensitive. However, it is interesting to note that the IBG share price has jumped 21.9% to 3.9c, so it clearly was price sensitive. Mr. Downer is a very well known and well connected former politician.

 

[greggles]

IBG up another 14.29% to 4.8c today. It hit a high of 5.2c earlier. The bullishness of IBG recently is surprising me, not sure what's driving it at the moment. Some news on the way perhaps?

 

[Sean K]

IBG up another 14.29% to 4.8c today. It hit a high of 5.2c earlier. The bullishness of IBG recently is surprising me, not sure what's driving it at the moment. Some news on the way perhaps?

I can't believe those JOC resources with a MC of below $50m or so. There must be something wrong with this. Doesn't scan.

 

[Sean K]

Some news on the way perhaps?

They are waiting on finance to be announced in Q4 from EXIM. Might be it.

Had an extraordinary month. Wish I had have seen your earlier posts. The grade on this is incredible. Going through their last few anns trying to find out what the hitch is. The comparison to Rumble above is pretty telling. Looks waaaaayy undervalued. Maybe this is covered in ice for most of the year??

 

[greggles]

They are waiting on finance to be announced in Q4 from EXIM. Might be it.

Had an extraordinary month. Wish I had have seen your earlier posts. The grade on this is incredible. Going through their last few anns trying to find out what the hitch is. The comparison to Rumble above is pretty telling. Looks waaaaayy undervalued. Maybe this is covered in ice for most of the year??

View attachment 131081

Yes, IBG has been flying under the radar. However, I think the recent appointment of Alexander Downer to the role of Non-Executive Director has motivated some to take a second look at the company. I suspect that many have also concluded that IBG represents value at current levels. I think it will go higher still, but thought that it would require a catalyst to get it moving as it has been quite a boring stock for the entirety of 2021... up until October.

Edit: Just noticed that the company just responded to an ASX Price Query with the following explanation for the unusual trading in its securities:

3. The Company notes that there has been a positive response to the ASX announcement made on 28 September 2021 titled “Alexander Downer AC and Paul Cahill Appointed as Directors”

 

[Sean K]

IBG took a breather after been pumped and dumped for a few days. Now formed a little flag with volume decreasing looks set for another break up potentially. Announcement of positive financing might re-rate this fundamentally.

 

[Sean K]

That little flag still there and trying to go north. Zn flying which might give it some more impetus along with a decision on finance expected shortly. Even though it's ran pretty hard it still looks undervalued on a resource to MC perspective.

 

[Sean K]

Market cap still around $50m and when you compare it to RTR it seems way undervalued.

Must be a lot of risk factored in to this. Probably capex, but also perhaps that it's Greenland. On the map it looks like it should be under a kilometre of ice.

I doubt A. Downer wouldn't have got on board if these were insurmountable though.

 

[Sean K]

I wonder if IBG is going to continue the form? Fingers crossed.

 

[greggles]

I wonder if IBG is going to continue the form? Fingers crossed.

View attachment 131698

It's starting to look a bit toppy, so i'm expecting either a small retrace or a period of consolidation above 5c. I could be wrong though, it has certainly performed well in the last couple of months.

 

[Sean K]

It's starting to look a bit toppy, so i'm expecting either a small retrace or a period of consolidation above 5c. I could be wrong though, it has certainly performed well in the last couple of months.

I'm betting on the EXIM financing coming through, which is what most are I guess. If they get that then a MC of $100m is not out of the question when compared to peers. Less than half of RTR is pretty conservative.

 

[Sean K]

I wonder if IBG is going to continue the form? Fingers crossed.

Well, that set up failed dramatically. Knocked me out short term, but fundamentals on the deposit and getting the funding are still compelling.

 

[Sean K]

Well, down to 4c now and must be reconsidered. I think it's late traders buying in and selling off at a loss due to the high risk play, that this is. Seems to be only the finance with the US that's the issue. Although, if it's that good, why can't they go to the market or a JV partner to get it up? Makes me think there's something wrong with it that I can't see on the surface. I tool an initial bite just on the resources and the chart patterns and Downer coming on board. EXIM decision before the end of the year. There will be a TH for the decision I assume. Safe play is to wait till that's out I guess as a negative result will probably send this back to 2c. On the other hand, might gap up 5c on positive news too...