IDO - Indo Mines

[Mr Right]

I belive this is a potential money maker!

Reason why?

Scoping study to be released shortly but i did my quick estimate on it.

Producing 500,000 tonnes per year this is equivalent to 500,000x$800=400 million per year for 20 years min = $8 bilion owns 70% = 2.4 billion

Infrastructure already exists therefore capital cost = 10 -20 million they only need to crush it down to 25 mm to be able to achieve the 50 -65 %Fe.

Test is in progress and results are showing that the 50 -56 % Fe is possible through a simple one stage magnetic separation quite cheap.

Just remember this is a hematite ore and very cheap to process.

Operating cost came up to be around the 10 mill per year this is just a rough estimate remember project in Indonesia labour cost cheaper that in Australia. Therefore 20 years x 10 mill = 20 mill worst case scenario

cash in hand 2.2 billion

number of shares in issue + options = 80 mill

Take tax and other issues of shares looking at around the $10 -$25 per share i actualy calculate it to be $25 per share.

I could be wrong do your sums. So far being doing well did well with Haz and Lrl first to post!

 

[Kat82]

IDO - Indo Mines Ltd

Do we have any holder of this stock in this forum? Any idea why the stock price dropped almost 6% today?

 

[Woody]

Yeah, I hold. They have run up from around 120c to 140c over the last few weeks. Have pulled back before. Volume wasn't huge. Not hearing any bad vibes, in fact quite the opposite. Most of this stock is held by serious long-term players now. Wouldn't like to see two or three more days like today though.

 

[Kat82]

Yeah, I hold. They have run up from around 120c to 140c over the last few weeks. Have pulled back before. Volume wasn't huge. Not hearing any bad vibes, in fact quite the opposite. Most of this stock is held by serious long-term players now. Wouldn't like to see two or three more days like today though.

Woody, thanks for replying. Read some local articles dated Mar ~ May 07. This is a huge project and the local government is very keen to proceed as it will benefit the local economy. Indonesia currently imports most of the raw materials to produce steel and they are very eager to source domestically. Krakatau Steel, the state-owned steel company, needs 150kt per month of raw materials and currently only buy 10k-15kt p.m. from the domestic suppliers.

The picture is not all rosy though. The local farming community voiced their objection to the proposed steel plant as they believe it will destroy the eco-system. (Somehow this is not mentioned in any of the company's announcements.) It has become a heated issue.

Krakatau Steel also said that there is a lot of potential in the iron sand business in Indonesia. However, very few investors committed capital so far because the profit margin is very low. When I look at the numbers provided by the company, it looks very decent. I wonder why Krakatau Steel said that.

I am also aware that some Chinese companies have built some sort of "concentrator" in Indonesia as the local companies are not willing to put in capital. It appears that the Chinese companies are very desperate for iron ore/sand.

 

[Woody]

Kat I have also followed this stock closely. I believe it is a tremendous project.

Think you have greatly overstated the position re local objections. As with any project, these days it would be amazing if there a local greenie or two having their two bobs worth. The environmental impact of this project are very small compared with most mining ventures. It's all been laid out by the company. Don't know about the Krakatau Steel observation you make re investment, but sounds like bull dust to me.

I personally think things are extremely rosy.

For whatever reason, maybe the general market, it seems a lot of small holders have dropped out in the last few days. IMO they will regret it. As you can see, I remain very bullish on this company. It's well backed, well managed, well connected, tightly held and as you say, will provide a major boost to the domestic Indonesian steel industry. A lot to like.

 

[dogwithflees1983]

Anyone still following this stock? still awaiting the green light from the indo gov't who seem to be taking their time!!

 

[Kat82]

Anyone still following this stock? still awaiting the green light from the indo gov't who seem to be taking their time!!

Yes I am still holding on to it. The latest is the Indo Parliament is reviewing the proposal and a team have gone for a site visit.

 

[springhill]

MC - $54m
SP - 10c
Shares - 538m
Options - 1.5m
Cash - $49m

A cashed up spec looking to focus on producing pig iron in Indonesia. Not the sort of path I would take if I had nearly $50m to sink into a project, sometimes it is the path less followed......

Indo Mines is pleased to provide Shareholders with an update on its plans for 2013.
As previously announced, following completion of the placement of shares to the Rajawali Group, a number of senior appointments were made to the management team of the Company’s 70% owned subsidiary, Jogja Magasa Iron (JMI).
Subsequent to the appointments being made, an in depth analysis of the Company’s short and long-term strategy has been undertaken. The review has specifically focussed on JMI’s obligations as defined under the ‘Contract of Works’, changes in Indonesian Government legislation, local community commitments and expectations, and delivering a return on shareholder investment. The work has been ongoing, at both the operational and Board level to critically review the plans andoperating structure of the group.

The business remains focused on achieving the Company’s vision to be ‘Indonesia’s number one producer of pig iron and associated products from iron sand’.
As a consequence of this review, the Company will focus its attention on accelerating pig iron production. This renewed focus and emphasis will lead to a significant increase in the Company’sactivities relating to full scale Direct Reduced Iron (DRI) Metallurgical testing over the balance of the year. The tests will include the coal gasification of local Indonesian coal and associated ironsand reduction and smelting testwork. Further detail of the specific tests and engineering design will be made available after finalisation of contract and partnership arrangements.
A key component to achieving the successful implementation of the pig iron project is the simultaneous development of required infra-structure e.g: electric power generating capacity, port development, air separation plant, slag handling and processing. The Company is currently in discussion with potential partners and reviewing the project management and integration structure.
Further information will be made available once the structure is defined.
The delivery of pig iron capability is the main priority for the Company. The project will be implemented in phases with Stage 1 targeting 500,000 tonnes of iron concentrate productioncapacity in the first half of 2014, climbing to the required 2 million tonnes capacity by the latter part of 2015. The pig iron plant and associated infrastructure is expected to commence operations in the first quarter 2017.

In keeping with the renewed emphasis on pig iron production and the phased approach referred above, JMI is in the process of making application for various approvals and permits for it to operate in accordance with this strategy. Consistent with this, discussions with vendor suppliers are ongoing and some orders have been placed. Further orders are expected to be placed as engineering studies progress.