IGR - Integra Mining

The temporary suspension relates to last Thursday's trading halt which was pending a capital raising announcement due by this morning. I assume that it will be to do with financing the Aldiss-Randalls gold project.

Temporary suspension is an automatic extension of this. My interpretation is that the announcement isn't quite ready for release, for whatever reason.


Holding IGR.

Disappointing to read that IGR is to raise new capital via an issue to "sophisticated investors".

An SPP or rights issue to us unsophisticated current shareholders would have been a better idea.

currently holding these @ .30, not sure how long to have them for though.

randalls does look promising though.

I was a DIO shareholder, whom accepted the RMS bid.

I spoke at length to DIO. The guy I was speaking with reckoned Avoca would be looking at Integra next.

I looked into it some more. Makes sense from an economies of scale perspective and to realise synergies. There would be lots to benefit from the consolidation of the main players in this nearby region, and I think AVO is already progressing down this strategy. So I picked up some IGR.

Anyone got anything from the SPP allocation? The new shares are meant to commence trading today, but yet no annoucenment...

Nicks said:

I was a DIO shareholder, whom accepted the RMS bid.

I spoke at length to DIO. The guy I was speaking with reckoned Avoca would be looking at Integra next.

I looked into it some more. Makes sense from an economies of scale perspective and to realise synergies. There would be lots to benefit from the consolidation of the main players in this nearby region, and I think AVO is already progressing down this strategy. So I picked up some IGR.

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Nicks, I was under the impression that DIO was vehemently opposed to the RMS offer. Is this the impression you got??

SilverRanger said:

Anyone got anything from the SPP allocation? The new shares are meant to commence trading today, but yet no annoucenment...

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It's actually 19th November, but not sure what time ??????? Suggest you ring computershare for accurate verification.....
Nice demanding share of recent days......

$20Shoes -

This is the interesting point - DIO were vehmentley opposed to the AVO offer. It was at this point that I spoke to the company secretary (I think that was his position) at DIO whom was very much pro RMS (the RMS offer had jut come out and was superior to the AVO offer, and at that stage AVO had not had much takeup of their offer).

RMS were a little slow, in fact too slow, in getting their offer out. By this time AVO had enough time to get a sizable (though not controlling) stake in DIO. Enough to get 3 seats on the board. Then, magically, DIO's stance on RMS changed. Now, RMS are probably going to hit around 40% also. Interesting situation, 2 majority shareholders neither with a controlling interest. DIO obviously have a good asset and AVO wanted to get their hands on it.

Anyway this thread is about IGR. It was at this phone call when this DIO guy was basically saying AVO can rack off for all he cares, that he said that they'd (AVO) be looking at Integra next. What does this mean? not much really as he works for neither AVO nor IGR.... but DIO he does and as such he would have as good an understanding as anyone of the scene out there in the Eastern Goldfields, and the management of these companies. Probably also have a good insight into the politics, values, strategic plays and synergies that would all be going on between DIO, RMS, AVO and IGR.

If the bigger AVO really do want to grow, and their organic growth has somewhat peaked, then it is clear that they want to get their greedy little hands on quality nearby assets such as DIO's frogs leg. IGR has some excellent assets too and recently have been posting some impressive drill results. The best synergies that can be realised is if AVO are able to utilse their resources and equipment to delo the area above and beyond what they currently have.... and they certainly have pumped a lot of capital in developing their Higginsville site.

Thus I note UBS have taken up 10% in IGR and the share price, gold price, and gold in the dirt, all keep increasing. Too many ticks in the right boxes to not see this stock in my portfolio. Last stock I had that reminds me of IGR now was AVO when I bought it for 0.25c in around 2004/05. It just kept going up from there.

Cheers Nicks. I won't sidetrack this thread any further. It is a very interesting situation, and one I intend to watch closely. Thanks again for your detailed answer.

I sold out of IGR as I didnt like the look of their cash flow statement. RMS released theirs 1 day later which looks much healthier. They have lots of cash, are actually bringing in quite a lot of revenue from actual mining and have a very nice gold asset they are sitting on.

IGR have an interesting assets too but the cash flow position was too weak for my liking. But it is in its early days so im sure it will do well eventually. I still think there will be some further consolidation in this region.

RMS is cashed up, selling gold and in a very healthy position with low costs per ounce (I think its around $450 from memory).

Comparison between the two on the basis of cash flow is rather academic of course in that RMS is a producer whereas IGR doesn't expect to earn its first dollar before September this year. There's a lot of attraction in following the cash but we need to dig a bit deeper.

Market cap of both is remarkably similar - RMS $164m v IGR $178m - but the differences are stark. I notice that RMS did not include a JORC resources figure in the Dec quarter report. The last number I saw was 70k oz. Has that been increased or is the work still proceeding?
IGR on the other hand reported in Dec quarter report that total Indicated and Inferred resources for the Randalls project is 1.13m oz.
The RMS bid for Dioro further complicates matters!

Is the current positive cash flow from RMS more attractive than the future earnings from IGR?

Too hard for me!

I'm glad I hold shares in both
I am buying IGR for the consolidation story in the region, but I too would be glad to see the first ounce of gold

Considering a buy in come Monday.

Reasons:
- $73 Million in cash (most coming from loan facility - BNP Paribas & Westpac) to fund gold project and production which is expected in September 2010 (as per latest quarterly)

- Total Capex expected to be $64 million.

- On Phase 1 base case production of 75,000 ounces per year, and at current gold prices, the Randalls Gold Project will generate approximately $50 million of operating profit per year and will rival or exceed the profitability of any other domestic Australian gold miner with the exception of Newcrest Mining Limited (as per IGR ann mid feb)

- Potential of Maxwell, Santa & ****-eyed Bob Underground Mine's

- 755m shares on issue

- Aiming to get output to 140,000 oz p/a

- All regulatory approvals received

Does anybody know the cash costs for their first mine and what percentage the top 20 own?

JTLP

JTLP said:

Considering a buy in come Monday.

Reasons:
- $73 Million in cash (most coming from loan facility - BNP Paribas & Westpac) to fund gold project and production which is expected in September 2010 (as per latest quarterly)

- Total Capex expected to be $64 million.

- On Phase 1 base case production of 75,000 ounces per year, and at current gold prices, the Randalls Gold Project will generate approximately $50 million of operating profit per year and will rival or exceed the profitability of any other domestic Australian gold miner with the exception of Newcrest Mining Limited (as per IGR ann mid feb)

- Potential of Maxwell, Santa & ****-eyed Bob Underground Mine's

- 755m shares on issue

- Aiming to get output to 140,000 oz p/a

- All regulatory approvals received

Does anybody know the cash costs for their first mine and what percentage the top 20 own?

JTLP

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I havn't seen any cash operating costs for the Randalls Project but IGR reckon that Phase 1 at 75k oz pa will produce a $50m operating profit. I wonder what PoG assumption they use there?

As at last balance date, top 20 shareholders held 60.81% of the shares but of course that includes nominee holders who may hold for numerous beneficial owners. Three substantial holders held 16.83% between them.

oldblue said:

I havn't seen any cash operating costs for the Randalls Project but IGR reckon that Phase 1 at 75k oz pa will produce a $50m operating profit. I wonder what PoG assumption they use there?

As at last balance date, top 20 shareholders held 60.81% of the shares but of course that includes nominee holders who may hold for numerous beneficial owners. Three substantial holders held 16.83% between them.

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Thanks oldblue.

Quick question...are there any major risks still associated with IGR? (apart from the obvious). Is it just a matter of them reassembling the Mill and all systems are go?

I note that IGR has not appreciated as opposed to other goldies (both producing and not) - PRU, OGC, AVO etc

JTLP said:

Thanks oldblue.

Quick question...are there any major risks still associated with IGR? (apart from the obvious). Is it just a matter of them reassembling the Mill and all systems are go?

I note that IGR has not appreciated as opposed to other goldies (both producing and not) - PRU, OGC, AVO etc

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All the easy questions!



I've learnt the hard way not to assume anything with miners but IGR looks to me to be about as good a bet as there is amongst the "emergers".

Just found the company's presentation of 30 Oct 2009 which shows Phase 1 cash costs of AUD574 oz in the Bankable Feasibility Study.

IGR might well be showing some long overdue positive technical signs. The inside trader has it in a short and medium term up trend.

It's risk level was 20 cents and it has stayed above this. Regina Meani, a chartist, describes how this stock has been caught up in a 'volatile diamond' pattern. She advises that as price moves toward the upper barrier of 40 cents, a breakout to 60 cents is likely with the potential to 85 cents and higher.

I hold this stock and with the current positive signs, will increase my holdings.

Crom said:

IGR might well be showing some long overdue positive technical signs. The inside trader has it in a short and medium term up trend.

It's risk level was 20 cents and it has stayed above this. Regina Meani, a chartist, describes how this stock has been caught up in a 'volatile diamond' pattern. She advises that as price moves toward the upper barrier of 40 cents, a breakout to 60 cents is likely with the potential to 85 cents and higher.

I hold this stock and with the current positive signs, will increase my holdings.

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HUH? A 'volatile diamond'? Can anyone else see a diamond there? Looks like a descending triangle to me. A break from a triangle either way is normally the length of it's greatest width I think, so 22 to 35c ish = 13c ish which = either 48c on the up, or 11c to the downside.

85c higher? I want what she's smokin!

Must check the registry to see how much she's got riding on it.

hm, a 30,000,000 pre open cross trade at $0.28 - half a month's volume already.

Depth is looking good, 2 to 1, could be a nice up day for IGR.

roland said:

hm, a 30,000,000 pre open cross trade at $0.28 - half a month's volume already.

Depth is looking good, 2 to 1, could be a nice up day for IGR.

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Yep Roland, IGR have been going sideways for quite a few months now 0.24-0.28c getting readyfor their first pour according to anns Sept. sometime. I own and look forward to a bit of payback. 30m open is quite a start and its about time (see competition results)