IGR - Integra Mining

[oldblue]

With the PoG hovering around all-time highs and production at Randalls underway since Sept it's a bit of a mystery that IGR's SP isn't doing somewhat better.

Being of a suspicious nature, I'm starting to wonder just how well production is going or whether problems are starting to emerge. Guess we'll have to wait for the March quarter report for that but any further SP weakness will see me take a few profits.

 

[Slipperz]

Saw it nudge up past the down trend last night and thought about putting a couple of hunded thou in the bag for the week. Good jump today...watching closely, the run could have legs!

 

[mr. jeff]

Saw it nudge up past the down trend last night and thought about putting a couple of hunded thou in the bag for the week. Good jump today...watching closely, the run could have legs!

That volume spike today for me was the signal I had been waiting for to take a trial position and see what will happen with the gold/silver talk, it may have a bit of gusto behind it - at least until ECB starts mentioning putting rates up to stave off inflation etc.... It has been a long time since there has been anything exciting about IGR, RRL, SLR and CAH, so maybe we have some return to form to look forward to.

Good luck.

 

[Slipperz]

That volume spike today for me was the signal I had been waiting for to take a trial position and see what will happen with the gold/silver talk, it may have a bit of gusto behind it - at least until ECB starts mentioning putting rates up to stave off inflation etc.... It has been a long time since there has been anything exciting about IGR, RRL, SLR and CAH, so maybe we have some return to form to look forward to.

Good luck.

The more I practice the better my luck!

 

[robusta]

Bit of a latecomer to the gold boom but bought into IGR today @ $0.48, inflation is in the air.

 

[madjohn]

yes but alot of the gold miners are still all not moving yet???

 

[mr. jeff]

Bit of a latecomer to the gold boom but bought into IGR today @ $0.48, inflation is in the air.

you have bought a slice of an excellent gold miner, with a good future.

How this turns out profit wise, I would really wonder.
I have concern that if/when the POG starts getting smacked down in the future, then these gold stocks (great as they are) may follow even though they have barely moved since October last year and offer great "value" (whatever that is).

But there is the other argument, that assuming POG will go down when the US economy and hence dollar begins to find strength again, then the value of gold as the AUD/USD rate falls may rise again and these miners may receive a re-rating.
Why so many mays you ask? maybe because may is the month before the QE2 finally sets sail and there could be new market forces pulling money out of ASX and rerating our dollar.

Just a thought.

So welcome to IGR Robusta, but I would say that even though it could be anywhere from here, you have at least chosen one of the best small goldies in AU to give yourself a chance. Lets compare notes in 2 months time and see which way it went.

BTW I hold no stock - I entered on that volume spike at start of April but have since withdrawn to await the next positive sign. good luck to holders. and watchers.

 

[oldblue]

Bear in mind also that despite record prices in USD, the PoG in Aussie dollars is still below the spike of over AUD1500 that it reached in May last year. And operating costs are all pretty much in AUD and increasing steadily.

 

[danbradster]

Bear in mind also that despite record prices in USD, the PoG in Aussie dollars is still below the spike of over AUD1500 that it reached in May last year. And operating costs are all pretty much in AUD and increasing steadily.

6 month AUD gold price chart -

It's in a pretty good position right now.

 

[mr. jeff]

6 month AUD gold price chart -

It's in a pretty good position right now.

Quite an interesting comment in the Fin review today about the small goldies and where the lifts may come from during this period of high gold levels (relatively high with AUD/USD) remarking that the lower margin miners may be the ones to chase as they will show greater percentage gains for the POG increases - ie. if the margin is 300/oz and the POG goes up $100/oz then they have just seen a bottom line increase of 30% as opposed to someone like IGR who would see an increase of just 15%
So whilst the higher margin miners are a better business case, they might not be the ones to see great share price growth during these times. in my opinion we may have to wait for the AUD/USD to drop or some other debt event to start a move. looking at the charts of SLR, CAH, SAR, IGR, RER they have all tended to pull back from highs for the last few months.


interesting chart from RMS pres of yesterday.
(SORRY ABOUT THE RMS BANNER but look at IGR up there, no cross promotion intended)

 

[JTLP]

Quite an interesting comment in the Fin review today about the small goldies and where the lifts may come from during this period of high gold levels (relatively high with AUD/USD) remarking that the lower margin miners may be the ones to chase as they will show greater percentage gains for the POG increases - ie. if the margin is 300/oz and the POG goes up $100/oz then they have just seen a bottom line increase of 30% as opposed to someone like IGR who would see an increase of just 15%
So whilst the higher margin miners are a better business case, they might not be the ones to see great share price growth during these times. in my opinion we may have to wait for the AUD/USD to drop or some other debt event to start a move. looking at the charts of SLR, CAH, SAR, IGR, RER they have all tended to pull back from highs for the last few months.
View attachment 42868

interesting chart from RMS pres of yesterday.
(SORRY ABOUT THE RMS BANNER but look at IGR up there, no cross promotion intended)

Didn't IGR hedge their production a while back? Don't think they would be benefitting from all time highs?

 

[mr. jeff]

from http://www.proactiveinvestors.com.a...agreement-for-randalls-gold-project-6874.html
"Integra Mining enters forward hedging agreement for Randalls Gold Project
Monday, May 03, 2010
Integra Mining (ASX: IGR) has entered into forward sales contracts as per the terms of the project finance facility agreement with BNP Paribas and Westpac Banking Corporation announced on February 18, 2010.

Significantly, the project financing will enable the Randalls Gold Project at base case production and at current gold prices, to 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 (ASX: NCM).

The contracts cover 91,952 ounces of gold at a price of A$1,359 covering two years of early production at its 100%-owned Randalls Gold Project development, located some 60 kilometres southeast of Kalgoorlie.

The total ounces forward sold represent less than one third of the Phase 1 Ore Reserves of the Randalls Gold Project. Of the total ounces forward sold, 57,043 or 62% are for delivery in the first year of the contracted period.

The forward sales agreement provides Integra with certainty of attaining a very attractive gold price, with an expected margin of almost $800 per ounce, for a proportion of early production during which the company is paying down the project finance facility.[/B]

Randalls is in production now, with this comment on 6th April 2011 release;

Production costs and operating profits are being calculated and details will be provided in the
March Quarterly Report due in the next few weeks, however, indications are that cash costs of
production will be materially below the Feasibility Study life of mine estimate of $574 per
ounce.

a production of 4g/T from the top of an open pit, for 7616 Oz in the month at commercial production rates. Very well done.

that is 91.4 kOz/annum from Randalls, for gross income $124M.
No info on margin yet, but that is a great result and assuming a cost of $550/oz, that gives just over $70M/year clear if my calcs a correct.

This hedging may very well be holding investors off though I agree and good pickup at that.

 

[fatmango]

IGR seems to be lumbering around 45c despite promising reports and the predictions of many. Any thoughts on what is causing this poor SP?

 

[mr. jeff]

IGR seems to be lumbering around 45c despite promising reports and the predictions of many. Any thoughts on what is causing this poor SP?

THERE ARE MORE SELLERS THAN BUYERS
.
which I like and am watching and waiting...

 

[fatmango]

waiting to buy I presume Mr Jeff

 

[mr. jeff]

waiting to buy I presume Mr Jeff

I have been waiting since November. I had a look again early April with that volume spike but it came to nothing.
I can wait. IGR has plenty to offer and it will shine again one day. (Unless some shark comes along and eats it.)

that's one thing about a choppy market, it's a pleasure to watch it fall if you aren't in it, means opportunity is getting closer. If you're in heavily, all that red makes you feel like you are being stabbed in the eye.

waiting waiting waiting waiting....

good time to be researching and watching development.

good luck.

 

[Miner]

I have been waiting since November. I had a look again early April with that volume spike but it came to nothing.
I can wait. IGR has plenty to offer and it will shine again one day. (Unless some shark comes along and eats it.)

that's one thing about a choppy market, it's a pleasure to watch it fall if you aren't in it, means opportunity is getting closer. If you're in heavily, all that red makes you feel like you are being stabbed in the eye.

waiting waiting waiting waiting....

good time to be researching and watching development.

good luck.

Dear Mr Jeff

Are you also an MP or a politician ?
You actually did not answer the question : Waiting for what ? To buy IGR more if the price further falls, to sell if price goes up , or to take over the company since you have been waiting since Nov ?

Interesting answer which all good politicians answer - no affirmation or no negation. Move on (Moving Forward )

Do hold SLR and I am waiting the price to rise as after reentry it is in red for me after selling in past with a profit.

Holding IGR for long time as I am convinced IGR has good intrinsic value.

My guess is IGR is deliberately keeping the price or sentiment doomed so that promoters can build up more avoiding acquisition - My wishful thoughts however . DYOR

 

[mr. jeff]

Dear Mr Jeff

Are you also an MP or a politician ?
You actually did not answer the question : Waiting for what ?

Hi Miner, I like your style.
I am not a military policeman or a politician.
I am very embarrassed to be called a politician.
I apologize if I said nothing, I err on the side of vagueness so that I do not step on toes with regards to sentiment etc, although I was answering fatmango's question on "waiting to buy?" by saying "I have been waiting to buy since November".

I was in this stock with a decent (relative to my account, probably quite small in reality) position during the run up from 30c in July 2010 to 55c October 2010, but I jumped ship at 52 and was happy with that. I have since entered in December (failed break) and April on the volume spike I mentioned earlier which I spoke of in this thread.

I am a big fan of this company and believe there is a continuing good move possible here.
This is why I am sitting on the sidelines and patiently waiting for the next move, I am with you on this stock miner. Hopefully it does not get swallowed - I am surprised there haven't been more moves in this sector during this retraction.

 

[Miner]

Hi Miner, I like your style.
.
I am very embarrassed to be called a politician.
I apologize if I said nothing, I am a big fan of this company and believe there is a continuing good move possible here.
This is why I am sitting on the sidelines and patiently waiting for the next move, I am with you on this stock miner. Hopefully it does not get swallowed - I am surprised there haven't been more moves in this sector during this retraction.

View attachment 43132

Good graph Mr Jeff and thanks for reply.

But please do not feel embarassed and no need to apologise.

I was just teasing you as LOL.

Take it easy and let us hope for the best outcome for IGR (conflicting though - for you to buy at lower price and for me to get the price up to sell

Cheers

 

[frankie_boy]

oookkkkkk...

Anyways, I am going to copy and paste...

OUTSTANDING GOLD RESULTS FROM LUCKY BAY
RECENT DRILLING AT LUCKY BAY HAS RETURNED 18.9 METRES AT 9.84G/T
GOLD
Integra Mining Limited (ASX: IGR – “Integra”) is pleased to report shallow high-grade gold
results from a recent reverse circulation and diamond drilling program at the Lucky Bay prospect,
part of the Company’s 100%-owned Aldiss-Randalls Gold Project near Kalgoorlie in Western Australia
(Figure 1). New intercepts include:
17.8 metres at 6.53 g/t gold from 42 metres depth, including
4.1 metres at 14.56 g/t gold from 44.4 metres
18.9 metres at 9.84 g/t gold from 12.8 metres depth, including
2m at 37.02 g/t gold from 20.4 metres depth and
3m at 16.50 g/t gold from 23 metres depth
13.55 metres at 4.46 g/t gold from 32.8 metres depth, including
1 metre at 20.57 g/t gold from 37.2 metres depth
7 metres at 4.36 g/t gold from 19 metres depth
Lucky Bay is located only 4 kilometres south of Integra’s Randalls Gold Processing Facility on a
granted mining lease. In January 2011 Integra announced a maiden inferred resource for the Lucky
Bay deposit of 25,000 ounces at 5.9 g/t Au (see ASX release 25 January 2011).
Recent drilling, conducted for metallurgical testing and resource to reserve conversion purposes is
located in the vicinity of the +1.5 g/t supergene zone (Figure 2). Very encouraging results were
received from the drilling and further confirm the presence of primary mineralisation beneath the
anomalous supergene blanket. A number of the recent high-grade intercepts are outside of the
existing mineralised envelopes used for the inferred resource estimation (see figures 3 and 4).
Gold mineralisation at Lucky Bay is hosted within carbonaceous shales and siltstones and appears to
be structurally controlled. The mineralisation strikes north-northwest and dips approximately 60
degrees to the south-southwest. Mineralisation is defined by the abundance of pyrrhotite and
associated with chlorite/hydrothermal magnetite/carbonate alteration. The width of the
mineralisation varies up to nearly 20 metres over a strike length of about 200 m.
These significant drill results from Lucky Bay do not fall within the current Resource boundary, and
consequently the deposit will not be included in Integra’s Reserve upgrade which is expected to be
released within the next month. It is anticipated that a Reserve for Lucky Bay will be announced
later in the year when all the pending results have been received and remodelling of the deposit has
been completed.