IRL - India Resources

[jonojpsg]

Agree with a lot of your points ands. I am waiting to see what the next quarterly shows up as far as receipts goes - just to see whether their cashflow from Surda is going to actually meet the ongoing needs of the company or not. Still some uncertainty with what they are actually getting paid for the copper by HCL??

Definitely agree that they have potential - India is huge and with their growth will continue to need ever increasing amounts of raw materials.

I would say wait and see before plunging more money into them tho

 

[shares]

Finally some relief for holders

Market Update: http://www.asx.com.au/asxpdf/20080710/pdf/31b3b7x7fg3szj.pdf

Up a pretty 50% at close.

I don't hold any IRL at this point. Like jonojpsg I feel I should stay on the sidelines

 

[ands]

They didn't say much in the announcement apart from confirming that the Surda Mine is on track to meet its target of 37,500 tonnes of ore per month. Maybe people were worried about they output of Surda? They mentioned that the have started drilling a Zinc Project in India and have intersected Zinc with the first hole. Early days yet. As jonojpsg said it will be interested to see how the sales affect their balance sheet. At least the share price rise gives us some hope...

 

[ands]

Not looking good for IRL with this Monarch Gold Collapse... I don't know how well these voluntary administration situation usually end up, but what's the bet IRL won't get very much (if any) of their 3.5 million back... You have to feel for Territory don't they have like 15 million riding on them? I haven't done much research on Monarch, but from what I can see they had 2 projects.

Mt Ida - producing 50,000 oz per year (proposing to spend 5m to increase to 75,000 oz per year.

Mt Magnet - recommence operations mid 2009, 100,000 oz per year.

Is it worth Territory and IRL buying out Monarch? How many shares does Monarch have on issue? Or are IRL fully focused on India? They could probably buy them out pretty cheap, but can they turn around a dying company...

 

[Miner]

Not looking good for IRL with this Monarch Gold Collapse... I don't know how well these voluntary administration situation usually end up, but what's the bet IRL won't get very much (if any) of their 3.5 million back... You have to feel for Territory don't they have like 15 million riding on them? I haven't done much research on Monarch, but from what I can see they had 2 projects.

Mt Ida - producing 50,000 oz per year (proposing to spend 5m to increase to 75,000 oz per year.

Mt Magnet - recommence operations mid 2009, 100,000 oz per year.

Is it worth Territory and IRL buying out Monarch? How many shares does Monarch have on issue? Or are IRL fully focused on India? They could probably buy them out pretty cheap, but can they turn around a dying company...

Currently as the name suggests India Resources Ltd is focused in Indian copper, Indian Diamond all. WIth MK departure the top management is heavily loaded with Indian managers too so it is more than unlikely that IRL will move their focus out of India probably next 6 months

I could be wrong on my assumption so please DYOR and I do not hold IRL

 

[ands]

$1 million down in the quarter and $1 million left in the bank. They claim that the September quarter will be cashflow positive for the Surda Copper Project, either it has to be positive or Monarch Gold have to (somehow) cough up some money, otherwise IRL will be very low on funds in a few months...

 

[prawn_86]

I have an email in my inbox from the MD stating that they would be cashflow positive by May.

Pathetic management, even without Keirnan, IMO

 

[ands]

I have an email in my inbox from the MD stating that they would be cashflow positive by May.

Pathetic management, even without Keirnan, IMO

I have been contemplating just selling out for a while and taking a pretty big loss, you are just throwing some more wood on the fire by saying that. You are on the money, they aren't the best, like I posted before, they have said since they first listed that they were going to explore coal opportunities in India... nothing has eventuated from that. They might end up being negative next quarter, being forced to write down their investment in Monarch as a $3.5 million loss and having to raise more capital through another SPP... Thinking of all these negatives is making it sound even worse...

 

[prawn_86]

I sold out a while ago for about a 15% loss and in hindsight it was one of the best things i did.

I managed to find that email:

...
On the positive side of things there are people who have sold out of IRL (and Monarch), and IRLs share price is low by any standards. IRL is targeting May 2008 to be cash positive out of revenues from the Surda copper project. This represents a significant buy opportunity for investors who understand the potential.
...
Regards

Eoin Rothery
Managing Director
India Resources Limited

 

[Miner]

I sold out a while ago for about a 15% loss and in hindsight it was one of the best things i did.

I managed to find that email:

Never mind

I have asked verbally (no email) to one of the directors in a social occasion about the IRL share prospect when I bought at 40 cents immediately after listing. It came down at 34 cents and he advised me to hold. His statement was we are doing well and just wait for January and we will come with good news.

January, Feb, March gone and I bailed out IRL at 20 cents.

Thank God, I could have landed at 4.5 cents if I believed him any further.

I have serious doubt on the reliability of the Board of IRL. It has not changed even after MK has resigned. There are many more players who sell Fire Pill in another name.

I do not hold any more IRL - enough lessons learnt for me

 

[ands]

Haha, I think the MD has now shown how poor management is. He has bought 160,000 more shares in IRL. Is he mad, mind you IRL is worth so little now it was only $7220 for the shares. It looks like he is taking advantage of everyone else's misfortune in believing him and his team would make this company cashflow positive. Alot of people have been losing money, people buying it during the IPO, SPP (20c) and he decides to buy more when it is down to 4.4c. Is shareholders confidence supposed to increase knowing the director has bought shares?

 

[Miner]

Haha, I think the MD has now shown how poor management is. He has bought 160,000 more shares in IRL. Is he mad, mind you IRL is worth so little now it was only $7220 for the shares. It looks like he is taking advantage of everyone else's misfortune in believing him and his team would make this company cashflow positive. Alot of people have been losing money, people buying it during the IPO, SPP (20c) and he decides to buy more when it is down to 4.4c. Is shareholders confidence supposed to increase knowing the director has bought shares?

Very Good point but that is becoming a trend now in business

Michael K has sunk Monarch Gold (ex Chairman of IRL) and now wants to takeover Monarch from the administrator

They are not the only ones but few more are there to do the same
It is mainly ASIC is so useless organisation they only do the post mortem and that too very little

 

[ands]

Ok, after being too optimistic for too long. I've sold out at 5.5c. I couldn't take it any longer, it is the only share in my portfolio that I don't have any confidence in. The SP is now 4.6c after going as low as 4c and they just announced a $12.6 million loss. All this after they continue to claim they are going to be profitable soon. I just couldn't bring myself to trust them any longer. If this company doesn't go bankrupt miracles do happen.

 

[Reealjrd]

At present gold is at a position where you can book profit. But keep in mind only go for intraday and dont have any holdings for 2-4 months.

 

[jonojpsg]

FINALLY! Announcement out - Surda is cashflow positive, and from the sounds of things will stay that way and only improve. Might well be worth a look at this one as their MC is about $4m at current prices.

 

[woltage]

No hard numbers in latest report claiming "positive cash flow". And all of a sudden its "significantly" above break even...

Having trouble finding actual fixed rate with HCL and production costs

Even with the recent the large increase in volume around 0.016 i'm hesitant to buy in with such vague info

 

[Miner]

Looks like this stock is not loved by any one as there was no posting in ASF since Nov 08

Any way I think this is the only Australian company in India which is producing in India by Indians and Australians with shareholdres in Australia

I noticed the share market plummetted today which is not a new thing for IRL.
However what I also noticed the volume exchanged today 1.3 Millions .

Code Last % Chg Bid Offer Open High Low Vol
IRL 0.014 -17.65% 0.014 0.016 0.016 0.016 0.014 1,343,000

Where as last four tradings the volume ranged between 45,000 to 250,000.

My is I am speculating there could be a bad news (Director Selling knowing something, bad production, organisation change, legislative change in INdia or all of them ) or good news (Director buying)
(Disclaimer I do hold a small parcel)


13 Mar 2009 0.017 0% 0.017 0.016 76,000
10 Mar 2009 0.017 -15% 0.017 0.017 45,000
09 Mar 2009 0.020 25% 0.020 0.019 250,000
04 Mar 2009 0.016 -20% 0.020 0.016 51,000
03 Mar 2009 0.020 25% 0.020 0.015 292,935

 

[reggie_001]

Looks like people have lost interest in this one. Have announced that Surda copper mine is now profitable and cash flow positive and should any day now announce their $500 million coal mining deal with Bankura (signed LOI about 10 weeks ago). Anyone care to share their views?

 

[prawn_86]

Anyone care to share their views?

Okay, management constantly over-promise and under deliver. They are cash flow positive over 2 years after they first said they would be, so i wouldnt hold my breath for the next project. I have not looked at the share price for about 18months but can bet its not healthy and there has probably been cap raisings along the way

 

[Miner]

Hi IRL followers

Could any one please share his or her observation why and how could IRL is going through a heavy transaction of millions of shares in one day and no trade for a couple of days?

I did put it in competition sheerly by fluke as a long time holder. But this behaviour is just unknown to me.

At one time people like Twiggy etc used to hold it and share price went up to 40 cents - no joke as I bought some then for my son as a gift. But typical of my investment. IRL went south.

Now the SP has been hovering around 2 cents and less for long time. MC is poor and so is the company performance.
At the same time Alexandara Resources has become a major holder. All very confusing to me

There is no record at ASX site about the top 20 holders.

The company last year raised capital and now the price of shares is much lower than capital issue price.

Any light will be appreciated.

Cheers