I've been keeping an eye on this one, and although I don't as a rule buy pure grass roots plays, the valuation on IMA looked too compelling to pass on. Picked up a little 10,000 share position @ 62 cents.
If this follows pattern, they should receive US1.15 million from ABX in August for the premium priced warrant exercise. I can't see how the first little 1776 meter drilling round will effect that, even if poor. It's just too early for ABX to walk away given their district philosophy. If results are acceptable, I suppose there is a chance ABX might just JV Potriellas and commit to a US3 million exploration program as well?
I'm also presuming the initial results will be inconclusive, as by nature, this kind of project takes time. Realistically, the chances of coming up with the big news that today's breed of gold stock speculator needs is pretty small. Obviously to play this one, we need a time frame that reflects more than one little drill program.
Capitalization, or more specifically the enterprise value is extremely small (after wts exercised I show 13.5 million shares @ 60= US 5.5, but cashed up with US3.2= Enterprise value of only US2.3 million). Nothing has been built into the stock price to reflect some pretty decent properties in key locations, with a key partner financing them. With all the air let out of the valuation, looks like a good time to buy.
I see where they've been promoting. This is evidence in spades of how futile, and in fact counterproductive that approach is. I know you have preached that on more than one occasion.
Seperately, what do you make of MNP? This is a big year for them, and the stock is being badly dribbled on. Is word leaking out about the drilling? That area is so prolific, you'd think they'd be finding something? |
