Bear: IMO the current deterioration has been caused by a number of negative influences:
1. The market has not seen value in the Dayk merger, thus, the shares have been discounted. The company has not released news on their work on the Sebuluh Fault in N Kalimantan which would likely show the value of such a merger. The merger did add a good measure of cash to IPJ's position.
2. Bre-X scam. Also, there have been other recent misreportings of values from assay results in the market place, not IPJ but various other companies. this is shaking the confidence in jr mining plays.
3. The Indo scene is like a plague on anyone with Indo interests. The Indo Govt while they say they are interested in regaining their favour, have lost it because of their blatancy with Bre-X. Notwithstanding that Bre-X appears to be a scam, the Indos showed their greed and disregard for foreign investment.
4. The 7th generation COW's are reported to be coming in 1998!. If the Indo govt wants any type of reconcilliation with the mining sector, they will have to get on track and issue these COW's pdq. IPJ has stated to me that there are "Jakarta rumours" that the COWs will likely come after August this year. The Indo "elections" may be holding the process up for "political nationalist" reasons (my opinion only).
5. Limited news from Mongolia out of IPJ, like, pick sample assays would help from prospective areas. They appear to have acquired good lands.
The teams have just gone into Mongolia, 3 for IPJ and 3 for JVAG.
All in all, I still support IPJ and see values, however, the Indo scene is the basic reason for the negativity in the market place. There was strong buying recently but this fell off in the last few days trading. I have been pressuring the company for more periodic news releases.
IPJ hone number 800-396-5188
E-Mail is: donnam@pursuitgold.com
Address your concerns to Bill Burton
Best regards,
Ron E |
