Take a good look at IPT - Impact Minerals
Here is a repost from Coach's Corner today:
I guess I deserve to be labeled a pumper for this post, but I want to emphasize why I am so convinced IPT is going to trade much higher within a few weeks.
Part of the story for IPT that warrants buying the hell out of this one is that the mine is up and running, fully permitted and most of the expensive infrastructure is already in place. This is not a trivial detail. Take a look at how many development projects were stalled during 2004 due to higher costs of building materials or permitting issues at some local level. IPT is getting the title to the entire Royal Mines project, the second oldest mining district in all of Mexico, for $1.5 million, less than the cost for a feasibility study of most other projects. The acquisition will be cash flow accretive almost from day one.
The majority of retail investors do not have a clue just how big this project can become, or the long term potential. Considering that an estimated historical silver production from the property controlled by IPT exceeds hundreds of millions of ounces, and that almost no modern exploration has even been conducted, the mining activity to date has only just been scratching the surface... literaly. While investors in this sector have lined up to pay market premiums 10-20 times higher than IPT for projects with huge start-up costs, that will not see production for a year or more out, IPT still trades at the modest market cap of about $9 million.
I spoke with Fred Davidson today, and he says they have the drills clearing customs at the Mexico border today, and they may be drilling before the end of the month. They will have one surface rig and one smaller underground rig targeting some of the older workings they have uncovered. Fred says the access to the older workings is remarkably well preserved and presents no difficulties. Underground drilling has a shorter turnaround time so we could be getting assay results back as early as the end of February.
A final point, as the price of silver climbs, there are millions of tons of lower grade silver mineralized zones surrounding the higher grade "cores" of the veins that have been mined, that will become ore and economic to mine. This will add a great deal of reserves for no cost. Or to put it another way, at $12 silver, millions of tons of 5 oz/t Au rock, plus the contained lead and zinc values, will be suddenly become feedstock for the existing mine. At $15 silver, they will have to build another mill just to keep up with the capacity that can be blended with the higher grade ore they will be mining.
There is almost no overhang of cheap paper, and the small PP that was just completed does not become free trading for another 3 months. Most of it was taken down by institutional money, that will not be in a hurry to dump and take profits. So there is very limited resistance to IPT trading much higher, very quickly, once the word starts to get out. Today we traded the highest volume in a year, and the US markets were not even open.
I know that from watching III, TKO, IUC, CSG and GPR, to name a few, that anytime a company announces they are re-starting a mine, buying interest shows up in the stock. How much higher will IPT climb when the company confirms they will be buying out the existing operation?
I do not have a crystal ball, and cannot tell the future. Some of the other stocks that I have been very excited about have never quite panned out. I share the reasons for my optomism why I think IPT is going much higher, but sift through for yourself and see if my points make sense.
cheers!
COACH247
PS: I will try not to pound the table too much harder on this one in the future. |
