Why you need to consider holding shares in IPMG.
IPMG is currently negotiating/working on 6 projects, 5 unannounced, in Southeast Asia and Africa.
The Cambodian Project: IPMG has purchased five properties in Northeast Cambodia. All 5 have gold on them, and they will begin mining after the rainy season ends – late September, early October. They are in the process of securing $2.5mm in private financing, but there are no plans to dilute the current outstanding shares. 325M shares outstanding... 80% of those are restricted. Float approximately 65M shares.
Mining stock risk is generally correlated to price of gold. Personally, I don’t see much of a drop in gold over the next 2 years. If gold stays above $450, the mine clears $350 - minus the overhead and environmental set aside. The typical small gold mine can produce 1 ton (32k ounces), that’s about $14.4M in resources. The primary mining lease of the five in Cambodia was estimated by a Chinese survey to contain 3 Million ounces. Assuming that only half that amount is actually there, that is about 45 tons, or $675M of inground resources. At 325 million shares OS that equates to an PPS of $2.08 per share. That is just half of the chinese estimate. The stock is currently trading at .02 per share! They are going to run $2mm in overhead for the first 6 months. They don’t anticipate a dividend for the first 12 months, but since they have retained most of the shares there is interest in taking 50% of the profit and disbursing it. Obviously, if they start to assess the inground reserves at astronomical rates the share price will go thru the roof.
This is high-risk high return, as are all pinkies, but there will be a significant book value to the company if it turns out that they are sitting on the pile of gold previously estimated. Since the 26th of September the price has appreciated from .005 to .02. This morning the MM's are moving up the bid and ask.
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