IPMG is currently negotiating/working on 6 projects in South East Asia and Africa.
In their advisory upon acquisition of GUL Mining, in Cambodia, IPMG stated "We are in the process of evaluating or signing joint ventures with other companies in South East Asia and Africa to give us access to gold and other precious mineral leases. These countries are extremely rich in mineral potential, and relatively untouched due to the recent political instability. We plan to expand our portfolio of leases, while mining economically viable properties from the beginning." Regarding the first such acquisition the company stated "GUL Mining Inc.'s concessions in Cambodia consist primarily of gold, silver and copper reserves, although they also include valuable lead and zinc reserves as well. CEO Brian Robertson was quoted, ``By acquiring GUL's interest in these mining concessions, we hope to add significantly to our reserves.'' GUL has conducted a successful operation in Cambodia for the past 6 years. The GUL interests give IPMG a significant jumpstart in our efforts to accumulate sizable reserves in this relatively untapped area of the world."
The Cambodian Project: IPMG has purchased five properties in Northeast Cambodia. All 5 have gold on them, and the company has begun initial operations after the rainy season ended in early October. IPMG Management is in the process of securing $2.5M in private financing, but there are no plans to dilute the current outstanding shares. There are 325M shares outstanding... 80% of those are held by insiders and are restricted. The Float is approximately 65M shares.
Mining stock risk is generally correlated to price of gold. If gold stays near $470, the mine clears ~$320 ($150 production overhead and environmental set aside) per ounce. The average small Cambodian gold mine can produce 1 ton (32k ounces), that’s about $10.2M profit. The primary IPMG 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 $480M profit on inground resources. At 325 million shares OS that equates to an EPS of $1.48 per share. The stock is currently trading at .01 per share! Management plans to run $2M in overhead for the first 6 months of operation. 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 pull gold out of the ground at astronomical rates that share price will go thru the roof.
There is a significant amount of precious metals, gold, silver, etc... in Cambodia but to date it has not been mined on any significant commercial level. Mostly being done by small mining concerns or individuals. Economical, societal, environmental issues have all held it back. IPMG has the partnerships and joint ventures in place to take advantage of the stability in the region to begin mining in earnest. The French were exploring and mining minerals in Cambodia until the early 1960's and there is significant regional geosciences data deposited with the Bureau de Recherches Geologiques et Miniere ("BRGM") in Orlean , France . Based on a review of this data, most Geologists believe that the country contains strategically located mineral belts having excellent potential for gold and copper mineralization. This mineralization has been introduced to the rocks through mechanisms which are not fully understood at this time, but which will be clarified through the process of site visits and systematic follow-up exploration.
One area of significant interest is Mondolkiri Province in Northeastern Cambodia (http://www.canbypublications.com/maps/simpleprov.htm). Oksan Cambodia Corporation has been working in the area for over six years and has performed multiple site surveys. Based on the survey result by geologists and mine engineers, Oksan estimates the minimum potential value of gold deposits in the area at above $1.8 billion U.S. dollars. The Oksan calculation assumed a gold price of $308/oz for the valuation. The current price of gold is far above that level.
If the Chinese surveys of the IPMG leases were accurate, one of the five properties holds 3M ounces and the remaining four could hold an average of 32K ounces each. That equates to 3.128M ounces at $320 or $1,000,960,000.00 of net profit in ground. Assuming a zero multiple, that equates to $3.08 per share EPS. Gold/Silver/Copper mining stocks have a multiple significanly higher than zero. |
