Although this is a stock I do not own or follow, as per a free Jason Hommel Email:
<Today I got about 15 emails all asking me about one company, IGMI.
Idaho General Mines (IGMI.OB) has about 1.3 billion pounds of moly in the ground in proven reserves, worth about $34 billion. They plan to mine 35 million pounds of moly per year at a cash cost of $3.15/lb., and moly is trading at $26/lb. This presents a profit potential of about $800 million per year.
IGMI has a market cap of $112 million at $2.24/share with about 50 million shares, and needs to raise about another $415 million to construct the mine. IGMI has recently raised $30 million, which is more than enough to complete the permitting process over the next 1.5 to 2 years.
In sum, I believe IGMI has a real shot to rise to over $50/share, even after raising $400 million, which should be easy since they can use that to earn $800 million/year.
The cause of the emails to me today was that IGMI was down nearly 29% today. Since I have been the leading promoter for this company, it's my responsibility to explain this price action. So, I called the company.
About 4 months ago, IGMI successfully raised $30 million dollars to get through permitting by issuing stock at $2/share. Today, this stock came due and free trading after the four month hold period. I should have known, but I never kept track of the date. Some obviously sold to lock in profits of up to a 50% gain (at $3/share), thus pushing prices down. So, about $2/share should be the bottom. It might go a bit lower because those who bought the stock at $2 also got warrants, so they may sell down to $2, to keep the "free 1/2 warrant".
There was, and is, no bad news about the company, and no troubles with permitting, or financing. This is a rather typical price action at times like these.
There are no substantial insider sales. What we saw today are typical stock sales from "financing insiders", not company management. In the past, we can see many other such insider sales from people who financed the company at $.15/share, $.40/share, $.80/share, and $1.15/share. There are also a few insider sales from company employees, who were paid in stock, and who have to sell because they need cash to live, but there have been no insider sales from upper management.
I did not sell any shares in the past few months. I sold less than 5% of my overall IGMI position, a few shares, in late February and late April in 2006.
Before today, IGMI could have been said to be an over-promoted, illquid stock.
After today, IGMI is an under-promoted, very liquid stock.
For all the wealthy investors, big buyers, today is the day to step up and buy IGMI, as you can actually get a tiny position below $10/share which is probably where the stock will be after permitting.>
As per jackjc, my one and only Moly play is RMKL
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