Hi Max!
I dont think IPT will ever show a large compliant resource. That will not happen for any narrow vein mine. EXN perhaps can do it because they are exploring a bulk tonnage system.
Cash flow is nice, but IPT will achieve a premium multiple based on recurring earnings, and again I point out that very few companies have been able to report a net quarterly profit in the last two quarters. Not just operating profits, but net profits.
I put together the entire picture to arrive at a bullish outlook. Most companies can list one or two positive considerations, but IPT has all of the points that I listed, including large property holdings with historical production, a cash-rich treasury, tight share structure, no debt, current earnings, solid growth, ownership of processing facilities, great proven management, and an in-house exploration division. Run any junior you want through that list, and you will find that few if any meet each of those criteria.
Without question, the entire sector will get a nice boost as silver prices rise. However, if you have a company that is diluted in share structure, it will not appreciate at the same pace as the juniors with fewer shares out. And that is why IPT is going to outperform so many other producers.
cheers!
COACH247 |
