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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: Mr. Aloha who wrote (31088)	1/28/2007 1:41:09 AM
From: zoo york	Read Replies (2) of 78409

Hi Mr A! I do not think that IPT will achieve 20 cents per share in earnings this year. The company has chosen to grow at a very steady and conservative pace, and so I would be surprised if IPT does better than 10 cents for the entire year. But even that would be very good, IMO. I expect IPT to trade at $3 per share or higher before the end of 2007, so I guess that projects to a PE of at least 30 on my assumptions. Later in the development phase, when the company is producing at a steady rate of 400-500 tonnes per day, then I think we will see stronger earnings. As for your second question, it does not concern me that the company does not have a huge proven reserve. Even though 500 tonnes is a huge volume of rock to process on a daily basis from a narrow vein system, I think the number of former producing mines on the property will be the basis to allow for additional exploration work to stay ahead of depletion as the production rates increase. Part of the strategy for IPT is to blend lower grade ore with the higher grade ore shoots that are currently developed. They want to maintain a throughput at the mill grading between 300-500 g/t silver on average. Previous operators of the mines did not bother with the large volume of lower grading material in the range of less than 200 g/t. As long as the company can continue to outline zones of more than 1000 g/t silver, they can also extract the lower grade zones and blend the feed to keep a mill running flat out. It will take some time to get more exploration work done, and allow for underground development to open new stopes, but there is no shortage of targets on that project to support a much larger scope of operations. I think the people who are unimpressed with the potential for IPT should review the history of GGC to get an idea of a similar biz plan under simiilar circumstances. I do not know what the PE is for GGC lately but Im pretty sure its in double digits. And the mineral inventory of that project has never been more than a year or two of production, but the company has been successful to explore and develop new resources to keep the mine running through the early phase growth curve. cheers! COACH247

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