O.K. Daniel: I will start with the first salvo. Typically, gold and platinum in the ground under normal mining and metal extraction conditions are valued at a persent value of $30/ounce. According to what I read they have six square kilometer "which has tested most favorably for preciuos metals", from which they selected one square km on which they drilled 121 holes. Average recovery come up to ..046 Au and .09 Pt oz/ton. If you assume 12,000,000 shares (the last number I have after the issuance of 1.7 Million shares in January and the eventual conversion of $2.4 Millions in debt to Phoenix), therefore the wealth in the ground of IPMCF is $17/share. Not bad in view of the current value under $4/share. But, when you read the details (ouch those details) they currently own only 25% interest in BRX (the only viable project they have now), and they can go to 50% interest if they spend at least $1.6 Miilions by April 1997 finishing the feasibility studies and demonstrasting a resource of 300,000 ounces of gold (not gold and platinum combined)and by October 1998 they must commence construction of the mining facility and they will earn this by starting mining. So, as of today, they are worth $4/share and in two years $8/share. All this, if they have the money to do all this. In january they raise $4 Miilions, and if they keep their current rate of expenses ($5 MM in exploration last years and $1.2 MM in Administrative expenses) so they are left with only 1 to 1.5 Million bucks. So, they will have to raise more money, which means less for current holders, and if they bring a JV even less. In view of this, and I do not see additional big upsides, don't you think they are little rich?
Zeev |
