Imperial Metals (IPM.T) Message Board

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Gold/Mining/Energy : Imperial Metals (IPM.T)

IPM 1.880

+1.6%

Nov 14 3:57 PM EST

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To: Italian Investor who wrote (582)	8/12/2010 10:49:30 AM
From: teevee	Read Replies (1) of 1366

Taking another critical look at III's balance sheet, there is no way the company can finance an $800 million to $1.5 billion mine development. The cash flow wouldn't even service debt to insiders like Edward's company, Edco. To equity finance a smaller mine at say $800 million, it would mean doubling the share capitalization at $20/share. This will never happen because it would trigger a takeover. I don't see any possible combination of debt and equity that would work either, considering the size of the needed financing against the companies balance sheet. The only way I can see that Imperial could finance development AND for insiders to keep voting control of the company, is to invite a major mining company in to finance 100% of development costs for somewhere between 40% to 50% of concentrate flow. IF that should happen this fall, I believe Imperial would quickly go to about $40/share. If you can see any other angles on this, please let me know.

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