Ron -
Been mulling over some of the items that should support the stock. IPJ management has apparently done an excellent job of managing their resources and maintaining their focus. Two items that have gained increasing importance in this environment, and I think they've gained the respect of the market. Not very many juniors out there have done as well.
Company is well diversified through their Phillipine and Mongolian properties. Barrick thought enough of JVAG's prospects to fork over C$1.1 million for 2.2 million JVAG shares and second dibbs on property development. This is in addition to IPJ's own properties in that country.
Companies best prospects are in Indonesia. Indonesia has it's financial problems, but I don't see much threat of political instability. The govt has placed greater limits on the opposition parties, and has the ability to maintain control through the armed forces. Army likely enjoys US cooperation and training for special forces, intelligence, counter-terrorism, and counter-insurgency. Organized opposition to the govt is difficult, armed resistance extremely unlikely.
Overall picture is of a company who is hedged on three legs through their Phillipine, Indonesian, and Mongolian interests. Downside risk from POG further hedged by copper project at Hinoba-an, showings at Mahakem, while retaining speculative upside for AU. Strong cash position that may be further enhanced by closure on Hinoba-an. Pretty fair for a junior mining company, let's see what the market thinks. |
