Good call Roman!
When I first reviewed your post with regards to a direct correlation between the share prices of CYX and IPM, my inlination was to disagree (respectfully, of course). My own belief was that fluctuations in IPM share price were more closely tied to Au than with anything else.
I plotted 12 month price/volume charts on IPM, CYX and Au for camparative analysis. Roman, I beleive you are right, there appears to be very strong evidence to suggest a direct correlation between IPM and CYX, especially since late October of 1996. It would also appear (to my embarassment) that the price of Au is NOT having as significant an impact on share price, as I recently speculated. This may be supported by the strength of share prices since October of 1996 with a steady decline of gold.
Further, in reviewing news releases, share prices between IPM and CYX and the spot price of gold all for the same day, over the past 12 months, your assumption again seems to attract merit.
Having to concede to this, I was initially concerned because I had hoped that IPM's increases were on it's own merit and independent of CYX and/or CAT. However, would I not be correct in interpreting this as a real boost for the argument that IPM, on it's own, remains extremely undervalued?
Here goes, before CYX rocketed on the scene, IPM was trading in the $1.50 - $2.00 range (I am going to assume, for this exercise, that this was the fair market value for IPM on it's own). At $7.75, the market capitalization of CYX (on 15,050,000 shares) is $116,637,500.00 of which IPM owns 60% or $69,982,500 or 1.22 per share (based on 57,225,000 shares of IPM). Why then,is IPM not trading much higher? Also note that this exercise excludes CAT, Regional Resources, Silvertip, and additional positive results from Mount Polley from the share value equation.
Am I highly delusional or is my math way out?
Also, some more good news, according to the IPM homepage, Mount Polley Au production:
- 55,000 ozs, per year with cash costs estimated at $201/oz. USD, with copper credits @ $1.00/lb and a Canadian dollar worth US $0.75.
Always the Optimist, Best Regards,
Mike |
