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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: TrueScouse who wrote (3695)	12/28/2005 11:06:17 PM
From: zoo york	Read Replies (1) \| Respond to of 78411

Hi Guys! I will be flying down to Mexico City at the end of January, and then on to visit the Royal Mines, and I expect that IPT will have completed their acquisition of the project by then. The market action for the stock has been spectacular, and I think we are seeing market cap adjust to account for the fact that the company is going from an explorer to a producer within about 3 weeks time. The rising metals prices are no doubt a factor as well. When I originaly did my cash flow projections for the operations at the mines, I did not account for any revenues from the contained zinc and lead in the ore. When I spoke with Fred Davidson today, he indicated to me that they expect the base metals content in the concentrates will offset the mining costs. Or to put it another way, the value of the silver that is produced will go almost entirely to the bottom line. This scenario is similar to the operation of the Alumbrera Mine in Chile, where the costs to produce gold are completely cancelled out by the silver and copper credits recovered in the ore. I have a long term expectation that IPT will surpass $2 per share within 18 months, but I would not be a buyer right now. I think the stock is getting ahead of itself, and while I would like to see nothing more than IPT close out the year above a buck, my gut tells me we have some consolidation work to do before it can sustain higher prices. On the other hand, if we do get an advisory newsletter out with a 'buy' reco on the stock, then it could probably run to much higher prices and stay there. I have been burned by an unwillingess to chase stocks like BCM and SVM on the way up, so it is nice to be in position to ride IPT on an upwave, and I do hope I am wrong that we are in need of a correction. cheers! COACH247