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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (31228)	3/26/1998 11:31:00 AM
From: strenlich	Respond to of 35569

I would also like to know how much they have spent over the past two years.-regards-strenlich-

To: Zeev Hed who wrote (31228)	3/26/1998 3:44:00 PM
From: Ron Struthers	Read Replies (1) \| Respond to of 35569

Hello Zeev, am doing well, but has not been pleasant being a newsletter writer of mining stocks in the past year. The real answers should come from the company. They need to be addressed and I think they will. I will give some opinions, based on what I know. <<What is the burn rate now at IPM (it used to to run in the $4 MM/year and higher).>> I believe the burn rate of IPM's internal functions have been at least cut in half and maybe farther. The rate can fluctuate wildly with mining exploration. It all depends on activity. Do they have a drill program running Assay costs, 3rd party reports, engineering etc. Simply put, a mining exploration company has a low burn rate when they little $$, once they get funded, the $$ go to work and your burn rate increases. Mining exploration is in constant need of raising $$, until enough cash flow from production arrives << How many months do they have at this burn rate? >> This phrase I see about months left around does not fit in most mining exploration companies. They have very little fixed costs. Costs can be cut back to almost nil. I know mining companies that operate on $250,000/year and less. In this case we do not want this, as long as there is no $$, exploration/development work slows or comes to a stop. This is why you see many JV deals in mining, a wealthier, usually senior partner, funds the project to gain an interest. This cannot be ruled out and I believe it is needed with these desert stocks. I would not be surprised to see a JV deal this year with a senior by one or more of these companies At this time things are still progressing with IPM, but they will need more $$ << What kind of funding can they expect?>> I think we will see $1 to $3 million in funding this year << What kind of dilution will that cause?>> Depends on the price. I think IPM will put some substantial and good news into the market place before they do funding. Then it would be done at prevailing market prices, but likely in 2, maybe 3 segments, the plan being to fund at higher prices as the project is proven. A lot will depend on the gold market and what progress and news IPM can achieve << Then it would be nice to find out where are they in cost effective extraction.>> Yes, this is the big question. I think we may see some preliminary statements this year. I am not sure if they will get to pre-feasibility by the end oy the year. Many factors involved. I know IPM wants to be to this point with the money they raise and I think this is a necessary goal. Hope this helps Ron