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Stocks I / Idaho General Mines, Inc.
|Subject: Re: Idaho General Mines Inc.||Date: 8/31/2007 2:25 PM|
|Author: kbatl||Number: 3 of 5|
I listened to the conference call yesterday and was impressed. I had bought some shares after I heard the outcome. I think it will gravitate a bit until it gets more institutional buyers, there seems to be a lot of shorts attacking it periodically, which makes it volatile.
Here is te powerpoint link from the call yesterday.
If you have some time, listen to the call also:
The NPV of simply the Mt Hope project is about $19 per share. They have another smaller mine in development, which bumps it up to low 20's. They will need to do a possible 2ndary offering, which may dilute a bit, but could see a valuation with built-in risk of $13-18, depending on how well they can keep on schedule.
If some long-lead items start to slip or permits aren't issued in a timely manner, or if Moly prices slip well below $30, the price could come down quick. I'm comfortable with an entry price anywhere below $6 (it's at $6.60 now), but think it will gradually move up once institutional buyers get in, and the timeline progresses on schedule.
If they promote themselves well to institutions, they are helping investors, since a 2ndary will result in less dilution with higher prices. I could se