Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: maur911 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5  
Subject: Idaho General Mines Inc. Date: 8/31/2007 1:21 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
thought this stock should be brought to the attention to Fooldom!
GMO has just completed Mt. Hope Bankable Feasibility Study indicating an estimated priject net value of $1.4 Billion. The ore is expected to be mined at an est.37% profit marghin. They mine molybdenum ore which is used to make stainless steel less corrosive. The High sulpher crude that is now being drilled demands new oil rigs made of steel high in molybdenum because it is to corrosive for the old oil rigs to withstand. Also with BRIDGES in need of replacement...well you can see all the new markets ! With the market demand growing faster than production and GMO having some of the largest reserves, well the possibilities are very exiting! Presently trading at $6.66 I feel it is a candidate for possible take over. Do your DD and comment, I am interested on your comments or thoughts!
Print the post Back To Top
Author: kbatl Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3 of 5
Subject: Re: Idaho General Mines Inc. Date: 8/31/2007 2:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
http://www.igmines.com/gmo/presentations/gmo_presentationBFS_Release.pdf

If you have some time, listen to the call also:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=181598&eventID=1623511

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 see this being bought out at $20-24, if it looks more promising.

If they decide to remain GMO for the long haul, Moly is $20-25 long-term, and discount at 8%, NPV could be $2.5B (nums may be off a bit, don't have the ppt open). With a 30% dilution for a 2ndary, 100M outstanding shares, looking at GMO = $25 (just for Mt Hope), and add in $4 for the other mine, and the high end target of $29. $15-20 in the next few years is much more likely. Anything above $9-10 would be an expensive entry point by the end of the year. People will get bored, and sell some off in the next year. Buy on the dips, and wait. There is a lot of work to be done. Any major slip-ups will cause this to drop severely.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: kbatl Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4 of 5
Subject: Re: Idaho General Mines Inc. Date: 9/6/2007 3:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Has anyone seen the show (I think it is just called "Metal(s)" on the History Channel. There is one part where they mention Molybdenum as a potential additive (3%) to steel in order to make it more higher strength in high-temperature situations. The example they pointed out was the World Trade Center. Even if the fire retardant would have come off the steel, a higher-temp resistant steel alloy with added Molybdenum (I forget the other additive they mention) would have been sufficient to give enough static strength so that it could have remained standing.

Will be interesting to see if this becomes more commonplace in extreme skyscrapers such as the new ones in Chicago/Dubai, etc. If it becomes a standard, the demand for Molybdenum will remain high.

Print the post Back To Top
Author: bloodninja Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5 of 5
Subject: Re: Idaho General Mines Inc. Date: 9/12/2007 3:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have been following this one since about April. I bought @ $4.95 and have been adding to my position every chance I get more money. Molybdenum is used as an alloying agent because it has one of the highest densities and melting points of any metal. The name molybdenum itself means "like platinum."

About the potential buy-out, according to Google Finance, GMO employs 8 people. Obviously, this is a tiny operation which makes me think that they contract out a lot of their work. The Mt. Hope and Hall-Tenopah projects are not hteir only ones, this company has been around for 85 years so they've been doing mining elsewhere for a long time. Also, the company just relocated its headquarters from Spokane, Washington to Colorado. They've also opened up an office in Arizona to search for engineers and specialized professionals to come on board. Now yesterday they announce they will be merging with General Moly, Inc. which they started in Delaware. When the companies merge (pending shareholder approval on Oct 4) General Moly, Inc. will become the name and the company will officially be incorporated in Delaware.

Excuse my ignorance, I'm new, but what are the benefits of relocating in Delaware? I'm assuming there are more beneficial laws related to corporate financing? Also, do all of these moves seem to support or refute the idea of a buy out? The mine has a highly productive stage of ~20 years. If Mo. prices continue to climb (look at the price over the last 15 years) could it be more profitable for GMO to finance this project by issuing more shares and operate the mine(s) themselves? I know these are highly theoretical, just hoping for some ideas. Thanks.

-justin

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement