relative value, page-10

Hello rowingboat,

There's alot of assumptions to be made about IGR's fundamentals
in 1-2 years time but here goes:-

(a) That the POG remains about $1550 AUD/oz
(b) That UG is successful
(c) That the plant can maintain 1.2 mil tons P/A throughput
(d) That recovery rate is 93%
(e) That open pit mining avrages 2.5 G/T grade
(f) That UG yields 5 G/T in adequate quantities
(g) That the hedge is paid off
(h) That the blended feed grade would be 3.25 G/T
( made up of 50% open pit @ 2.6 G/T. 15% stockpile @ 1.5 G/T & 35% UG @ 5G/T.)

The sum would look something like:

- 1.2 mil x 3.25 = 3.9 mil ozs
-devide by 31 9approx) = 125,800 ozs
-Multiply by 93% recovery = 118,250 ozs
-Multiply by $600/oz (NPAT) = $71 mil NPAT
-Devide by 934 mi (no of shares) = 7.6c EPS
-multiply by say 8 P/E = Approx 61C/share

To achieve all this IMO management will have to be on top of their game,
moderate spending and not dilute shares further.