Is going to be interesting to see what IFE will focus on once the merger is complete. They will have very little cash and none of their projects are overly compelling at this stage. They will also now have to keep on diluting their interest in OGX as they have no funding to participate in any cap raisings. The interest in OGX (at the current 5.9c price) is worth only $760K. One can expect that the 9.6% interest will dilute quickly once (and if) OGX needs to raise any reasonable amount of money. It seems like IFE shareholders will be better off simply holding their OGX directly and not via an additional layer of IFE management. Not sure Mr Finch would want to surrender the additional directors fees from OGX though. My advice (which I acknowledge is easy to give from the sidelines:
1) Pick and focus on 1 project only (they know which one this is once they consider location, maturity, commodity etc). Forget about spreading yourselves all over the place - you are too small and have too little cash to contemplate holding a portfolio of low quality assets. It is clear that they are playing the market when you look at how the flavor changes. Breaking news- fantastic new tin project, then little further news on this but new breaking news on a gold project in South America (and on it goes....).
2) Consider distributing the OGX interest directly to shareholders. If IFE cannot survive on the basis of its own projects then perhaps there is no reason for its continued existence....
then again maybe we will see a miracle in 2015.
TRF Price at posting:
2.0¢ Sentiment: Sell Disclosure: Not Held
