In fact I was buying today. Possibly a mistake but I think the company has some great assets.
At $1.78 the market cap is $880m.
From its presentations it has cash of $87.8m at the 30/6/11. It owns the Osborne mine site, est replacement of the P&E is $300m. The NPV of the Osbourne project is approx $400m. Its owed value of EXCO is $66m.
It has a few liabilities but nothing to onerous.
Therefore the other assets are effectively a free carry.
In one presentation, it said it had 33 million oz gold equivalent or 5.5mt of copper equivalent. Refer presentation 14/7/11.
It has 2 projects going into production next year.
It hired a COO who has great experience in putting mines together and managing people.
It seems good buying at these prices considering its market cap was $500m higher about 2 months ago.
What do others think.
IVA Price at posting:
$1.74 Sentiment: Buy Disclosure: Held
