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IAMGOLD Corp. Message Board

  • sandspiderbm sandspiderbm Apr 27, 2012 11:19 AM Flag

    Good Buy

    This is a good use of money and they didnt seem to overpay in the mid $3 range (Trelawney was at $6 / share a year ago).

    They had $1 billion in cash so it still leaves them with plenty to develop the deposit.

    In terms of low grade - less than 1 g/tonne is definitely lower grade, but the fact of the matter is that you are not going to find many high-grade projects in safe mining jurisdictions any more. People need to understand that 1 g/tonne is the new 5 g/tonne of a few years ago. Grades are dropping...

    I hope IAG drops a little further because i'd love to buy more in the low $12 range.

    Your Friendly Neighborhood,
    Spider

    PS - For those on the speculative side, this transaction really gives me some more confidence in another mining company THM that has similarly low grades in Alaska but 3 times as much gold (17 million ozs) and trading in the $300 million market cap range. 10% owned by Anglo-American - this looks like a similar company to Trelawney at a very CHEAP valuation

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    • Problem with THM, which I know well, is the jurisdiction in Alaska. Take a look at companies in Canada, that is where all the action is, due to actual "workable" mining regulations.

      I bet Victoria Gold corp was on IAG's short list, as the company profile is very similar to Trelaway.

      Take a look at them Sandspider. And Good luck.


      LONG IAG

    • profit_rocket_prophet profit_rocket_prophet May 15, 2012 11:10 AM Flag

      Gold stocks taking a dip. But I see it as a buy

      GSS long $1.41

    • If this was such a "good buy", why did the stock go DOWN today? HAHAHAHAHA!

    • The good thing for IAG is that they are only spending about $500M (minus the $100M cash Trelawney has.

      So $1.3B - 500M = still have $800M cash

      IAG has a large capex plan for 2012 at over $800M but that can be funded from cash flow.

      Since the Trelawney assets won't be ready for construction until probably 2014 at earliest, IAG has no immediate needs to spend cash on it, so IAG can presumably purchase another asset in this range and still have money left. My guess is the next asset they buy will be a ~100-150k oz producing miner with upside. If IAG pulled that off without diluting, the value packed in these shares for $12 is compelling.

      I wonder who the other miners on their short list are?!!! Obviously they are interested in Columbia. I couldn't help notice GALWAY RESOURCES got asspounded for no apparent reason last week. I wonder if they've looked in Guyana at Sandspring Resources or GUY. Those are 2 cheap fairly large relatively low cost development assets trading at a fraction of NPV.

      Timmins Gold looks like an attractive takeover candidate with small capitalization and 125k oz low cost production potential, and adding ozs to the resource every year. They almost stole Capital Gold from Aurico last year.

      Brigus is a cheap Canadian producing miner with 2M oz P&P and good upside selling for small fraction of former price. IAG could buy them easily for about $300M and get 100k ozs immediate production, optimize everything, and potential for 200k oz within another 2 years. It would certainly be more cost effective than overpaying for peers in the same category with twice or 3x the market cap like Kirkland or Rubicon imo. And would be immediately cash flow accretive.

    • Strong Buy.

 
IAG
4.05+0.09(+2.27%)Jul 11 4:03 PMEDT

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