Desjardin Capital Markets Express Pulse on August 19, 2013 Recommendation.
Our investment thesis for IRL is based on the company’s ability to permit, build
and operate its two development projects: Don Nicolas in Argentina and Ollachea in Peru. With the
arrangement of financing, we view the advancement of Don Nicolas to production as a positive
development for the company, particularly in light of the difficult financing environment for resource
development projects. We highlight that the equity portion of the financing from CIMINAS places a
significant premium to both our current valuation of Don Nicolas and current trading levels of IRL.
Our rating for IRL is Buy–Speculative with a C$1.20 target price.