Producer around 2016 ?Summary
(from last analysis - 12/14/2013) Integra Gold is highly undervalued. They have a high grade 900,000 oz resource in Quebec (7 gpt), in an ideal place to mine. It is located next to a large producing gold mine, and there are 6 mills within 15 miles. They are drilling aggressively, with another 40,000 meters planned. They have $5 million in cash to complete their drilling. Their goal is to be a producer around 2016. It should be a low cost, low capex project that is economic at today’s gold prices. At higher gold prices, it is going to provide excellent cash flow.
The only red flag is the long term upside potential of the company. Lamaque is their only property. However, this is one of those small projects that I like. The reason why is the current low valuation ($22 fully diluted market cap), the high grade, and ideal location. Future reserves are valued at $15 per oz. That is cheap and makes this a potential 10 bagger. If they can begin production in 2016 at around 75,000 oz, then their market cap should be around $200 million (at higher gold price). My valuations are based on them increasing the resource to 1.5 million oz. It looks quite likely they will get this mine into production.