Ivernia Inc IVWFF

RE:RE:RE:RE:Toast

[SergeGodin]

Something really strange is going on here.  Normally you would expect the management to be putting as positive a spin as possible on everything, but in the last few months we've seen a new survey that dramatically decreased the reserves, shortened the mine lifespan, and Q4 results (which were not actually that bad) deliberately infused with negative messages about the company's future.

Does anyone else thing it is strange that the company is spending shareholders money, during a time of extremely tight cashflow, to do a study to tell us that the reserves are less than previously reported and due to "increased processing costs" that the mine life has been shortened significantly?  Apparently much of this shortenting of lifespan was due to the increased cost of the reagents used in the processing of the concentrate.  Really?

Either the company has given up, or they are setting us up for something that they will want the Shareholders' support on... i.e. "Things are so bad, why wouldn't you approve our plan.  It's your only hope."

If somehow, miraculously, the LME lead price goes over $2000 between now and June, we could be back in business with a big overhang of debt.  I can't imagine how issuing more shares at $0.02 could be practical, so it has to be secured debt.  Whose debt?  Not Sprott, surely.  Enirgi perhaps?

The players here are Enirgi (roughly 60% ownership), Ingalls and Schneider (roughly 10%) and Sprott (in the hole for $20M loan).  Between the three of them, surely they are planning some sort of plan other than outright bankruptcy and disolving the company?  Nobody wins if that happens.

The patient and suffering shareholders won't have to wait too long now.  Sometime in the next three to four months the future will be made clear, and (other than the miracle of $2000 lead) whatever happens to Ivernia, it won't be recognizable from what we know today.

Perhaps Enirgi can find a creative way to reorganize assets within their companies to give Ivernia a fighting chance of survival?

- Serge