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Intchains Group Ltd V.ICG


Primary Symbol: ICG

Intchains Group Ltd is a provider of integrated solutions consisting of computing application specific integrated circuit (ASIC) chip products for blockchain applications and a corporate holder of cryptocurrencies based on Ether (ETH). The Company utilizes a fabless business model and specializes in the front-end and back-end of Integrated circuit (IC) design, the two components of the IC product development chain. The Company’s products include computing ASIC chip products consisting of ASIC chips, computing equipment incorporating ASIC chips, ancillary software and hardware, the products are mainly used in the blockchain industry. The Company had built a technology platform named Xihe. The Company has developed hardware models and several systems under the Xihe Platform, including a factory production test system, an after-sales data system, a computing server system and a batch management system.


NDAQ:ICG - Post by User

Post by Misbrandton Nov 04, 2015 5:36pm
175 Views
Post# 24259610

Realistic look at numbers

Realistic look at numbersSOOOOO....  ok with bringing up negatives in regards to a stock as it is important to make decisions with as much knowledge as possible. I also don't like unnecessary bashing, so from the top, lets look at sustainable/reasonable share price.

I will admit, fully diluted is not pretty, but it isnt awful. Let us assume 400 million shares O/S, gives us a market cap of $136 million (CAD).

Now lets take a conservative 1.4 million ounces in the ground (which was from the previously updated resource report, we know it is significantly higher from drill results since, and once sustainable mining is achieved, targeted step outs can move forward on an ongoing basis and resource base will almost definitely increase, but lets stick to what we know). Life of mine all in sustained cost per ounce is ~$750 (I assume USD) and price of gold is currently ~$1105 USD. Net $355 USD per ounce of gold. 

1.4 million X $355 = $497 million USD or $653 million CAD.

subtract the 80 million or so we are away from production (I assume CAD) and that leaves us with $570 million CAD worth of gold.

We also have a mill that has a replacement value of roughly $100 million. So for a company looking to aquire something to bolster their production (say if they were going to close a mine), even at a dollar a share they are still walking away with a clear profit (and this doesn't even include our stellar recent drilling, or the high likelihood that there is significantly more gold to be found).

Saying that this company cannot sustain the share price, let alone attract a JV or a buyout is ridiculous. The motivation of someone to do so will really only come down to better properties available (but those will be significantly more expensive).

Anyway, my thoughts, do your own DD.
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