RE:Gold and IMG IMG is very strongly leveraged to the POG and that is very evident looking at the last week of trading. Sure if POG goes to $1600 then of course IMG looks appealing; but so do all other gold companies as well. I sold my entire 8000 IMG shares on Friday for $3.65 and I am glad I did.
The problem is IMG still has a ton of operational issues and their AISC is still far too high and unjustified. There doesn't seem to be any near term "game changer" project in the pipeline - Brazil is quite far off from development, Suriname hasn't delivered anything, the Monster Lake/Toma Gold JV comes at a huge cost and again is far off from yielding any value. The Merrex JV along with Boto is really the only future upside IMG has at the moment. Unfortunately they are not being nearly aggressive enough with developing these projects for the market to get excited. Quite simply management has fumbled - costly decisions like Cote, oil hedges and even the sale of their cash cow Niobec. Poor management can hold back tor even kill a company - this is a good example of that.