RE:BMO: Outperform rating and $1.25 target for Integra GoldStockM,
Thanks for MBO Cap report which is quite positive about ICG.
What are really sticking out:
- only $50M CapEx would be required to produce 100,000oz/yr for Triangle (mill @ 1250 tpd, Exhibit 4). ICG can raise this amount easily, either by debt instrument (can be repaid within 1 year) or by equity issue when the SP gets above 1.00.
- For another $25M (to bring in Sigma shallow resource and satellite deposits) production can be increased by 60% to 160,000oz/yr.
- Assuming PoG of US1200/oz (or Cad 1620) and an AISC of Cad 883. Lamaque Project would rake in over 70M/yr for Triangle alone. The rest is a 60% (thick) gravy...over the dark turkey meat, lol.
That would be enough to fund additional drilling at Lamaque Deeps and surounding targets to put in some "steroid" performance that first part of the S-curve.
Just imagine that the ICG choo choo is driven by two engines, one at the front (the Lamaque Project pulluing toward production) and the one at the back, Lamaque Deeps pushing for the old-fashioned exploration.
GH