Casey Research Update 3/15 - 5 BaggerYou're Welcome - SilverK
RECOMMENDATION UPDATE — (5B, TOC) -5 bagger, take over canadaite
Comments:
(ICG.V, ICGQF, C$0.72 on 03/13, 485.0M SO, 516.2M FD, C$349.2M MCap, C$40.0M Cash, www.integragold.com)
BUY (ON WEAKNESS)—Integra delivered its long-awaited revised preliminary economic assessment (PEA) for its Lamaque South gold project, including some very robust economics. The after-tax IRR of 43% and NPV C$363M are excellent, even if preliminary. On the other hand, the reason why they are “preliminary” is more about the inclusion of Inferred ounces, than is being a typical “scoping” study (very “conceptual” in nature). Integra already has a permitted plant that has processed the same kind of ore before, so they have a pretty good idea of how it will work. As important, Integra’s geos keep finding more gold, including the 71.61g/t of gold over 14.75 meters in the latest batch of drill results. That’s the best intercept on the property to date and not included in the current resource estimates. Meanwhile, we’re still awaiting first results from drilling on the Lamaque Deep target, which can add even more upside to the story.
All good, and the stock has pulled back on weakness in gold and Fed’s rate hike hint this week. That's an opportunity.
Newsflash: As we go live, the Fed raised rates as expected, but many investors seem to have expected more, and gold is up. We’re happy to see it, of course, but it’s going to move share prices away from our Buy Under targets. Markets always fluctuate, however, so watch for future fluctuations like last week’s to create better entry points.
T1: Buy on the dips.
T2: Try for C$0.65 or less if in at higher prices.
SB: Try for under C$0.45 or less.