Intrepid Mines Limited (IAU)

StoneBridge Research – Intrepid Mines Limited (IAU $0.34) – Paulsens production solid, focus on Tujuh Bukit

Reiterating BUY recommendation, price target increased from $0.36/share to $0.40/share

• IAU owns 100% of the Paulsens Gold Mine in Western Australia and an 80% interest in the Tujuh Bukit exploration joint venture in Indonesia.
• Paulsens produced 20.0koz of gold in the 2QCY09 at a cash cost of US$484/oz.
• Production was 9% higher than we had forecast while cash costs were in line.
• Drilling at Tujuh Bukit is ongoing and work completed to date suggests that Zone B is likely to be larger than Zone A & Zone C combined.
• We have upgraded our valuation on IAU from $0.36/share to $0.40/share to reflect the solid production result at Paulsens and an increase in our resource estimate for Zone B at Tujuh Bukit.
• The release of an initial resource for Zone B is likely to have a positive impact on IAU’s share price and we are reiterating our BUY recommendation on the stock.

View Full Report

Related Posts:

1. StoneBridge Research – Intrepid Mines Limited (IAU)
2. Norton Goldfields Limited (NGF)
3. StoneBridge Research – Panoramic Resources Limited (PAN)
4. Research: Norton Goldfields Limited (NGF)
5. StoneBridge Research – Panoramic Resources Limited (PAN $2.52)
6. StoneBridge Snapshot – Lihir Gold Limited (LGL)
7. StoneBridge Research – OZ Minerals Limited