John EmbryIntrepid Minerals CorporationIAU.TOTOP PICKJun 13, 2006
Intrepid is merging with Nustar in Australia on July 1st. Nustar produces 80,000 ounces a year. They also have an ore body which will soon a mine. Also have a terrific exploration play in El Salvador.
Bane of his existence. Had the right backing, great exploration play and a resource in Argentina. Then acquired a producing mine in Australia that has been nothing but a headache. Making it worse, they have a hedge, which consumes cash. It has now reached a level where it is clearly in buying range.
Acquired New Star in Australia. Paulsens mine which came with the acquisition and is not running a smoothly as they would like. Earnings where a little disappointing. Had to do an issue. Still likes the Australian production and South American exploration upside combination. Oversold and is cheap.