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IGR 50.0¢

Ann: Half Yearly Report and Accounts

  1. ASX News

    91,139 posts.
    • Release Date: 29/02/12 20:07
    • Summary: Half Yearly Report and Accounts
    • Price Sensitive: No
    • Download Document
  2. angers

    3,559 posts.

    HALF-YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

    Highlights:
    • Gold production of 44,703 ounces for the half-year - up 14% on the previous 6-month period.

    • Integra is one of Australia's lowest cost gold producers with a half-year cash cost of $549 per ounce (excluding royalties) in-line with guidance.

    • Cash profit from operations of $37.2M for the half-year, up 60% on the previous 6-month period*.

    • Ore stockpile of 1.76 Mt at an estimated grade of 1.52 g/t gold for a contained 86,000 ounces as at 31 December.

    • Cash on hand $20.5 million, with debt of $16.2 million ($10m repaid during the half).

    • First pass RC/ diamond drilling at the new Imperial Prospect in Mt Monger -Newcrest JV returned:
    o 19 metres at 4.39 g/t gold;
    o 6 metres at 13.43 g/t gold and 1.5% copper; and
    o 2 metres at 31.10 g/t gold and 1.3% copper.

    Major Achievements:
    • Upgrade of processing facility to 1 Mtpa completed at the end of July - ahead of schedule and below budget cost.

    • Admitted to the S&P ASX 200 on 2 December 2011.

    • 100,000 ounce gold production milestone achieved in early January 2012.

    • Board and regulatory approval granted to commence trial underground mining at Cock-eyed Bob.

    Outlook:
    • Forecast production for the June half-year is 45,000-50,000 ounces.

    • Trial underground mining at Cock-eyed Bob to commence.

    • Exploration drilling will increase in the second half of FY12, $23M exploration budget for FY12.

    * Based on gross profit before depreciation, amortisation and royalties of $44.3M, subtracting royalties of $2.2M, and subtracting other non-cash inventory adjustments included in cost of production of $4.9M.

  3. nolly

    824 posts.

    Whats new that has not allready been addressed? even rubbing salt into the wounds with, On 21 November 2011, 1,000,000 options were granted to Director, Mr William Plyley, after approval
    from shareholders on 15 November 2011. These options have a range of exercise prices from 78
    cents to 83 cents each and are exercisable between 1 April 2013 and 15 September 2014......... SO ARE IGR ATLEAST TWO YEARS AWAY FROM BEING A $...Every thing is running FINE except the SHAREPRICE... could not even say how under ground was processing LIKE no problems all going to plan

  4. angers

    3,559 posts.

    A total of 30,574 ounces of gold were delivered into forwards during the half-year.

    Gold forward sales commitments have reduced from the original 92,000 ounces to 46,980 ounces at a price of $1,359 per ounce.

    For the next five quarters to completion, there is a dramatic reduction in the quarterly commitment schedule to completion such that the majority of quarterly production is sold into spot prices.

    Project debt has been reduced by $10 million during the half-year bringing the outstanding debt to $16.2 million from the original $45 million project facility.

    The Company is in a strong financial position with $20.5
    million in cash at the end of December.

    Capital investment continues to build the run of mine stockpile now at 1.76 Mt at an estimated grade of 1.52 g/t gold for a contained 86,132 ounces and preparation of the Maxwells gold deposit for full open pit production to commence in June.

    The cash balance reduced during the December half-year from $37.7 million to $20.5 million due to a large
    proportion of non-recurring costs of $36 million including:
    • process facility upgrade ($8.6m),
    • a large pre-strip of the Maxwells open pit in preparation for full production in June 2012 ($13.3m),
    • Debt repayment including interest ($11.2m), and,
    • Further building of Ore stockpiles ($2.7m).

    These non-recurring expenditures ensure that the Randalls Gold Project is largely de-risked with a very large Ore stockpile and is well positioned for consistent future production in the most efficient and cost effective manner.

    The cash balance is expected to grow significantly post June 2012 as these nonrecurring expenditures fall away and debt is repaid in full.

    The growth profile of the Randalls Gold Project can be fully funded from existing project cashflow.

  5. tooli

    1,075 posts.

    The cash burn that some talk about here is explained in the Half Yearly report.Its definately not cash burn but sound investment for the company moving ahead with projects and our increasing profitabilty.
    The endless nonsense that they will have a CR is ludicrous read the report carefully we will have increased income for many reasons and expenditure will be less and then there is the stockpile that now has a grade of 1.5.
    We have so much positive activity by the company,the drill results at CEB,Majestic,Imperial,Aldiss,Mt Monger,Santa,Randals etc etc.
    We have significantly less obligation to deliver into our hedge price so we can take advantage of significantly higher gold prices.
    Read all the reports carefully,I am not ramping this stock and there are still risks to be accounted for the main one being the success or otherwise of the underground.

  6. ocracoke

    1,254 posts.

    Gold = $1581.00. Big ouch or small ouch.

  7. Lord Spesh

    1,050 posts.

    I was fascinated to watch (and read) the news programs this morning and hear that the Dow has tanked because of Bernake's poor assessment of the US economy and that Gold has tanked because of Bernake's positive assessment of the US economy.

    Are these people retarded or liars?

    IMHO POG will swing wildly whilst the US unwinds. It has done this numerous time sin the past 12-18 months.

    DYOR (and try and work out who to believe.)

  8. rabbitoh

    17,168 posts.

    Never matches its peers when gold rises and out does them when gold drops, will be buying of gold drops a little more tonight for a trade.

  9. rowingboat

    3,197 posts.

    "a large pre-strip of the Maxwells open pit in preparation for full production in June 2012 ($13.3m)"


    Nice of them to finally divulge the $13m cost for this. So what's the expected cost for underground trial?

    Agreed that FY13 should be a good year with 4 gpt Maxwells ore being processed from June.

    Expect a mid year announcement to upgrade the plant in order to blend Maxwells ore with the 1.5 gpt stockpile, increasing throughput. In my opinion.

  10. rowingboat

    3,197 posts.

    "These non-recurring expenditures ensure that........."


    LOL. well not until the next non-recurring expenditures come along at least.

    Just look at how D&A costs in particular ($18m) compare with revenues ($63m) and cost of production ($19m). Throw in admin ($4m) and royalties ($2m) and you see how they only make a 1c per share profit after tax. So what's the future upside here... in terms of profit potential on a per share basis?

    A lot of upfront investment, running to stand still, and continuing high D&A is how I see it.

  11. rabbitoh

    17,168 posts.

    Doesnt matter if you agree or disagree, it woulld be prudent for anybody with an interest in igr to have a read of 2 posts by rowingboat on this thread, it might give a clue why igr has been stuck under 60 cents for so long, thank you RB ..

  12. nolly

    824 posts.

    it would be prudent not to think igr Management have not set themselfs...FULL STOP

  13. marsup

    750 posts.

    Underground mining budgeted to cost $6m. To offset this we are talking considerably larger income from gold produced.

    Note there is a typo in yesterday's preso: trial mining will be processing ore in September quarter whereas slide 25 suggests December quarter which is wrong.

    I think the next few months are going to see impressive exploration results.

  14. moorookamick

    3,873 posts.

    There's also a date error on P31 of the half year report, Grant Date:
    both columns say 21-11-11.

    Cheers
    Moorookamick

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