Proactiveinvestors recommends
Additional Information
Market: TSX ASX
Sector: Gold Mining
EPIC: IAU
Latest Price: 0.27  (-5.36% Descending)
52-week High: 0.64
52-week Low: 0.20
Market Cap: 147.29M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Intrepid Mines
www.intrepidmines.com

Intrepid Mines is an international gold and copper development and exploration company operating primarily in Indonesia.

Full Intrepid Mines profile here
Pdf

Intrepid Mine's shares leap on gold hedge book closure

16th Dec 2008, 12:00 am by Andrew McCrea
Intrepid Mine's shares leap on gold hedge book closure

Intrepid Mines (ASX/TSX:IAU) shares jumped to a two month high to 15 cents as the company announced that its Western Australian gold mine, Paulsens, has delivered the final ounces to Westpac under existing hedge arrangements.

Intrepid CEO, Brad Gordon, said: “In the current financial environment, where the ability to self-fund is critical, I am delighted that we can enjoy the benefit of full exposure to current highly favourable gold prices.”

Completion this week of hedge delivery ounces at A$627 per ounce will now allow the Company to enjoy full exposure to the spot gold price – currently A$600 per ounce higher – and significantly enhance the mine’s current positive operating cash flow.

In the eleven months to November 2008, Paulsens has produced 72,500 ounces of gold at a cash cost of US$481 per ounce, of which a total of 43,971ounces were delivered against the Westpac hedge arrangements. These hedge positions were a requirement of the project financing facility provided for construction of the process plant and site facilities at Paulsens.

The debt associated with this facility was prepaid in June 2008 and the Company is net debt free with US$12 million cash at bank as at 30 November 2008.

Brad Gordon said, “Paulsens is looking to a resource upgrade soon to extend the mine life and underpin future development,” he said. Whilst continuing to focus on extracting maximum value for shareholders from its three main assets, the Company has continued a programme of non-core exploration and non-mining asset divestments, to protect and enhance the Company’s cash position.

September '08 quarter

For the September 2008 quarter, Paulsen's gold production was 16,483 fine ounces, down 27 percent (prior quarter record production 22,687 ounces). The lower gold production resulted from lower grade stopes being mined during the quarter. Annual gold production is still expected to be close to 80,000 ounces.

Unit operating costs at Paulsens reduced to $111 per tonne (prior quarter $115 per tonne).

Site cash costs increased to $558 per ounce (prior quarter $429 per ounce) primarily due to lower ounces produced (negative impact $153/oz), slightly offset by the weakening of the Australian dollar against the United States dollar (positive impact $22/oz) and slightly lower costs (positive impact $2/oz) over the period.

Cash inflow of $0.7 million from Paulsens operating activities (previous quarter cash inflow of $9.3 million) reflecting gold sales of 15,917 ounces (of which 11,004 ounces were delivered into the hedge book at A$627 per ounce). Previous quarter gold sales of 25,703 (of which 10,862 ounces were delivered into the hedge book at A$627 per ounce).

Cash on hand at the end of the quarter was $19 million (prior quarter $46 million)

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here