Inca Pacific Gets Vote of Confidence from Top Mining Firm

Weird timing. I pick up on Inca Pacific [IPR.V] (IPRFF.PK) on Sunday and yesterday the company announces another very positive piece of news. Kinda reminds me of what happened to GLQ.TO when I posted on it*... nah... let's not dream down that lane today.

The Magistral site: The copper will come from the head of the valley

Anyway let's get down to business; the IPR news is very good, and here's the link to the company's press release. In a nutshell, IPR has been given a thorough financial and operational examination by the dudes at Pincock, Allen and Holt [PAH] - these are serious, serious mining dudes and they like IPR

... and the result is a veritable thumbs up. What this kind of independent due diligence report does is to take a magnifying glass, a telescope, a fine-tooth-comb, a Geiger counter, a carbon 14 dating machine and whatever else they can find** to all the details of a project and try and find what they call 'fatal flaws'.

In this case, although there are a couple of things that IPR needs to attend to (totally normal for a mining project), there are no such fatal flaws in the feasibility study, and these PAH guys know... because they're good... and we know they're good. That's because PAH work on all the world's major projects and have among the top reputations in mining.

Don't believe me? Well click on this and have a look. They're also the consultancy dudes that go to the banker dudes and say "hey, this project rocks" or "watch out dudes, that project sucks," and so with the positive approval shown by PAH in this report, IPR is in a very good position to move forward and secure project financing at the correct moment. 

A moment I hope will never come, because IPR still has "buyout" written all over it and with luck that buyout will happen before IPR starts talking financing with some bank. On this point, the PAH report had another dose of very good news for shareholders. According to this highly respected 3rd party consultant, once the adjusted market values for copper and moly are taken into consideration, the new NPV (net project value... aka what this joint is worth right here right now) is US$206 million. Now that totally rocks, because with IPR currently at a fully diluted share total of 62.07 million shares, this would mean that each share, right now, is worth US$3.32. If you compare that to the C$1.58 closing price on Friday, you can begin to understand why I like this company so much.

There's more to it, of course. But in any buyout talks, IPR has an extremely strong case to say, "Look, Mr. Minebuyer...PAH totally rocks and is the best in this biz... and PAH sez we're worth US$3.32 a share. So put up or shut up." And somewhat coincidentally (??), I'm pretty sure that US$3.32/share is just the kind of ticket price that block shareholder Eric Sprott will agree to.

So it beats me why you're still reading this post, frankly. Go buy some IPR. If you do, there won't be a single miner worth his salt that says you haven't bought a bargain. 
 
* it was bought the very next day 
** only joking 

Disclosure: Long

Comments

[silveraxis]

I really like the stock and agree it is undervalued, but who is buying a project of this high quality but comparatively small size? Others of similar size are being put into production by juniors, not sold, even though a major could swoop in and buy them up on the cheap. Is there a list of potential buyers? I don't think it's Teck or other majors. The Chinese? Let's look at a short list.

[Stockguy456]

I agree the stock it is undervalued.