Ah in that case ignore my last post. What did you make of the results? Here is my post from last month btw if you're interested. IRC Results 27 Mar '14 Financial Highlights • Revenue increased 15% to US$160.9m (2012: US$139.7m) • Kuranakh segmental EBITDA increased 40% to US$22.8m (2012:US$16.3m) • Loss attributable to shareholders narrowed by 28% to US$41.6m • Excluding impairments, loss attributable to shareholders narrowed by 36% to US$19.5m • Cash and deposits of US$98.4m (2012: US$24m) • US$88.2m of additional funding from GN/MC April 2014 The results for 2013 show a marked improvement on the previous year - even though there have been lower ilmenite prices and further impairments of the molybdenum project and Kuranakh. As we know impairments are paper losses, recorded as the price of assets falls so stripping away this one off loss IRC turned a $19.5m loss. Looking at the accounts a good deal of cash has been invested back into K&S which is due to open this year (2014) - a huge milestone whereby IRC intend to quadruple group production capacity to around 4.3 million tonnes per annum. The outlook is all about growth this year as IRC intend increase production at Kuranakh to 900k tonnes of iron ore and 160k tonnes of ilmenite whilst in H214 there will be a ramp up of production at K&S and into 2015 whereby they envisage it will run at its full capacity of 3.2m tonnes. Despite the impairments there is still the issue of why IRC have not been able to turn a positive cash flow. According to the CFO's statement he believes IRC will start to enjoy significant positive cash flow this year. The loss is blamed upon "the cost of building a large scale mining operation". Interesting to note admin costs fell by about $7m which contributed to the increase of approx $9m in EBITDA to $22.8m. Thanks to General Nice the balance sheet looks very healthy with cash balances of $98.4 million compared to $24 million last year. IRC have drawn down some $195m of their total $340m ICBC project finance facility for the K&S Project and expect to draw down further this year, with loan repayments expected to begin in December 2014 and to continue for 8 years. The closing statement reads "We are in an excellent position as we transform from a developer to a significant producer of quality iron ore" and given IRC's track record in exceeding targets I wouldn't bet against this horse - especially with it being the Year of the Horse.
Now we have- 1. backwardation of gold which is usually associated with a shortage of gold bars -at London gold market 2. reports of old or 1960's gold bars being seen 3. housing data alike to in 2007,housing drops normally coming before stock crashes 4. a smart money investors S&P 500 chart showing large exits 5. there is to be soon a new Eastern gold clearance market in Asia 6. a new BRICS bank opens this summer 6. the gold hits are apparently being done with parts of the large JPM long gold positions
Volatile to say the least, today.
RE: Freddie re IRC
Ok thanks but their first quarter results were out only yesterday sorry didn't see your post
Freddie re IRC
If you look back through my recent posts I wrote a summary of the IRC results with my thoughts. There was a discussion around the same time with the regulars on this board, I can't remember any negatives being mentioned other than the delay. Good to see support building as we approach our own results. I expect there will be a surge in interest as analysts soon raise their targets following not only the debt reduction over the past year but also the increases made to our non refractory reserves (think that's the correct one)... Have a great day everyone! :)
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