children of an idle brain

IMPACT Silver (IPT.v) is drilling again! Hoorah!

The IMPACT Silver (IPT.v) 2q16 results NR was published just a few minutes ago and aside from the expected mediocrity of its financials (another net loss and NO! YOU! CANNOT! IGNORE! DD&A!) the beady and sneaky little eyes of IKN were drawn to this line further down the page:
“With the proceeds from the Q2 2016 financing, the Company will begin
surface and underground drilling programs in the fourth quarter.”
Well that IS good news for the company, is it not? After all that time not drilling IPT is going to drill again and of course the tendering process for the drilling is going to be absolutely open and transparent with all drilling companies operating Mexico welcome to bid and the most competitive offer chosen from the stack. Why anyone should think that Energold (EGD.v) is going to get another automatic uncontested juicy contract from IPT is beyond my ken. Right, Mr. Frederick W. Davidson President & CEO of IPT.v?
Or if you like here’s how we put it in IKN377, dated July 31st 2016:

Between 2011 and 2016, IPT returned
a mine operating profit of $14.687m. But then $9.023m of that has gone to EGD,
the major cause behind the mine operating profit turning into an overall
operating loss over the period (not to mention the net loss). Put another way,
in the two “good years” of 2011 and 2012, IPT returned Mine Operating Profits
of nearly $17m ($12.9m in 2011, just over $4m in 2012). It was after the big
positive results in 2011 that the big money was spent by IPT with Energold,
those $8.3m in drilling bills. It’s fair to say that EGD has benefitted far more
from operations at IPT’s mines than its shareholders. But that may just be a
coincidence, of course.
PS: Frederick W. Davidson is also President & CEO of EGD.v
PPS: IPT.v rents office space from EGD.v

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