Integra (ASX:IGR) is an Australian gold explorer looking at becoming a significant new mid-tier Australian gold production house.

IGR has built up its portfolio through a series of acquisitions, joint ventures and strategic alliances – predominantly in the Eastern Goldfields region of Western Australia.

It is looking to commission its flagship, the Randalls Gold Project. In January, IGR announced a 40% increase in resources.

The miner has an attractive asset portfolio with low cost gold production, approximately $500 per ounce cash cost.

It has enjoyed a successful transition to a gold producer aiming to produce 140,000 ounces (oz).

IGR has a good track record of discovery and development with significant exploration potential.

The miner recently reported shallow high grade gold results at the Lucky Bay prospect.

Business investment

Integra is looking to spend $12 million upgrading its processing facility. It will also be looking to repay $20 million worth of debt.

By the end of FY12, the company will be nearly debt free.

The Randalls Gold project will be producing 90,000oz per year at $500 per ounce.

The process plant expansion is expected to be completed by August. The target production is 100,000oz per annum.

There are also plans to increase production to 120,000-140,000oz per year underpinned by underground production potential.

Looking ahead

IGR has a very strong business primed for long term growth. The recent positive results at Lucky Bay are testament to IGR’s strength and potential.

Gold has gained significantly this year, reaching fresh record highs as global economic uncertainty, natural disasters and tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal tacked on 4% last week and continues to hold its ground well above US$1500.

With plenty in the reserve growth pipeline and rising gold prices, we feel IGR will be one of the stocks to watch in coming months.

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