Despite copper and molybdenum prices sustaining their highs, and the unrelenting insider buying by the company's president, Inca Pacific Resources (TSX:V.IPR, Bullboard) / (OTO: IPRFF, Bullboard) continues to trade at nearly the same level it did a year ago.

As some of you may recall, I wrote about Inca back in June 2007.  For those who haven't read the aforementioned Silver Stock Investment Newsletter report, I would recommend it since this current issue will not contain as extensive an overview of the company.

Instead, this issue will focus on four key points that distinguish Inca from other junior development companies. Together, I think these make the case for distinguishing Inca as a remarkable investment opportunity with the very real potential of registering 100% gains over the next 12 months.

First, Inca holds a 100% interest in a world-class deposit in Peru containing roughly 2.8 billion pounds of copper and 250 million pounds of molybdenum. According to the final feasibility study released in January 2008, Inca's Magistral deposit boasts an after-tax net present value discounted at 8% of C$432 million using $2.00/lb copper and $16.00/lb molybdenum. Thus, the after-tax net present value of the project is about 4.3 times as large as the current market capitalization (C$100 million), using hugely discounted metals prices.

Second, the amount of insider buying is remarkable. Specifically, Anthony Floyd, the President of Inca, has accumulated more than 700,000 shares since my June 2007 coverage of the company. What's remarkable is not just the amount of buying but both the consistency and method of accumulation. Hardly a week goes by that Mr. Floyd does not add to his position, and this is always done at market prices. In other words, none of these purchases were the result of exercising in-the-money stock options.

Third, management's track record is phenomenal. Mr. Floyd was also the president of the original Lumina Copper Corporation. Lumina Copper Corp. conducted its IPO at C$1.00 in 2003. About two years later, Lumina broke into 4 separate companies, and shareholders of the original Lumina Copper received 1 share of each. The four companies formed were Regalito Copper, Lumina Resources, Northern Peru Copper, and Global Copper.

During 2006, Regalito was bought-out for C$6.00 along with Lumina Resources for about C$1.30. During 2007, Northern Peru Copper was taken over for C$13.75. Most recently, Teck Cominco (NYSE: TCK, Bullboard) / (TSX: T.TCK.B, Bullboard) made an approximate $415 million buyout offer for Global Copper, or roughly C$12.00/share. Thus, original investors in Lumina Copper Corporation, if they still owned their IPO shares, would be up more than 3,300% on their five-year old investment. We're confident that with Inca's superb project economics, Mr. Floyd will be able to prove himself similarly successful in negotiating a takeover favorable to shareholders of Inca Pacific. 

A little more than one month before Teck Cominco submitted its buyout offer for Global Copper, Global raised C$19.2 million. Surprisingly, Global Copper still realized a takeover price that was over 100% higher than the price of the financing. Interestingly, on May 8th Inca closed a $28.2 million public offering at C$1.60/share, with no warrants attached.

Fourth, Sprott Molybdenum Participation Corporation (TSX: T.MLY, Bullboard) owns a 49% interest in the company, and the majority of this interest was purchased at a cost of C$2.00 per share in June 2007. According to Sprott's most recent conference call broadcast on February 29th at the 17 minute mark Eric Sprott said that he expects an “interesting” development at Inca Pacific to occur within the next 10 months. While several potential scenarios were given, we believe that the eventual takeover of the company in the $3.00-$4.00+ range is the most likely outcome, especially given management's track record.

In conclusion, Inca Pacific Minerals owns a remarkable copper-moly deposit, is presided over by a very competent and experienced President whose interests are fully aligned with the shareholders, and is 49% owned by a fund that is convinced the company will announce significant news within 11 months. Therefore, I believe that Inca's share price is well positioned to rise 100% or more by this time next year.

The following are daily and weekly technical analysis charting, compliments of Roy Martens.

*I currently own 4,000 shares of Inca Pacific Resources. The company has not paid me to write this report. Feel free to send any feedback about this article to dzurbuchen@resourcefortunes.com