NEW YORK ( TheStreet ) -- International Tower Hill ( THM) has what many of the big gold miners want and need, but CEO Jim Komadina says they won't get it by trying to acquire his company.

"I didn't come on board to sell the thing," says Komadina, who took the helm of the company in May with the explicit goal of transforming the company from an explorer into a developer. "When I came on board, I took the for sale sign down."

Analysts and investors alike will be disappointed. Credit Suisse wrote in a recent note, "given the development and financing risks facing International Tower Hill, we believe the company will strongly consider alternatives to developing Livengood alone, including joint ventures or an outright sale of the company."



International Tower Hill has what big miners want -- 100% ownership of the 20th-largest gold deposit in the world, Livengood. It ranks in the top 2% of gold discoveries over the past 20 years. The mine could produce an average of 562,000 ounces of gold over a 23 year life, delivering 664,000 ounces of gold during the first five years.

The company has 7 more years of feasibility, permitting and construction ahead of it before it will start producing gold. Although it has $116 million in cash and no debt, its capital costs will still reach $1.6 billion -- all preproduction cost.

Credit Suisse is forecasting a 166% dilution to the existing share base as Tower Hill tries to raise money. The firm estimates that International Tower Hill spends $4.9 million a month and will run out of cash by mid-2012 and estimates the company will try to raise $147 million dollars in an equity offering.

Komadina says that the company has been notoriously lean with shares, with only 86 million share outstanding. "Other companies in the junior sector might have 400 or 500 million shares outstanding." He has tasked his new CFO, Tom Yip, to outline two or three financing options the company can lay out for investors with the hopes of calming fears. Komadina declined to comment on the specifics of any potential equity offering but Yip will be unveiling his options before November 24th.

"We have to be very innovative in how we are going to finance this," said the CEO. "I mean, 50-50 joint ventures are a hard thing to do ... when I look at our cash requirements, going forward, I can still keep the entire company at 100% instead of selling 50% off to a joint venture for roughly the same amount of money. So I would rather go out ... and raise the additional couple hundred million we need to get us across the finish line."

Komadina gave a definite no to a joint venture and a buyout but a hostile bid is out of his control. "We've prepped the board and I have talked to them about what I think the range of values are for Livengood," he said. "For us to be successful in permitting and building this, we have to be of single mind in focus ... So if someone writes us the letter, we will respond to it. We know what the asset is worth." Komadina said an attractive offer could value shares at a multiple of $11. The stock is currently trading at $5.13.

Canaccord, which has a buy rating on the stock, believes that "current management is qualified and capable of advancing the company's business plan, but there are no guarantees it will be successful."

Credit Suisse, with a neutral rating, says failing a takeover bid, a rising gold price is the company's best bet. A 10% rise in gold can result in an estimated 26% increase to the firms NAV forecast. But really, Credit Suisse is looking for a buyout.

The firm named Kinross Gold ( KGC), AngloGold Ashanti ( AU) and Newmont Mining ( NEM) as possible buyers.

Livengood is 60 miles away from Kinross' Fort Knox mine, which International Tower Hill studied very carefully when prepping its own asset. According to Credit Suisse, Fort Knox will be on its last legs as Livengood ramps up production. "We note, however, that Kinross currently faces significant capex requirements of its own, and as such, a joint venture with Kinross is a more likely scenario."

AngloGold Ashanti is a South African miner desperately looking to diversify away from the country and currently has no exposure to Alaska. "Credit Suisse currently does not cover AngloGold, but we note that the company has a healthy cash reserve and a reasonable debt load."

Newmont is trying to grow its production 35% by 2017 to 7 million ounces and double its reserve base in 10 years. Newmont isn't mining in Alaska currently and "has a strong balance sheet with over $4 billion in cash and a 14% debt to capitalization ratio," according to Credit Suisse.

CEO Richard O'Brien in a recent interview, however, said that Newmont's commitment to their new dividend, which links payout to the gold price, in addition to its exploration profile are enough to keep Newmont's cash busy.

"We see enough in our own portfolio we don't need to do M&A," said O'Brien. "It would be purely opportunistic if we decide to do something."

Newmont, Kinross and AngloGold declined to comment on rumors or speculation around mergers and acquisitions.

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-- Written by Alix Steel in New York.

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