RE:RE:RE:Why the sudden downdraft?stockman6767 wrote:
For a while it even dropped below the financing that Friedland himself had been willing to pay. There were several very large trades yesterday. Was someone big selling? Was the PEA not good enough for some?
If you read thorugh old wuarterly and annual reports you should find some hints which I personally do understand the way that there are old shareholders that invested in a private company and that agreed to certain lock up periods for certain amounts of shares and when those shares are free to be traded there might be one or the other that needs the money and therefore sells.
And I am sure that the PEA was not good enough for some people as there are always people for whom the numbers are not good enough. Personally I am satisfied with the numbers as I prefer to get them increased over time instead of having a bad surpirse when the assumptions in the PEA were too optimistic. Which does not mean that Ivanhoe did use very cautious numbers - I did not look into the PEA - but using 8% discount rate for NPV is at least not lightheaded in my opinion.
I could not find the PEA on sedar yet but if the after tax NPV @8% is 2,5bln at $3 copper and the whole company is valued something around 1.1bln I am of the opinion that there is value in this company even if Kipushi and Platreef are failures.
Given $1,18 cash cost per pound the AISC should not be far above $2/pound which should assure that this thing can be economic even if copper prices decline around 30% from todays prices.
As I said let's say Kamoa is only worth around the half of the number (2,5bln) in the PEA you get the Platreef and the Kipushi project for free so to say...
Will be a tough and long road to get all the projects up and running but I am convinced that Friedland is one of the guys in the industry that can do this.
Just my personal thoughts. DYODD
carinthian