Ivanhoe - Build out or deal?Will Ivanhoe build, or deal?
I want Ivanhoe to build those mines, slowly but surely. And I'd like more of a percentage of those mines for myself, so I don't mind if management raises funds through debt. I don't want to get diluted. At today's prices, Ivanhoe is an absolute gift - provided they can get permitted, and start building out.
If Ivanhoe wants to deal, then this investment is ca-ca for me. Raising funds through equity is problematic now given the stock price.
Borrow and build....or should I say, borrow, build, buy, buy, buy!
One thing I must comment on is the delay in the notarization of the platreef mining right document. To me this could indicate that the government is initiating an investigation on the granting of the right and the process Ivanhoe followed to obtain. This may explain why nobody is saying anything about the reason for the delay. If an investigation is underway, no information would be required to be provided by the government. And Ivanhoe would not want to comment so as to not negatively influence any investigation outcome. Ugghhh. It's a relatively new government in South Africa and the mining minister inherited horrible platinum mine strikes that involved several mine shutdowns, horrible violence and death amongst miners. This was late spring/summer. So hopefully, it's just new government civil servants, beureaucratic delays and prioritization of legal workload. If that's all it is and the notarization happens, we should see the stock rise and continue to rise as Ivanhoe is then able to announce more build progress. The closer they are to selling their first batch of concentrate, the more short-term investors will pile into the stock. For now, you need a long time horizon (but if you can buy and hold for a few years, wow - what an incredible discount the market is offering you now).
GLTA