Ivanhoe at top of RBCs TSX takeover listA few quotes from the article: The biggest of those on RBC’s takeover candidates list is Ivanhoe Mines, bringing back memories of 2012 when Rio Tinto acquired the former iteration of Robert Friedland’s company to take majority ownership of Oyu Tolgoi, in Mongolia. Bernstein analyst Paul Gait said the gap in growth of around $27 billion between the market cap and FCF potential meant investors (or an investor) would still get a great deal at the current share price.
“At the low end of the range, using the long term historic real copper price of just $5,870/t and just the existing resource base, the Kamoa-Kakula project will generate around $81 billion of FCF, or $41 per share in Ivanhoe,” he said.
“At the moment, Ivanhoe shares can be acquired for $3.80/share meaning that an investor is paying $0.09 on the dollar for the copper.”
Gait recognised this wasn’t clear cut due to the practicalities of building a massive copper mine in the DRC, but they’re still impressive numbers.
https://www.mining-journal.com/commodities/copper/tsx-takeover-targets-warm-up/