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Ivanhoe Mines Ltd. T.IVN

Alternate Symbol(s):  IVPAF

Ivanhoe Mines Ltd. is a Canada-based mining, development, and exploration company. It is focused on the mining, development and exploration of minerals and precious metals from its property interests located primarily in Africa. Its projects include Kamoa-Kakula Complex, Western Foreland, Kipushi and Platreef. The Kamoa-Kakula Complex project is a stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometers (kms) west of the town of Kolwezi and approximately 270 kms west of the provincial capital of Lubumbashi. The 17 licenses in the Western Foreland cover a combined area of 2,407 square kilometers to the north, south and west of the Kamoa-Kakula Copper Complex. The Kipushi Project lies adjacent to the town of Kipushi and 30 kms southwest of the provincial capital of Lubumbashi. Its Platreef project is situated approximately eight km from Mokopane and 280 km northeast of Johannesburg, South Africa.


TSX:IVN - Post by User

Bullboard Posts
Post by ursusbrumaeon May 02, 2018 3:04am
275 Views
Post# 27968323

Mongolia

MongoliaJust taking a step back from all this DRC drama, I am reminded of Oyu Tolgoi, and how the last Ivanhoe had this greenfield discovery in the middle of the Gobi Desert, with no infrastructure, in an underdeveloped country between China and Russia with virtually no mining.  It was and is a great deposit, but I dare say, not quite as much so as the present find.  The government renegotiated the equity and the tax, and eventually backed off the tax, but took a third of the equity.  There have been plenty of challenges along the way, and I imagine also plenty of conspiracy theory that either Mongolia would expropriate it, or China would conspire with Mongolia to steal it.  Maybe someone here who remembers the play-by-play will relate the history for the newcomers here.  In any case, RTZ sank a lot of money into it, and as copper went to 4.50 and gold 1900, the stock went to a $20+ billion market cap.  It is interesting that two-thirds of OT then was worth 15x as much as 40% of Kamoa, plus the other two projects.  It seems we have a decent set-up for a copper cycle.  I don't see tax renegotiations as a big deal.  The main difference would be the threat of civil war, which for the Congolese people, I sincerely hope does not come to pass.  If it happens, the stock will get clobbered.  Friedland will pivot to his other projects, but I do not think he will walk away, but come back when the dust settles for another shot at 20 billion, or whatever the equivalent is in the devalued dollars of the future.  If you know that war will break out in Africa, it is rational to sell and buy back at the point of maximum chaos.  For my part, I just don't know.  Many seem preoccupied by the nickel moves in share price, and trying to predict them, or thinking about what they mean.  A lot of the argument here seems to be a discrepancy between time frames, where some are focused on short-term moves, for trading, while others are focused on the long-term potential.  Both are valid approaches, but I am more in the longer-term camp, for which I would say that I think people often give the market too much credit.  With all the headlines, there just aren't a lot of marginal dollars that want to own copper in the Congo.  If things ever quiet down and copper starts rising again, it wouldn't surprise me to see a reversal, though I have no idea when.  If I were that smart, I would be a trader like most of you.  This stock was around 60 cents for quite a while, which didn't make any sense, but the sentiment was quite negative, even apathetic, at that time.  The stock market is traded by people, and people are emotional.  There are robots too, which reflect the same emotional trends.  Every time it goes down a nickel, I guess I'm losing, but I stopped calculating how much or even caring.  I can understand that many would not want to own mining stocks, or invest in the Congo.  For my part, I am confident in the value of the assets, some degree of tenure, and management.  HODL.  (Holding On for Dear Life.)
Bullboard Posts