Ivanhoe Mines Ltd. T.IVN

Kamoa-Kakula´s phase 1 copper has already been sold

[tobesucht]

Don´t be concerned about recent copper price fluctuations. In the press release 9 days ago IVN announced that they signed copper concentrate off-take agreements at market prices for all of the copper produced in phase 1 at KK, which is probably 200,000 tonnes of copper. So we don´t have to fear that our copper is not purchased by anyone - even if China does not need no copper for a maximum of two months... And once China´s reserves are depleted (maybe in late summer) they have to purchase even more of the red metal to fill them up again.

[alvarez2]

Not concerned in the least !!

[NotSoBrave004]

Not concerned, but very curious. What is the true impetus behind this manipulation? China needs copper more than anyone else. Why would they truly release any of their reserves at this critical juncture when prices, due to demand, are supposed to go nowhere but up. Doesn't make sense from what we see, but there must be some other explanation I am not privy to...

[Hideaway]

NotSo,China uses a lot of cu to manufacture many products.If the price for the metal rises then their profits fall unless they increase the price of the goods produced which they would be reluctant to do for fear of losing customers.Also,as stated in my previous post,the threat of potentially releasing reserves was sufficient to lower cu price.I agree that demand for the metal is likely to rise

[NotSoBrave004]

Well, it would be a very short sided plan. What you say is true but don't forget, they will have to replenish their reserves, no matter how much they release, which would be more expensive. I'd say the juice is not worth the squeeze. what makes sense though if we imagine that this is only a scare-tactic to lower Cu price. Having said that, once the market realizes there is nothing to fear,

[NonCredibleSrc]

I see your point. From what I know, China has not YET released any reserves - they have only indicated they PLAN on it.  There have yet to be any indications as to quantity OR where they will release them to. Given what I know of China, it would really make me wonder (as you) what the long term plan would be if they release onto the global market.  Seems counter-intuative.  They

[NotSoBrave004]

You are not wrong. Maybe that is exactly what they want. They control a huge portion of the African resources and even though they have to buy Cu at market price, they would buy it from "own" resources. Getting Peter to pay Paul. Maybe on the books they make more money this way. Or I am just over complicating the whole thing.

[Cognition777]

I think it's some kind of headfake honestly. China announces that it is making resources available on market to drive price down; simultaneously they repurchase copper from sources like IVN who are committed to sell to them. The IVN copper is not truly reflected in the world "supply" because it never enters the market. Net results it truly zero... but the PERCEPTION is that China is