Ivanhoe Capital Acquisition Corp. Warrants each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per... IVAN

RE: 5 Billion & Insider Sales

[Tradesman]

 You said (quote) "Where is IE going to get 5 Billion to invest in Ecuador? Even Friedlanddoesn't have that kind of dough! I am also concerned about the insider sales. Any ideas on why that's happenning?"

It does seem like a lot of money, so I did some quick calculations to try and understand it.

$4.5B over 30 years is $150M per year.
By year 6, production should reach 120,000 barrels/day. Each barrel = $37.00 income.
So that's 120,00 x 37 x 365 = $1.62B per year income.  Hmmmmnnn!!!

So, in other words, depending on how the project is organized, it could generate enough income to finance itself over the long term Also, I understand Ivanhoe's technology is, to some extent, self-perpetuating and therefore the extraction should be very economical.

Even so, I would question that $4.5B estimate. It seems a little extreme to me.

As far as the insiders sales are concerned, it happens all the time for a variety of reasons. I'm more interested to watch what the stock price does over time. It's the best indicator.

PS. I hope my arithmetic is right. Everyone, check it please!