Ivanhoe Mines Ltd T.IVN

Alternate Symbol(s): IVPAF

Metals & Mining Industrial Metals & Minerals

Ivanhoe Mines Ltd. is a Canada-based mining, development, and exploration company. The Company is focused on the mining, development and exploration of minerals and precious metals from its property interests located primarily in Africa. Its projects include The Kamoa-Kakula Copper Complex, The Kipushi Project, The Platreef Project., and The Western Foreland Exploration Project. The Kamoa-Kakula Copper Complex project stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometers (km) west of the town of Kolwezi and about 270 km west of the provincial capital of Lubumbashi. The Kipushi mine is adjacent to the town of Kipushi in the Democratic Republic of the Congo (DRC) approximately 30 km southwest of the provincial capital of Lubumbashi. The 21 licenses in the Western Foreland cover a combined area of 1,808 square kilometers to the north, south and west of the Kamoa-Kakula Copper Complex.

TSX:IVN - Post by User

Ivanhoe Mines Ltd

Bullboard Posts

Comment by Oldnicknoron Apr 30, 2012 10:29am

204 Views

Post# 19851541

RE: $$$$$$$$$$$$$$$$$$$$$$$$$$$

Well,

On the other hand this is where analysts have their "long term prices", Cu $2.80, Au $1200

So, there is reason to put them there in an official document.

What they beleive, and You beleive may be another matter, but we see what the market is saying - so far. Not very bullish for the moment.

Excerpt from BoA-ML analysis (update) from today:

Share dilution lowers our PO to C$17/share from C$19
We are lowering our Ivanhoe Mines Ltd (IVN) price objective (PO) 10% to C$17/share, from C$19, following IVN's omnibus agreement with Rio Tinto (RIO) that will secure funding for its Oyu Tolgoi copper-gold project (OT) through to production, including the underground expansion (Phase 1). Project funding will include a dilutive $1.8 bn rights offering (@ C$8.34/share) and 55 mn warrants to RIO (@$12.79/share). The share dilution decreases our NAV C$2/share, driving the lower PO. In addition, RIO will support OT development with bridge-loan financing for US$3 to $4 bn with a goal to complete the financing with third party lenders by the end of 2012. In aggregate, the US$4.8-5.8 bn in funding is expected to cover all of OT's capital requirements for the next four to five years, lowering OT's project development risk. Despite the lower risk, we left our P/NAV target multiple unchanged at 1.1x as it is already at the high end of the range that we apply to our North American base metal company universe.

Maintain Buy on undervalued world-class copper-gold mine
Despite lowering our IVN PO, we maintain our Buy rating on IVN shares. OT is a world class copper-gold mine with the third largest copper mineral resource and one of the lowest C1 LOM (life of mine) cash costs, due to its large precious metal by product credits. We continue to see IVN as a value play due to OT's quality and potential.

Upcoming catalyst: OT power agreement in 3Q12?
Access to power from China is key for the OT project. We believe a power agreement with China will likely take place after Mongolia parliamentary elections in June 28. An opposition win is likely to delay the power agreement, in our view.