RE:RE:Low IRRsWhen you look at the return that is available today for investing in bonds or savings accounts an IRR of around 15% on a dcfbasis of 5% looks pretty good.. Platreef has this type on number but the IRR's for Kipushi from the PEA are much better and we are awaiting numbers from a PFS on Kamoa. Based on the grades and proposd mining methods I expect a very srtong number from Kamoa.
Since Friedland has partners at Platreef and Kamoa and Ivanhoe already has sufficient sunk costs to fund their share of the propsed capex, I think the decision to proceed is out of the hands of Ivanhoe and when the partners decide to commmit to actual construction- then the value in Ivanhoe goes up exponentially since there is no need for dilution to maintain Ivanhoe's percentage of ownersip going forward.Since Platreef is sinking a combination exploration shaft that is large enough to be used for production it appears the basic decision to go ahead has already been made and with the recent increase in Platinum prices- things look pretty rosy right now at Platreef and with the recent discovery at Kakula- Kamoa looks like a real winner.. GLTA and DYODD