Kakula West?Most of the NPV (Net Present Value) for IVN is tied up with Kukula. The zinc operation is maybe worth a billion dollars, and the South African platinum mine is still marginal profit at this point. There is a lot of enthusiasm, but after crunching the numbers SA won't be a huge money generator after the enormous costs are factored in. This data is available to anyone prepared to sink serious money on stock purchases, and you can be sure they're only looking at the bottom line, not the story. Overall, market cap for IVN is fluctuating between $3.5 to $4 billion CAD. That is a lot for a company not yet in production. So, Kukula is being valued at about $2.5 to 3 billion assumed NPV.
The wild card is Kukula West, The huge stepout revived a flagging share price. It was heading downwards until that news release. We still don't know the continuity of Kakula West. Are these isolated pockets, or a continuous structure spanning the entire strike length of the deposit? There are 12 rigs turning but we're only seeing isolated results. What are the other drill results? Are these simply highlights, with the others not as exciting? We are lacking a stream of information that would clarify the picture. This is an amazing discovery, but even incredible discoveries require clarity in order to make a calculated bet on stock purchases. Unless you're a momentum player, which is what we've been seeing lately.
The other factor is political. One major after another has bailed Congo. Robert Friedland can play this game better than anyone. He specializes in countries and people you would just love to strangle. Provided the Congo doesn't go to hell in a handbasket, always a possibility, Friedland's arrangement is workable. Everyone gets paid off.
There are other factors, such as global demand for copper. Share price will respond to commodity pressure. Always something to keep in mind. You really have to keep on your toes in today's mining markets.