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Ivanhoe Mines Ltd T.IVN

Alternate Symbol(s):  IVPAF

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

Bullboard Posts
Post by bloomfield18on May 20, 2017 2:48pm
439 Views
Post# 26267963

IVN value tied to Kakula

IVN value tied to KakulaPlareef failed to show much NPV. Kipushi shows NPV of about a billion dollars. Kamoa alone is unimpressive. This is all available for anyone to see in the assorted company PEA and PFS studies. The base cases often don't line up with current metals pricing. However, they all contain price sensitivity to NPV in their economic analysis. You can use this to calculate NPV as of today, which is the only day that counts.That's why share price was around a buck until the Kakula discovery.

What does $30 share imply, keeping in mind that IVN owns 39.6% of Kakula?

$30 share X (0.396) X 0.786 billion shares out = $59.5 billion

Nearly all of which is tied up with Kakula. Is Kakula worth $58.5 (59.5 - 1) or even $50 billion? No way any major would cough up $50 billion plus for some copper project in Congo. Anyone who would believe this is in for serious disappointment. 

On the other hand, that shouldn't be the standard by which to judge the project. It is truly a magnificent gem of a discovery. Provided the global economy doesn't falter, or copper prices tank, or the Congo political scene doesn't head back into hell, which is a lot of caveats, Kakula will be the most valuable copper mine in the world. This has a lot going for it without any embellishment or attempt to fudge the numbers higher.






Bullboard Posts