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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 Nov 16, 2017 9:21am
125 Views
Post# 26974835

NAV vs NPV

NAV vs NPVI take back what I said that NAV is invalid in the case of mining projects. I'm sure the analysts at BMO and TD followed what they believed to be best practises when they designed their models.

However, a 6+6+6 model may not be justified at this time. There are only a few drillholes that have been released up till now from Kakula West which exceed 5% copper. It's a big jump from such thin data to a dedicated 6 Mtpa mine. By using a 6+6+6 model instead of 6+6, throughput, at least on paper, increases by 50% beyond the upcoming Nov resource update 12 Mtpa mining scenario. This has the effect of raising NPV or NAV significantly, yet there are no guarantees Kukula West will live up to such high expectations. Perhaps the resource update will shed more light on progress in drilling at KW. It may even provide separate resource tables for Kamoa, Kakula, and Kakula West with cutoffs at various grades. If not, it would be hard to claim with any confidence that a separate mine at KW is plausible at this time.


Bullboard Posts