Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 Dec 28, 2017 2:31pm
325 Views
Post# 27239251

NPV 8% for Kamoa-Kakula $13.50 share CAD

NPV 8% for Kamoa-Kakula $13.50 share CADThis assumes a 12 Mtpa mine at $3.25 USD copper. According to the November 28, news release, Table 10, page 19, NPV 8 for $3.00 copper is $7.179 billion, and NPV 8 for $3.50 copper is $9.808 billion. Taking the average, which although not exact can serve as a reasonable approximation:

($7.179 billion USD + $9.808 billion USD) / 2 = $8.493.5 USD

$8.493.5 billion USD / 787.3 million shares outstanding = $10.79 share USD.

At a conversion rate 80 cents CAD per USD this is $13.50 share CAD.

Note that this does not include the upcoming resource update for Kakula, which will certainly propel these values even higher. NPV 8% above also doesn't include Kipushi nor Platreef. With zinc now approaching $1.50 USD, this is literally off the charts. Kipushi does not envision anything higher than $1.40 zinc in any of it's models. Platreef is now approaching many of the price assumptions for it's base case model, although values for Pt and Pd have reversed.

Even for a dedicated skeptic such as myself, where scenario planning assumes negative events, the overall picture taking shape is hard to deny. Relatively small changes in commodity prices, for example copper moving from $2.50 to $3.25 has a huge impact on the bottom line, since costs remain similar, if not exactly the same. This has been the major change in the last six months. Metals prices have consolidated their gains.






Bullboard Posts