Congo jurisdictional issues and e-cars don't use platiumBad news with Ivanhoe I'm afraid.
Platinum economics don't make sense because electric cars don't use platinum and the hydrogen fuel cell is not a technology that will be adopted IMO. So Platreef economics are questionable in my view. Did we not see an announcement that 90% of the financing deal for platreef was in place many months ago....but then it never completed? Was there any news on this?
Turning to the Congo, IVN has the best copper deposits worldwide, but in the worst jurisdiction worldwide. Conditions are worsening, no doubt about this now. A UN peacekeeper was shot and killed a few days ago. Catholic church now rising up protesting against Kabila. More sanctions put in place, including on the infamous Dan Gertler. Police using live ammunition to quell protests and Kabila fighting with the UN. This is bad - I cannot see how institutional money will move in under these conditions regardless of RF's sales skills. IVN can do all the press releases it wants to prove up a gazillion ounces or whatever, but smart money will wait until the Congo stabilizes somewhat. The ridiculous mining law tax announcement will scare away any investor in talks I should think as it changes the calculus of returns. I read that Ivanhoe was reached, but chose not to provide a comment at this time. eeeeesh.
I see a lot more selling in the short term unfortunately. Elections (if they happen at all) are scheduled for December, but they are already late and Kabila won't confirm that he will not be a candidate. By law, he's not allowed, nevertheless he will not confirm. Thus he's making a joke of the consitution and in doing so, a joke of the mining licenses and indirectly, he is threatening the stability of the IVN claim on the deposits thorugh his conduct. Oh...so now he wants hefty tax on mining profits if copper goes up 25% from the spot price when IVN signed? Absurd, but that's how warlords operate! This is the risk we take when investing in jurisdictions like this. It's one broken promise after another with Kabila. No point negotiating with a criminal idiot. So, a peaceful change in government is a very long 11 months away and really, draconian mining laws could be just the beginning of this guy trying to work an angle to stay in power. Having RF and a chinese partner doesn't make much difference in my view at this point.
FYI - I was long, but sold all TFSA and RRSP holdings a few months ago. I still hold a very small amount in the margin/cash account and don't mind losing that. I would like to buy again, but not until the end of the Kabila regime and some stability returns to the Congo government. the next 11 months could be really bad for the Congo and all who operate there.
Good luck