Someone is After IVN AssetsAll three projects are valued by market cap, which is now $2.0645 B USD. Let's say roughly $1 B for K-K, and $0.5 B each for Kipushi and Platreef. You may say that's ridiculous, everyone knows these projects are worth a lot more. Yet according to market cap, the only true objective measure available, one that accounts for all tangible and intangible aspects of the Company, that is the fair value recognized by the market. So, if someone comes along and offers $2 B for K-K, or $1 billion for either Platreef or Kipushi, that would be a 100% premium to the current valuation. It would be hard to argue objectively that such an offer was not generous. And therein lies the danger of a prolonged share price drought. The longer share price remains depressed, the more comfortable the market gets with this valuation. So, let's say IVN wants to sell Kipushi to develop K-K, this low share valuation is going to hurt a lot. I would prefer they didn't sell it at all.
The why is easy. These three projects represents tens of billions of dollars in future profits. Who stands to gain? Anyone looking to take down a major equity position over time. Or someone looking to take advantage of financial stress to gain valuable assets at a discount. IVN may have become a victim of it's own success. You've heard of too big to fail? Well this could be a case of too big to succeed -- without attracting the sharks.
The scary part is not knowing who they are, thereby masking the ultimate agenda. Usually shares get run up or down for a few hours or days, and that's it. This has been going on since late November. At first I thought all the selling was probably just a group of traders attempting to score a few million bucks. Not that big a deal from a shareholder perspective. I have such modest ambitions. Think BIG.