K-K Value Continued at 12% DiscountBroomer,
If you use a 12% discount rate at $3 copper,
You have a project valuation for a 12 Mtpa K-K mine of:
($3.879 B USD x 39.6%) / 100 = $1.54 B USD
$1.54 B / 0.79 B shares out = $1.94 USD share
At a 12% discount, neither Kipushi nor Platreef would contribute much value. Only 27.5 cents for Platreef, 60 cents for Kipushi at zinc $1.10
IVPAF is currently trading at $2.4576 share. Therefore, you should sell.
Why own IVN if your own financial analysis criteria of a 12% discount only indicates marginal value? Even if you increase that value by 25% to account for expansion of the resource, it's not worth it. I'm not saying you're wrong. There is no right or wrong answer here. That's a personal decision. I am saying it doesn't make any sense to hold onto this Company if you truly believe a 12% discount is desirable.
My own opinion is if the Company feels the political environment is not conducive to business, they will simply delay until which time circumstances are more favourable. That's what is happening in South Africa with Platreef. Instead of assigning some elevated discount rate, they do have the option to delay construction. IVN is in the mining business, not the gambling business. If the Kabila regime turns this into Russian roulette, management always has the option to leave the casino, or at least hang out in the lounge until closing time.The intrinsic value is still there. It doesn't disappear.