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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
Comment by bloomfield18on May 28, 2018 9:19am
179 Views
Post# 28087667

RE:RE:RE:RE:RE:RE:Again, I just want to point out the FANTASTIC CASH FLOW

RE:RE:RE:RE:RE:RE:Again, I just want to point out the FANTASTIC CASH FLOWThe January 2018 study provides a somewhat more modest valuation. For a 12 Mtpa mine, at $3 copper, UNDISCOUNTED cash flow is $32 billion. That's over 49 years. Under that lengthy time frame you must discount cash flow. At NPV6 this gets reduced to $10 billion. However, that was before the new tax proposals, where both royalties and corporate tax go up. Remember IVN only controls 39.6% of the project. So, 

$10.billion x 39.6/100 = $3.96 billion

$3.96 billion / 791 million shares out = US $5 or $6.25 CAD

Nothing to sneeze at, but not yet $15 or $20 share. Taxes are going up. This will reduce value accordingly, while the resource remains open to expansion, which will add value. You could argue copper is going to $4 or $5. I don't believe it. I can't see any massive global construction boom on the horizon. As a shareholder, my own assumption is what you see is what you get. I prefer not to get overly optimistic, and retain a conservative perspective. $3 copper is used by the study, and that is a reasonable assumption.

I believe Platreef is worth a lot more than people realize. Palladium is in acute deficit, and will remain so permanently. Because it's very rare, there isn't much supply to be found. Those counting on electric to replace ICE vehicles will be in for a surprise. The electric vehicle market will certainly grow, but ICE will be with us for decades, if not longer. EV's will be most popular in those oil importing countries with very high gas prices at the pump. Platinum supply will fall off a cliff in a few years. Over the long term, both of these metal prices are pointing straight up.

I'm not as enthusiastic about zinc. There is already a massive supply overhang sitting idle to support higher prices. The same cannot be said for copper or PGMs. Taken all together, the Company could be worth $10 to $12 a share five years out. If traders get irrationally exuberant, $15 to $20 is not out of the question. And why not? If traders can be irrationally pessimistic, and drive share price into the gutter, they can also be irrationally exuberant. If and when negotiations with the DRC government arrive at a successful conclusion, there is nothing stopping IVN from continuously adding value as these projects advance to production.

Bullboard Posts