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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 Mar 30, 2020 5:09pm
201 Views
Post# 30861782

RE:This lower copper price is FANTASTIC for IVN

RE:This lower copper price is FANTASTIC for IVN

It's NOT fantastic when the price of copper plummets. It means lower profits. And lower profits are NOT fantastic. However, there are some possibilities here. 

1) If people lose confidence in fiat currencies, due to unsustainable levels of debt, everyone will want to acquire hard assets. Germany 1945 is a case in point. The German population ditched worthless Reichsmarks in favour of hard assets. I believe the Nazis restricted the sales of businesses to support their currency as their empire crumbled. Western nations have outlawed ownership of gold in the 1930's for the same reason. Ivanhoe Mines represent an intrinsic store of value in the event the USD collapses. At the moment this seems unlikely. But if the crisis continues for a year or more, this becomes a real possibility. 

2) Copper has found a new application, as an antiviral, antibacterial veneer, not just in hospitals, but door handles, light switches, and water faucets. After a year of avoiding contamination, many people might decide to install copper countertops, instead of granite, anywhere a human hand may touch.

3) PGM's continue to remain strong. The loss in vehicle sales, have been compensated by a scarcity of supply. On the other hand, South African mines are shut down. Presumably Platreef development is on hold until it's safe to return. 

4) IVN is cash rich. And when this is all over, only a few companies will have any cash. This will put IVN in a strong position, once the virus is defeated. Without cash, you can't take advantage of opportunities. It's a good thing RF avoided going into debt to fund Platreef.

These are more long term possibilities, than short term moves.

 

Bullboard Posts