After Tax Undiscounted Cash Flow 7654321...
Please proceed to page 563, Tabke 24.7 of the Economic Analysis in the latest K-K resource update, which can be found at Sedar.com, dated March 27, 2020:
At 2.50 lb copper, total after tax cash flow for LOM = US $25.902 B
$25.902 B x (0.396) / 1.2 B shares out = US $8.54/ share
At 3.00 lb copper, total after tax cash flow for LOM = US $ 38.668 B
$38.668 B (0.396) / 1.2 B shares out = US $ 12.76/ share.
So, small differences in price make a huge difference to the bottom line. But even at $3 copper, if you just consider undiscounted cash flow over 37 years, you still fall well short of $20/share. And under the 2018 mining law, the government reserves the right to declare any metal strategic, and subject to a 50% windfall supertax. In the same way the DRC government arbitrarily -- in complete disregard for international law -- broke the previous ten year stability pact with IVN, they would have no trouble doing so again. Those telling you to have faith in the good intentions of the DRC are either fools or completely disingenuous.
Despite all this, in December, I felt that the strong long term global economic outlook, together with a long term copper price of $3, plus PGMs going ballistic, made IVN a screaming buy. Everything had come together, and I felt under those particular circumstances, fundamentals dictated share price would be propelled higher. Those circumstances no longer prevail today. Can IVN move higher? Of course. In a world where airlines surge because they declare bankruptcy, why shouldn't IVN (which is fully funded right through to production) benefit from such an Alice in Wonderland stock market?