From the G&M this morning Scotia Capital analyst Orest Wowkodaw thinks shares of Ivanhoe Mines Ltd. (
) “warrant a premium valuation given the company’s world-class asset base, strong growth profile, impressive management track record, and takeover optionality.”
In a research report released Monday, he initiated coverage with a “sector outperform” rating ahead of the first copper production at its flagship Kamoa-Kakula project in the Democratic Republic of Congo, which he called the “world’s largest, undeveloped, discovered high-grade copper deposit.”
Calling its current valuation “attractive,” Mr. Wowkodaw set a target of $10 per share. The average on the Street is $8.71.
“Given the scarcity of world-class mining assets, we expect IVN shares to trade at a significant premium to other developers,” he said.