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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

Post by ororossoon Apr 17, 2021 11:28am
415 Views
Post# 33017078

Convertible impact

Convertible impactIt is interesting that when the convertible debt was announced, the stock was trading around $7.75.  We have traded back through that level in just over a month.  It bottomed out at about $6.50.  Between that $1.25 move lower, the short position increased by 7 M shares representing the convert buyers who went short the stock.  As it trades higher they will unwind their shorts.  Simple math, looking at it in $.25 increments, that means that they will need to cover 7M divided by $1.25/.25 = 1.4 million shares every 25 cent move higher to delta hedge their position.  Perhaps they look at the conversion price of the call as the point where they fully cover their shorts.  So let's be conservative and take half of 1.4 million shares.  Simply put that would mean 700K shares of short coving for every 25 cent move in the share price.  It will be interesting to see where the most recent short interest is to see if this math works.
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