From Scotia this MorningIvanhoe Mines Ltd. Updating Estimates for Q2 Financials
OUR TAKE: Neutral.
We have updated our estimates to reflect the company's recently released Q2/21 financials. We do not view the financials as meaningful given no assets were in commercial production during the quarter. For a fulsome operational review, please see our First Look note.
Overall, we view the update as largely neutral for the shares. We continue to anticipate a re-rating in IVN shares as the company ramps up (and expands) Kamoa-Kakula. Although geopolitical risk is elevated, we rate IVN shares Sector Outperform based on the company's world-class asset base, strong growth profile, impressive management track record, and takeover optionality.
Our 12-month target of C$11.00 per share is based on 1.3x our updated 10% NAVPS estimate.