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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

Comment by waiting73on Nov 17, 2021 11:09pm
287 Views
Post# 34139208

RE:Ultimate valuation

RE:Ultimate valuation

Let's see. Here is my opinion. In early Q2 2022 KK will be producing ca. 460,000 tonnes Cu per annum (15% above nameplate). Cu current price $10,000 per tonne, so $4.6B and 40% to IVN, so $1.84B, and 1.2B shares, so $1.5 per share for a year of production at Phase 2, with Phase 3 getting very close. Assuming Cu price remains at about $10K per tonne. So at 10x earnings, share price would be $15 US. You can play around with the numbers, this is a reasonable calculation as Topadvisor1 taught us about a long time back. You can roughly double the numbers when Phase 3 comes on. Add some mania into the equation and who knows what can happen? I don't need mania to see the value. Who knows what the market will value IVN at in a year?

Now factor in that IVN has most likely discovered the largest and highest grade Cu district in history at a time of great demand for Cu. That'll help. I can't quantify how much it will help, but discovering and owning a large piece of an historic orebody, significant on a historical and planetary scale, it has to be very good.

Then there is the matter of the largest PGM orebody discovered in history I think, suitable for mechanised mining. Open in all directions I think, so big it is almost ridiculous. With a lot of Ni and Cu also. As sulphides, Ni sulfide is preferred mineral for battery raw material supply. Platreef begins production in 2024. I expect this will help.

Kipushi is also of interest.  Highest grade Zn orebody known. Grade rules in this mining world. It'll provide some help to the share price going forward.

 There are risks but everything has risk. In early 2023 the standstill agreement ends. What happens then? Are these risks tolerable for you? Their great team is performing wonders. The webcast was fine, the accomplishment of bringing this mine into production during a pandemic, early and under budget is amazing. Most of us were struggling to get toilet paper during this time. Along the way IVN enabled significant social improvements for their broader community partners. It's entirely up to you though, it's not for everyone.

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