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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 Mar 16, 2024 7:20pm
311 Views
Post# 35936869

Time to force conversion of the convertible debenture

Time to force conversion of the convertible debentureThe convertible debentures convert at a rate of 134.5682 shares per US$1,000.  There are $575 million shares outstanding.  The total number of shares that need to be issued to convert the debentures are $575 M/1000 * 134.5682 = 77,376,715 shares.  Forcing converstion will likely result in a cash penalty but it would rid the company of the debenutres and force the shorts to cover.  Wouldn't that be nice.  The only way the debentures don't convert is if the share price drops below Cad$9.31.  Unlikely.

Time to get rid of the convert.  BTW this was very expensive financing.  Effectively we will have issued shares work $931.4 million (77.376M *16.25 closing price divided by 1.35US conversion rate) to settle a liability of $575 M.  The annual effective cost of the financing if we converted the shares today without factoring in the coupon of 2.5% is about 17% based on the debenutres being outstanding for three years.  Great deal for convertible debenture holders.
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