Post by
templetooth2 on Sep 25, 2023 3:55pm
Fun with numbers
I note that Ivanhoe Electric (IE) has just raised US$184 million at $13.50 per share. I haven't double-checked my numbers, but I think IE would now have just about exactly the same number of shares outstanding as AMC, 116 million. Both are underground projects in AZ and both are expecting construction to start in 2027. (Not sure if that's the correct timeline for AMC but it's probably pretty close.)
Ivanhoe's grade is 1.58% Cu and average annual production for first 10 years will be 189 million pounds. Capex will be $1.15 Billion and sustaining capex a further $980 million. ( Aside: I just hate it when sust. capex is almost as much as original capex. Makes me think there's games being played with vocabulary.)
From what I understand, AMC has about double the grade, some 3% Cu. I think the annual production will be around 90 million pounds, so about half. I'm really hazy about capex but I'm going to guess it'll be around $550 million. So again, about half.
Both companies have other irons in the fire, but just looking at the copper numbers, there's no way Ivanhoe Electric should be trading at 6 X the value of Arizona Metals.