Ivanhoe Mines Ltd T.IVN

From Scotia this Morning

[savyinvestor333]

Ivanhoe Mines Ltd. Maiden 2021 Cu Guidance Above Expectations

OUR TAKE: Positive.

IVN released its Q1/21 financials. Most important, Phase I of the Kamoa-Kakula Cu project (3.8Mtpa) in the DRC remains on track to start up within the next few weeks, ahead of the original July target. Maiden 2021 Cu production guidance of 80-95kt (100% basis) was well ahead of our previous estimate of only 50kt. Construction of the Phase II concentrator (3.8Mtpa or 7.6Mtpa total) is currently tracking slightly ahead of the official Q3/22 start-up schedule.

Overall, we view the update as positive for the shares given the better-than-anticipated guidance. The company's transition from a developer to a producer-developer appears imminent. 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 unchanged 12-month target of C$10.00 per share is based on 1.2x our updated 10% NAVPS estimate. KEY POINTS Minor impact to valuation. We forecast an improving 2021E-2023E Cu production profile from Kamoa-Kakula (100% basis) of 80kt, 239kt, and 319kt, respectively, which compares to 50kt, 236kt, and 319kt, previously. However, our updated 10% NAVPS of C$7.98 is essentially unchanged.

[guarantor1]

Thanks for this Scotia, It seems like they are scrambling to confirm a Non Upgrade

[fishfanactic]

Huh? It looks like a positive comment to me? What did you expect them to say?

[guarantor1]

Maybe = We were on the verge of an uprade, But decided to keep cconservative

[alvarez2]

Overly concervative...........don't make money that way.

[alvarez2]

conservative

[masterthink]

$10.00 ah!ah! and pan in the face ...&&&&&&