Ivanhoe Mines Ltd T.IVN

Good news for Ivanhoe

[Goodtoreadthis1]

Castillo has publicly promised to nationalize 70% of all mining profits in Peru. Peru is the second largest copper producer in the world behing Chile. DRC copper where Ivanhoe is operating should get a benefit.

 

 

 

Kitco News

Share this article:

By Marcelo Rochabrun and Marco Aquino

LIMA, June 11 (Reuters) - Peru's presidential election front-runner Pedro Castillo was poised for victory on Friday night, despite legal wrangles over the ultra-close vote count that had ignited tensions in the Andean nation.

"We call on the Peruvian people to stay alert," Castillo told supporters in the middle of last-minute legal disputes over the tight vote count.

According to local media, electoral authorities had considered changing rules to allow right-wing rival Keiko Fujimori to challenge the validity of some 200,000 votes but ultimately declined to make the changes in the afternoon, following intense pressure from Castillo's camp.

Castillo is ahead of Fujimori by 60,000 votes with 99.6% of votes counted.

Castillo, an elementary school teacher who has fired up support from poorer, rural Peruvians, had raised concerns about plans by the opposition to nullify votes in underserved areas where he had majority support and sought clarity from the electoral body over the process.

The comments underscored rising tensions in the copper-rich nation that has been on tenterhooks since the Sunday vote. Castillo has 50.2% of the ballots, narrowly ahead of Fujimori, who has made unsubstantiated allegations of fraud.

Peru's electoral jury has not commented during the day on the media reports that said it was considering changing the rules.

Vladimir Cerron, head of Castillo's Free Peru party, was even more strident, saying on Twitter that "the people must rise up" in defense of the vote. He had earlier claimed victory for Castillo in the knife-edge election.

The country's electoral authority has yet to confirm a winner, but most observers and some regional leftist leaders, including from Argentina and Bolivia, have congratulated Castillo as the victor, prompting protests from Peru's government.

"Several presidents in the world are congratulating the victory of Pedro Castillo, in other words, he has solid international legitimacy," Cerron wrote.

A DIVIDED PERU

Fujimori has yet to concede the election and her supporters have called for protests against the result.

The daughter of jailed former President Alberto Fujimori, she has doubled down on unsubstantiated allegations of fraud, and members of her party have said they will not concede until all votes and appeals are counted, which could still take days.

Castillo himself has also stopped short of proclaiming himself the winner.

The election has bitterly divided Peruvians among class lines, with higher-income citizens supporting Fujimori while many low-income Peruvians supported Castillo, including in key mining regions of the country, the world's no. 2 copper producer. Castillo was not a member of the Free Peru party before his presidency run. It is still unclear whether he would adopt its far-leftist stance for the economy if in power.

In recent days, he has recruited Pedro Francke, a moderate left economist as his adviser.

(Reporting by Marcelo Rochabrun and Marco Aquino Editing by Alistair Bell and Aurora Ellis)

 

[Notgnu]

Is it good news for Ivanhoe? Yes, it adds to the long term thesis for higher copper prices but it also suggests that poloticians in some countries may be sucessful in gaining popularity by promissing to change longstanding agreements and or the constitution, to enable extracting a larger portion of profits from companies that are mining resources that are becoming increasingly in demand. On the

[realcdn]

This I actually agree with. I don't want to see any countries nationalizing their resources or imposing super taxes etc. It's sets bad precedent and the more that do it, the more "normalized" it becomes. 

[alvarez2]

A country's road to destruction......dumb.

[NotSoBrave004]

Again, the likelihood of nationalization happening in the DRC is practically zero considering the political and economic climate. DRC cannot be compared to South American countries for many reasons. supertax is another conversation. I am too lazy to dig up the relevant literature but I tend to remember from years back when we discussed this on this board, that it is a progressive tax system. Much

[westcoast1000]

There nationalization by simply grabbing the mine will not work because of the chinese interests. They would not let that happen, even if military efforts at the mine and the related facilities is needed. The greater risk is a regional warlord holding the mine site for ransom. Again the Chinese would not let that happen. I would think (and hope, as a shareholder here) they have a strong security

[crow27]

Settle down hammers!!  Next thing you will post that RF is buying nuclear weapons to protect the mines. The crowd on this site have all turned totally crazy with their thougt process. You better sell your hundred shares and move on to something you understand. Total rubish being posted by people that do not have a clue what this company is all about and where it is going. What a sack of

[Notgnu]

The issue is not what us "clows" say or do no say on stockhouse. The issue is risk discount or premium. Big funds and institutions balance this. If they think RF & co can prevent some future government in the DRC from changing the tax laws or agreements, whether by weoponry, diplomacy or RF magical promoter powers, then they will reduce the risk premium and pay a higher price for the

[Hublot12]

Don't worry about that. Revenu x25. Forget the tax. You get 4000$ Sp. TA at his finest. 

[Drksideofmoon]

Don't share the secrets with them. 

[Goodtoreadthis1]

When and if Peru takes 70% of the profit, cu from Peru is likely to drop off in terms of production , making DRC cu more valuable. Drc GOV owns 20% of K-K mine and has already shown it's power over K-K by refusing to issue export license if K-K did NOT use local smelter. K-K made deal to use local smelter. Peru will go the way of Venezuela which has the world's largest oil reserves and

[spacegimp]

"IVAN will not let that happen in -K-K mine" Oh is RF planning a coup? Sadly you have no power to change this contagion of stupidity spreading across the world. G7 now pushing for B3W without the supply of needed commodities at the same time commodity supplying countries decide to become greedy with their foolish politicians

[westcoast1000]

I think what is more likely if Peru implements the tax regime is that new investment stops. They will still run the existing mines to get $4 a pound even if the return above that is taxed.

[Contrarian58]

That's just silly. The DRC didn't force IVN to use a local smelter. Do you really think that IVN worked out that arrangement in a week's time? These are not amateurs. The path that IVN in following has been meticulously planned years in advance, and it's unlikely that any of the actions taken with regard to K-K have been without the full consent of their DRC partners. Local