Ivanhoe Mines Ltd T.IVN

As Mentioned, Looks Real Good

[crow27]

At the spot zinc price of approximately US$1.67/lb (February 11, 2022), the after-tax NPV8% increased to US$2,286 million with an after-tax real IRR of 73.5% and project payback period of 1.4 years.


The 2022 FS does not include any of the copper-rich mineral resources delineated to date and assumes that revenue is attributable to zinc only, with no by-product credits.
The 2022 FS does not include any of the copper-rich mineral resources delineated to date and assumes that revenue is attributable to zinc only, with no by-product credits.

[ororosso]

Not so fast.  Those economic numbers are likely 100% numbers and do not reflect IVN share's.  What is not being said is that IVN will fund the entire capital.  Now it is possible that the amount funded on behalf of Geacmines will need to be repaid to IVN before funds are distributed as dividends to both parties.  It is not clear. Also not to be forgotten is the decrease in

[Hideaway]

Oro,it would have been better to have a more lucrative long term deal but RF has great negotiating skills and,IMO, has arrived at the best arrangements he could achieve considering who we are parterning with.From my read at 800,000 tons of ore yearly it will take 15 years to reach 12,000,000 tons.During this time our share would remain at 57%.A bigger concern is if the DRC will keep the

[ororosso]

I don't disagree.  There is a reason that Kipushi has languished for all these years.  This is something that has taken much time to negotiate.  There are also the shareholder loans that need to be repaid by the project.  In total they are $528M at December 31, 2021 and accrue interest at LIBOR plus 4%.

[chintzy]

It feels like a mugging but I still think Kipushi can add a minimum of $250 million CAD to annual cash flows starting in 2024 with good potential upside from 1) by-product credits 2) exploration 3) increase in prices from ongoing bull market in metals. This project was never going to make us rich but piling on a few hundred million of free cash flow every year on top of K&K profits is nothing

[crow27]

That's correct chintzy, Who would not want a small play to make them a few hundred million every year?? This is a GREAT deal considering how small KIpushi is. RF made the best deal he could considering who we are dealing with and I'm sure the fine print will not let our partner get away with anything.  Good move and lets see what Platreef will bring us. Bad day in the markets but