IVN CN

Ivanhoe Mines Ltd

Industrial/Transportation


Presented:08/04/2017
Price:CA$4.76
Cap:$2.98B
Current Price:CA$18.89
Cap:$20.40B

Presented

Date08/04/2017
PriceCA$4.76
Market Cap$2.98B
Ent Value$2.48B
P/E RatioN/A
Book ValueCA$1.85
Div Yield0%
Shares O/S783.34M
Ave Daily Vol1,707,043
Short IntN/A

Current

PriceCA$18.89
Market Cap$20.40B
Ivanhoe Mines Ltd. engages in the exploration and development of mineral properties. It explores for copper, nickel, gold, zinc, and platinum-group elements. The company was founded by Robert Martin Friedland on April 29, 1993 and is headquartered in Vancouver, Canada.

Publicly traded companies mentioned herein: Anglo American PLC (AAL LN), First Quantum Minerals Ltd (FM CN), Ivanhoe Mines Ltd (IVN CN), Zijin Mining Group Co Ltd (601899 CH; 2899 HK)

Highlights

The presenter is long Ivanhoe Mines (IVN CN) at CAD 4.76, and sees the risk/ reward setup as favorable based on the Kakula mineralized systems’ potential. Ivanhoe owns stakes in three projects going on in Southern Africa, including the Kamoa-Kakula (copper) and Kipushi (zinc, copper) in the Democratic Republic of Congo (DRC), and the Platreef (platinum, palladium, etc.) in South Africa. Looking at Kakula alone, not inclusive of the opportunity that exists with Kakula West, there is the potential for IVN to generate a 15% FCF yield looking out to 2020 based on the capital structure today. If equity is issued to help cover development costs the FCF yield would still be 10%, with call options on Platreef and further expansion of the resource estimates in the DRC. If $3/ lb. copper holds and news flow around a new/ updated preliminary economic assessment (PEA) of Kamoa-Kakula is favorable later this year, then he believes Ivanhoe’s shares can see CAD 7-8/ share (+47% or better) over the next 12 months.

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