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An international mineral exploration and development company.
Ivanhoe is busy constructing a mine to tap "The Ultimate Copper and Gold Mother Lode":http://www.fool.com/investing/international/2010/10/21/the-ultimate-copper-and-gold-mother-lode.aspx"Ivanhoe Mines (NYSE: IVN) may not be the first name to roll off your tongue when you think of gold, but that may not remain the case for much longer. Ivanhoe is fast-tracking construction of the world's largest pending copper and gold mine: Oyu Tolgoi. Located in Mongolia, just 50 miles from the Chinese border, this massive deposit is uniquely positioned to satisfy China's robust demand for both copper and gold. Ivanhoe retains a 66% interest in the project, while the government of Mongolia holds 34%.""The company has built an estimated resource (measured and indicated, plus inferred) of 81 billion pounds of copper with a monster gold kicker of 46 million ounces. While the company proceeds with a construction schedule that targets open-pit production beginning in 2013, exploration drilling will endeavor to convert resources to reserves and further expand the known deposit. If their most recent drill result is any indication, investors may be in for quite a ride. In September, Ivanhoe revealed that a single drill hole encountered 938 meters of continuous copper and gold mineralization.""Ivanhoe recently announced a share offering to raise between $800 million and $1 billion toward construction of the mine. The offering is structured such that existing shareholders will be encouraged to participate in order to avoid dilution of their existing stake. Leading the charge, executive chairman and CEO Robert Friedland announced he intends to maintain his own 18.3% stake in the company. It is not yet clear whether strategic partner and 34.9% stakeholder Rio Tinto (NYSE: RTP) will follow suit. Relations between the two companies have been constrained since Ivanhoe altered its shareholder rights plan earlier this year to allow for additional strategic investors to build stakes in Ivanhoe Mines.""
I have IVN on my radar...was wondering if you have a fair price estimate discounting future cash flows? From the reports they seems to estimating production and sale of copper and gold starting around late 2012. Any idea what their cost structure will be on the copper and gold extraction?
ReoTinto is taking over the management of the Ivanhoe Mine in Mongolia. Reo is the largest producer in the world and will see that this mine is producing earlier than originally planned! This may not be the lowest cost producer however they have the experience needed in mining and marketing ability. I believe this will be the biggest copper/gold event since the California Gold rush! I could be wrong however this is the way I view it. I recently read that about two months ago Ivanhoe had 5,500 men working on the mine. I have since read different amounts of men working however by completing the mine approximately 6 months earlier than originally predicted I see the pay off coming sooner rather than later. I also believe Rio or some other bidder will buy out Ivanhoe if at all possible just before the mine starts producing!Please give me your thoughts!Everyone1
I have been accumulating IVN for a while now. Seems to me, like other miners that have not reached production yet, you are buying "ground floor", like being a backer more than an investor.Reo getting involved and at one point even trying to buy out IVN, gives me some piece of mind ... like Reo gives the project reality. Reo is not one to waste time on risky politics or weak production.Being that the Mongolian government is a partner in the project vs a land holder seems to lend itself toward a more secure involvement (not to mention it took 5 years of negotiations to put the deal together.)Looks like ground floor opportunity to get into one of the worlds largest copper mines which will also produce those pesky by products of Silver and Gold. Not only produce the metals, but have one of the largest customers in the world in the immediate area.Bears
The BIG question is paying $15.17B right now worth it?
"The maximum level of ownership interest in Ivanhoe Mines that Rio Tinto may achieve - through the exercise of its right to subscribe, from time to time, for additional Ivanhoe Mines shares and permitted open market purchases of common shares - is capped at 49% until the current standstill limitation expires on January 18, 2012. " from their earnings report
IVN's Oyu Tolgoi Project has a net present value of over 100 billion (yes, with a B!) US dollars. IVN is a steal at today's market cap of $10 billion (stock price of $13.64 on April 18,2012). Oyu Tolgoi will be the largest gold mine in the world and the third largest copper mine. Phase 1 is fully funded and will begin production in the next 6 months. It's going to be a great run. Disclosure: Long IVN.
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