Ivanhoe Mines: Buying The Best Copper Mine Of The Next 100 Years At A Substantial Discount
Ivanhoe Mines (OTCQX:IVPAF:US, IVN:CN) is a Canadian mining company led by the famous geologist and entrepreneur Robert Friedland. Ivanhoe owns stakes in three mining projects, all of them possessing outstanding geological characteristics and being top-of-the-class in their respective metal groups: a 39.6% stake in the Kamoa-Kakula copper project located in Congo, a 68% stake in the Kipushi zinc project also located in Congo, and a 64% stake in the Platreef platinum project, located in South Africa. Because the bulk of the valuation comes from Kamoa-Kakula, the company has been chronically penalized by a «jurisdictional discount» from the market, which we think will eventually close in favour of Ivanhoe’s shareholders.
Just to show the valuation disconnect between Ivanhoe’s assets and the current market price, the implied multiple at which Ivanhoe is trading is around 149$ per ton of copper resources, and that is only taking into account the resources already delineated at Kamoa and Kamula in the latest integrated development plan published in March…
Javier López Bernardo es Ph.D. Miembro de CFA Society Spain y analista de inversión en BrightGate Capital
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