Ivanhoe Mines Ltd (IVPAF)

[tootalljones]

great post by Ursusbrumae about Kipushi and free stuff!....
ursusbrumae
December 01, 2016 - 01:48 AM 164 Reads
Post# 25538413
5 starsv

Kipushi NPV
USD 1.4 billion market cap — USD 400M WC (net-net cash and receivables less all liabilities) = USD 1 billion enterprise value.

At today's LME spot price of $1.22/lb zinc (which is in deficit due to 5 recent major mine closures) NPV8 of Kipushi (by far the company's smallest deposit, which exhibits more than twice the zinc grade of the next highest grade zinc mine in the world) per the recent PEA assumptions but adjusted for spot zinc, is USD 985 million. Reflecting a deficit of zinc concentrates, treatment charges have fallen from USD 200/tonne to USD 50/tonne. Assuming USD 100/tonne, NPV8 would increase to roughly USD 1.415 billion. Add a 25% downward adjustment of pre-production capital, to arrive at USD 1.515 billion, of which the company's 68% interest would be worth roughly USD 1.03 billion, which is approximately equal to — or a little more than — current enterprise value. That is, revised Kipushi NPV8 plus cash on hand and Zijin receivables, less all liabilities, equals current market capitalization.

So you are paying effectively ZERO for the two megaprojects, Platreef (the largest precious metals deposit on earth) and Kamoa (the greatest copper discovery in at least 40 years) — oops, THREE megaprojects: how could I forget Kakula — yes, little baby Kakula, who is considerably thicker and higher grade than Kamoa, already the second largest high grade copper project in the world (after Kamoa) and the highest grade copper project on PLANET EARTH...and still growing. Yes, the three greatest Tier 1 world-scale virgin mines known to man, now being fast-tracked to production, for the price of ABSOLUTELY NOTHING.

Now, a stock which has gained 350% could not possibly be undervalued. Probably I am just stupid. Yes, that must be it. Never mind.

Read more at http://www.stockhouse.com/companies/bullboard?symbol=t.ivn&postid=25538413#zOIvbjL5oi7OEhmS.99