Ivanhoe Mines Ltd (IVPAF)

[tootalljones]

Add to Platreef's 4.075B, the NPV of Kipushi of 1.03B below, and our current market cap is approximately 30% of this. We then add in our other two world class, highest grade in the world two, count em, TWO TIER ONE copper deposits, which may be as much as Platreef and Kipushi combined...We own shares now at perhaps 10% of our NPV of our assets. And I believe this assessment, and the assumptions made on these calculations, are so conservative as to border on the inaccurate.

I say that Kakula and Kamoa may be worth as much as Platreef and Kipushi using the same conservative formula for this reason: nobody really knows how big any of our deposits are......Drilling was discontinued on Platreef because the thing is so massive now, it doesn't make any sense to go further, even thought our geologists have told R. Friedland it may contained further "multiples" of what we have deliniated. Kipushi is also an unknown, the stuff being so rich, the drilling just ceased until we can get down into the ore body itself by actually minning it. Kipushi appears now to be the richest mine, lb for lb, or ton for ton, in the entire world. ........so we really do not know. Only Kamoa has been prospected thoroughly.

Remember, these are not "theoretical calculations," where a smallish junior miner is publishing unrealistic figures for mines that have no chance of being built in the next five years. For instance, if you look at the "monster" project touted by these companies, you will see them touting a huge copper or copper gold project: NGD, MUX, SA, NGD and NG......all north american miners.....all with projects with wretched grades, wherein the price of copper has to go to 5 bucks or gold 2000 to justify putting out 4 to 5 billion dollars to commence the multi year buildout. OUR METAL GRADES ARE PREMIUM AT EACH PROPERTY, THE FINEST AND HIGHEST IN THE WORLD BY A DRAMATIC MEASURE, which is completely unheard of. At current metals prices, we will run the competition just about, out of the business....This is a another black and white distinction. Indeed, of the dozens of projects around the world and most especially north america, I would contend that most will NEVER BE BUILT, and certainly not with our projects in line. These dozens upon dozens of companies in north america should simply remove their big elephant projects from their websites. In fact, their shareholders should cover over to us.

Quite simply, as further evidence, the proof is in the pudding: our projects are being built.

And they will spin off literally a billion dollars in cash.
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Anyway, here is the poster over at STockhouse's excellent back of the napkin eval of Kipushi:

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 capitalisation.

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#KCZBUBtdM9oggf8s.99