Terrific Net Present value Goindeeper's Post, this earlier post which I posted in full. Almost 10 bucks a share, u.s. currency is his value. Yet another very experienced, honest guy, in addition to Ursusbrumae and Chintzy's most recent post. All 3 have the stock valued at a low end of goindeeper's figure, up into the healthy teens. Current value, discounted over time.
All 3 suggest the valuation methodology, NPV8 from the financial industry, one of several formula's btw, which I often point out, may suffer from some obvious shortcomings, but the criticisms I say are criticisms, are mine. So put them strongly next to me.
(O yes, Paul Gait, one of the "mainstream" financial analysts for Bernstein sets a target figure of 10 bucks even. As we can see, he is not so mainstream, not at all.)
The short term conclusion is that even using this funny "respected" (lol) formula, the share price is severely discounted right now by orders of magnitude. The forumala works a discount, and then the s/p works a second ridiculous discount; This is Mr. Market and he is fooled, for the time being. This will all change over time. He is sleepy but never stupid.
The conclusion here, and discussed below, is that Ivanhoe's Tier 1 World class discoveries are wildly undervalued EVEN BY (what I contend is) A DISHONEST METHODOLOY....Like somebody trying to peddle hot merchandise, which the mafia amongst themselves often refer to as "Swag." And they still wildly overprice the swag.
When I think about the finance industry I naturally tend to think in terms of the industry of the mafia. Just happens naturally.
What is funny about this NPV8 valuation method, now in vogue in the mining business, but not by everybody for sure (even our CEO thinks it is silly, and he is a respected at the top of the food chain mind, in the global mining world)......what is funny is that if you give the financial turds a Deposit that has a 10 year life span, everybody criticizes you, and says, the deposit is really no good and too little and not a terrific investment because it does not last long enough, so these financial analysts then discount significantly, the valuation of your asset (i.e. the value of your business). They say, the business you are asking us to value will end in a decade, so nobody really wants to own it truthfully and deep in their soul, so we must find fault with your construct and will discount you...blah blah. But if you correct them politely, and say he, guess what, our asset will be pulling up the world's richest copper or platinum or palladium in the WORLD FOR THE NEXT 30 OR 40 YEARS !!!.....they look at you with that real stupid clerk look, the look a cow in the pasture gives you, while it is chewing on the ground, and say they can only value your asset for 10 years, and then throw on their outrageously thieving discount of 8%; (the 8% figure is something so far from reality the demons in hell must simply rejoice over it)....to once again devalue the incredibly valuable thing you own.
Smacked on both ends as they play this financial industry "valuation" game on you. And with a straight face..........The market of course knows better, and so do the executives who run major mining companies around the world. Fortunately, they do not let 40 year old kids in what I call The Chicago Cubs Bleacher Seat Bums and Drunks Section of the Stands, determine their judgement.
O sure the mining executive may point to these npv8s when they are of a mind to try to steal what you own, and BS you, but they cannot pull this stuff with a straight face with Robert Friedland....He will just laugh and say:
"please, get up from poverty, at least read the book that silly mainstream media woman wrote about Voisey Bay and me. At least get out of bed and read your own insurance policy. Remember the thing real estate brokers say: "Only respond to our listing with serious offers."
