Ivanhoe Mines Ltd (IVN)

[tootalljones]

Is Kipushi worth far more than Ivanhoe's current market cap of 2.5 Billion? I think yes yes yes! Looking for around 225 MILLION (our end) net profit annually. 8.5 years, plus they quit drilling. It is open at depth. Somebody smart on the other board said that the richest deposits have the highest odds of being expanded through later step out drilling. Kipushi is the richest deposit on earth, lb for lb. I can see why we did not do that: it is very deep, there were probably practical problems back then, and the company had two other TIER ONE fish to fry, in Platreef and Kamoa. I think the odds are terrific it is larger than what we now have defined. Time will tell, but this will be in 6 or 7 years from now but still, this is why I do not want us to sell this daughter. Zinc is going to get red hot in the next couple years; it is already in global deficit.

A 15 PE, and this may seem high but not based on the future I forsee for industrial metals. If Zinc is $1.60 U.S in 2 years, when the mine is a steady state production, the net profit will be perhaps $325 Million. A PE of 15 = $5 billion dollar market cap. Ivanhoe's cap is now 2.5 billion....I know I know, all of this is the future. Not now. But still, I love our odds and this means Kamoa and Kakula and Platreef are FREE. Or close to it. As Ursusbrumae said in one of his older posts, in the future metals bull market, 25 billion dollar market caps will be cheap. BULLISH