>>>Having a good day Dan? lol The metals are just on fire here. Congrats to you my man. Well done. My open buys are really receding into the distance. Thank God I pulled the trigger on IVN in the mid 7's the other day.<<< ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes I am....thank you. Actually, a very good week.
One might say that being decently overweighted in silver was almost worth it's weight in gold. <v vbg>
You might want to consider moving 1/3 of your open buys to around a 15% break from today's highs and holding the remainder for some 'hoped for' additional weakness.
Hiya Aya, Imo, the following 'report' (found on Stockhouse) from John Faessel's sub site tells the magnitude of the Ivanhoe (IVN) story quite well.
I continue to believe that IVN and neighboring Entree Gold (EGI) should be accumulated during periods of weakness and held for the long haul. There is no telling how 'high' the prices for these two can go, but I'd bet my 'stash' that that, in time, IVN surpasses FCX's current $56 shareprice by a decent margin.
Dr. John L. Faessel ON THE MARKET Dr.Faessel@onthemar.com
Update on my Top Pick for 2006
Ivanhoe Mines Inc (IVN) NYSE breaks out
On Friday (IVN) broke out of a 39-month consolidation. Using a Point & Figure chart the breakout from a double top suggests a technical projection of $19.
What kicked (IVN) up to new multi year highs?
First off - using the current new all time high price of $2.41 copper and $575 gold the US Dollar amount of (IVN)’s reserves in their Mongolian Oyu Tolgoi (100% owned by Ivanhoe) mine site are now valued at US $158.26 billion. And this mega number doesn’t include their size joint venture interest in the “next door” property where the ore body extends or their immense Mongolian coal property or any of the other multi billion dollar properties in their global holdings. Also toss in (IVN)’s other Mongolian exploration rights of 133,000 square kilometers (about the size of Italy).
Next: On Friday there was a very important and favorable report on the Mongolian / Ivanhoe Mines news front re the pending Stability Agreement that has been overdue owing to a change of government two months ago.
The new Mongolian government announced that the cabinet had instructed the Minister of Finance and the Minister of Industry and Trade to: Conclude the negotiations on the Stability Agreement with amendments to be made to the Tax Law as well as to the Minerals Law by the upcoming spring parliamentary session; Conclude a mutually beneficial agreement on such issues as the employment of Mongolian nationals by Ivanhoe, their minimum salaries and training for high-level jobs, power supply and possible development of downstream smelting and refining; And to facilitate the listing of (Ivanhoe's) common shares on the Mongolian Stock Exchange, making it possible for Mongolians to own shares in the company.
The new Mongolian initiatives followed a visit by former USA Secretary of State James Baker, who was in Ulaanbaatar, the Mongolian capital, earlier last week in recognition of the 800th anniversary of the Mongolian state that was founded by Ghinggis Khan.
Importantly, as to timing, Mongolia’s Prime Minister advised Mr. Baker “that the preparations for the talks are being completed to conclude the negotiations on the Stability Agreement terms shortly.”
Secretary Baker led an international aid program that has channeled approximately US $1.5 billion in direct assistance into Mongolia over the last 15-years and is widely regarded as a friend who helped them along the way when they separated from the USSR back in 1991.
So – the market-cap of (IVN) is $2.89 billion. They have of mega billions of dollars worth of gold and copper in the ground plus oodles of billions of other assets. They have invested over $300 million in the Oyu Tolgoi site so far. The first shaft is well underway. There are about 1,200 people working there now. There is an 11,000 foot airstrip on site with scheduled daily air service. The full size of the southern most part of the Oyu Tolgoi ore body is yet to be fully determined as newer core samples continue to increase its dimensions.
To reacquaint you with the story a bit: Last summer I visited the (IVN) project in southern Mongolia with a group of internationally known investment bankers, money managers, analysts, geologists and mining experts.
What Ivanhoe has found buried in the vastness of the Gobi Desert is a copper and gold ore body that’s “at least” 6.1 kilometer long, 1 1/2 kilometers deep and about a kilometer wide. Nothing this size has been discovered on planet earth in 69-years since a comparable size ore body was discovered in Indonesia. That mine, called Grasberg*, is the world's largest. John Macken – now President of (IVN), also built out the Grasberg mine.
At full production, it is estimated that (IVN) can produce approximately 1.5 billion pounds of copper per year. At $1.00 per pound (current price is $2.41) you figure the yearly cash flow engine. And with the magic of by-product accounting, (legit under US GAP accounting) the gold content in the ore will pay virtually all of the production costs of the copper. Ok - here’s the math: at $1.00 per pound - times 1.5 billion lbs equals $1.5 billion a year.
At $2.41 per pound - times 1.5 billion lbs - equals $3.61 billion a year. And the market-cap of (IVN) is $2.8 billion.
In 2005 the huge fund mutual family Capital Research and Management Group ($800 billion in assets) bought 16.2% of (IVN). I have bought some shares as have - Fidelity – Deutsche Bank - RS Funds – Royce - Franklin Resources and others. Institutional & Mutual funds own 53%
*Grasberg is operated by Freeport McMoran Copper & Gold. Listed on the NYSE symbol (FCX) $53.69 Market-cap $10.12 billion
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