Ivanhoe mines is a Canadian mid tier minor and exploration company that has traded on the Toronto stock exchange since 2012 with a current market cap of around $4.3 billion US.
It’s current share price is around $3.6 USD, a share on the OTC market or $4.7CAD on the Toronto stock exchange (TSX)
Ivanhoe is in the process of developing its mineral discoveries into producing mines, it’s current production and earnings are on the low side so we are looking at future production profits and not at current earnings ratios.
Ivanhoe mines will produce the following minerals; Palladium-platinum-nickel-copper-rhodium-gold-zinc-germanium and silver.
There are several things we like about this mining company, namely it’s management, and it’s mineral deposits, this puts Ivanhoe mines in a strong position to grow rapidly in the near future due to the size of its recent mineral discoveries, and the expertise of its management team.
Ivanhoe Mines was founded by and currently has Robert Friedland as it’s CEO, Robert Friedland is very much sought after in the mining industry, he has been hugely successful in discovering historically large mineral deposits in relatively unknown areas and this is very much the case with his leadership of Ivanhoe.
Robert Friedland has a good track record of hiring the best and brightest, and treating staff fairly, which is especially important for mining companies with operations in areas without strong labour laws.
Ivanhoe’s development of its three principle project mines (1) in South Africa the Platreef Palladium-platinum-nickel-copper-rhodium-gold discovery, and (2) mines in The Democratic Republic of Congo. The Kamoa-Kakula copper discoveries in the Democratic Republic of Congo (DRC) which is probably the largest, purist copper discovery in the last 100 years or so which we are very exited about.
Once the mine is built and operational Ivanhoe’s profitability will skyrocket, as always we want to position ourselves early to maximize our gains before much of the mainstream investors take notice.
Ivanhoe is also constructing the Platreef Palladium-platinum-nickel-copper-rhodium-gold discovery in South Africa:
and working on the extensive Redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in DRC. Ivanhoe is also exploring for new copper discoveries on its wholly owned Western Foreland exploration licences in the DRC, near the Kamoa-Kakula Project.
Our main interests in Ivanhoe mines are a combination of its proven mineral reserves, coupled with its management under Robert Friedland we think Ivanhoe is more than likely to increase in share price significantly over the coming years.
Our recommended buy up to price is $10cad a share, remember don’t chase price, if its already above the buy up to price, add it to your watch list and wait for a price reduction, as with all mining stocks ivanhoes shares are highly volatile.
As always we recommend buying shares in the country in which the company is based, in this case on the Toronto stock exchange.
Until next time,
Frank
