Source: Streetwise Reports 03/30/2019
The key points from this company’s recently released study results and plan are presented in a BMO Capital Markets note.
In a March 25 research report, analyst Andrew Mikitchook noted that
Ivanhoe Mines Ltd.’s (IVN:TSX; IVPAF:OTCQX) newly released NI 43-101 technical report on the Kakula-Kamoa project development plan provides more details about the processing, mining and capex schedules than did the prefeasibility study-preliminary economic assessment (PFS-PEA) released Feb. 6, 2019.
Mikitchook provided four significant observations from the reports:
1. The specifics outlined in the 18 million tons per annum PEA—500,000 tons of copper to be produced annually over most of the 37-year mine life—make Kakula-Kamoa “one of the largest undeveloped or operating mines worldwide.”
2. The required capital for Kakula is “a manageable” US$1.1 billion. Cash flow from mining will finance future expansions.
3. The 6.4% grade to be mined for the first 10 years uses a cutoff that exceeds the average grade of other mines.
4. The PFS-PEA excludes the high-grade Kamoa North and the 2018 Makoko discoveries. “We view this as significant exploration leverage for Ivanhoe to potentially bring forward grade from new high-grade discoveries as the project develops further,” Mikitchook wrote.
BMO maintained its Outperform rating and its CA$9 per share target price on Ivanhoe. The stock is currently trading at around CA$3.34 per share.
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Disclosures from BMO Capital Markets, Ivanhoe Mines, March 25, 2019
IMPORTANT DISCLOSURES
Analyst’s Certification
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Company Specific Disclosures
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Ivanhoe Mines.
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Ivanhoe Mines within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Ivanhoe Mines within the past 12 months.
Disclosure 6A: Ivanhoe Mines is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services.
Disclosure 6C: Ivanhoe Mines is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.
Disclosure 16: A research analyst has extensively viewed the material operations of Ivanhoe Mines.
Disclosure 17: Ivanhoe Mines has paid or reimbursed some or all of the research analyst’s travel expenses.
For Important Disclosures on the stocks discussed in this report, please click here.
( Companies Mentioned: IVN:TSX; IVPAF:OTCQX,
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