Should IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF) be Higher?

IVANHOE MINES LTD COM NPV CL'A' (OTCMKTS:IVPAF)

IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF)

IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF) has been on a slide ever since it received the final installment, in the amount of $41.2 million, from a subsidiary of Zijin Mining Group Co., Ltd. for 49.5% of Ivanhoe’s majority stake in Kamoa Holding Limited. On that day, May 23, IVPAF shares were around $3.47 and today shares closed at $2.97. That price is significantly higher than the 52-week low of $0.0001. In April IVPAF shares hit their 52-week high of $4.08.

Observers were surprised that shares did not gain traction and move higher when, on May 23rd,

IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF) announced independent confirmation of a Mineral Resource estimate for the extremely-high-grade Kakula Discovery on the tier one Kamoa-Kakula Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo (DRC). Kakula’s Indicated Resources increased by 50 million tons, to the current total of 116 million tons at 6.09% copper, at a 3% cut-off grade. This compares to 66 million tons at 6.59% copper estimated in October 2016, also at a 3% cut-off grade.

Industry experts question why the share price of IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF) would not benefit from news that, traditionally, would have seen a positive market response.

IVANHOE MINES LTD COM NPV CL’A’ (OTCMKTS:IVPAF) is advancing three projects in Sub-Saharan Africa. The first is the mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa’s Bushveld Complex. The second one is mine development and exploration at the Kamoa-Kakula Copper Project on the Central African Copperbelt in the DRC. Lastly, upgrading at the historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC’s Copperbelt.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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