I am also confused. Back of the envelope: If you treat IVA as a gold explorer and use their equivalent 33mm oz as a benchmark, then they have an approx EV / Gold Equiv JORC of $17. This puts them way below most African gold explorers and even below some explorers in Central Asia. And they are obviously not just a gold explorer (far more diverse), and operate in the mining and economically friendly jurisdicton of Australia AND have significant and cost efficient resources with strong potential! But they are friendless and continue to fall on light volume. It begs the question why?? Can I pose this question to the forum: if RIO takes over Ivanhoe Mines (60% owner of IVA), what do they do with IVA? IVN has been on a run over the past weeks (up 35% from lows on 8th) with RIO increasing it's stake up to 48.5%. Whereas in the same period IVA is down 30%. I don't think that these companies should necessarily be correlated just because they are related, but to be this uncorrelated seems peculiar. Is it possible that RIO would sell it's position in IVA once they controlled IVN? This would seem counter intuitive, but there seem to be plenty of people happy to sell this at 2 year lows?? I can't help but feel that the answer lies in the mechanations of the RIO/IVN relationship. Thoughts?
IVA Price at posting:
$1.52 Sentiment: Buy Disclosure: Held
