Firstly if Ivanhoe Canada do opt to divest in IVA than potentially their 83% could change hands. OZL could be one potential buyer. I'm not sure what this mean for the remaining 17% stake.
If IVA don't divest than they will still need to raise funds so this would mean either debt or Cap Raising. As they are currently not generating income, i would imagine a cap raising would be the go.
I think the share price is suffering from general market sentiment, CDU and other copper plays are also getting hit. Plus IVA has been pretty quite.
On the upside, i think the Mt Elliot resource upgrade (due in Jan if u believe management) could be a big positive for IVA. They had some pretty good hit about this time last year (which was why i originally bought into IVA...merlin was a bonus).
My other concern with this stock is that management seem to be very generous with their bonuses, the CEO just paid himself 8M worth of shares which is a bit rich for an advanced exploration stock.
IVA Price at posting:
$3.26 Sentiment: None Disclosure: Not Held
