The International Speculator, in its Aug. 27, 2020, issue, downgrades Ivanhoe Mines Ltd. (recently $5.10) to "hold" from "buy." The newsletter said buy on May 24, 2019, at $3.16, and again on March 26, 2020, at $2.29. Assuming an investment of $1,000 for each of the two buys, the $2,000 holding is worth $3,800. The writer notes that on July 27, Ivanhoe said it was in "strategic talks" about its asset portfolio, so the company might spin off, sell or joint venture some of its projects.
Most investors view Ivanhoe as a copper play. Its Kamoa-Kakula copper project in the Democratic Republic of the Congo is one of the biggest and richest new copper mines coming on-line worldwide.
Ivanhoe gets less credit for its precious metals exposure. The company's Platreef project in South Africa holds nearly 60 million ounces of platinum, palladium and gold. It also has large amounts of nickel.
Spinning out a project like Platreef would be profitable. The company is also looking at deals for its Kipushi zinc-copper-silver project and its Western Foreland copper project, both in the DRC.
The writer says that subscribers are near a double on Ivanhoe, in a tough base metals market. The stock could take flight on asset transactions.
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