Investika Di Share Discussion Threads

[zaitoon] 03/7/2007 14:14

added slightly to their investment in tarquin

[nghomi] 03/7/2007 13:38

vow! $2.2m cash balance by the end of June 07!

[mpclag] 03/7/2007 10:08

There is talk of a $1m divi from BNC but I can't see it in the accounts-am I missing it?

[stemis] 03/7/2007 08:00

2nd Quarter report out on ASX:-

[strow] 02/7/2007 17:48

They now have another 6 weeks to decide whether to place or not-we may get some drift as a result of that,i dont know,but even if we do,its looking better value all the time

[pec2004] 02/7/2007 11:58

I do not think that many people are aware of the discount to NAV available in IVK.

[david77] 02/7/2007 11:56

TMC going up - IVK going down - but IGindex won't let me buy any more :-(

[bazzerp] 01/7/2007 16:14

For those of you have given up reading the cr*p on the TMC thread ....

Below is from the Atlas website. Re Nickel at Berong....

"Mined out aeas will be backfilled with stockpiled soil stripped off as part of the mining operation and a species of fast growing, oil-producing trees will be planted with the objective of minimizing the area which is un-vegetated during mining and building up the sustainable commercial production of high grade diesel oil in joint venture with D1 Oils, a LSE company specializing in the production of bio-diesel from Jatropha trees."

You will no doubt have read on page 20 of this weekends FT that BP are investing at least £56 million into a joint venture with D1 Oils. They are looking to have over 1.2 million hectares of Jatropha planted in 4 years time.

Atlas appear to be on the ball in this area.

[strow] 30/6/2007 11:20

sorry misread your post,youve said unlikely to become"unprofitable" so assume you are saying it is likely to remain profitable-agreed

[eastwind] 28/6/2007 14:36

pec2004, I read from somewhere that IVK will contribute to a company which would incoporate in the Netherlands and be used for taking over CSM. However, I could not find the link now.

I check the scheme book from CSM website and did not find the mention of IVK. Maybe somebody mixed IVK with Investec.

[strow] 28/6/2007 13:40

East-the other point is,as i made yesterday,that if they proceed to phase 2 and mine and process the primary ore zone,then you can double the $150m npv base case for 15kt to $300m minus total capital costs(no idea how much a processing plant would cost),so i think long term the company is supported here by a copper project that is worth at least 1.5 times the current m/c in its own right,or to look at it another way,tmc,berong,belitung etc etc ARE all in for free

[pec2004] 28/6/2007 08:41

Can you tell me mre about your last post eastwind. Thanks.

[eastwind] 28/6/2007 08:38

IVK is involved in the day time robbery of Consolidated Minerals (CNM.l or CSM.ax). I think it needs cash for that purpose as well.

[strow] 28/6/2007 08:15

East-yes,but given that we all know tmc is undervalued by a large margin as well.........

[nghomi] 28/6/2007 07:43

I am not convinced that IVK would do a new placing for Las Pascualas copper project. They will not need to spend any serious money for 12 months. By then Berong nickel project would be a cash cow and their 11% TMC would be probably more than enough to fund a $70m project.

[pec2004] 27/6/2007 22:28

IVK does seem ridiculously cheap at the current levels. I`ve pointed this out on the TMC thread a few times as you are effectively buying TMC but with other assets thrown in for free.

[eastwind] 27/6/2007 21:55

strow, the NPV, from $42m to $150m is quite impressive. I do not know if they are calculated from year 1(2010?) or now. If they are calculated from year 1, then we might put extra discount to that.

I still think IVK MC is mainly supported by TMC. Given recent drop of TMC, IVK is almost fully valued. According to my previous calculation, the price of IVK should be about 80% of TMC. At moment, TMC is about 400p. I think IVK should be about 320p if we do not include other assets.

[7kiwi] 27/6/2007 21:49

Strow, in time. I tihnk they will need full BFS to secure 60% debt funding. They don't say how they calculated the IRR, but the return on equity could be even higher than they indicate if they fund some of it by debt.

[strow] 27/6/2007 21:07

Thanks again-so some very good yields even on conservative case here-do you agree with me re this project now underwriting the current m/c then-it seems obvious to me-my interest is to get the other projects for free and this seems to achieve it
Admittedly,this is a long term view,but i can wait

[eastwind] 27/6/2007 20:55

strow, The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long-term investments.

The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.

A project is a good investment proposition if its IRR is greater than the rate of return that could be earned by alternative investments (investing in other projects, buying bonds, even putting the money in a bank account). Thus, the IRR should be compared to an alternative cost of capital including an appropriate risk premium.

Mathematically the IRR is defined as any discount rate that results in a net present value of zero of a series of cash flows.

In general, if the IRR is greater than the project's cost of capital, or hurdle rate, the project will add value for the company.

[strow] 27/6/2007 20:43

East-even if calculation was done at $1.65 for the whole mine life of 18 years(if they move to phase2),then you are still talking about more than tripling the current market capital pre tax(still dont know what irr is)-very good news i feel -over 18 years of course,BUT this was always my point about las pasculas-you now have a company on a solid footing,with its current market capital easily underwritten by this copper project,with berong/tmc,all other holdings and belitung in FOR FREE-how crazy is that!!!! (ah thanks re irr-so assume the figures are all pre tax)

[eastwind] 27/6/2007 20:34

irr is interal rate of return. It is a calcuation of return of capital.

It is quite good news. According to the report, the earliest development time is June 2008 (9 month from september 2007 after sumbitting environmental report). It will take about 18 months to develop. The earliest possible mining start up date is Jan 2010. Add possilbe 6 months delays. I think the mining could start Jun 2010.

The only concern I have at the moment is the copper price they use in calculating the NPV. "LME forward price for copper of - US$3.00/lb used for yr 1; US$2.00/lb for yrs 2 & 3; with US$1.65/lb long-term price". The price could be too high for year 1 (2010).

If they can have access to local ores, they should go for the 15kT route, which will cost $70m. If it is founded by 40% equity, that is $28m. We will contribute about $18m = £9m. Our MC is about £40m. It is not too big burden.

[strow] 27/6/2007 19:15

Question-anyone-what is "irr"(something to do with tax?)
This really does secure the long term future of ivk as a company-in fact it is massive in its implication-if one deducts the capital costs from the npvs(i assume this is the maximum profit they would make,based on their figures)then the worst case scenario here for las pasculas is approx £22.5m of profit(?pre tax)the best case would be £110m assuming they went to phase 2,and mined and processed the primary zone-wow!!This is a much better outcome than i or i think many others may have been expecting here,some people were clearly worried about its basic economic viability!Now we know it is open pit with low costs,that explains the viability
£110M is 2.5 times the current m/c,JUST for the las pasculas project!
Im so suprised that there hasnt been more comment here yet-maybe it is taking some time to digest,but in my view this is a VERY good outcome and very reassuring for all current holders,given that belitung looks very very good also in its prospects and we already know about berong and tmcs prospects-im very excited and will be buying more(just gotta sell the replacement grannie first)