From Nov 10 The Calandra Report...
But I can't own them all. I have exposure to Robert M. Friedland's Ivanhoe complex via my ownership of Ivanhoe Energy, a stock we recommended formally at 90 cents a share, and via my ownership of African Minerals, a privately held nickel and platinum resource that Mr. Friedland controls on South Africa's Bushveld Complex. I paid full price for my shares in the open market, with no company-sponsored discounts of any type. When I sell them is my business. Because I have every right to profit from my intense research.
And so do you. Your business, folks, is getting the most intensive research on Ivanhoe Energy -- and others -- and knowing before anyone else out there in a world of sedentary analysts (who spend their lives in front of computer screens), just if and when anything has changed in the corporate equation. That research comes from The Calandra Report, from my endless hours of bad food, smoky rooms, dusty trails and CFOs' bad breath.
Sometime in May, I asked you all to take the Ivanhoe Energy (IVAN) challenge, when the shares traded at 90 cents. Now that they sell for $6 or more, I say again: The stock, based on anticipated cash flow the next two
years from oil wells in China, California, Texas, and now Wyoming, is trading at about fair value. But what will propel this stock to $10 in short order, and then to $15 on Nasdaq, will be further developments in CEO Leon
Daniel's efforts to improve production at southern Iraq oil fields. Another a jet propulsion to the company's shares will be any equity stake by giant China International Trust & Investment Corp. in Ivanhoe Energy or its China unit, Sunwing Energy.
Brief updates
Ivanhoe Mines (IVN in Canada) upgraded the extent of its growing gold and copper resource at Oyu Tolgoi in Mongolia. Vice-chairman Edward Flood, a geologist, called me this morning to highlight two aspects of the independent assessment, which today is sending the company's shares back to the $13 Canadian level. "Our high-grade zone has doubled in there," Flood told me. "We had 70 million (metric) tons at 2.9 percent copper and 0.3
grams per ton of gold and now we have 149 million tons at 2.8 percent copper and 0.53 grams of gold." In addition, the independent appraisal of the Mongolia site offered more in the way of high-grade gold. Recent drilling
sketched out "the top of a gold-rich zone." Inferred resources total 50 million metric tons at 1.15 grams per ton of gold, or approximately 1.86 million ounces. "I don't think there's anything this large in Canada," Flood
told me. (Note: As stated many times here, I have accepted air travel aboard Ivanhoe Mines' corporate jet to Mongolia, China and London. I in no way guarantee that my views of Ivanhoe Mines, or of another Robert Friedland-controlled venture, Ivanhoe Energy, will be positive. Right now, folks, I am off-the-charts positive about both.)
Ivanhoe Energy (IVAN): The technical picture on the stock is just as good as the corporate events taking place in Iraq, China and in the United States. David Banister, the Rhode Island fund manager and technician whose ability
to pinpoint short-term moves, married to fundamental events, is among the best I have ever encountered, tells me today, "It appears to have completed a nice retracement of the recent move from $4.20 to $7.50 area. Ivanhoe
Energy touched a $5.47 intra-day low last Friday. It should resume its move toward my oft-cited $9.30 target," says Banister of Bellevue Investment Group in Newport, Rhode Island. As stated above, I see Ivanhoe Energy
shares surpassing Banister's short-term target in the event the company announces an equity stake from CITIC, the $60 billion-strong state-run investment authority based in Beijing.... |
