I've followed this company's plight for years...been invested in it off and on for years....
So they gain licenses to explore regions of Mongolia and spend sizeable amounts of time and energy to find the resources. They then delineate the resources and identify to the world the magnitude of the finds, and begin in earnest to develop the resource, spending many many millions of dollars. The country says, "well, your find is in our country so we want you to give us some of the take." The company agrees, but Mongolia won't approve the IA. The country then says, "well, we need more money so you are going to have to give us more of the take"...the company agrees, but Mongolia still won't approve the IA. Years go by. The country continues to up the ante knowing the company has sunk all this money into the resource and that the license will expire within a couple of years. Meanwhile IVN has gone to great lengths to provide welfare, medical services, and various other social functions to the people, but they still get a huge stiff arm in return.
It is an absolutely ridiculous example of human greed and ignorance. Both IVN and Mongolia could be rolling in significant revenues right now, if the country had simply lived up to it's original agreement. Instead, Mongolia is bailed out with loans (which will never be repaid) from the IMF and other organizations because they need the money. Go figure.
Why would any exploration company still be in Mongolia given what IVN has been put through? All of the other explorations CEOs with ops in Mongolia need to have their business plans trashed as they place all of their company's resources at great risk by doing business with these greedy and ignorant politicians.
Mongolia, this is abysmal.
Ha, Ha, you guys are fooled by the medias and the so called analysts.I called this brain wash !!!!
The Chinese economy actually is doing pretty well, the internal demand is built up day by day The copper price actually went up last night , and the recent going down of the oil and copper price is just a short term retreat after a strong up, the price went up wave by wave, so the consolidation is actually done in the past few days, and will go back to the normal trend. The US dollar actually went weak last night which just follow the normal trend again after retreat. News from China yesterday that PPI in China will turn positive in the second half of this year, which means demand will go up and economy will have a strong recovery and the IMF report yesterday confirmed it. So, what we will see in the second half of 2009 is the US economy will stabilized in the bottom with very weak growth due to the high unemployment and low housing and bank problem and the Chinese economy will start to rebound strongly. Oil price will continue going up due to the strategic conservation program from China, a lot of oil were imported , not for consumption, but pump into the ground for for conservation. The Obama stimulus program will kick in in July Aug, which will need a lot of basic materials, so was China's stimulus program .
In the past few days, the medias and analysts just pump the market wil fear , fear of rate hike ( it is impossible when the US unemployment rate is so high and continue going up), weak recovery in US , but not in China. Medias know that FED will have the meeting on Jun 23 24, and usually, one day before the meeting, market dropped big, in the first day of the meeting market either went up or down a little. In the second day of the meeting before 11AM when FED made the announcement, market was generally quiet, and starting from 11AM , market shhot up after the announcement from FED. There is no exception this time, Yesterday market dropped big, today, market just fluctuated within a narrow range, and tomorrow morning before 11AM, market will up a little , DOJ may up less than 30 points and just wait for the announcement by 11AM, and market shoot up big time after 11AM and starts the summer ralley.
"For years, mining companies could pay off a few people, mine, leave the poison residue for the locals, and go away rich. A realist would call that stealing. A neocon would call it normal business."
If the government gets enough money from them, why don't they spend any on clean up for their people? So who's stealing from who?
Re: Copper interests other then IVN Australia and Oyu Tolgoi.
Through an independent Trust the have some residual interest in a previously 50% owned very major copper mine in Myanmar. They have no longer any direct interest nor any control over it. The mine is starting production again in a few months at about 40,000 tons a year and has the potential to go to 200,000 tons of copper per year in a few years. The independent trust is at this moment in the process to negotiate a sale of the 50% interest to a major Chinese company. If the sale materialises, IVN I believe is entitled to receive in excess of $50 Million in money owed to them.
Even the Austrlia copper mine is not developed completely, but it will be counted as assets , as copper price continues to go up as economy , I mean the real economy continues to improve around the world, the value of that copper mone will increase as well and which will increase to the share value.
"IVN also have copper mine!!!"
They have a coal operation of significance and a potentially large resource of copper, gold, silver, lead, and uranium in Ivanhoe Australia. Is that what you are referring to? Kazakhstan is gold... There is no operating copper mine that I'm aware of...and if they lose OT, it would seem it will start trading like a coal stock until Australia is developed further.
If they knock on my door BEFORE the discovery, then I agree with you that I would consider the higher offer. Otherwise, I'm held to keeping my original commitment with the original miner if he made the discovery and took the risks.
I'm missing your point about how the price of IVN will continue to move with the price of copper if they don't have the copper mine. Can you explain?
Well, you have a point which is based on the assumption that only IVN has the technology and capitals, and greediness.
What if there is someone else knock your door and promise to let you share 60% of the profit and who has deep pocket and best technology ? Will you choose the one let you share 20% of the profit or the one for 60% of the profit ?
Besides, please remember , there is only one such mine on earth, it is unique, but there are many mining companies with huge capitals, much larger than that of IVN, and better mining technology.What is more, the mine is on the land of MOG, and it is there property.
The share price of IVN will continue to appreciate without this deal, because the appreciation is due to the price of copper.
If Ivanhoe hadn't initially trusted the government, they wouldn't have found themselves in this position. This discovery would have never happened. The other companies wouldn't have followed. Now that everyone understands the real investment equation, there's no reason to risk anything more in this country. The upside is limited through taxation policy on top of a proposed 50% base tax, while the companies have all of the risk on the downside. It's an equation for disaster.
You can rant all you want about neocons and the like...that's not what this is about. It's about trust, ethics and professionalism. And when any entity is found to not possess these three principles, the intelligent and honest will avoid it.
Now that Mongolia has shown itself to the world, they are going to have difficulty attracting investment. Rightfully so. With the exception of China and Russia, who won't put up with what is happening to Ivanhoe, no CEO worth his salary is going to take on such a high risk, low reward payoff.
The best thing this Mongolian Prez could do is look at China who charges anywhere from 10% to 25% on corporate taxes, and perhaps the US at 35% and come up with a reasonable tax rate. If they want to start a small account based upon a surcharge to pay for the future rehabilitation of the area, so be it. But let's not confuse the works of mines 50 years ago with the modern era mining corporation. The outlook would change overnight and they would be on the road to economic prosperity. It's that simple for those that get it
There's no need to address any of your other emotional baggage.