OTCPK:IVPA.F

Stock Analysis Report

Executive Summary

Ivanhoe Mines Ltd. engages in the exploration, development, and recovery of minerals and precious metals located primarily in Africa.

Rewards

Trading at 79.8% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -11.6% per year for the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Ivanhoe Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IVPA.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

IVPA.F

2.2%

US Metals and Mining

0.3%

US Market


1 Year Return

34.8%

IVPA.F

12.2%

US Metals and Mining

18.5%

US Market

Return vs Industry: IVPA.F exceeded the US Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: IVPA.F exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

IVPA.FIndustryMarket
7 Day0.6%2.2%0.3%
30 Day-9.0%3.4%1.5%
90 Day-4.4%9.7%5.7%
1 Year34.8%34.8%15.6%12.2%21.1%18.5%
3 Year19.6%19.6%2.2%-3.1%45.9%36.4%
5 Year250.7%250.7%31.1%20.6%71.4%52.5%

Price Volatility Vs. Market

How volatile is Ivanhoe Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ivanhoe Mines undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IVPA.F ($2.6) is trading below our estimate of fair value ($12.88)

Significantly Below Fair Value: IVPA.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IVPA.F is poor value based on its PE Ratio (52x) compared to the Metals and Mining industry average (12.3x).

PE vs Market: IVPA.F is poor value based on its PE Ratio (52x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: IVPA.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IVPA.F is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Ivanhoe Mines forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVPA.F's earnings are forecast to decline over the next 3 years (-11.6% per year).

Earnings vs Market: IVPA.F's earnings are forecast to decline over the next 3 years (-11.6% per year).

High Growth Earnings: IVPA.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if IVPA.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if IVPA.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IVPA.F is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Ivanhoe Mines performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IVPA.F has high quality earnings.

Growing Profit Margin: Insufficient data to determine if IVPA.F's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: IVPA.F has become profitable over the past 5 years, growing earnings by 5.4% per year.

Accelerating Growth: IVPA.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IVPA.F had negative earnings growth (-71.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (0.7%).


Return on Equity

High ROE: IVPA.F's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ivanhoe Mines's financial position?


Financial Position Analysis

Short Term Liabilities: IVPA.F's short term assets ($819.9M) exceed its short term liabilities ($25.7M).

Long Term Liabilities: IVPA.F's short term assets ($819.9M) exceed its long term liabilities ($47.6M).


Debt to Equity History and Analysis

Debt Level: IVPA.F's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: IVPA.F's debt to equity ratio has reduced from 10.5% to 1.5% over the past 5 years.

Debt Coverage: IVPA.F's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if IVPA.F's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: IVPA.F has a high level of physical assets or inventory.

Debt Coverage by Assets: IVPA.F's debt is covered by short term assets (assets are 23x debt).


Next Steps

Dividend

What is Ivanhoe Mines's current dividend yield, its reliability and sustainability?

20.02%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years20.0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IVPA.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IVPA.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IVPA.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IVPA.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IVPA.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ivanhoe Mines's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Ivanhoe Mines has no CEO, or we have no data on them.


Management Age and Tenure

6.1yrs

Average Tenure

59yo

Average Age

Experienced Management: IVPA.F's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: IVPA.F's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: IVPA.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$107,635,46905 Dec 19
CITIC Group Corporation
EntityCompany
Shares35,752,011
Max PriceUS$3.01
SellUS$315,57915 Nov 19
Martie Cloete
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares115,500
Max PriceUS$2.78
BuyUS$74,48811 Oct 19
Egizio Bianchini
EntityIndividual
Role
Vice Chairman
Executive Vice Chairman
Shares30,000
Max PriceUS$2.49
BuyUS$617,33610 Oct 19
Tony Giardini
EntityIndividual
Role
President
President
Shares250,000
Max PriceUS$2.48
BuyUS$460,650,80519 Aug 19
CITIC Group Corporation
EntityCompany
Shares153,821,507
Max PriceUS$2.99
SellUS$519,92714 Jul 19
Martin Bawlf
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development & Finance
Shares165,100
Max PriceUS$3.19
BuyUS$32,20212 Jul 19
Tadeu Carneiro
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$3.22
BuyUS$68,79324 Jun 19
Tadeu Carneiro
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares22,336
Max PriceUS$3.08
BuyUS$493,67725 Feb 19
Tadeu Carneiro
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares191,650
Max PriceUS$2.66
BuyUS$249,66312 Feb 19
Guy de Selliers de Moranville
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares100,000
Max PriceUS$2.55
BuyUS$23,73821 Dec 18
Livia Mahler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,500
Max PriceUS$1.69

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.3%.


Management Team

  • Robert Martin Friedland (68yo)

    Founder & Executive Co-Chairman

    • Tenure: 1.3yrs
    • Compensation: US$1.24m
  • Louis Watum (56yo)

    Managing Director of DRC Operations

    • Tenure: 0yrs
  • Egizio Bianchini (59yo)

    Executive Vice Chairman

    • Tenure: 1.8yrs
    • Compensation: US$2.72m
  • Mary Vincelli

    VP of Compliance & Corporate Secretary

    • Tenure: 0yrs
  • Warwick Morley-Jepson (60yo)

    Executive VP & COO

    • Tenure: 0.2yrs
  • Marna Cloete (42yo)

    Chief Financial Officer

    • Tenure: 10yrs
    • Compensation: US$858.09k
  • Martin Bawlf

    Senior Vice President of Corporate Development & Finance

    • Tenure: 0yrs
    • Compensation: US$1.08m
  • Jeremy Michaels

    Vice President of Communications & Public Affairs

    • Tenure: 6.9yrs
  • Patricia Makhesha

    Executive VP of Sustainability & Public Affairs

    • Tenure: 5.3yrs
    • Compensation: US$851.77k
  • Tony Giardini

    President

    • Tenure: 0.6yrs

Board Members

  • Livia Mahler (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$148.32k
  • Robert Martin Friedland (68yo)

    Founder & Executive Co-Chairman

    • Tenure: 1.3yrs
    • Compensation: US$1.24m
  • Peter Meredith (75yo)

    Independent Director

    • Tenure: 21.6yrs
    • Compensation: US$108.85k
  • Guy de Selliers de Moranville (67yo)

    Non-Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$114.32k
  • Bill Hayden (67yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$116.32k
  • Jinghe Chen (62yo)

    Independent Director

    • Tenure: 0.5yrs
  • Egizio Bianchini (59yo)

    Executive Vice Chairman

    • Tenure: 1.8yrs
    • Compensation: US$2.72m
  • Miles Sun (54yo)

    Non-Executive Co-Chairman

    • Tenure: 1.3yrs
    • Compensation: US$145.07k
  • Kgalema Motlanthe (69yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$83.83k
  • Tadeu Carneiro (59yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$27.23k

Company Information

Ivanhoe Mines Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ivanhoe Mines Ltd.
  • Ticker: IVPA.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.024b
  • Listing Market Cap: CA$3.044b
  • Shares outstanding: 1.19b
  • Website: https://www.ivanhoemines.com

Number of Employees


Location

  • Ivanhoe Mines Ltd.
  • 999 Canada Place
  • Suite 654
  • Vancouver
  • British Columbia
  • V6C 3E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IVNTSX (The Toronto Stock Exchange)YesClass A Common SharesCACADOct 2012
IYAADB (Deutsche Boerse AG)YesClass A Common SharesDEEUROct 2012
IVPA.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDOct 2012

Biography

Ivanhoe Mines Ltd. engages in the exploration, development, and recovery of minerals and precious metals located primarily in Africa. The company explores for platinum, palladium, nickel, copper, gold, rho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:37
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.