Why Listed Equity Is Not Suitable For Developing Mining Projects!
By Tshepo Magagane
Ivanhoe share price – why listed equity is not suitable for developing mining projects!
If Ivanhoe was another company without such a strong shareholder base; it would be in serious trouble.
Now given that you have long-term holders who understand mining, they are able to step back, understand the issue and then come up with a plan.
There is nothing as horrible as when the listed share price goes into this terminal spiral – while there is a solution which means that you move out the fundamental value by 6mths or a year!
Why it is so important when building up your cap table to find the right investors who not only write that cheque but have the ability to write additional cheques (even for just an equity cure with the lenders)!
These capital pools are the necessary condition to unlock these minerals – recap:
Mining capital requirements – vs Specialist Mining Funds AuM of cUSD17bn, of which
* less than 3% does Africa
* 0% does pre-PFS
* most has already been deployed ie very little dry-powder
It is brutal out there – we are dealing with this on a daily basis – just completed last mile cap raise into PF – “esoteric, bilateral, bespoke” – we need to turn that into “almost-vanilla, bilateral, bespoke” – we need capital pools for that!
[Water inflows into the mine have increased as a result of disrupted underground infrastructure, and the company, with support from joint venture partners Zijin Mining and CITIC Metal, is implementing expanded dewatering plans to stabilise conditions.
Remediation efforts are underway, particularly in the shallower western sections of the mine, where current dewatering capacity is about 1 000 ℓ/s. Ivanhoe aims to increase that to more than 3 000 ℓ/s and is also planning to install permanent high-capacity surface pumping systems across its mines.
“We are going to gain wisdom and experience from the events that have unfolded in the past week,” said Ivanhoe founder and executive co-chairperson RobertFriedland.]
