Tuesday, May 11, 2010

Citigroup (NYSE:C) Advising Ivanhoe Mines (NYSE:IVN) on Oyu Tolgoi

Releasing estimates for its gigantic Oyu Tolgoi mining project in Mongolia, Ivanhoe Mines (NYSE:IVN) reiterated they still have Citigroup (NYSE:C) adivising them on a variety of strategic options they have available to them, which could include equity and debt offerings, as well as sales of assets.

The giant mine, which will be among the largest in the world when it becomes operational, has an estimated 46.4 million ounces of gold, and an extraordinary 81.3 billion pounds of copper. The mine could have a life span of 59 years for the copper, while the gold should bring about 650 ounces annually for a decade, although after that figures weren't thrown out.

Rio Tinto (NYSE:RTP), who has a 22.4 percent stake in Ivanhoe, will be working on developing the asset with them.

Once operational, this will push Ivanhoe into the one of the elite of mining companies, putting them up there with Freeport-McMoRan Copper & Gold (NYSE:FCX) and the BHP Billiton (NYSE:BHP).

1 comment:

Metacomet said...

An element of the Oyu Tolgoi story that has, so far, failed to gain much mention is the fact that at least half of the mineralization reported in the new IDP, is on property subject to a joint venture agreement with Entree Gold.

Entree's participation in the JV is in the form of a 20%, carried interest, in the production on their parcels.