Ivanhoe Mines maintains an outperform rating from BMO Capital By Investing.com
BMO Capital Markets continued its positive trend Ivanhoe Mines (OTC:) Ltd. (IVN: CN) (OTC: IVPAF), reiterates an Outperform rating with a price tag of Cdn$24.00.
The company’s optimism follows Ivanhoe Mines’ announcement of strong third-quarter results, which included record concentrated production of 116,313 tonnes at its Kamoa Kakula project.
The company’s year-to-date production has reached 303,328 tons. Despite a slight reduction in annual guidance to 425-450,000 tonnes from the previous range of 440-490,000 tonnes, this revision is due to earlier grid capacity issues. These problems have since been solved with conservation and imported energy solutions.
BMO Capital Markets expects sustained results from reduced guidance for Kamoa Kakula’s long-term prospects. The company expects Ivanhoe Mines to deliver record earnings in the upcoming fourth quarter as the Phase 3 concentrator continues to move toward stable performance.
In other recent news, Ivanhoe Mines has made significant improvements in its operations. Morgan Stanley recently upgraded the company’s stock from Equalweight to Overweight, indicating confidence in Ivanhoe Mines’ progress toward its expansion goals.
The company expects a compound annual growth of approximately 16% in the company’s copper capacity, from 440 kilotons in 2024 to 680 kilotons in 2027. Project 95″, which is expected to increase copper availability to 95% from 87%.
Additionally, Ivanhoe Mines reported record production and profits for Q2, with record production of more than 100,000 tons of copper, profit of $67 million, and record adjusted EBITDA of $203 million. The company also commissioned its Phase 3 plant, which is designed to process 5 million tons per year. Ivanhoe Mines has increased funding guidance for Project 95 in Kamoa-Kakula by $300 million, and has secured additional power supplies to ensure grid stability and reliability.
InvestingPro Insights
Recent production achievements of Ivanhoe Mines Ltd. (IVPAF) are aligned with several key metrics from InvestingPro. The company’s shares have shown strong performance, with a total price gain of 78.1% over the past year and a return of 25.67% over the past month. This strong performance is reflected in InvestingPro Tip which notes that the stock is trading near its 52-week high, which is currently at 93.85% of that high.
Despite the slight reduction in guidance for the year, Ivanhoe Mines remains profitable, with underlying EPS of $0.12 over the past twelve months. This profit is highlighted by another InvestingPro Tip that shows analysts predict the company will be profitable this year.
However, investors should note that the stock trades at multiple earnings, with a P/E ratio of 120.18. This valuation metric suggests that market expectations for future growth are high, consistent with BMO Capital Markets’ optimistic view of the company’s future performance.
For readers interested in in-depth analysis, InvestingPro offers 12 additional tips on Ivanhoe Mines, which provide a comprehensive overview of the company’s financial health and market conditions.
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