Ivanhoe (IVN): Copper Mining in Mongolia
"For much of their history, Mongolians described themselves as 'beggars sitting on a huge pile of gold;" suggests international investing expert Nicholas Vardy.
The editor of The Global Bull Market Alert explains, "Even Genghis Khan knew about Mongolia's massive mineral deposits. He just had no idea how to tap into them. But that's all changing largely thanks to the efforts of Ivanhoe Mines (IVN).
"Ivanhoe is a Canadian company that is building what may turn out to be the world's largest copper and gold mine: Oyu Tolgoi.
"And with Ivanhoe having 66% interest in the project and the government of Mongolia holding the remaining 34%, this hardly could be a bigger deal for both the company and the country.
"I remember a few years back when Executive Chairman Robert Friedland first told me about Oyu Tolgoi at a meeting in London.
"Armed with his three-dimensional renditions of Oyu Tolgoi's vast deposits, the project then was just a gleam in Friedland's eye.
"But today, this massive deposit located just 50 miles from the Chinese border, has attracted the attention of everyone from the Russians to the Chinese government to the world's largest mining companies.
"It is estimated that Oyu Tolgoi houses 81-billion pounds of copper and 46-million ounces of gold. That means that at current prices, Oyu Tolgoi's net asset value is more than $17 billion.
"That makes Ivanhoe's current market value of around $11 billion a steal. Some say that Oyu Tolgoi may even overtake Freeport-McMoRan's Grasberg as the world's largest copper and gold deposit.
"Others are even more optimistic and say that Ivanhoe itself just may be the world's next Freeport-McMoRan.
"But Ivanhoe is more than just a mining project. It also is about Mongolia's newfound wealth.
"The International Monetary Fund (IMF) projects that -- thanks in part to Ivanhoe's development of Oyu Tolgoi -- Mongolian GDP will quadruple to $8,000 per capita by 2018.
"The Mongolian stock market already has been one of the world's best performers this year. The Mongolian capital, Ulan Bator, is chock-full of bankers, mining executives and stock promoters all looking to get a piece of Mongolia's next great project.
"For savvy investors who get in early, "turnaround plays" like Mongolia offer the opportunity of once-in-a-lifetime profits.
"So buy Ivanhoe Mines at market. The company is announcing earnings on Nov. 8, so it would be good to get into the stock before then.
"This is a volatile stock and a value play for long-term holders, so I am placing the stop at a very wide $15.50. For potentially even bigger short-term gains, I recommend the March $23.00 calls."
Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.
The editor of The Global Bull Market Alert explains, "Even Genghis Khan knew about Mongolia's massive mineral deposits. He just had no idea how to tap into them. But that's all changing largely thanks to the efforts of Ivanhoe Mines (IVN).
"Ivanhoe is a Canadian company that is building what may turn out to be the world's largest copper and gold mine: Oyu Tolgoi.
"And with Ivanhoe having 66% interest in the project and the government of Mongolia holding the remaining 34%, this hardly could be a bigger deal for both the company and the country.
"I remember a few years back when Executive Chairman Robert Friedland first told me about Oyu Tolgoi at a meeting in London.
"Armed with his three-dimensional renditions of Oyu Tolgoi's vast deposits, the project then was just a gleam in Friedland's eye.
"But today, this massive deposit located just 50 miles from the Chinese border, has attracted the attention of everyone from the Russians to the Chinese government to the world's largest mining companies.
"It is estimated that Oyu Tolgoi houses 81-billion pounds of copper and 46-million ounces of gold. That means that at current prices, Oyu Tolgoi's net asset value is more than $17 billion.
"That makes Ivanhoe's current market value of around $11 billion a steal. Some say that Oyu Tolgoi may even overtake Freeport-McMoRan's Grasberg as the world's largest copper and gold deposit.
"Others are even more optimistic and say that Ivanhoe itself just may be the world's next Freeport-McMoRan.
"But Ivanhoe is more than just a mining project. It also is about Mongolia's newfound wealth.
"The International Monetary Fund (IMF) projects that -- thanks in part to Ivanhoe's development of Oyu Tolgoi -- Mongolian GDP will quadruple to $8,000 per capita by 2018.
"The Mongolian stock market already has been one of the world's best performers this year. The Mongolian capital, Ulan Bator, is chock-full of bankers, mining executives and stock promoters all looking to get a piece of Mongolia's next great project.
"For savvy investors who get in early, "turnaround plays" like Mongolia offer the opportunity of once-in-a-lifetime profits.
"So buy Ivanhoe Mines at market. The company is announcing earnings on Nov. 8, so it would be good to get into the stock before then.
"This is a volatile stock and a value play for long-term holders, so I am placing the stop at a very wide $15.50. For potentially even bigger short-term gains, I recommend the March $23.00 calls."
Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.
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