Africa Mining Circle, September 14th: Montreal Capital Markets (BMO Capital Markets) compared the Kamoa-Kakula copper mine in the Democratic Republic of Congo with the world’s top ten copper mines in a new report based on production data in 2019. Prospects for the potential of the project. The Kamoa-Kakula copper mine straddles the Democratic Republic of Congo and Zambia.
The development of the Kamoa-Kakula copper mine is divided into three phases, of which the first phase of Kakula will be up and running in less than a year.
According to the final result of the feasibility study (DFS), in the first 10 years, an average of 6 million tons of copper ore was mined annually, with a grade of 6.2%, and an annual output of 284,000 tons of copper.
In the first 10 years, the expanded Kamoa-Kakula project will have a maximum output of 19 million tons of copper ore, with a grade of 5.1%, and an annual output of 501,000 tons of copper. At the peak, the grade reached 7%, and the annual output of copper was 805,000 tons.
BMO pointed out that the Kamoa-Kakula Preliminary Economic Assessment (PEA) only handles 5-35% of the annual tonnage, which is 4-5% higher than other large producers.
BMO believes that as Ivanhoe enters the production phase, the unique size and grade of the Camora-Kakura complex will drive the company's premium valuation.
BMO admits that this comparison is unfair because none of its other operations have reached the peak or output, but "still provides an interesting scale comparison that shows the upside potential of the Kamoa-Kakula complex.
BMO rated Ivanhoe Mines as outperform, and raised its target price to $10.00 after DFS. Ivanhoe is also advancing the Platreef platinum group polymetallic development project in South Africa and the Kipushi zinc mine in the Democratic Republic of Congo.
Ivanhoe’s latest trading price on the Toronto stock market is $5.96 per share, with a market value of 7.2 billion Canadian dollars, up 42% so far this year. Copper prices were recently reported at US$3.06 per pound, or US$6,750 per ton, which is more than 50% higher than the low in March and close to the high in more than two years.
