Ivanhoe Mines (IVN): An overlooked Gold Stock?

Ivanhoe Mines (IVN): An overlooked Gold Stock?

With Gold prices hitting record levels this January, it’s hard to believe that there are any gold stocks left that haven’t paid off in the recent days. Stocks like Eldorado Gold Corp (EGO) + 24% in the last month and Yamana Gold (AUY) +35.53% and Golden Cycle Gold Corp (GCGC) +38.54% have all had great runs.


Gold 1 year Chart:

Ivanhoe Mines Ltd. (NYSE:IVN) looks to be one of the only Gold stocks out there that has been overlooked.

In a statement issued today before Ivanhoe Mines' (IVN) senior management team addressed institutional investors and analysts at a forum organized by a major U.S. investment bank, John Macken, President and CEO of Ivanhoe Mines Ltd., said that Ivanhoe Mines welcomes assurances contained in a recent letter from Mongolian Prime Minister Sanjaa Bayar. In the letter, Prime Minister Bayar expressed support for foreign investment and his intention to see construction of the Oyu Tolgoi Project start prior to the Mongolian general election in June this year.

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The Prime Minister's letter to Ivanhoe Mines and Rio Tinto on December 26, 2007, followed his inaugural address to the National Parliament on December 13 in which he identified the utilization of natural resources, including clearing the way for the development of Oyu Tolgoi, as one of his priorities to be completed before the election.

"I would like to reiterate that my Government will continue to support private investment, including foreign investment, and intends to see the projects such as Oyu Tolgoi, that not only have a significant impact on the development of the country but also largely shape the perception of its investment environment, commence during its term in office," Prime Minister Bayar wrote.

"The presence of strategic investors, which are well known in global industry, in the Oyu Tolgoi project is considered by the Government as an important factor for its long-term success and their intention to be committed to the project...is encouraging." (Source: CNN Money)


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Ivanhoe has had some problems lately, reporting an $83 million loss in the last quarter. In spite of that, the Oyu Tolgoi mines have grown in value from $38 Billion a year ago to around $50 billion today with the increase in gold prices. That’s a lot of goldgold to go around. If gold continues to climb, look to Ivanhoe to climb with it.


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Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method Newsletter, only available at WallstNewsletters.com.