More Money for Exploration as Ivanhoe Sells Stake in Jinshan Gold

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Raymond James analyst Tom Meyer has raised his net asset value [NAV] estimate for Ivanhoe Mines Ltd. (IVN) to C$13.99 from C$13.92 to account for a higher cash balance after the company agreed to sell its 42% stake in Jinshan Gold Mines Inc. [JSE/TSX] for C$217.7-million, but he continues to rate the shares at “underperform” with a C$7.50 price target.

While the cash provides Ivanhoe the flexibility to work on other projects like gold and copper exploration in China, as its flagship Oyu Tolgoi development in Mongolia continues to remain in doubt, Mr. Meyer continues to recommend investors sell shares of the Vancouver-based miner.