Ivanhoe Electric (IE) Could Be 75% Undervalued On Third Quarter Results

Ivanhoe Electric (IE) has just released third quarter results, reporting sales of US$0.708 million and a wider net loss of US$30.81 million. This is a key update for anyone tracking this exploration focused stock.

The earnings release has landed after a tough stretch for Ivanhoe Electric shareholders, with the share price down 36.21% over the past 90 days and 57.00% year to date, while the 1 year total shareholder return has declined 44.16% as sentiment around this early stage exploration story has cooled.

Balance Ivanhoe Electric’s early stage exploration risk by scanning a curated set of resource-focused plays and stronger balance sheets with the list of solid balance sheet and fundamentals (24 results).

Bulls see Ivanhoe Electric’s sell off as a mismatch between long term copper potential and a US$1.24b market cap. Bears point to widening quarterly losses. Which story does the current valuation really support?

Most Popular Narrative: 75% Undervalued

Against Ivanhoe Electric’s last close of $7.03, the most followed narrative anchors fair value at $28.50. This frames the recent share price slide as a steep discount rather than a verdict on the Santa Cruz plan.

The main thing that has to go right is successful and timely delivery of the 24 year Santa Cruz mine plan. This includes securing and drawing on up to US$1.1b of indicated project financing, while managing higher initial capex, permitting milestones, and execution of the planned tunnel boring and heap leach technologies.

See why 1 investors see Ivanhoe Electric as 75% undervalued.

Result: Fair Value of $28.50 (UNDERVALUED)

Still, the narrative frays if Santa Cruz’s higher US$1.43b upfront spend, longer pre production losses and any funding hiccups begin to weigh more heavily on Ivanhoe Electric.

Find out about the key risks to this Ivanhoe Electric narrative.

Next Steps

Mixed on Ivanhoe Electric so far, or leaning firmly one way? Act while the narrative is still forming and weigh both sides with our breakdown of 3 key rewards and 4 important warning signs.

Looking For More Investment Ideas Beyond Ivanhoe Electric?

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