Ivanhoe Mines downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank downgraded Ivanhoe Mines (IVPAF) to Sector Perform from Outperform with a price target of C$12, down from C$16, following what the firm says was “a materially weaker than anticipated update” on the company’s flagship Kamoa-Kakula Cu complex. Preliminary geotechnical findings have determined that the recent seismic activity at Kakula appears self-induced by mining, putting “significant uncertainty on the future operating outlook,” says the analyst, who anticipates a future revised life of mine operating plan that is “still very economic,” but is likely based on lower mining rates, lower reserves, and higher costs.