Monday, August 9, 2010

Ivanhoe's (NYSE:IVN) Friedland Marketing Up the Company

It's no secret Ivanhoe (NYSE:IVN) is looking for even more financing for its Oyu Tolgoi mine in Mongolia, and Ivanhoe Chairman Robert Friedland has been seen a lot in the news lately letting people know about the incredible project they have in Oyu.

He's been making some interesting comments a la Richard Branson to get the Ivanhoe brand stuck in the minds of potential investors.

Even though he was joking, and in reality probably marketing, Friedland made a comment which made the Oyu Tolgoi mine look like it was valued at trillions of dollars, rather than the approximate $16 billion it is known to be worth.

He also mentioned copper outperforming gold recently, citing the dubious claim that 20 years from now cars are going to be electric, and those cars will need copper for the batteries. That was the hook though, the reality is copper will continue to be in high demand over the next 20 years, and that will have nothing to do with electric cars.

Friedland of course knows this, but he is doing the stir the imagination thing in order to have people associate that with Ivanhoe.

But as far as copper outperforming gold, that would have be on enormous volume, as gold prices will shoot up as soon as the U.S. government or Federal Reserve start do their quantitative easing thing, or printing of money. Rumors are they're moving closer and closer to that in light of the economy stalling and elections coming soon.

Seeing that hasn't worked in the past, and we've never left the recession, unless you think the government throwing money into the economy is a real recovery.

That's why there haven't been any jobs created, the private sector is for the most part doing little or no hiring, and then we hear the news reports of the "unexpected" this and "unexpected" that, when talking about economic news that didn't meat expectations.

For Ivanhoe, once production begins at Oyu Tolgoi, you'll see their stock price shoot up even more, as much of this is in anticipation of the money generating real revenue and profits, and not just potential. They're already up over double the last twelve months, and I think Friedland is trying to create interest in order to land the needed partners to forge ahead and work the extraordinary mine.

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