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Thursday, September 16, 2010

Ivanhoe (NYSE:IVN) Slaps Down "False and Misleading" Information from 'Business Spectator' and 'The Australian'

Ivanhoe Mines (NYSE:IVN) noted in a press release that recent information published on the 'Business Spectator' website and in 'The Australian' newspaper contained "false and misleading information" about the mining company.

Concerning the numbers, some of the assertions made which Ivanhoe refutes, includes the costs of the Oyu Tolgoi copper-gold project in Mongolia, which was said to be $4 billion, but is in fact $4.6 billion, according to Ivanhoe. Those numbers include $1 billion to be invested on part of the "phase-two development of the planned underground mine."

Another bit of wrong data is that their partner Rio Tinto (NYSE:RTP) can only acquire a 44 percent stake in Ivanhoe. The percentage is actually higher than that, up to as much as 46.65 percent.

One more serious allegation made against Ivanhoe was they have underestimated the capital costs of the mine, which the miner countered was untrue, and the project's major contracts remain within budget and ahead of schedule.

Full press release

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