Seeking Alpha: Rio Tinto – New Ivanhoe Project will Drive Stock Higher

The world’s third largest mining company Rio Tinto is consolidating its assets as Ivanhoe Mines CEO and founder Robert Friedland resigns. Rio owns 55% of Ivanhoe, and the two companies recently reached a financing deal worth $6 billion that will push forward construction on Ivanhoe’s Oyu Tolgo mining project in Mongolia. Additionally, Rio will be filling seats among Ivanhoe’s executive, which in my mind, essentially adds up to a takeover. If Rio does acquire Ivanhoe, even on an informal basis, the former’s profit margins are likely to expand exponentially, since Ivanhoe will mostly pay for itself once its newest mine becomes more established, in my opinion. In this way, the profits that Ivanhoe produces for investors will flow into Rio’s coffers with little ongoing expenditure on the bigger company’s part. To read the full article, click hereRio Tinto – New Ivanhoe Project will Drive Stock Higher

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