Lot of people getting hung up on LOM. Personally I like to look at the overall economics.
As some have brought in SVL as a comparison I went back and had a look at their PFS (Jun 2018). Yes they had a LOM of 16 yrs but from that, their Total Project Cashflow before tax (profit) was only $257 million, compared to IVR $335 million. They used a lower POS in their calculations so adjusting for that and adding an extra $5 per ounce for their 52 moz produced, still only gives $517 million.
IVR $335 million over 5 years
SVL $517 million over 16 years
Discounting back gives something like NPV of $200 million versus $290 million (though SVL used a lower discount rate so probably even closer), for an extra 11 year mine life. So although a much longer LOM not a lot more in it, and as I think management were alluding to, with a volatile commodity such as silver it might actually be advantageous to have a shorter mine life (less pricing risk) ie get in, get your money then get out. Whether financiers see it like that well who knows.
IVR Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
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