Ivanhoe Mines (OTCMKTS:IVPAF) Shares Gap Down on Disappointing Earnings

Ivanhoe Mines Ltd. (OTCMKTS:IVPAF) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $6.37, but opened at $5.77. Ivanhoe Mines shares last traded at $5.6950, with a volume of 129,419 shares traded.

The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.05). Ivanhoe Mines had a net margin of 23.47% and a return on equity of 5.07%. The company had revenue of $263.84 million for the quarter, compared to the consensus estimate of $274.00 million.

Analysts Set New Price Targets

IVPAF has been the topic of several research analyst reports. Scotiabank reissued a “sector perform” rating on shares of Ivanhoe Mines in a research note on Wednesday, September 9th. Morgan Stanley restated an “overweight” rating on shares of Ivanhoe Mines in a report on Wednesday, October 7th. Citigroup reaffirmed a “buy” rating on shares of Ivanhoe Mines in a research note on Wednesday, October 14th. Finally, Canaccord Genuity Group upgraded shares of Ivanhoe Mines from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Ivanhoe Mines currently has a consensus rating of “Moderate Buy” and an average target price of $15.20.

Ivanhoe Mines Stock Performance

The company has a 50-day simple moving average of $8.09 and a two-hundred day simple moving average of $8.86. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.89 and a current ratio of 2.16. The firm has a market capitalization of $8.13 billion, a P/E ratio of 63.36 and a beta of 1.33.

About Ivanhoe Mines

Ivanhoe Mines Ltd. is a Canadian mining and mineral exploration company focused on developing and operating large-scale projects in Africa. Its principal commodities include copper, zinc, platinum-group metals, nickel, copper and gold.

The company’s flagship Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo is being developed as a major copper mining and processing operation. Ivanhoe also holds the Kipushi zinc-copper-silver-germanium mine in the Democratic Republic of the Congo, as well as the Platreef platinum-group metals, nickel, copper and gold project in South Africa.

Ivanhoe’s exploration portfolio includes the Western Foreland project in the Democratic Republic of the Congo, an extensive exploration area near Kamoa-Kakula.