Inv Metals Inc are a gold focused junior, late stage development company with one mine in development in Ecuador and exploration properties. They have approximately 2.6Moz. of gold in the reserves and resources category of which 2.5Moz. are in the measured and indicated category. They have a market capitalisation of ~C$57.73M which is a fall of roughly 25% over the last five months. As of 08/16/2017 they have no debt and ~C$20.13M cash. They have 93M shares outstanding and trade on the Toronto Stock Exchange and the over-the-counter markets.
Ecuador tax for large mining ( greater than 2000 tpd) is minimum of 50%. Plus, a potential windfall tax of 70% based on the price of gold over a 10 year trailing average.
A summary of the key items of the Exploitation Contract are noted below.
INV Minerales Ecuador S.A. INVMINEC ("INV Minerales"), the Company's wholly owned Ecuadorian subsidiary, has the right to develop and operate Loma Larga for a period of 25 years, subject to renewal.
INV Minerales will pay a royalty of 5% on the net income ("Royalty" or "Royalties") of precious metals and related by-product sales.
INV Minerales will pay US$15 million of the Royalty in advance ("Advanced Royalty") to primarily support community development and social programs.
Payments of the Advanced Royalty will be subject to the following schedule and milestones:
US$5 million on the execution of the Exploitation Contract;
US$5 million on the first anniversary of the execution of the Exploitation Contract; and
US$5 million on the second anniversary of the execution of the Exploitation Contract.
The Advanced Royalty is deductible against future Royalties payable in the amount that is the lesser of 50% of the Royalties payable in a six month period or 20% of the total Advanced Royalty calculated annually.
INV Minerales is also expected to be subject to the following taxes, which are currently in effect:
22% corporate income tax;
12% state profit sharing;
3% employee profit sharing;
Value added taxes ("VAT") which will be refundable on expenditures incurred after January 2018 when, and if, INV Minerales generates export sales;
An extraordinary revenue tax ("Windfall Tax") payable if the market price exceeds a stipulated base price for gold, silver and copper. The Windfall Tax will be calculated at 70% of the difference between INV Minerales' gross revenue and the theoretical revenue at a base price ("Base Price"). The Base Price will be determined on a monthly basis as the 10-year trailing average of the daily price of gold, silver or copper, adjusted for the US Consumer Price Index, plus one standard deviation. The Windfall Tax will not apply until 4 years after INV Minerales has recovered the undiscounted value of the cumulative investment in Loma Larga since the concession was granted.
INV Minerales will be subject to a "Sovereign Adjustment" in the event that the cumulative benefit derived from Loma Larga to the Government of Ecuador is not equal to at least 50% of the total benefits from the Project. The benefits to INV Minerales will be calculated annually as the net present value of the cumulative free cash flows of Loma Larga since the concession was granted. The benefits to the Government of Ecuador will be calculated as the net present value of the cumulative sum of corporate income tax, Royalties, Windfall Taxes, state profit sharing taxes, non-recoverable VAT and previous Sovereign Adjustment payments, if any, over the same period.
Gold Price (last analysis) ($)
Silver Price (last analysis) ($)
Stock Price (last analysis) ($)
1 Year Stock Price High ($)
Current Stock Price Versus 1 Year High (%)
Stock Price USA 5-Year High ($) (including date)
1.40 - 9/24/2010
Stock Price USA 5-Year Low ($) (including date)
2 Cents - 7/15/2013
Appear to have a good team.
Insiders (50%): 35% IAMGold, Mgt 3%, Other Insiders 12%
Local Issues (wag)
Easy access to the Loma Larga property. I'm not sure about water and power.
100% of Loma Larga
Country of Incorporation
Their flagship property is Loma Larga in Ecuador.
It is a 2.5 million oz (M&I at 4 gpt) resource.
They recently obtained the project from IAMGold, who took a 35% share in INV Metals stock.
The project has very good economics with low cash costs, because of high grade and silver offsets.
Updated PFS released in 2016.
$280 million capex.
150,000 oz per year.
$600 cash costs.
25% after-tax IRR at $1350 gold.
Working on final feasibility study. Due in 2018.
Construction in 2019.
Production in 2020.
3 New Properties in Ecuador (100,000 acres)
All are early exploration
35% JV on a project in Nambia, Africa. It is early exploration and Teck Resources is the operator.
$25 million in cash for exploration while developing Loma Larga.
Significant silver and copper offsets to lower the cash cost.
Shareholder Friendly (wag)
Ore Grade (wag)
High grade if they use an open pit.
Moderate grade if they use underground.