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Ivanhoe Mines up 7% as reportedly upgraded to Buy at Desjardins

Ivanhoe Mines Ltd. (IVN.TO) was upgraded to Buy from Hold at Desjardins Securities following a new agreement with Rio Tinto to fund the Oyu Tolgoi mine, according to a Financial Post report.

The FP says analyst John Redstone also hiked his price target on Ivanhoe shares to $29.30 from $29.15 after using Desjardins' long-term gold price of US$1,000 per ounce in his net asset value estimate for the Mongolia-based copper-gold project.

In addition, the FP says Redstone also estimates that Ivanhoe will be able to raise approximately US$1.2-billion through a global rights issue. That assumes 42 million shares (600 million currently) will be issued at a price of roughly US$29 per share, while actual pricing is expected to take place in the first quarter of 2011.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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