Ivanhoe Electric Inc. (IE): A Bull Case Theory

We came across a bullish thesis on Ivanhoe Electric Inc. on The Oak Bloke’s Substack. In this article, we will summarize the bulls’ thesis on IE. Ivanhoe Electric Inc.’s share was trading at $19.92 as of January 29th.

Ivanhoe Electric Inc. (IE) is a U.S.-based mineral exploration and development company focused on high-margin critical metals, primarily copper, with additional exposure to gold and silver. Founded by mining entrepreneur Robert Friedland, IE combines traditional asset development with a differentiated technology-driven approach, anchored by its proprietary Typhoon™ geophysical surveying system. The company’s flagship Santa Cruz Copper Project in Arizona positions IE as a strategic supplier to the U.S. copper supply chain at a time when electrification, AI data centers, and renewable energy are driving structurally higher demand.

A June 2025 Preliminary Feasibility Study outlined a 15-year underground mine producing roughly 72 kt per year at low net cash costs, generating a $1.4 billion NPV at $4.25 copper and closer to $2.4 billion at current prices, with a 34% IRR. IE is advancing toward construction, supported by private land ownership that reduces permitting friction, while additional upside exists at Tintic in Utah, Hog Heaven in Montana, and early-stage Saudi Arabian exploration through a 50/50 joint venture with Ma’aden.

Financially, the company is well-capitalized following a $150 million equity raise, a $200 million credit facility, and potential access to up to $825 million of EXIM Bank support, limiting near-term dilution risk. While valuation today largely reflects Santa Cruz, the Typhoon technology represents a potential second pillar of value, validated through partnerships with Ma’aden and BHP and offering the prospect of high-margin commercialization.

Risks remain typical of a pre-production miner, including permitting, execution, and copper price volatility, but with strong institutional backing, government support, and multiple catalysts ahead, IE offers asymmetric upside tied to both copper’s tightening supply outlook and its unique technological edge.

Previously, we covered a bullish thesis on Ero Copper Corp. (ERO) by Unemployed Value Degen in December 2024, which highlighted the company’s copper and gold production mix, heavy growth capex, and Tucuma-led production ramp. ERO’s stock price has appreciated by approximately 156.43% since our coverage. This is because copper fundamentals strengthened despite volatility. The Oak Bloke shares a similar view but emphasizes technology-driven discovery and U.S.-focused copper supply.

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Disclosure: None.