Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Q3 2021 Earnings Presentation
22 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Nov 15, 2021
Slide 1: Q3 2021 Results
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q3 2021 RESULTS NOVEMBER 15, 2021
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER AND FORWARD-LOOKING STATEMENTS The information contained in this presentation and other information furnished by or on behalf of Ivanhoe Mines Ltd. (“Ivanhoe”) has been prepared to assist the reader in understanding the business and financial results of Ivanhoe for the periods indicated a
Slide 3: Opening Remarks
…the biggest dividend from Kamoa-Kakula, which will benefit everyone on planet Earth, is in fact invisible to the naked eye… it is the global warming gas that will never harm the atmosphere. The copper mined at Kamoa-Kakula makes its way into tomorrow’s electric vehicles, energy storage systems and
Slide 4: Q3 2021 Highlights
Q3 2021 HIGHLIGHTS Marna Cloete, President 4
Slide 5: Q3 2021 Results: Kamoa-Kakula's First Operating Quarter
Q3 2021 RESULTS: KAMOA-KAKULA’S FIRST OPERATING QUARTER 41.6 kt copper production Phase 1 production achieved ahead of schedule and on budget – little over five years since first drilling at Kakula 41.5 kt copper sales Kamoa-Kakula commenced commercial production on July 1, 2021 and has reached stea
Slide 6: ESG Scorecard
ESG SCORECARD Ivanhoe Mines upgraded by MSCI to an ESG Rating of A(1) Focus on safety: 3 million LTI-free work hours at Kamoa-Kakula; 3.66 million at Kipushi and 310,000 at Platreef Extension of SNEL financing agreement signed to rehabilitate 162 MW additional hydropower at Inga II complex for futur
Slide 7: Q3 2021 Financial Overview
Q3 2021 FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 7
Slide 8: Kamoa-Kakula Corporate Structure
KAMOA-KAKULA CORPORATE STRUCTURE Crystal River (1.0%) (49.5%) (49.5%) Kamoa Holding DRC Government (80%) (20%) 5% free carried interest plus 15% carried interest 8
Slide 9: Kamoa Holding Q3 Inaugural Operating Profit
KAMOA HOLDING Q3 INAUGURAL OPERATING PROFIT Shown on 100% basis attributable to Kamoa Holding 41.5 kt copper sales (All values in US$ million) ($99) $233 million EBITDA ($34) Ivanhoe's share of ($51) profits (49.5%) $343 ($51) $210 ($24) $158 $107 $41 (3) Revenue (1) Cost of sales G&A Profit from Fi
Slide 10: Ivanhoe Mines Q3 Financial Highlights
IVANHOE MINES Q3 FINANCIAL HIGHLIGHTS (All values in US$ million) ($10) ($5) $3 $55 ($9) $24 ($7) ($7) $85 $41 (1) Share of profit Finance Kipushi Western General Gain on fair Finance costs Share-based Other Profit for the from Kamoa income from project Foreland administrative valuation of payments
Slide 11: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound payable copper) Q3 cash costs reflect the ramp- up of production to steady- state during the quarter $0.29 $0.21 Expected to trend downwards as Phase 2 is commissioned $0.35 $1.37 and fixed costs are spread over increased copper output $0.16 Sig
Slide 12: Well-Funded, Strong Balance Sheet Position
WELL-FUNDED, STRONG BALANCE SHEET POSITION Cash and cash equivalents of $580 million Consolidated working capital of $624 million Total assets of $3,009 million Total debt of $671 million, including $575 million 2.50% convertible senior notes outstanding, due 2026 with possible earlier redemption Fo
Slide 13: Operations & Project Update
OPERATIONS & PROJECT UPDATE Alex Pickard, VP Corporate Development Marna Cloete, President 13
Slide 14: Kamoa-Kakula Phase 1: Steady-State Achieved
KAMOA-KAKULA PHASE 1: STEADY-STATE ACHIEVED Over 77,500 tonnes of copper produced Cumulative Copper Produced year-to date 70 60 2021 production guidance range for copper in concentrate raised to 92,500 to 50 Copper Produced (kt) 100,000 tonnes 40 Plant operating at steady-state design; 30 optimizati
Slide 15: Kamoa-Kakula Phase 2 & 3 Expansions
KAMOA-KAKULA PHASE 2 & 3 EXPANSIONS Phase 2 concentrator over 60% complete; ahead of schedule and on budget First production in Q2 2022 to double annual copper production to approximately 400,000 tonnes Planning underway for a new box cut and decline to access mining areas for Phase 3 expansion Basi
Slide 16: Western Foreland: Extensive Drilling in 2022
WESTERN FORELAND: EXTENSIVE DRILLING IN 2022 Excellent progress on 69.4km all-weather road to access expanded 2,550km2 licenses adjacent to Kamoa-Kakula Geophysical and geochemical surveys are complete or near-complete to assist in target generation Planning for extensive drill program in 2022 16
Slide 17: Platreef: Advancing to Production in 2024
PLATREEF: ADVANCING TO PRODUCTION IN 2024 Gearing up construction activities at world-scale palladium, rhodium, platinum, nickel, copper and gold project Phased development plan definitive feasibility study progressing towards completion in early 2022 Financing arrangements for Platreef’s first phas
Slide 18: Kipushi: Looking to Resume Development Activities
KIPUSHI: LOOKING TO RESUME DEVELOPMENT ACTIVITIES Review of definitive feasibility study and financing plan with partner Gécamines progressing well Discussions with potential finance providers in progress Zinc prices trading near record highs as inventory levels remain at historic lows First product
Slide 19: Capital Allocation
CAPITAL ALLOCATION Marna Cloete, President 19
Slide 20: Kamoa-Kakula Cash Flow to Finance Expansions
KAMOA-KAKULA CASH FLOW TO FINANCE EXPANSIONS Cash flows from Kakula Phase 1 operations to fund Phase 2 and Phase 3 expansions, including power and a smelter, supporting Kamoa-Kakula’s target to become the second-largest copper mine globally At current market conditions, it is expected that sharehold
Slide 21: Corporate Capital Allocation
Three Year Plan CAPITAL ALLOCATION TIER 1 GROWTH PROJECTS Stream + Project Finance Fund existing growth Platreef DEBT projects from project finance, streams and pre- payments, and existing cash resources Kipushi Transition to high-growth, diversified mining company CASH Western Foreland Intention to
Slide 22: Q3 2021 Results: Management Q&A
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q3 2021 RESULTS MANAGEMENT Q&A 22