Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Day (December 2020)
24 slides from Ivanhoe Mines Ltd. Class A's investor day presentation, Dec 4, 2020
Slide 1: Platreef Investor Day
TSX: IVN / OTCQX: IVPAF 1. VIRTUAL TOUR OF THE PLATREEF PROJECT 2. CORPORATE UPDATE MARNA CLOETE, PRESIDENT & CFO 3. SUSTAINABILITY UPDATE DR. PATRICIA MAKHESHA, EVP, SUSTAINABILITY AND SPECIAL PROJECTS 4. PLATREEF INTEGRATED DEVELOPMENT PLAN ALEX PICKARD, VP, CORPORATE DEVELOPMENT 5. Q&A PLATREEF I
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation has been prepared solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. Certai
Slide 3: Corporate Update
TSX: IVN / OTCQX: IVPAF CORPORATE UPDATE Marna Cloete, President & CFO 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Three disruptive, Significant growth Well-funded Partnership with Experienced world-class in reserves and with strong CITIC and Zijin management team, projects in their resources in some financial partners; will allow for a with strong track respective of the world’s and in adv
Slide 5: A Leading Explorer & Developer in Africa
A LEADING EXPLORER & DEVELOPER IN AFRICA LOCATION: KAMOA-KAKULA Central African Copperbelt; approx. 270 km west of the provincial capital, Lubumbashi, DRC OWNERSHIP: Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global (0.8%), Government of the DRC (20%) Copper WESTERN FORELAND LO
Slide 6: Ivanhoe Will Produce Green Metals
IVANHOE WILL PRODUCE GREEN METALS HYDROPOWER UNDERGROUND LOW IMPACT ULTRA HIGH GRADE Water efficiency; powered by MINES Majority of tailings Ultra high grades; clean, green hydro-electricity; low returned underground; water consumption per ounce of Limited impact at less CO2 dry-stack tailings at 3P
Slide 7: Platreef PGM Project
Platreef No. 1 Shaft Shaft Sinking Complete Last Blast 13 June 2020 Final Depth - 996m IVANPLATS
Slide 8: Platreef: The World's Next Great Precious Metals Mine
PLATREEF: THE WORLD’S NEXT GREAT PRECIOUS METALS MINE SET TO BECOME ONE OF WORLD’S LARGEST PRIMARY PGM MINES • Potential annual production of more than 600,000 oz. of palladium, platinum, rhodium and gold; plus over 40 million lbs. of nickel and copper • Studies underway on initial 0.7 Mtpa mine and
Slide 9: Kamoa-Kakula: World's Largest High-Grade Copper Discovery
UNRIVALLED RESOURCE BASE • World’s largest, high-grade undeveloped copper deposits with 36.6 Mt KAMOA-KAKULA (Ind.) + 5.6 Mt (Inf.) of contained Cu(1) • Mineral reserves of 6.6 Mt of contained Cu at an average grade of 5.48%(2) • Open down dip and along strike – excellent exploration potential World
Slide 10: US$420 Million in Project-Level Credit Facilities Secured for Kamoa-Kakula
US$420 MILLION IN PROJECT-LEVEL CREDIT FACILITIES SECURED FOR KAMOA-KAKULA US$211 MILLION EQUIPMENT FINANCING FACILITIES ● EUR 176 million (US$211 million) covered equipment financing facility with down payment facility ● Provided by leading international lenders, the Swedish Export Credit Corporati
Slide 11: Kipushi: The World's Highest-Grade Zinc Mine
2,900 Zinc Futures – 9 month KIPUSHI: THE WORLD’S 2,700 HIGHEST-GRADE ZINC MINE THE HIGHEST-GRADE MAJOR ZINC MINE 2,500 • Big Zinc Zone with M&I Mineral Resources of 11.8Mt at 35.3% Zn • Top 10 largest zinc project by contained zinc; with grade +45% more than twice as high as the world’s next highes
Slide 12: Sustainability Update
SUSTAINABILITY UPDATE Dr. Patricia Makhesha, EVP, Sustainability and Special Projects 12
Slide 13: A Social Compact with Host Communities
A SOCIAL AN INDUSTRY-LEADING INCLUSIVE COMPACT BROAD-BASED BLACK WITH HOST ECONOMIC EMPOWERMENT STAKEHOLDER COMMUNITIES PARTNERSHIP ENGAGEMENT A 26% interest in the Platreef Project is held by Ivanplats’ historically-disadvantaged, B-BBEE partners, which include 20 local host communities with a tota
Slide 14: Platreef: Transforming Lives Through Well-Crafted Social Initiatives
PLATREEF: TRANSFORMING LIVES THROUGH WELL-CRAFTED SOCIAL INITIATIVES • Empowering host communities through Social and Labour Plan commitments well ahead of industry standard • Social license to operate established and maintained as a business imperative 14
Slide 15: Platreef Integrated Development Plan
PLATREEF INTEGRATED DEVELOPMENT PLAN Alex Pickard, VP, Corporate Development 15
Slide 16: Platreef: Updated Feasibility Study
PLATREEF : UPDATED FEASIBILITY STUDY Plant ramp-up to 4.4 Mtpa 4.4 Mtpa Module 2 Platreef 2020 Feasibility Study 4.4 Mtpa Production 2.2 Mtpa Plant ramp-up to 2.2 Mtpa 2x 2.2Mt Plant Construction Module 1 Shaft 1 Underground Development Changeover Shaft 2 Shaft 2 Collar Shaft 2 Sinking Equipping 202
Slide 17: Platreef: 2020 PEA Phased Development Plan
5.2 Mtpa PLATREEF: 2020 PEA Plant ramp-up to 5.2 Mtpa PHASED DEVELOPMENT PLAN Expansion 2 Production 3.0 Mtpa Plant ramp-up to 3.0 Mtpa Expansion 1 Full concentrator 0.70 Mtpa initial capacity (0.77 Mtpa) rate 700ktpa Detailed 0.7 Mtpa Engineering 700kt Plant Construction Shaft 1 2x 2.2Mt Plant Init
Slide 18: Platreef: FS and PEA Production Zones
PLATREEF : FS AND PEA PRODUCTION ZONES • Shaft 1 completed and will be equipped for permanent hoisting by early 2022 • Phased-development to access nearest and highest- grade stopes to Shaft 1 • Platreef 2020 PEA only uses approximately one third of resource above an US$80/t NSR cut-off – does not i
Slide 19: Platreef: Evolution of Basket Price
PLATREEF : EVOLUTION OF BASKET PRICE Platreef basket price today is over Platreef Revenue Per Tonne of Probable Reserves (US$/t ore) US$2,100/oz(1) $320 $280 $240 $200 $160 $120 Total Cash Cost (Mine Site + Realization) $80 Mine Site Cash Cost $40 -- Platinum Palladium Rhodium Gold Copper Nickel 19
Slide 20: Key Highlights: November 2020 FS and PEA
KEY HIGHLIGHTS: PEA (Phased Shown on 100%-basis in US$ Feasibility Study NOVEMBER 2020 Development) FS AND PEA Annual Throughput 4.4 Mt 0.7 Mt to 5.2 Mt 3PE+Au Produced(1) 508 kozpa 109 to 613 kozpa Ni + Cu Produced(1) 36 Mlbpa 7 to 43 Mlbpa Initial Capital $1.4 Bn $0.4 Bn Expansion Capital NA $1.3
Slide 21: Platreef: Industry Leading Cash Cost
PLATREEF : INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + SIB capital (2019), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef cash cost: US$442/oz 3PE+Au, 1,400 net of by-products 1,200 1,000 800 600 400 200 0 4E production Western Limb Ea
Slide 22: Platreef: Potential to Become Largest Primary PGM Producer
PLATREEF : POTENTIAL TO BECOME LARGEST PRIMARY PGM PRODUCER Platreef 2014 1,600 3PE+Au Production 2019 (Pd Eq. oz) 12 Mtpa PEA Palladium Equivalent Production (koz) 3PE+Au Production 1,400 Ni+Cu Production 2019 (Pd Eq. oz) Ni+Cu Production 1,200 1,000 Platreef 2020 4.4 Mtpa FS 800 600 400 200 - East
Slide 23: Platreef 2021: Next Steps
PLATREEF 2021: NEXT STEPS Shaft 1 preparation for permanent hoisting in early 2022 Shaft 2 headframe to collar construction ($10M) for expansion optionality Detailed engineering underway on mine design, 770-ktpa concentrator and infrastructure design 2021 budget of $59M, with advanced discussions un
Slide 24: Thank You
TSX: IVN / OTCQX: IVPAF THANK YOU 24 24