Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (December 2018)
50 slides from Ivanhoe Mines Ltd. Class A's investor presentation, December 2018
Slide 1: Ivanhoe Mines Corporate Presentation December 2018
December 2018 Bottom of the box cut for Platreef’s Shaft 2, showing the 10-metre-diameter outline for the planned shaft
Slide 2: Forward-looking statements & Qualified Person
Forward-looking statements & Qualified Person Certain statements in presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, the timing and results of: (i) statements regarding the ongoing d
Slide 3: Kamoa-Kakula, Platreef and Kipushi projects
KAMOA-KAKULA Initial development of two mining areas on world’s 4th-largest copper discovery Democratic Republic of Congo’s Central African Copperbelt PLATREEF KIPUSHI Ultra-high-grade Mine projected to be historic mine being Africa’s lowest-cost producer upgraded to produce of platinum-group metals
Slide 4: Platreef discovery & mine development
Platreef discovery & mine development South Africa 4
Slide 5: Platreef Shaft 1 reached 850 metres below surface
December 18, 2018: Platreef’s Shaft 1 reached a depth of 850 metres below surface after intersecting 29 metres of high-grade Flatreef mineralization. Shaft 1 is expected to reach its projected, final depth of 980 metres below surface in early 2020 5
Slide 6: Platreef long-term processed wastewater agreement finalized
December 18, 2018: Platreef’s long-term processed wastewater agreement finalized to supply most of the bulk water needed for the first phase of production Dr. Patricia Makhesha, Ivanplats’ Managing Director (left), and Kenneth Maluleke, Mogalakwena Acting Municipality Manager, finalize Platreef’s lo
Slide 7: Platreef underground team excavating rock at Shaft 1
Members of Platreef’s underground mining team using a “cactus grab” mucker to excavate broken rock from the bottom of Shaft 1 7
Slide 8: Miners on Shaft 1's 750-metre level
Miners on Shaft 1’s 750-metre level. The 750-metre and 850-metre stations will provide initial, underground access to the high-grade orebody 8
Slide 9: Platreef Shaft 2 box cut alongside Shaft 1 headframe
Platreef’s Shaft 2 box cut (now completed to a depth of 29 metres) alongside Shaft 1 headframe. Construction of the concrete hitch (foundation) for Shaft 2 now is underway 9
Slide 10: Geotechnical engineers inspecting Shaft 2 box cut walls
Platreef’s geotechnical engineers inspecting the 29-metre-high walls of Shaft 2’s box cut 10
Slide 11: Shaft 2 concrete headframe and hoisting facilities
Two cut-away perspectives of Shaft 2’s 103-metre-tall concrete headframe and internal permanent hoisting facilities 11
Slide 12: Definitive feasibility study issued for Platreef Project
July 31, 2017: Definitive feasibility study issued for Platreef Project First phase envisages annual throughput rate of four million tonnes of ore per year, producing 476,000 ounces of platinum, palladium, rhodium and gold (3PE+Au), plus 33 million pounds of nickel and copper. Projected to be Af
Slide 13: Platreef at the bottom of the cash-cost curve
Platreef’s potential US$351 per 3PE+Au ounce (net of base-metal by-products) at the bottom of the world’s cash-cost curve $1,600 $1,400 $1,200 Ivanhoe’s Platreef Project at the bottom $1,000 of the cash-cost curve. $800 $600 $400 $200 $0 3PE+Au oz production Platreef 4Mtpa FS Northern limb Zimbabwe
Slide 14: Platreef would be the world's largest PGM mine
At 12 million tonnes of ore per year, Platreef would be the world’s largest platinum-group metals mine 1,400 Platreef Phase 3 (12 Mtpa) Ni + Cu + Cr production (eq. Pt oz) 1,200 Ir + Ru production (eq. Pt oz) 1,000 Platreef Phase 2 (8 Mtpa) 4E production (eq. Pt oz) 800 Platreef Phase 1 (4 Mtpa) 600
Slide 15: Platreef B-BBEE partnership a top performer
Platreef's B-BBEE partnership a top performer in South Africa’s platinum sector Platreef 26% ownership stake by Black Economic Empowerment (BBE) partners is one of the broadest empowerment transactions ever settled in South African mining. • 20% held by a trust to benefit 20 local host communities,
Slide 16: Kamoa & Kakula: Development of two mining areas
Kamoa & Kakula: Development of two mining areas; ongoing exploration Democratic Republic of Congo 16
Slide 17: Kamoa-Kakula world's fourth-largest copper discovery
February 2018: A new resource estimate established Kamoa-Kakula as the world’s fourth-largest copper discovery. Copper grades at the two adjacent deposits are the highest, by a wide margin, of the world’s top 10 copper deposits. 17
Slide 18: 12 million hours without lost-time injuries
December 2018: Kamoa-Kakula employees and contractors celebrating their outstanding workplace achievement of logging a total of 12 million hours without any lost-time injuries 18
Slide 19: Indicated Mineral Resources, Kamoa-Kakula Project, February 2018
Indicated Mineral Resources, Kamoa-Kakula Project, February 2018 Cut-off Contained Contained Tonnes Area Copper Category Grade Copper Copper (millions) (Sq. km) Grade (Cu%) (kTonnes) (billion lbs) Indicated 3.0 396 33.2 4.79% 19,000 41.8 Indicated 2.5 535 44.0 4.25% 22,800 50.2 Indicated 2.0 780 53.
Slide 20: Kamoa-Kakula Mining Licence and Western Foreland licences
Kamoa-Kakula Mining Licence and the adjacent Western Foreland exploration licences 20
Slide 21: Kamoa, Kakula and Kakula West resource areas
Kamoa, Kakula and Kakula West Indicated and Inferred Mineral Resource areas, with existing power and rail infrastructure 21
Slide 22: Among the world's largest copper deposits with highest grades
Among the world’s largest copper deposits, Kamoa-Kakula also has the highest copper grades Measured & Indicated Resource and Grade Inferred Resource and Grade 150 3.0% Contained Copper (Mt) 125 2.5% Copper Grade (%) 100 2.0% 75 1.5% 50 1.0% 25 0.5% - - Source: Wood Mackenzie *Note: Selected based on
Slide 23: Largest undeveloped copper deposit in the world
Kamoa-Kakula is the largest undeveloped copper deposit in the world 45 Measured & Indicated Resource and Grade Inferred Resource and Grade 3.0% 40 Contained Copper (Mt) 2.5% Copper Grade (%) 35 30 2.0% 25 1.5% 20 15 1.0% 10 0.5% 5 - - Source: Wood Mackenzie *Note: Contained copper in undeveloped dep
Slide 24: Kakula and Kakula West discovery areas grades
Kakula and Kakula West discovery areas showing grades of Indicated and Inferred Mineral Resource blocks at a 3% copper cut-off Kakula declines Kakula box cut 24
Slide 25: Exploration drilling extending Kakula West discovery
Exploration drilling is continuing to extend the northwestern limits of the Kakula West discovery 25
Slide 26: Brick-making supported by Sustainable Livelihoods Program
Brick-making operations at Kamoa-Kakula, supported by the Kamoa Copper Sustainable Livelihoods Program 26
Slide 27: Bornite core at Kamoa North prospect
Drillers displaying a core box of visual bornite (a high tenor copper mineral) in a recent drill hole in the Kamoa North prospect area Exploration drilling at Kamoa North has delineated two new, continuous corridors containing zones of shallow, thick, high-grade copper mineralization. 27
Slide 28: Geological workshop with Kamoa-Kakula exploration team
David Broughton, Ivanhoe Mines’ Senior Advisor, Exploration and Geology (centre, kneeling), using samples of drill core as part of a geological workshop with members of the Kamoa- Kakula exploration team and geology students from several universities in the DRC. Mr. Broughton led Ivanhoe’s 2008 disc
Slide 29: Ivanhoe Mines and Zijin Mining at Kakula southern box cut
Members of senior management from Ivanhoe Mines and Zijin Mining at the new box cut on the southern side of the Kakula Deposit 29
Slide 30: Construction at Kakula southern box cut and second decline
Construction underway at Kakula’s southern box cut and a second decline to provide access to the high- grade copper on the southern side of the Kakula Deposit 30
Slide 31: Development options
Development options Up to three mines, each 6 million tonnes a year, with central concentrator! That would be 18 million tonnes of ore each year! 1. Kakula mining area − being fast-tracked to production with capacity of 6 million tonnes of ore per year (Mtpa). 2. Kansoko mining area (at Kamoa) − dev
Slide 32: Kamoa-Kakula PEA long-term development plan
Kamoa-Kakula PEA long-term development plan Source: OreWin 2017 32
Slide 33: 2025 top producing mines by paid copper production
2025 top 20 producing mines by paid copper production Paid Copper Production (ktpa) Note: Kamoa-Kakula production based on projected peak copper production (which occurs in year nine) of the 12 Mtpa development plan for the Kamoa-Kakula Project as detailed in the Kakula 2017 PEA. Source: Wood Macken
Slide 34: Top largest new greenfield projects
Top 10 largest new greenfield projects (Nominal production and head grade) First tenyears’ First 10 years average grade average grade 400 7.0% 350 6.0% 300 5.0% 250 4.0% 200 3.0% 150 100 2.0% 50 1.0% -- -- Nominal Production (kt/a) Copper Resource Grade (%Cu) Note: Top 10 largest new greenfield copp
Slide 35: Mwadingusha hydroelectric plant upgrade
Mwadingusha hydroelectric plant upgrade Mwadingusha is the first of three hydroelectric power plants in the DRC being upgraded by Ivanhoe, Zijin and SNEL to secure a supply of clean, sustainable electricity for the development of Kamoa-Kakula. Its output has tripled, to 32 megawatts (MW), and sh
Slide 36: Fish ponds teaching aquaculture skills to local communities
Nine fish ponds near Kamoa-Kakula are designed to teach aquaculture skills to local communities, help enhance nutrition, and provide opportunities for earning additional income 36
Slide 37: Kaponda secondary school opening
The opening assembly for the new Kaponda secondary school constructed by Kamoa Copper in a local community near the Kamoa-Kakula Project 37
Slide 38: Core from recent drilling at the Makoko Discovery
Core from recent drilling at the Makoko Discovery 38
Slide 39: Ivanhoe announces the Makoko Copper Discovery
October 1, 2018: Ivanhoe announces the Makoko Copper Discovery on its 100%-owned Western Foreland licences Ivanhoe’s third Selected drill holes at the Makoko Discovery: major copper discovery in the DRC. The licence area remains open. Makoko’s high- grade copper shows characteristics identical t
Slide 40: Makoko shows characteristics identical to Kamoa-Kakula
Makoko high-grade copper shows characteristics identical to tier-one Kamoa-Kakula Discoveries 40
Slide 41: Makoko drilled over 4.5 by 1.5 kilometres and remains open
Makoko has been drilled over an area measuring 4.5 kilometres by 1.5 kilometres and remains open 41
Slide 42: Exploration rig drilling at the Makoko Discovery
An exploration rig drilling at the Makoko Discovery on Ivanhoe's 100%-owned Western Foreland licences 42
Slide 43: Kipushi Mine development & upgrading
Kipushi Mine development & upgrading for a new era Democratic Republic of Congo 43
Slide 44: Kipushi Fault Zone and Big Zinc
Kipushi Fault Zone was mined 1924-1993 to approx. 1,150-metre level. Big Zinc discovered prior to 1993 closure; never mined. 44
Slide 45: Pre-feasibility study for Kipushi zinc-copper mine
December 13, 2017: Ivanhoe announced a pre-feasibility study for the rebirth of the historic Kipushi zinc-copper-silver-germanium mine The planned return to production would establish Kipushi as the world’s highest-grade major zinc mine. 45
Slide 46: Primary rock crusher 1,150 metres underground
Primary rock crusher 1,150 metres underground, ready for operation 46
Slide 47: Refurbished Shaft 4 conveyor tower
The recently refurbished Shaft 4 conveyor tower, one of the surface infrastructure upgrading projects now underway at Kipushi 47
Slide 48: Engineers monitoring air quality at Kipushi ventilation shaft
Engineers monitoring air-quality readings at one of Kipushi’s ventilation shafts 48
Slide 49: Local students receiving scholarships from Kipushi Project
Students from a local high school who receive scholarships and bursaries awarded by the Kipushi Project 49
Slide 50: Thank you
Thank you IVANHOEMINES NEW HORIZONS
Ivanhoe Mines — Investor Presentation (December 2018) on 6ix