Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (September 2021)
27 slides from Ivanhoe Mines Ltd. Class A's investor presentation, September 2021
Slide 1: Investor Presentation September 2021
INVESTOR PRESENTATION SEPTEMBER 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”) is confidential and has been prepared to assist the recipients hereof in conducting their own evaluation of Ivanhoe and does not
Slide 3: Ivanhoe at a Glance
IVANHOE AT A GLANCE CORPORATE INFORMATION TSX: IVN LISTINGS OTCQX: IVPAF SHARE PRICE C$9.41 / share(1) MARKET CAP US$8.98 billion(1) SHARES, OPTIONS, Common Shares: 1,207.9 million(2) RSUs & DSUs Options, RSUs & DSUs: 20.6 million(2) CASH POSITION US$644 million(3) CITIC Metal 26.1% Zijin Mining 13.
Slide 4: A Leading Explorer & Developer in Africa
A LEADING EXPLORER & DEVELOPER IN AFRICA OWNERSHIP: KAMOA-KAKULA Ivanhoe Mines (39.6%) Zijin Mining Group (39.6%) Government of the DRC (20%) Crystal River Global (0.8%) STAGE: Production WESTERN FORELAND Copper OWNERSHIP: Ivanhoe Mines (90-100%) STAGE: Copper Exploration OWNERSHIP: PLATREEF KIPUSHI
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 29 Cu • Three long-life, world- • Robust, experienced • Committed support from Strong balance sheet • Kakula is on track to class mines with low management team with key partners CITIC and with cash & cash double annual copper costs, low capital a strong track record of Zijin e
Slide 6: Well Capitalized to Fund High-Return Expansion Opportunities
WELL CAPITALIZED TO FUND HIGH-RETURN EXPANSION OPPORTUNITIES $575 million(4) offering of 2.50% convertible notes due OPPORTUNITIES $644 2026 completed March 2021 KAKULA PHASE 2 • $600 million direct capital cost on 100% basis Commercial KAKULA PHASE 3 & DOWNSTREAM STRATEGY production at Kakula • Pot
Slide 7: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT DEMOCRATIC REPUBLIC OF THE CONGO On track to become the 3rd largest global copper producer Change in status for 2015 copper projects by country, % in 2020 100% Abundant hydro-power capacity 80% Median population age of 17 New government since 2019 – first 60% peaceful t
Slide 8: Ivanhoe Will Produce Green Metals
IVANHOE WILL PRODUCE GREEN METALS HYDROPOWER SMALL FOOTPRINT LOW IMPACT GREEN METAL Powered by clean, green hydro- Underground Majority of tailings Ultra high grades; electricity in DRC; low water mines with limited returned underground; consumption per ounce of 4PE renewable power; surface footprin
Slide 9: Tier-one carbon footprint at Kamoa-Kakula
MSCI Ivanhoe Mines received an MSCI ESG Rating of A(1) Tier-one carbon footprint at Kamoa-Kakula 11 Global Copper Minesite Scope 1 + 2 Emissions, 2020 (t CO2-e / t Cu eq.)(2) 10 Scope 2 Scope 1 9 8 t Co2-e / t Cu eq. 7 6 Kamoa-Kakula 5 0.16t CO2e/t Cu(3) 4 3 2 1 0 Cumulative production 0% 25% 50% 75
Slide 10: Upgrading Turbine 5 at the Inga II Hydropower Complex
UPGRADING TURBINE 5 AT THE INGA II HYDROPOWER COMPLEX Kamoa-Kakula JV agreement with the DRC’s state-owned power company to upgrade Turbine 5 at Inga II Partnerships such as the one between 162 MW of renewable hydropower, providing SNEL and Ivanhoe allow us to inject power for future expansions (bey
Slide 11: Kamoa-Kakula in Summary
KAMOA-KAKULA IN SUMMARY Copper production of ~200kt in 2022; guidance of 80kt – 95kt contained copper in concentrate in 2021 Phase 1 construction complete, with 3.6 Mt ore stockpiled averaging 4.77% Cu1 Among the world’s largest and lowest cost copper mines; ultra-high copper grades accelerate stake
Slide 12: Kamoa-Kakula: One of the World's Largest and Highest-Grade Copper Deposits
UNRIVALLED RESOURCE BASE • One of the world’s largest and highest-grade copper deposits with 38.0 Mt (Ind.) + 5.7 Mt (Inf.) of contained Cu(1) KAMOA-KAKULA • Mineral reserves of 10.5 Mt of contained Cu at an average grade of 4.47%(2) • Open down dip and along strike – excellent exploration potential
Slide 13: A New Era of Copper Production in the DRC
(L-R) Mark Farren, Kamoa A NEW ERA OF COPPER PRODUCTION Copper’s CEO; Steve Amos, Kamoa Copper's Head of IN THE DRC Projects; and Wimpie Steyn, Risk Control Manager, holding some of Kamoa • Announced first copper concentrate production on May 25, Copper’s first copper concentrate several months ahea
Slide 14: Kamoa-Kakula Among the World's Largest Copper Deposits
KAMOA–KAKULA AMONG THE WORLD’S LARGEST COPPER DEPOSITS Measured & Indicated Resource and Grade Inferred Resource and Grade 150 3.0% Contained Copper (Mt) Copper Grade (%) 125 2.5% 100 2.0% 75 1.5% 50 1.0% 25 0.5% - - Source: Company filings, Wood Mackenzie. 14 Note: Selected based on copper containe
Slide 15: Key Highlights: PFS and PEA
KEY KEYHIGHLIGHTS: HIGHLIGHTS: Shown on 100%-basis in US$ Kakula-Kansoko PFS Kamoa-Kakula PEA OCTOBER 2020 SEPTEMBER PFS AND PEA 2020 Annual Production (Avg.) 7.6 Mt 19 Mt (5 x 3.8Mt) DFS, PFS AND Mill Feed Grade(1) 5.9% 5.1% PEA Copper Metal Produced(1) 331 ktpa 501 ktpa Mine-Site Cash Cost(1) $0.5
Slide 16: Kamoa-Kakula – Among the World's Largest Copper Mines
KAMOA-KAKULA – AMONG THE WORLD’S LARGEST COPPER MINES (1) 1,400 Paid Copper Production (ktpa) 1,200 1,000 800 600 400 200 -- Source: Company filings, Wood Mackenzie. (1) Kamoa-Kakula 2020 PEA production based on projected peak copper production (which occurs in year 8) of the 19 Mtpa alternative dev
Slide 17: Kakula-Kansoko – First Quartile Mine Site Cash Cost
KAKULA-KANSOKO – FIRST QUARTILE MINE SITE CASH COST (1) $4.00 Total Cash Cost (First Ten Years): $1.23/lb Cu $3.50 2020 Mine Site Cash Costs (US$/lb Cu) $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Kakula-Kansoko (First Ten Years): $0.55/lb Cu -- -- 20% 40% 60% 80% 100% Cumulative Global Copper Production So
Slide 18: Kamoa-Kakula: Integrated Development Plan
KAMOA-KAKULA: INTEGRATED DEVELOPMENT PLAN Kamoa-Kakula: Projected to Become the World’s Second Largest Copper Mine Phase 5 (Full Processing Capacity) 19.0 Phase 4 15.2 Kakula West Mine Milled (Mtpa) 11.4 Phase 3 Kamoa North Kansoko Mine Mines 7.6 Phase 2 (7.6 Mtpa) Q3 2022 Phase 1 (3.8 Mtpa) July 20
Slide 19: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER $21M 2021 Exploration Budget • Substantial exploration potential remains on both Kamoa-Kakula & Western Foreland ground • Potential mineralization continuing from JV ground to Western Foreland; package 90%-100% Ivanhoe owned • New discoveries made on
Slide 20: Platreef: Among the World's Next Great Precious Metals Mines
PLATREEF: AMONG THE WORLD’S NEXT GREAT PRECIOUS METALS MINES SET TO BECOME ONE OF WORLD’S LARGEST PRIMARY PGM MINES • Potential annual production more than 600,000 oz. of palladium, platinum, rhodium and gold; plus over 40 million lbs. of nickel and copper • Studies underway on initial 0.7 Mtpa mine
Slide 21: Key Highlights: December 2020 FS and PEA
KEY HIGHLIGHTS: PEA (Phased Shown on 100%-basis in US$ Feasibility Study DECEMBER 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) 35 Mlbpa 7 to 43 Mlbpa Initial Capital $1.4 Bn $0.4 Bn Expansion Capital NA $1.3
Slide 22: Platreef: Potential to Become Among the World's Largest Primary PGM Producers
PLATREEF : POTENTIAL TO BECOME AMONG THE WORLD’S LARGEST PRIMARY PGM PRODUCERS Platreef 2014 1,600 3PE+Au Production 2019 (Pd Eq. oz) 12 Mtpa PEA Palladium Equivalent Production (koz) 3PE+Au Production 1,400 Ni+Cu Production 2019 (Pd Eq. oz) Ni+Cu Production 1,200 1,000 Platreef 2020 4.4 Mtpa FS 800
Slide 23: Platreef: Industry Leading Cash Cost
PLATREEF : INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + SIB capital (2019), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef cash cost: US$442/oz 3PE+Au, 1,400 net of by-products 1,200 1,000 800 600 400 200 0 4E production Western Limb Ea
Slide 24: Platreef: Evolution of Basket Price
PLATREEF : EVOLUTION OF BASKET PRICE Platreef basket price Platreef Revenue Per Tonne of Probable Reserves (US$/t ore) today is over $440 US$2,300/oz(1) 3PE+Au $400 $360 $320 $280 $240 $200 $160 $120 Total Cash Cost (Mine Site + Realization) $80 Mine Site Cash Cost $40 -- Platinum Palladium Rhodium
Slide 25: Kipushi: The World's Highest-Grade Major Zinc Project
KIPUSHI: THE WORLD’S HIGHEST-GRADE MAJOR ZINC PROJECT TWO-YEAR PATHWAY TO PRODUCTION Top 10 Zinc Projects by Contained Zinc • Feasibility study nearing Contained zinc in Measured & completion Indicated resources (Mt) Contained Zinc Zinc Grade (%) Zinc grade (%) • Underground rehabilitation work 16 4
Slide 26: Experienced Board and Management Team
EXPERIENCED BOARD AND MANAGEMENT TEAM BOARD OF DIRECTORS EXECUTIVE MANAGEMENT TEAM Mr. Robert Friedland, Founder and Executive Co-Chairman Mr. Yufeng “Miles” Sun, Non-Executive Co-Chairman Ms. Marna Cloete • Recognized as an entrepreneurial explorer, technology • Chairman of CITIC Resources Holdings
Slide 27: Investment Highlights
29 Cu • Three long-life, world- • Robust, experienced • Committed support from • Strong balance sheet • Kakula is on track to class mines with low management team with key partners CITIC and with cash & cash double annual copper costs, low capital a strong track record of Zijin equivalents of approx
Ivanhoe Mines — Investor Presentation (September 2021) on 6ix