Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Q4 2021 Earnings Presentation
23 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Mar 8, 2022
Slide 1: Q4 2021 Results
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q4 2021 RESULTS MARCH 8, 2022
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
OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3 3
Slide 4: Q4 2021 Highlights
Q4 2021 HIGHLIGHTS Marna Cloete, President 4
Slide 5: Q4 2021 Results: Kamoa-Kakula Continues to Grow
Q4 2021 RESULTS: KAMOA-KAKULA CONTINUES TO GROW 54.5 kt copper production Phase 1 steady state achieved with 2021 production of 106kt contained copper in concentrate, exceeding guidance of 92.5kt – 100kt 53.2 kt copper sales First production from Phase 2 plant expected in April 2022; combined copper
Slide 6: ESG Scorecard
ESG SCORECARD Ivanhoe Mines upgraded by MSCI to an ESG Rating of A(1) Focus on safety: 2.7 million LTI-free work hours at Kamoa-Kakula; 4.0 million at Kipushi and 677,450 at Platreef Extension of SNEL financing agreement signed to rehabilitate 162 MW additional hydropower at Inga II complex for futu
Slide 7: Q4 2021 Financial Overview
Q4 2021 FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 7
Slide 8: Kamoa-Kakula: H2 2021 in Summary
KAMOA-KAKULA: H2 2021 IN SUMMARY Copper Sold (kt) (Figures shown on 100% basis for Kamoa-Kakula) +28% Record copper production coupled with strong copper prices have driven 43% quarter on quarter revenue 94.7 growth 53.2 41.5 Q4 EBITDA of US$357.6 million driven by increase in revenue and a decrease
Slide 9: Kamoa Holding Q4 Operating Profit
KAMOA HOLDING Q4 OPERATING PROFIT Shown on 100% basis attributable to Kamoa Holding 53.2 kt copper sales (All values in US$ million) $358 million EBITDA ($131) ($10) Ivanhoe's share of ($56) profits (49.5%) $489 ($93) $348 ($40) $292 $199 $78 Revenue (1) Cost of sales G&A Profit from Finance Profit
Slide 10: Ivanhoe Mines Q4 Financial Highlights
IVANHOE MINES Q4 FINANCIAL HIGHLIGHTS (All values in US$ million) ($10) $26 ($6) ($11) ($11) ($4) $78 $48 ($89) $74 IVN's share of Finance Project Western General Finance costs Other (1) Loss on fair Deferred tax Profit for the profit from income from expenditure Foreland administrative valuation of
Slide 11: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound payable copper) Q4 cash costs trend downwards from 0.23 $1.37 per pound payable copper in Q3, as Phase 1 production exceeds 0.24 steady-state design throughput 2022 cash cost guidance between 1.28 0.37 $1.20 and $1.40 per pound of payable copper
Slide 12: Well-Funded, Strong Balance Sheet Position
WELL-FUNDED, STRONG BALANCE SHEET POSITION Cash and cash equivalents of $608 million Consolidated working capital of $655 million Total assets of $3,218 million Total debt of $841 million, including $575 million 2.50% convertible senior notes outstanding, due 2026 with possible earlier redemption Fo
Slide 13: Capital Expenditures for 2022
CAPITAL EXPENDITURES FOR 2022 Kamoa-Kakula capital to be Sustaining funded with cash flows from the $83 capital joint venture, and reflects the acceleration of Phase 2 and 3 Phase 3 / $222 Smelter (2) $300 million stream facility in place for Platreef and project Phase 2 finance package in progress
Slide 14: Operations & Project Update
OPERATIONS & PROJECT UPDATE Alex Pickard, VP Corporate Development Marna Cloete, President 14
Slide 15: Kamoa-Kakula Phase 1 & 2: Exceeded Upper End of 2021 Guidance
KAMOA-KAKULA PHASE 1 & 2: EXCEEDED UPPER END OF 2021 GUIDANCE Produced 105,884 tonnes of copper Kamoa-Kakula Copper in Concentrate in concentrate in 2021, exceeding the upper end of the guidance Phase 2 steady state 2022 production guidance of 2022 guidance ~450 kt between 290,000 to 340,000 tonnes
Slide 16: Kamoa-Kakula Phase 3 and Smelter
KAMOA-KAKULA PHASE 3 AND SMELTER Engineering and early works for the Phase 3 expansion progressing quickly, with a third, significantly larger concentrator expected to commissioned in Q4 2024 Early works underway for direct-to-blister flash smelter with nameplate capacity of 500,000 tonnes a year of
Slide 17: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER • Ivanhoe controls ~2,550 km2 of exploration licences adjacent to the Kamoa-Kakula mining complex, covering a strike length of ~175 km • Two discoveries already made – Makoko and Kiala • 69-km, all-weather road completed in 2021 • Detailed geochemical
Slide 18: Platreef on Track for 2024 Production
PLATREEF ON TRACK FOR 2024 PRODUCTION Phase 1 mine planned first production in Q3 2024; planned phased development to become one of the world’s largest and lowest-cost producers of vital “green metals” Shaft 2 commissioning accelerated to 2027, expediting Phase 2 expansion with annual forecast produ
Slide 19: Key Highlights: February 2022 FS
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ 2022 FS (Phase 1 + 2) Annual Throughput 0.7 Mt → 5.2 Mt 3PE+Au Produced 113 → 591 kozpa Ni + Cu Produced 8 → 42 Mlbpa Total Cash Costs (LOM) (1) $514 / oz 3PE+Au Initial / Expansion Capital $0.5 Bn / $1.5 Bn LONG- After-tax NPV8%(2) $1.7 Bn
Slide 20: Kipushi: On a Pathway to Production
KIPUSHI: ON A PATHWAY TO PRODUCTION World’s top 10 major zinc mines (ranked by 2020 production) TWO-YEAR PATHWAY TO 600 35 PRODUCTION • Recently announced new Contained Zinc Production (kt) Contained zinc production (kt) 500 30 partnership agreement with Ore milled head grade Zn (%) Gécamines and up
Slide 21: Key Highlights: February 2022 FS
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ FS Throughput 800 ktpa Zinc Produced(1) 240 ktpa C1 Cash Costs(1) US$0.65/lb Initial Capital $382 Mn LONG- After-tax NPV8%(2) $941 Mn TERM PRICES IRR (Real %)(2) 41% SPOT After-tax NPV8%(3) $2,979 Mn PRICES (Mar 2022) IRR (Real %)(3) 86% (1
Slide 22: The World's Next Diversified Major Miner
THE WORLD’S NEXT DIVERSIFIED MAJOR MINER • Ivanhoe will be a responsible, leading supplier of critical metals for the clean-energy transition, including copper, nickel, zinc and PGMs. IN PRODUCTION FIRST PRODUCTION 2024 PRE-PRODUCTION EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORELAND The wo
Slide 23: Q4 2021 Results: Management Q&As
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q4 2021 RESULTS MANAGEMENT Q&As 23