Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (October 2024)
39 slides from Ivanhoe Mines Ltd. Class A's investor presentation, Oct 16, 2024
Slide 1: Investor Presentation
TSX: IVN | OTCQX: IVPAF INVESTOR PRESENTATION October 2024
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$19.28 / share(1) MARKET CAP US$18.98 billion(1) SHARES, OPTIONS, Common Shares: 1,350.9 million(2) RSUs, PSUs & DSUs Options, RSUs & DSUs: 18.8 million(2) CASH POSITION US$246 million(2) DEBT OUTSTANDING US$161 mi
Slide 4: A Leading Producer, Developer and Explorer in Africa
A LEADING PRODUCER, DEVELOPER AND EXPLORER IN AFRICA World’s fastest growing major copper mine with the highest grades World’s highest-grade zinc mine OWNERSHIP: OWNERSHIP: KAMOA-KAKULA KIPUSHI Ivanhoe Mines (39.6%) Ivanhoe Mines (62%) Zijin Mining Group (39.6%) Gécamines (38%) Government of DRC (20
Slide 5: The World's Newest Diversified Major Miner
THE WORLD’S NEWEST DIVERSIFIED MAJOR MINER Ivanhoe will be a responsible, leading supplier of critical metals for the clean-energy transition, including copper, nickel, zinc and PGMs. EXPLORATION PRODUCTION H2 2025 RAMP UP Q3 2024 GROWING PRODUCTION WESTERN FORELANDS PLATREEF KIPUSHI KAMOA-KAKULA ~2
Slide 6: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT Recently became the joint 2nd As the host country, and as a largest global copper producer shareholder of Kamoa Copper, the DRC sees this local value creation Abundant hydro-power capacity as a strategic imperative Median population age of 17 His Excellency Félix Tshise
Slide 7: Kamoa-Kakula
KAMOA-KAKULA The world’s fastest growing, highest grade and greenest major copper mine Kamoa-Kakula’s Phase 1 & 2 4.6-Mtpa-concentrators 7
Slide 8: Kamoa-Kakula Copper Complex
KAMOA-KAKULA COPPER COMPLEX World’s fastest growing, highest grade, lowest-carbon, major copper mine Democratic Republic of the Congo is tied as world’s 2nd largest copper exporter Mechanized underground mine; employing safe, modern mining methods The world’s third largest copper mine with productio
Slide 9: Stakeholders Shared Value and Local Partnership
STAKEHOLDERS SHARED VALUE AND LOCAL PARTNERSHIP $2.8M INVESTED IN LOCAL BUSINESSES 20% OWNERSHIP Development of infrastructure and provision of DRC government direct farming and aquaculture inputs project shareholding $70M IN COMMUNITY SPEND total social and community development contribution to dat
Slide 10: Kamoa-Kakula: Quarterly Production
KAMOA-KAKULA: QUARTERLY PRODUCTION (Figures shown on 100% basis for Kamoa-Kakula) 116,313 tonnes of copper in Ore tonnes milled (‘000’s tonnes) / concentrate produced in Q3 2024; Copper ore grade processed (%) tonnes and grade increased following 4.95% 4.80% 4.91% 4.14% improved stability of power g
Slide 11: Kamoa-Kakula: Quarterly Financial Results
KAMOA-KAKULA: QUARTERLY FINANCIAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) Decrease in C1 cash cost during Q2 2024 driven by lower logistics costs and increased production volumes; C1 cash cost within the lower range of FY2024 guidance ($1.50 - $1.70/lb.) Record EBITDA for Q2 of $547 m
Slide 12: High Grade Copper = Unrivaled Capital Returns
HIGH GRADE COPPER = UNRIVALED CAPITAL RETURNS US$4.6 billion of EBITDA TOTAL EBITDA: generated since first $4.6 billion production; higher than $912 TOTAL CAPEX: combined Phase 1, 2 and 3 $4.0 billion Capex of US$4.0 billion $2,000 $1,681 Remaining capex for Phase 3, plus subsequent expansions to be
Slide 13: Multi-Generational, World-Class Copper Complex
MULTI-GENERATIONAL, WORLD-CLASS COPPER COMPLEX 800 Kamoa-Kakula 2023 PEA 30-year Production Profile 700 600,000 tpa copper production Copper in Concentrate (kt) 600 500 400 NPV8%: $23.9 billion @ $4.00/lb. Cu 300 200 100 – 2025 2027 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 Kakula
Slide 14: Kamoa-Kakula: The World's Best Copper Mine
KAMOA-KAKULA: THE WORLD’S BEST COPPER MINE World’s projected top 20 copper mines in 2025, by key metrics 6.0% Bubble size: M&I Resource Kamoa-Kakula Copper Head Grade (%) 5.0% Kamoto 4.0% 3.0% Polish Copper 2.0% Oyu Tolgoi Grasberg Kansanshi Escondida 1.0% Collahuasi 0.0% 0 200 400 600 800 1,000 1,2
Slide 15: New Smelter Brings Transformational Benefits
NEW SMELTER BRINGS TRANSFORMATIONAL BENEFITS Aerial view of the smelter complex construction site ~$1 billion estimated capital cost for the massive, 100-hectare site 500,000 tonnes of 99+% pure blister anode copper production annually 650,000 to 800,000 tonnes of by- product acid production; in hig
Slide 16: Kamoa-Kakula: The Greenest Major Copper Mine
KAMOA-KAKULA: THE GREENEST MAJOR COPPER MINE 2022 Scope 1, 2 & 3 copper GHG emissions intensity curve1 Kamoa-Kakula Copper Complex is the world’s 16 lowest carbon-emitting major copper mine Top 10 largest copper 14 mining operations (2022) Scope 1, 2 and 3 Emissions Intensity Scope 1, 2 and 3 carbon
Slide 17: Kamoa-Kakula Phase 3 Expansion: Commercial Production
KAMOA-KAKULA PHASE 3 EXPANSION: COMMERCIAL PRODUCTION Phase 3 expansion consists of 5 Mtpa concentrator, copper smelter and refurbishment of turbine #5 Phase 3 concentrator completed well ahead of schedule; first concentrate produced on June 10; Commercial production declared on August 19 Smelter pr
Slide 18: Growth Beyond Phase 3 – Targeting >20 Mtpa
GROWTH BEYOND PHASE 3 – TARGETING >20 MTPA Project 95: basic engineering complete, moving to execution Optimized Phase 3: increased recoveries & increased throughput to 6+ Mtpa; work to start once at steady state Phase 4: expansion of processing capacity to 19.2 Mtpa and beyond All initiatives inclu
Slide 19: Project 95 to Deliver Low-Cost Production Growth
PROJECT 95 TO DELIVER LOW-COST PRODUCTION GROWTH Targeting increased Phase 1 & 2 Kamoa-Kakula’s industry-leading capital intensity recoveries to ~95%; basic (US$/t of copper) engineering complete Recent Up to 30 ktpa of additional copper Recent projects up production from Phase 1 & 2 to $35,000/t pr
Slide 20: Shipments Commence Along Lobito Corridor
SHIPMENTS COMMENCE ALONG LOBITO CORRIDOR Dar es Salaam DRC TANZANIA G7 and EU join the US investment LOBITO RAIL CORRIDOR KAMOA partnership to accelerate the 2,466 km ANGOLA Roundtrip: ~40 days development of Lobito Railway Corridor Lobito KIPUSHI Rail to Lobito 1,739 km ZAMBIA First commercial expo
Slide 21: Western Forelands Exploration Project
WESTERN FORELANDS EXPLORATION PROJECT The next great copper frontier…
Slide 22: Western Forelands Overview
WESTERN FORELANDS OVERVIEW Same underlying geological sequence as Kamoa-Kakula 1,808km2 licence area; >4x larger than Kamoa- Western Forelands’ Kakula’s mining licences are 60 - 100% rights owned by Ivanhoe Mines Over 48 million tonnes of copper discovered by Ivanhoe geologists since 2008 – over 2x
Slide 23: Makoko & Kiala Discoveries
MAKOKO & KIALA DISCOVERIES Makoko first drilled in 2018 – over 20km step-out from Kakula, with significant resource drilling in 2022-2023 Makoko Indicated Mineral Resource of 16Mt at 3.55% copper plus Inferred Mineral Resource of 154Mt at 1.97% copper (1.5% cut-off) Kiala contains Indicated Mineral
Slide 24: Makoko & Kiala: Exceptional Grade
MAKOKO & KIALA: EXCEPTIONAL GRADE Already the fourth-largest copper discovery in past decade Contained, M&I 30.0 4.0 Contained Copper in Resources (Mt) Contained, Inferred Copper Grade in Resources (%) 25.0 Grade, M&I (%) 3.0 20.0 Grade, Inferred (%) 15.0 2.0 10.0 1.0 5.0 -- -- *The Kamoa discovery,
Slide 25: Western Forelands: Kitoko Discovery
WESTERN FORELANDS: KITOKO DISCOVERY Kitoko is Ivanhoe’s fifth high-grade Core from Kitoko discovery hole DD008, highlighting two sedimentary copper discovery in the DRC layers of high-grade mineralization Discovery hole of 5.2 metres at 11.6% copper; 2 km strike delineated so far and open in all dir
Slide 26: 2024 Exploration: Work Plan Large-Scale Drill Program
2024EXPLORATION: 2024 WORK PLAN LARGE-SCALE DRILL PROGRAM • 70,200m diamond drilling • 9 Diamond rigs • ~40,000m completed in H1 2024 • 24,480m RC drilling • $37 million in direct exploration • $38 million for JV payments and licence acquisitions DRC Zambia
Slide 27: Kipushi
KIPUSHI World’s highest-grade, lowest-carbon major zinc mine Kipushi’s 800ktpa concentrator, with Shaft P5 in the background
Slide 28: Kipushi: Historic, Ultra-High-Grade Zinc Deposit
KIPUSHI: HISTORIC, ULTRA-HIGH-GRADE ZINC DEPOSIT World’s top 10 major zinc mines (ranked by 2025 production) Measured & Indicated Resource of 11.8 Mt at 35.3% zinc, plus copper, 600 40.0% lead, silver and germanium Paid Zn Production Head Grade 35.0% Paid Zn Production Kt 500 Zn Head Grade % 30.0% 4
Slide 29: Kipushi: Ramping Up to Steady-State Production
KIPUSHI: RAMPING UP TO STEADY-STATE PRODUCTION Construction of Kipushi concentrator completed months ahead of schedule in May First concentrate produced on June 14; ramp up to steady state ongoing Basic engineering underway to increase processing capacity of concentrator by 20% to 960,000 tonnes per
Slide 30: Kipushi: Off-Take and Financing in Place
KIPUSHI: OFF-TAKE AND FINANCING IN PLACE 2024 zinc production guidance lowered to 50,000 – 70,000 tonnes (100,000 to 140,000 tonnes) of zinc in concentrate Off-take agreements signed with CITIC Metal and Trafigura, plus $170 million in financing facilities First batch of concentrate from the Kipushi
Slide 31: Platreef
PLATREEF Platreef Phase 1 800ktpa World’s largest precious metals development project concentrator construction site, with Shaft #1 and Shaft #2 in the background 31
Slide 32: Platreef: World's Largest Undeveloped Precious Metals Project
PLATREEF: WORLD’S LARGEST UNDEVELOPED PRECIOUS METALS PROJECT Multi-generational resource with significant exploration upside World’s best PGM project: highest margin and lowest cash costs Industry disruptor – safe, mechanized and highly productive mining Target to become the largest PGM mine; phase
Slide 33: Platreef: What Makes the Flatreef Unique?
PLATREEF: WHAT MAKES THE FLATREEF UNIQUE? 29 meters By way of visual comparison Khomanani Mine, Rustenburg Shaft 1 headframe, Platreef Deposit Merensky Reef / UG2 Flatreef(1) Bushveld Location Western / Eastern Limb Northern Limb Underground: narrow-reef, manual, Underground: efficient mechanised, M
Slide 34: Platreef: Phase 1 Completed on Schedule
PLATREEF: PHASE 1 COMPLETED ON SCHEDULE Phase 1 concentrator completed on-schedule. First ore deferred until H2 2025 to prioritize hoisting of waste for Shaft #3 development and Phase 2 underground development Ivanplats’ project team celebrating the on-schedule completion of the new 770 ktpa concent
Slide 35: Platreef: Optimization of Shaft 3 in Progress
PLATREEF: OPTIMIZATION OF SHAFT 3 IN PROGRESS Phase 2 expansion will be accelerated by re- purposing ventilation Shaft #3 for hoisting Shaft #3 will generate additional hoisting capacity of approx. 4 Mtpa, bringing total hoisting capacity to approx. 5 Mtpa Phase 1 + 2 concentrators targeting total p
Slide 36: Platreef: Industry Leading Cash Cost
PLATREEF: INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + sustaining capital (2021), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef 2022 FS 1,400 cash cost: US$514/oz 3PE+Au 1,200 US$/3PE+Au 1,000 800 600 400 200 0 Western Limb Eastern Lim
Slide 37: Investment Highlights
29 Cu Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with 2024 production guidance mines with low costs, low management team with an partners CITIC and Zijin cash & cash equivalents of of 425kt to 450kt of copper capital intensity and established tra
Slide 38: Strong Balance Sheet Supports Ivanhoe's Growth
STRONG BALANCE SHEET SUPPORTS IVANHOE’S GROWTH (Figures shown on 100% basis, US$ millions) H1 2024 2024 2025 Funding $300 million added to Kamoa- Capital Expenditure Actual Guidance Guidance Arrangements Kakula capex guidance over 18 Kamoa-Kakula months for ‘Project 95’ to increase JV cash flow copp
Slide 39: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE As at Shareholder Loan Balances June 30, 2024 ($ million) Kamoa-Kakula (39.6% equity interest) Ivanhoe will receive distributions (once payable) in Total shareholder loans payable by Kamoa Holding $3,729 excess of its ownership Portion of shareholder loa