Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (September 2023)
36 slides from Ivanhoe Mines Ltd. Class A's investor presentation, Sep 7, 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2023 TSX: IVN | OTCQX: IVPAF
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$11.86 / share(1) MARKET CAP US$10.6 billion(1) SHARES, OPTIONS, Common Shares: 1,218.0 million(2) RSUs & DSUs Options, RSUs & DSUs: 20.4 million(2) CASH POSITION US$393 million(3) CITIC Metal 26.0% Zijin Mining 13
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 project OWNERSHIP: OWNERSHIP: KAMOA-KAKULA KIPUSHI Ivanhoe Mines (39.6%) Ivanhoe Mines (62%) Zijin Mining Group (39.6%) Gécamines (38%) Government of DRC
Slide 5: 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 Q3 2024 FIRST PRODUCTION Q3 2024 EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORE
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: Shared Value and Local Partnership
KAMOA-KAKULA: SHARED VALUE AND LOCAL PARTNERSHIP 20% OWNERSHIP APPROX. 4% DRC GDP DRC government direct Kamoa-Kakula's contribution in 2022 of $2.35 Bn project shareholding >$40M IN COMMUNITY SPEND Kamoa-Kakula's total social and community development contribution to date 97% LOCAL EMPLOYMENT Congol
Slide 8: Kamoa-Kakula
KAMOA-KAKULA The World’s fastest-growing, highest-grade, lowest-carbon major copper mine 8
Slide 9: Kamoa-Kakula: Record Throughput & Production
KAMOA-KAKULA: RECORD THROUGHPUT & PRODUCTION (Figures shown on 100% basis for Kamoa-Kakula) De-bottlenecking program completed Ore tonnes milled (‘000’s tonnes) / ahead of schedule in Q1 2023. Phase 1 Copper ore grade processed (%) and 2 production capacity increased to 5.60% 5.40% 5.42% ~450kt per
Slide 10: Kamoa-Kakula: Another Record Quarter
KAMOA-KAKULA: ANOTHER RECORD QUARTER (Figures shown on 100% basis for Kamoa-Kakula) Record quarterly copper sold and revenue achieved in Q2 2023, despite lower copper prices Quarterly Revenue(1) (US$ million) Copper Sold (kt) / Realized Copper Price (US$/lb.) $4.04/lb. $3.79/lb. $3.50/lb. $3.54/lb.
Slide 11: Kamoa-Kakula: High Margins Maintained in Q2 2023
KAMOA-KAKULA: HIGH MARGINS MAINTAINED IN Q2 2023 (Figures shown on 100% basis for Kamoa-Kakula) C1 cash costs remain stable towards lower end of FY 2023 guidance ($1.40 - $1.50/lb.) High EBITDA margins maintained at 65% C1 Cash Cost (US$ per lb.) EBITDA(1) (US$ million) / EBITDA Margin (%) 67% 66% 6
Slide 12: Key Highlights: Kamoa-Kakula IDP 2023
KEY HIGHLIGHTS: KAMOA-KAKULA IDP 2023 (Figures shown on 100% basis for Kamoa-Kakula) 2023 PFS 2023 PEA Mine Life 33 Years 42 Years Total Ore Milled 476 Mt 657 Mt Feed Grade 3.94% 3.70% Total Copper in Concentrate 16 Mt 21 Mt Mill Feed Grade (10 year average) 4.94% Copper in Concentrate (10 year aver
Slide 13: Kamoa-Kakula 2023 Integrated Development Plan
KAMOA-KAKULA 2023 INTEGRATED DEVELOPMENT PLAN Four-stage ramp up to 19.2 Mtpa processing capacity 20.0 Phase 4 (2030) 6.0 18.0 Kamoa 2 Phase 3 5.0 16.0 Kansoko Sud PEA only (Q4 2024) 14.0 Kamoa 3 - 6 4.0 Grade (% Cu) 12.0 Milled (Mt) Kamoa Kamoa 1 10.0 Stockpile 3.0 8.0 Kakula 2.0 6.0 Stockpile Kaku
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: 500,000TPA Smelter Brings Transformative Benefits
500,000TPA SMELTER BRINGS TRANSFORMATIVE BENEFITS Aerial view of the Phase 1 and 2 concentrator, overlaid with a 3D rendering of the adjacent smelter complex, which is currently under construction $906 million estimated capital cost for the massive, 100-hectare site 500,000 tonnes of 99+% pure blist
Slide 16: Kamoa-Kakula C1 Cash Costs at Lower End of Guidance
KAMOA-KAKULA C1 CASH COSTS AT LOWER END OF GUIDANCE (Figures shown on 100% basis for Kamoa-Kakula) $4.50 $4.00 C1 Cash Cost (US$/lb.) $3.50 $3.00 Q4 2024 completion of Phase 3 expansion and direct-to-blister smelter to drive cash cost improvement to the first quartile $2.50 Q2 2023 C1 $2.00 < $1.20/
Slide 17: Kamoa-Kakula Phase 3: Construction Advances on Schedule
KAMOA-KAKULA PHASE 3: CONSTRUCTION ADVANCES ON SCHEDULE Phase 3 expansion, copper smelter and refurbishment of turbine #5 on schedule for Q4 2024 completion Phase 3 concentrator 38% complete; 85% structural steel & platework fabricated and shipped; 90% of total concrete poured; 571 of the total 1,79
Slide 18: New Export Routes from DRC
NEW EXPORT ROUTES FROM DRC ~40% of exports 2,466 km KAMOA-KAKULA Dar es Salaam Roundtrip: 40 days Lobito Proposed new commercial road border at Kipushi to Rail to Lobito 1,601 km benefit both Kipushi and Kamoa-Kakula operations Roundtrip: ~20 days Zambian Hubs 40% of exports ~2% of exports 2,860 km
Slide 19: Western Foreland Exploration, DRC
WESTERN FORELAND EXPLORATION, DRC ~US$19 million 2023 exploration budgeted, including ~70,000 metres of drilling 6 diamond core rigs deployed, plus aircore 2023 program continues with regional, wide- spaced exploration drilling targeting Kamoa- Kakula-style copper mineralization Maiden Resource for
Slide 20: Platreef
PLATREEF World’s largest precious metals development project 20
Slide 21: 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 22: 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 23: Platreef: Shaft 2 Construction
PLATREEF: SHAFT 2 CONSTRUCTION 79-metre high continuously-poured concrete base of Shaft 2 complete, top 20 metres of steel to follow; once complete totaling ~100-metre-high headframe Installation of structural steel inside Platreef’s Shaft 2 concrete headframe has commenced Pilot-hole drilling of Sh
Slide 24: Platreef: Optimization of Shaft 3 in Progress
PLATREEF: OPTIMIZATION OF SHAFT 3 IN PROGRESS 340 metres reamed to date of the 950-metre, 5.1-metre- diameter Shaft 3; completion targeted Q4 2023 Optimization work nearing completion to accelerate Phase 2 expansion by installing hoisting capacity in Shaft 3 Battery-electric Epiroc jumbo drill rig 2
Slide 25: 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 PEA 3PE+Au Production 2019 (Pd Eq. oz) (LoM Average) 1,600 3PE+Au Production Palladium Equivalent Production (koz) 1,400 Ni+Cu Production Ni+Cu Production 2019 (Pd Eq. oz) Platreef 1,200 2022 FS (Phase 2) 1,0
Slide 26: 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 27: Key Highlights: February 2022 FS
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ 2022 FS (Phase 1 → 2) Annual Throughput 0.7Mt → 5.2Mt Annual 3PE+Au 113koz → 591koz Annual Ni + Cu 8Mlb → 42Mlb 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 TERM PR
Slide 28: Kipushi
KIPUSHI World’s highest-grade zinc project
Slide 29: Kipushi: Historic, Ultra-High-Grade Zinc Deposit
KIPUSHI: HISTORIC, ULTRA-HIGH-GRADE ZINC DEPOSIT World’s top 10 major zinc mines (ranked by 2020 production) Brownfield, ultra-high-grade zinc mine with significant, rehabilitated 600 35 underground infrastructure Contained Zinc Production (kt) Contained zinc production (kt) 500 30 Ore milled head g
Slide 30: Kipushi: Underground Development Ahead of Schedule
KIPUSHI: UNDERGROUND DEVELOPMENT AHEAD OF SCHEDULE Underground development ahead of schedule; 1,526 metres of development completed year to date, over 20% more than planned Stoping of the ultra-high-grade Big Zinc orebody to commence ahead of schedule in January 2024 Peet De Beer (Superintendent II,
Slide 31: Kipushi: On Schedule for Production in Q3 2024
KIPUSHI: ON SCHEDULE FOR PRODUCTION IN Q3 2024 800,000 tonnes-per-annum concentrator over 50% complete; over 7,000 cubic metres of foundation concrete poured; 780 tonnes of structural steel assembled; delivery of mechanical equipment commenced Concrete foundations of the zinc flotation plant (left),
Slide 32: Kipushi: Strategic Partnership with Gécamines
KIPUSHI: STRATEGIC PARTNERSHIP WITH GECAMINES Off-take term sheet signed with Gécamines and Glencore for 100% of Kipushi's zinc concentrate, together with US$250 million facility Agreement advancing for a new commercial DRC-Zambia border-crossing at Kipushi New border will benefit both the Kipushi M
Slide 33: Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with 2023
29 Cu Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with 2023 production guidance mines with low costs, low management team with an partners CITIC and Zijin cash & cash equivalents of of 390kt to 430kt of copper capital intensity and established tra
Slide 34: Strong Balance Sheet Supports Growth Projects
STRONG BALANCE SHEET SUPPORTS GROWTH PROJECTS (Figures shown on 100% basis, US$ millions) H1 2023 Remaining 2023 FY Funding Ivanhoe Mines cash and cash equivalents Capital Expenditure of $393 million Capex Spent Capex Guidance Arrangements Kamoa-Kakula JV cash flow Kamoa-Kakula joint venture boasts
Slide 35: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE As at Shareholder Loan Balances June 30, 2023 ($ million) Kamoa-Kakula (39.6% equity interest) Ivanhoe will receive distributions Total shareholder loans payable by Kamoa Holding $3,300 (once payable) in excess of its Portion of shareholder loan receivab
Slide 36: Health & Safety: Improvement Continues
HEALTH & SAFETY: IMPROVEMENT CONTINUES A safe first half of 2023 across all sites; further reduction in TRIFR achieved during H1 2023 Ivanhoe Mines’ Total Recordable Injury Frequency Rate (TRIFR) by Project 6.82 5.15 4.23 2.66 Industry Average TRIFR(1) 3.04 2.76 3.15 2.80 1.55 0.61 1.90 1.82 1.00 20
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