Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (September 2022)
25 slides from Ivanhoe Mines Ltd. Class A's investor presentation, September 2022
Slide 1: Investor Presentation September 2022
TSX: IVN | OTCQX: IVPAF INVESTOR PRESENTATION September 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”) 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$9.10 / share(1) MARKET CAP US$8.5 billion(1) SHARES, OPTIONS, Common Shares: 1,211.8 million(2) RSUs & DSUs Options, RSUs & DSUs: 24.7 million(2) CASH POSITION US$507 million(3) CITIC Metal 26.0% Zijin Mining 13.7
Slide 4: A Leading Producer, Developer and Explorer in Africa
A LEADING PRODUCER, DEVELOPER AND EXPLORER 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%) Government of DRC (0-10%) Copper STAGE: E
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 CONSTRUCTION DEVELOPMENT EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORELAND The world’s fastest
Slide 6: 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 7: 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 3PE+Au renewable power; surface footp
Slide 8: 2021 ESG Performance at a Glance
2021 ESG PERFORMANCE AT A GLANCE $1.1 billion total value 43% increase in Total workforce of 10,645 stakeholders created and distributed national value 12,374; distribution from 2020 97% local employees engaged Global Copper Minesite Scope 1 + 2 Scope 1 Scope 2 11 10 Emissions, 2020 (t CO2-e / t Cu
Slide 9: Q2 2022: Kamoa-Kakula Phase 2 Ramp-Up Continues
Q2 2022: KAMOA-KAKULA PHASE 2 RAMP-UP CONTINUES 87.3kt copper production Phase 2 commercial production in April 2022; combined copper production from Phase 1 and 2 to reach ~450kt by Q2 2023 following de-bottlenecking program 85.8kt payable copper sales FY 2022 production guidance increased to 310kt
Slide 10: Kamoa-Kakula: Q2 2022 Performance
KAMOA-KAKULA: Q2 2022 PERFORMANCE Copper Sold (kt) (Figures shown on 100% basis for Kamoa-Kakula) Significant increase in copper sold to 85.8kt of copper in concentrate driven by the ramp up of the Phase 2 concentrator 85.8 C1 cash costs higher in Q2 due to higher logistics charges and 53.2 51.9 41.
Slide 11: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound of payable copper) Logistics charges in Q1 2022 were $0.36/lb. Q2 2022 C1 cash costs increased due to 0.17 higher logistics charges and inflationary pressures 0.21 FY 2022 cash cost guidance reiterated at between $1.20/lb. and $1.40/lb. of payab
Slide 12: Kamoa-Kakula Phase 1 & 2: Now at Steady State
KAMOA-KAKULA PHASE 1 & 2: NOW AT STEADY STATE Phase 2 plant declared commercial Kamoa-Kakula Copper in Concentrate production on April 7, now operating at comparable throughputs to Phase 1 plant Phase 1 & 2 de- bottlenecking Kamoa-Kakula 2022 production guidance 2022 guidance ~450 kt of between 310,
Slide 13: Kamoa-Kakula Phase 3 & Smelter
KAMOA-KAKULA PHASE 3 & SMELTER Engineering and early works for the Phase 3 expansion progressing quickly, with a new, 5-Mtpa plant expected to be commissioned in Q4 2024 Construction on the new box cut at the Kamoa 1 and Kamoa 2 mines nearing completion, with decline development well underway Early
Slide 14: On Track to Become World's Third-Largest Copper Mining Complex by Q4 2024
ON TRACK TO BECOME THE WORLD'S THIRD-LARGEST COPPER MINING COMPLEX BY Q4 2024 Phase 3 to increase Kamoa-Kakula’s processing capacity to over 14 Mtpa, positioning Kamoa Copper Kamoa-Kakula Phased Ramp-Up to 600ktpa as the world’s third-largest copper mining complex ~600ktpa Cu by 2024 16 Design throu
Slide 15: 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. 15 Note: Selected based on copper containe
Slide 16: Kamoa-Kakula: Integrated Development Plan
KAMOA-KAKULA: INTEGRATED DEVELOPMENT PLAN 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) Phase 1 (3.8 Mtpa) July 2021 3.8 Kakula Mine Direct-to-Blister Copper Smelter Commences – 2020 2022 2024 20
Slide 17: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER Ivanhoe controls ~2,400 km2 of exploration licences adjacent to the Kamoa-Kakula mining complex, covering a strike length of ~175 km Regional large-scale exploration drilling targeting Kamoa-Kakula- style copper mineralization has commenced $25 millio
Slide 18: Platreef: Underground Development Underway
PLATREEF: UNDERGROUND DEVELOPMENT UNDERWAY Phase 1 first production in Q3 2024; planned phased development to become one of the world’s largest, lowest-cost producers of vital “green metals” – palladium, rhodium, nickel, platinum, copper and gold First blast on Platreef’s 950-metre level was complet
Slide 19: Key Highlights: February 2022 FS
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ 2022 FS (Phase 1 → 2) Annual Throughput 0.7Mt → 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) $1.7 Bn TERM PR
Slide 20: Platreef: Potential to Become Among World's Largest Primary PGM Producers
PLATREEF: POTENTIAL TO BECOME AMONG THE WORLD’S LARGEST PRIMARY PGM PRODUCERS Platreef 2014 PEA (LoM Average) 1,600 3PE+Au Production Palladium Equivalent Production (koz) 1,400 Ni+Cu Production Platreef 1,200 2022 FS Platreef 2022 FS (Phase 2) 1,000 (LoM Average) 800 600 400 200 0 Western Limb East
Slide 21: Platreef: Industry Leading Cash Cost
PLATREEF: INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + sustaining capital (2021), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef 2022 FS cash cost: 1,400 US$514/oz 3PE+Au 1,200 US$/3PE+Au 1,000 800 600 400 200 0 Western Limb Eastern Lim
Slide 22: 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 23: Kipushi: Production Targeted for Late 2024
KIPUSHI: PRODUCTION TARGETED FOR LATE 2024 2022 Feasibility Study Results at Different Zinc Prices: IRR (%) 97% 83% Recent breaking-ground ceremony for 68% the processing plant with partners 54% Gécamines and key DRC officials 41% 47% Surface construction and underground early works underway $1.20 $
Slide 24: Key Highlights: February 2022 FS
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ FS Throughput 800ktpa Zinc Produced(1) 240ktpa C1 Cash Costs(1) US$0.65/lb Initial Capital $382M LONG- After-tax NPV8%(2) $941M TERM PRICES IRR (Real %)(2) 41% SPOT After-tax NPV8%(3) $1.4B PRICES (Sept 2022) IRR (Real %)(3) 54% (1) Life-of
Slide 25: Investment highlights summary
29 Cu Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with Kakula is on track to mines with low costs, low management team with an partners CITIC and Zijin cash & cash equivalents of increase annual copper capital intensity and established track recor
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