27 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS October 30, 2024 www.ivanhoemines.com | 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”) 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
Recent investor site visit during an inspection visit inside the direct-to-blister smelter furnace OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3
Slide 4: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS Marna Cloete, President Kamoa-Kakula’s on-site 500,000 tonnes per annum smelter construction site 4
Slide 5: Q3 2024: Highlights of the Third Quarter
Q3 2024: HIGHLIGHTS OF THE THIRD QUARTER (Figures shown on 100% basis for Kamoa-Kakula) Ramp up of Phase 3 concentrator complete, increasing 116,313 tonnes copper production capacity to 600 ktpa Copper Produced Record production and record revenue achieved at Kamoa-Kakula $837 million Revenue – Kamo
Slide 6: Health & Safety: Continued Focus
HEALTH & SAFETY: CONTINUED FOCUS Ivanhoe Mines’ TRIFR vs workforce workforce 2.86 of 26,669 2.59 Industry Average(1) 1.79 workforce of 12,374 0.92 0.95 Industry leading health and safety performance Significant improvement in health & safety since 2021, while workforce has rapidly grown 2021 2022 20
Slide 7: Congratulating Our Students!
CONGRATULATING OUR STUDENTS! Inaugural class at Kamoa Centre of Excellence graduated; expansion to include engineering school Second intake of 38 students commenced studies in September with classes in English, IT and Introduction to Mining The students of Kamoa Centre of Excellence inaugural class
Slide 8: Q3 2024 Financial Overview
Construction site of the new static compensator (STATCOM) at the Kolwezi Converter Substation Q3 2024 FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 8
Slide 9: Kamoa-Kakula: Quarterly Financial Results
KAMOA-KAKULA: QUARTERLY FINANCIAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) Copper sold and revenue higher in Q3 2024, due to increase in payable copper tonnes sold Copper Sold (kt) Quarterly Revenue(1) ($ million) / Realized Copper Price ($/lb.) $4.34/lb. $4.16/lb. $3.84/lb. $3.82/lb.
Slide 10: Kamoa-Kakula: Quarterly Financial Results
KAMOA-KAKULA: QUARTERLY FINANCIAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) C1 cash cost increased in Q3 2024 driven by ramp up of Phase 3 with comparatively lower head grades. Year-to-date C1 cash cost of $1.60/lb at mid-point of guidance ($1.50 - $1.70/lb). EBITDA for Q3 2024 of $470
Slide 11: Kamoa-Kakula: Q3 2024 EBITDA Waterfall
KAMOA-KAKULA: Q3 2024 EBITDA WATERFALL (Figures shown on 100% basis for Kamoa-Kakula, US$ millions) Quarter-on-quarter decrease in EBITDA driven by decrease in copper price and increase in cash costs; offset by increase in tonnes sold from Phase 3. Quarter on Quarter EBITDA Waterfall $41 ($41) $5 ($
Slide 12: Ivanhoe Mines Consolidated Financial Results
IVANHOE MINES CONSOLIDATED FINANCIAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) Net profit for Q3 2024 of $108 million, driven by share of profit from Kamoa of $84 million, and finance income from the JV of $57 million; limited impact of convertible notes following redemption Net Profit
Slide 13: Ivanhoe Mines' Adjusted EBITDA
IVANHOE MINES’ ADJUSTED EBITDA Ivanhoe Mines Adjusted EBITDA(1) (US$ million) Near-term growth initiatives over next 12 – 18 months with limited additional capex: Kamoa-Kakula ✓ Phase 3 ramp-up and de-bottlenecking ✓ Project 95 ✓ Smelter ramp-up $203 Kipushi $152 $160 $126 ✓ Commercial production $1
Slide 14: Strong Balance Sheet Supports Ivanhoe's Growth
STRONG BALANCE SHEET SUPPORTS IVANHOE’S GROWTH (Figures shown on 100% basis, US$ millions) YTD 2024 2024 2025 $900 million in Kamoa-Kakula joint-venture Capital Expenditure Actual Guidance Guidance term loans and working capital facilities, with additional advance payment facilities Kamoa-Kakula und
Slide 15: Operations & Project Update
Kamoa-Kakula’s smelter construction site OPERATIONS & PROJECT UPDATE Mark Farren, Chief Operating Officer Alex Pickard, EVP, Corporate Development & IR 15
Slide 16: Kamoa-Kakula: Quarterly Production
KAMOA-KAKULA: QUARTERLY PRODUCTION (Figures shown on 100% basis for Kamoa-Kakula) Ore tonnes milled (‘000’s tonnes) / 116,313 tonnes of copper in concentrate Copper ore grade processed (%) produced in Q3 2024; tonnes and grade 4.95% 4.80% 4.91% increased following improved stability of 4.14% power g
Slide 17: Phase 3 Concentrator at Nameplate Capacity
PHASE 3 CONCENTRATOR AT NAMEPLATE CAPACITY Ramped up to steady state post quarter end; recently achieved 19,198 daily tonnes milled – 30% above design capacity In late September, daily copper recovery rate of the concentrator achieved 87% Concentrate produced smelted at nearby Lualaba Copper Smelter
Slide 18: Power Stability Initiatives in Progress
POWER STABILITY INITIATIVES IN PROGRESS Long-term DRC grid improvement projects underway, in conjunction with SNEL; completion targeted for H2 2025 Imported power increased to 65 MW during Q3; targeting increase to >100 MW by year-end 145 MW of backup generation now installed on site; >200 MW by yea
Slide 19: Smelter Completion on Schedule for Q4 2024
SMELTER COMPLETION ON SCHEDULE FOR Q4 2024 Direct-to-blister copper smelter project over 94% complete and on target for construction completion by end of 2024 Recruitment of smelter operating team (970 employees) is nearing completion Furnace heat-up expected in Q1 2025, targeting ramp-up to 75% of
Slide 20: Further Growth Plans at Kamoa-Kakula
FURTHER GROWTH PLANS AT KAMOA-KAKULA Project 95 in execution: 95% ~30ktpa Cu production Maximizing Optimize Phase 3 Recoveries recovery Increase Phase 3 nominal throughput by over 20% Throughput (6.5 Mtpa) Optimization Doubling up Phase 3 concentrator targeting Phase 4 throughput over 20 Mtpa Kamoa-
Slide 21: Western Forelands Exploration, DRC
WESTERN FORELANDS EXPLORATION, DRC >63,000m of the 70,000m FY2024 diamond drilling program completed through Q3 2024 9 diamond rigs operational during Q3, with 6 focused on Makoko, Makoko West and Kitoko Positive drill results at Makoko and Makoko West led to acquisition of 336 km2 of adjacent explo
Slide 22: Kipushi: Ramp Up in Progress
KIPUSHI: RAMP UP IN PROGRESS Ramp up of Kipushi’s concentrator continued during Q3 with 17,817 tonnes of zinc in concentrate produced 2024 production guidance of 50,000 – 70,000 tonnes of zinc in concentrate (from 100,000 – 140,000 tonnes) Concentrator’s recoveries improved to over 90%, targeting a
Slide 23: Kipushi: Optimization Initiatives Underway
KIPUSHI: OPTIMIZATION INITIATIVES UNDERWAY Work underway to install separation for fines before dense media circuit and electrical upgrades to achieve nameplate in Q1 2025 Basic engineering underway to increase concentrator’s annual throughput by 20% to 960,000 tpa in Q3 2025 First truckload of Kipu
Slide 24: Platreef: Accelerated Phase 2
PLATREEF: ACCELERATED PHASE 2 Phase 1 concentrator completed on-schedule. First ore planned H2 2025 while hoisting prioritizes Shaft #3 development and Phase 2 underground development Reaming of the 5.1-meter diameter Shaft #3 complete from 950m; equipping underway Shaft #3 to increase total hoistin
Slide 25: Q3 Financial Results: Management Q&A
Construction workers from contractor DGC Africa, lining the furnace of Africa’s largest and greenest smelter Q3 FINANCIAL RESULTS MANAGEMENT Q&A 25
Slide 26: Appendices
Q3 FINANCIAL RESULTS APPENDICES www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF
Slide 27: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE As at Shareholder Loan Balances September 30, 2024 ($ million) Kamoa-Kakula (39.6% equity interest) Ivanhoe will receive distributions (once payable) in Total shareholder loans payable by Kamoa Holding $3,845 excess of its ownership Portion of shareholde