Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — BofA Global Research Conference 2021
27 slides from Ivanhoe Mines Ltd. Class A's conference presentation, May 2021
Slide 1: BofA Global Research Conference May 2021
B OF A GLOBAL RESEARCH CONFERENCE MAY 2021
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$9.02 billion(1) SHARES, OPTIONS, Common Shares: 1,207.9 million(2) RSUs & DSUs Options, RSUs & DSUs: 20.6 million(2) CASH POSITION US$732 million(3) CITIC Metal 26.1% Zijin Mining 13.
Slide 4: A Leading Explorer & Developer in Africa
A LEADING EXPLORER & DEVELOPER 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: First production expected soon WESTERN FORELAND Copper OWNERSHIP: Ivanhoe Mines (90-100%) STAGE: Copper Exploration OWNERSH
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 29 Cu • Three long-life, world- • Robust, experienced • Committed support from Strong balance sheet • Near-term copper: class mines with low management team with key partners CITIC and with cash & cash Kakula is on track to costs, low capital a strong track record of Zijin equi
Slide 6: Well Capitalized to Fund High-Return Expansion Opportunities
WELL CAPITALIZED TO FUND HIGH-RETURN EXPANSION OPPORTUNITIES $575 million(4) offering of 2.50% convertible notes due OPPORTUNITIES $732 2026 completed March 2021 KAKULA PHASE 2 • $600 million direct capital cost on 100% basis Kakula Mine expected KAKULA PHASE 3 & DOWNSTREAM STRATEGY to generate cash
Slide 7: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT DEMOCRATIC REPUBLIC OF THE CONGO 4th largest global copper producer; on track to be the 3rd largest producer Change in status for 2015 copper projects by country, % in 2020 100% Abundant hydro-power potential 80% Median population age of 17 New government since 2019 – f
Slide 8: Ivanhoe Will Produce Green Metals
IVANHOE WILL PRODUCE GREEN METALS HYDROPOWER SMALL FOOTPRINT LOW IMPACT GREEN METAL Water efficiency; powered by clean, Underground Majority of tailings Ultra high grades; green hydro-electricity; Low water mines with limited returned underground; consumption per ounce of 4PE renewable power; surfac
Slide 9: Kamoa-Kakula: Tier-One Carbon Footprint
KAMOA-KAKULA: TIER-ONE CARBON FOOTPRINT Kamoa-Kakula 0.16t CO2e/t Cu Benchmarked Mines 0.19t 2.8t CO2e/t Cu Emissions per tonne in copper concentrate CO2e/t Cu 1. Based on the publicly-available information, not independently verified by Hatch. Hatch has relied on Feasibility Study data provided by
Slide 10: Upgrading Turbine 5 at the Inga II Hydropower Complex
UPGRADING TURBINE 5 AT THE INGA II HYDROPOWER COMPLEX Kamoa-Kakula JV agreement with the DRC’s state-owned power company to upgrade Turbine 5 at Inga II Partnerships such as the one between 162 MW of renewable hydropower, providing SNEL and Ivanhoe allow us to inject power for future expansions (bey
Slide 11: Kamoa-Kakula in Summary
KAMOA-KAKULA IN SUMMARY Fully funded to first copper production; 2021 guidance (100%) of 80kt – 95kt contained copper in concentrate Phase 1 construction essentially complete, with 3.0 Mt ore stockpiled at the end of April at 4.74% Cu Among the largest and lowest cost copper mines in the world Ultra
Slide 12: Kamoa-Kakula: One of the World's Largest and Highest-Grade Copper Discoveries
UNRIVALLED RESOURCE BASE • One of the world’s largest and highest-grade copper deposits with 38.0 Mt KAMOA-KAKULA (Ind.) + 5.7 Mt (Inf.) of contained Cu(1) • Mineral reserves of 10.5 Mt of contained Cu at an average grade of 4.47%(2) • Open down dip and along strike – excellent exploration potential
Slide 13: Advanced Construction with Significant Pre-Production Stockpiles
Left: Kakula’s main ADVANCED CONSTRUCTION WITH SIGNIFICANT pre-production PRE-PRODUCTION STOCKPILES stockpiles at the northern declines with the concentrator and • On-track for early production (end of May or early June) backfill plant in the background. • Pre-production ore stockpiles significantly
Slide 14: 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. 14 Note: Selected based on copper containe
Slide 15: Key Highlights: PFS and PEA
KEY KEYHIGHLIGHTS: HIGHLIGHTS: Shown on 100%-basis in US$ Kakula-Kansoko PFS Kamoa-Kakula PEA OCTOBER 2020 SEPTEMBER PFS AND PEA 2020 Annual Production (Avg.) 7.6 Mt 19 Mt (5 x 3.8Mt) DFS, PFS AND Mill Feed Grade(1) 5.9% 5.1% PEA Copper Metal Produced(1) 331 ktpa 501 ktpa Mine-Site Cash Cost(1) $0.5
Slide 16: Kamoa-Kakula – Among the World's Largest Copper Mines
KAMOA-KAKULA – AMONG THE WORLD’S LARGEST COPPER MINES (1) 1,400 Paid Copper Production (ktpa) 1,200 1,000 800 600 400 200 -- Source: Company filings, Wood Mackenzie. (1) Kamoa-Kakula 2020 PEA production based on projected peak copper production (which occurs in year 8) of the 19 Mtpa alternative dev
Slide 17: Kakula-Kansoko – First Quartile Mine Site Cash Cost
KAKULA-KANSOKO – FIRST QUARTILE MINE SITE CASH COST (1) $4.00 Total Cash Cost (First Ten Years): $1.23/lb Cu $3.50 2020 Mine Site Cash Costs (US$/lb Cu) $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Kakula-Kansoko (First Ten Years): $0.55/lb Cu -- -- 20% 40% 60% 80% 100% Cumulative Global Copper Production So
Slide 18: Kamoa-Kakula: Integrated Development Plan
KAMOA-KAKULA: INTEGRATED DEVELOPMENT PLAN Kamoa-Kakula: Projected to Become the World’s Second Largest Copper Mine 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) Q3 2022 Phase 1 (3.8 Mtpa) July 20
Slide 19: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER $21M 2021 Exploration Budget • Substantial exploration potential remains on both Kamoa-Kakula & Western Foreland ground • Potential mineralization continuing from JV ground to Western Foreland; package 90%-100% Ivanhoe owned • New discoveries made on
Slide 20: Platreef: Among the World's Next Great Precious Metals Mines
PLATREEF: AMONG THE WORLD’S NEXT GREAT PRECIOUS METALS MINES SET TO BECOME ONE OF WORLD’S LARGEST PRIMARY PGM MINES • Potential annual production more than 600,000 oz. of palladium, platinum, rhodium and gold; plus over 40 million lbs. of nickel and copper • Studies underway on initial 0.7 Mtpa mine
Slide 21: Key Highlights: December 2020 FS and PEA
KEY HIGHLIGHTS: PEA (Phased Shown on 100%-basis in US$ Feasibility Study DECEMBER 2020 Development) FS AND PEA Annual Throughput 4.4 Mt 0.7 Mt to 5.2 Mt 3PE+Au Produced(1) 508 kozpa 109 to 613 kozpa Ni + Cu Produced(1) 35 Mlbpa 7 to 43 Mlbpa Initial Capital $1.4 Bn $0.4 Bn Expansion Capital NA $1.3
Slide 22: Platreef: Potential to Become Among the World's Largest Primary PGM Producers
PLATREEF : POTENTIAL TO BECOME AMONG THE WORLD’S LARGEST PRIMARY PGM PRODUCERS Platreef 2014 1,600 3PE+Au Production 2019 (Pd Eq. oz) 12 Mtpa PEA Palladium Equivalent Production (koz) 3PE+Au Production 1,400 Ni+Cu Production 2019 (Pd Eq. oz) Ni+Cu Production 1,200 1,000 Platreef 2020 4.4 Mtpa FS 800
Slide 23: Platreef: Industry Leading Cash Cost
PLATREEF : INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + SIB capital (2019), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef cash cost: US$442/oz 3PE+Au, 1,400 net of by-products 1,200 1,000 800 600 400 200 0 4E production Western Limb Ea
Slide 24: Platreef: Evolution of Basket Price
PLATREEF : EVOLUTION OF BASKET PRICE Platreef Revenue Per Tonne of Probable Reserves (US$/t ore) Platreef basket price today is over US$2,800/oz(1) 3PE+Au $450 $400 $350 $300 $250 $200 $150 Total Cash Cost (Mine Site + Realization) $100 Mine Site Cash Cost $50 -- Platinum Palladium Rhodium Gold Copp
Slide 25: Kipushi: The World's Highest-Grade Major Zinc Project
KIPUSHI: THE WORLD’S HIGHEST-GRADE MAJOR ZINC PROJECT Top 10 Zinc Projects by Contained Zinc Contained zinc in Measured & Indicated resources Zinc grade (%) Contained Zinc Zinc Grade (%) (Mt) 16 40 TWO YEARS TO 14 35 PRODUCTION FROM 12 30 DEVELOPMENT DECISION 10 25 • Draft feasibility, development a
Slide 26: Experienced Board and Management Team
EXPERIENCED BOARD AND MANAGEMENT TEAM BOARD OF DIRECTORS EXECUTIVE MANAGEMENT TEAM Mr. Robert Friedland, Founder and Executive Co-Chairman Mr. Yufeng “Miles” Sun, Non-Executive Co-Chairman Ms. Marna Cloete • Recognized as an entrepreneurial explorer, technology • Chairman of CITIC Resources Holdings
Slide 27: • Three long-life, world- • Robust, experienced • Committed support • Strong balance sheet
29 Cu • Three long-life, world- • Robust, experienced • Committed support • Strong balance sheet • Near-term copper: class mines with low management team with from key partners CITIC with cash & cash Kakula is on track to costs, low capital a strong track record of and Zijin equivalents of approx. s