38 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Feb 20, 2025
Slide 1: 2024 Annual Results
2024 ANNUAL RESULTS February 20, 2025 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
Kamoa-Kakula’s recently completed on- site copper smelter, the largest in Africa OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3
Slide 4: 2024 Annual Highlights
Kamoa-Kakula’s recently completed on- site copper smelter, the largest in Africa 2024 ANNUAL HIGHLIGHTS Marna Cloete, President 4
Slide 5: 2024 in Summary: Three More Major Projects Delivered
2024 IN SUMMARY : THREE MORE MAJOR PROJECTS DELIVERED (Figures shown on 100% basis for Kamoa-Kakula) Kamoa-Kakula achieves record annual production with Phase 3 expansion delivered ahead of schedule 437,147 tonnes Copper Produced Production guidance for 2025 of 520,000 to 580,000 tonnes of copper; t
Slide 6: Continued Focus on Health & Safety
CONTINUED FOCUS ON HEALTH & SAFETY Ivanhoe Mines' Total Recordable Injury 69% reduction in group- Frequently Rate (TRIFR) wide TRIFR since 2021, despite workforce ICMM 2023 Industry 2.86 Average TRIFR(1) 2.59 increasing by 155% to 31,609 employees & contractors 1.79 Zero lost-time injuries (LTI) rec
Slide 7: Mining with a Greater Purpose
MINING WITH A GREATER PURPOSE Comprehensive independent human Local workforce over 90%; rights due diligence conducted at Platreef Female employees 10% of workforce. and Kipushi; Kamoa assessment updated. Independent review of stakeholder Global Industry Standard on Tailings engagement practices and
Slide 8: Shared-Value Model
SHARED-VALUE MODEL Estimated share of cash outflows from Kamoa-Kakula(1) 54% DRC Income & Other Tax Shareholder 32% Loan & Dividends 46% Production Tax 10% Dividends 12% 46% (1) Based on life-of-mine model at $4.00/lb copper price. 8
Slide 9: 2024 Annual Financial Overview
2024 ANNUAL FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 9
Slide 10: Kamoa-Kakula: Outstanding 2024 Annual Results
KAMOA-KAKULA: OUTSTANDING 2024 ANNUAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) Revenue ($ million) / Realized Copper Price ($/lb.) Kamoa-Kakula generated $4.34/lb. $4.16/lb. $4.08/lb. $4.09/lb. record $1.81 Billion EBITDA $3.82/lb. over 2024 at a margin of 58% based on $4.09/lb. realiz
Slide 11: Kamoa-Kakula: Unrivalled Cashflow Generation
KAMOA-KAKULA: UNRIVALLED CASHFLOW GENERATION (Figures shown on 100% basis for Kamoa-Kakula) Industry-leading return on capital from ~$6.0 Bn Phase 1, 2 & 3 investment(1) EBITDA ($ million) Cash Flow from Operations(2) ($ million) $109 $15 $520 $1,684 $1,814 $1,383 $1,449 $1,449 $1,209 $588 $554 2021
Slide 12: Kamoa-Kakula: Annual EBITDA Waterfall
KAMOA-KAKULA: ANNUAL EBITDA WATERFALL (Figures shown on 100% basis for Kamoa-Kakula, $ millions) Year-on-year increase (decrease) in EBITDA ($ million) +8% $24 ($59) yoy $230 ($204 ) $142 Realization costs 13% Mining & $1,681 other $1,814 costs 51% Power costs 35% EBITDA FY 2023 Tonnes sold Copper p
Slide 13: Kamoa-Kakula: Cash Cost Guidance Achieved, Again
KAMOA-KAKULA: CASH COST GUIDANCE ACHIEVED, AGAIN $1.65/lb. C1 cash cost in FY 2024, within Kamoa Kakula C1 Cash Cost ($ per lb.) guidance range of $1.50 – $1.70/lb. $1.75 $1.69 2024 FY cash cost of $1.65/lb. Annual C1 cash costs within guidance $1.57 range for fourth consecutive year $1.52 Elevated
Slide 14: Kamoa-Kakula 2025 Cash Cost Guidance
KAMOA-KAKULA 2025 CASH COST GUIDANCE $3.50 2024 C1 Cash Cost Breakdown C1 Cash Cost ($/lb Payable Cu) $3.00 TC/RC 16% $2.50 Mining 33% 2025 guidance $2.00 range: $1.65 - $1.85 Logistics 27% $1.50 Processing 16% $1.00 G&A 9% Inga II Smelter and & Target $0.50 Smelter from power Q4 2024initiatives --
Slide 15: Kipushi Financials
KIPUSHI FINANCIALS 2024 (Q4) zinc production of 50,307 tonnes, significantly higher than 16,999 tonnes of payable zinc sold Kipushi 2024 C1 cash cost of $1.13/lb; highly impacted by ongoing ramp-up to steady state Kipushi recognized $41 million revenue and $4 million EBITDA for the quarter 2025 C1 c
Slide 16: Ivanhoe Mines Consolidated Financial Results
IVANHOE MINES CONSOLIDATED FINANCIAL RESULTS Group-level adjusted EBITDA(1) ($ million) Net Profit / Normalized Net Profit(2) ($ million) $388 $386 $624 $604 $303 $193 FY 2023 FY 2024 FY 2023 FY 2024 Normalized Net Profit Net Profit (1) Adjusted EBITDA and normalized profit are a non-GAAP financial
Slide 17: 2024 Projects Completed Within Capex Guidance
2024 PROJECTS COMPLETED WITHIN CAPEX GUIDANCE (Figures shown on 100% basis, $ millions) 2024 2025 2026 2024 actual spend within Capital Expenditure Actual Guidance Guidance guidance at each project Kamoa-Kakula Phase 3 & other expansion capital $1,622 $1,050 – $1,300 $300 – $550 Kamoa-Kakula remaini
Slide 18: Peak Capex Inflection Point, Moving into Cash Flow
PEAK CAPEX INFLECTION POINT, MOVING INTO CASH FLOW Figures as at December 31, 2024; all values in $ million Attributable capital expenditure Kamoa-Kakula capex expected to taper off in 2025 following the 1,226 completion of the Phase 3 expansion and smelter projects 1,068 192 947 226 267 70 Phase 4
Slide 19: Inaugural $750 Million Notes Support Growth
INAUGURAL $750 MILLION NOTES SUPPORT GROWTH Figures as at December 31, 2024; all values in $ million $750 million 7.875% debut senior Pro-Forma Pro-Rata Net Debt Build-up unsecured notes due 2030 offering 117 closed on January 23 , 2025 46 Target leverage ratio: 1.0x Pro-Rata 750 1.36x LTM Net Debt
Slide 20: Operations & Project Update
Sunset over the recently completed copper smelter at Kamoa-Kakula OPERATIONS & PROJECT UPDATE Robert Friedland, Founder & Executive Co-Chairman Marna Cloete, President Mark Farren, Chief Operating Officer Alex Pickard, EVP, Corporate Development & IR 20
Slide 21: Kamoa-Kakula: Record Production from Phase 1, 2 & 3
KAMOA-KAKULA: RECORD PRODUCTION FROM PHASE 1, 2 & 3 Kamoa-Kakula produced record 437,147 tonnes Ore tonnes milled (‘000’s tonnes) / of copper in 2024, a 11% increase, despite Copper ore grade processed (%) intermittent grid power 5.93% 5.59% 5.24% 4.46% Phase 3 expansion achieved steady state 11,363
Slide 22: Kamoa-Kakula: Phase 3 Successfully Executed
KAMOA-KAKULA: PHASE 3 SUCCESSFULLY EXECUTED Phase 3 concentrator completed well ahead of schedule, and has met or exceeded nameplate Production rate annualized (kt) 358 327 350 402 418 393 423 475 487 491 548 554 50,000 Tonnes of Copper per month 40,000 30,000 20,000 10,000 0 Jul Feb Apr Jun Aug Oct
Slide 23: Kamoa-Kakula: Smelter Construction Now Complete
KAMOA-KAKULA: SMELTER CONSTRUCTION NOW COMPLETE Smelter complex complete; ramp up deferred by up to 3 months (expected Q2 2025) Smelter to rank bottom 10% in Scope 1 and 2 GHG emissions intensity(1) Ramp up to 90% expected to take ~9 months Kamoa-Kakula’s on-site 500,000tpa copper smelter 23 (1) Equ
Slide 24: Power Stability Initiatives in Progress
POWER STABILITY INITIATIVES IN PROGRESS • Inga II hydropower turbine 5-Year Power Sources & Requirement (MW) #5 wet commissioning to 800 delayed to H2 2025 (+178 Increasing MW) 700 Renewable • 60 MW on-site solar in Generation progress 600 500 • $450M investment in long- 400 term DRC grid improvemen
Slide 25: Further Growth Plans at Kamoa-Kakula
FURTHER GROWTH PLANS AT KAMOA-KAKULA Updated 2025 Integrated Development Plan Project 95 in execution: to be completed in Q2 2025… 95% ~30ktpa Cu production due Q1 2026 Maximizing Optimize Phase 3 Recoveries recovery to 92% Increase Phase 3 nominal throughput by over 20% Throughput (6.5 Mtpa) due H2
Slide 26: Independent Platreef Phase 2 & 3 Expansion Studies
INDEPENDENT PLATREEF PHASE 2 & 3 EXPANSION STUDIES Platreef, one of the world’s largest undeveloped precious metals deposits, to be lowest cost platinum, palladium, rhodium, and gold producer; with significant nickel and copper 4.1 Mtpa Feasibility Study targets first production from Phase 1 in Q4 2
Slide 27: Platreef: Optimized, Phased Plan for Phase 2 & 3
PLATREEF: OPTIMIZED, PHASED PLAN FOR PHASE 2 & 3 27
Slide 28: Platreef: Key Study Highlights
PLATREEF: KEY STUDY HIGHLIGHTS Shown on 100%-basis in US$ 4.1 Mtpa 2025 FS 10.7 Mtpa 2025 PEA(1) Mine Life 35 29 Nameplate Throughput 4.1 Mtpa 10.7 Mtpa Annual Pt + Pd + Rh + Au (2) 465 koz 1,025 koz Annual Ni + Cu (2) 9 kt + 5 kt 22 kt + 13 kt Total Cash Costs (LOM) (3) $599/oz 3PE+Au $511/oz 3PE+A
Slide 29: Platreef: To Be One of the Largest PGM Producers
PLATREEF: TO BE ONE OF THE LARGEST PGM PRODUCERS Global primary PGM producers ranked by platinum equivalent production Platreef 10.7 Mtpa (2) 2,000 Platinum Equivalent Production (koz) 1,800 Platreef 4.1 Mtpa (1) 1,600 1,400 1,200 Shaded area represents 1,000 by-product credits 800 600 400 200 0 Glo
Slide 30: Platreef: Lowest Cost = Profit Through the Cycle
PLATREEF: LOWEST COST = PROFIT THROUGH THE CYCLE Global primary PGM producer total cash cost + sustaining capital curve Quartile 1 Quartile 2 Quartile 3 Quartile 4 2,000 Total cash cost + sustaining capital 1,750 ($ per oz of 3PE+Au) 1,500 1,250 3PE+Au basket spot price(3) 1,000 750 10.7 Mtpa(2) 4.1
Slide 31: Shaft #3 on Track for Hoisting Q1 2026
SHAFT #3 ON TRACK FOR HOISTING Q1 2026 Reaming to 5.1-metre diameter completed in Q4 2024 Will increase total hoisting capacity to 5.0 Mtpa from Q1 2026, unlocking Phase 1 production and Phase 2 ramp-up Reaming of the giant Shaft #2 to 3.1-metres completed; expansion to 10 metres to commence in 2025
Slide 32: Kipushi: 2023
Shaft P5 KIPUSHI: 2023 Kipushi concentrator site prior to construction in 2023, with the P5 shaft in the background 32
Slide 33: Kipushi: 2025
Shaft P5 KIPUSHI: 2025 Kipushi’s new 800,000 tpa concentrator, with the P5 shaft in the background 33
Slide 34: Kipushi: Ramping Up to Tier-One Zinc Production
KIPUSHI: RAMPING UP TO TIER-ONE ZINC PRODUCTION Kipushi concentrator first production in mid 2024; ramp up continues into 2025 Quarterly zinc production was 32,323 tonnes, at an average feed grade of 29% zinc and recovery rate of 85% Monthly production record achieved in December with 14,900 tonnes
Slide 35: Kipushi: Growth Initiatives Underway
KIPUSHI: GROWTH INITIATIVES UNDERWAY 2025 production guidance of 180,000 to 240,000 tonnes; nameplate milling rate expected late Q1 2025 Debottlenecking program targeting 20% increase annual processing capacity from Q4 2025 From 2026 targeting zinc annualized production rate of 250,000 tonnes of zin
Slide 36: Expanding Our Exploration Portfolio
EXPANDING OUR EXPLORATION PORTFOLIO Mokopane Feeder Moxico and Cuando Cubango Chu-Sarysu Basin JV South Africa (100%-owned) Angola (100%-owned) Kazakhstan (20%-owned) ▪ Targeting large gravity-high ▪ Targeting Western-Foreland-style ▪ Exploration JV formed to explore anomaly adjacent to Platreef sed
Slide 37: Western Forelands Exploration, DRC
WESTERN FORELANDS EXPLORATION, DRC 37
Slide 38: 2024 Annual Results: Management Q&A
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF 2024 ANNUAL RESULTS MANAGEMENT Q&A 38