Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Q1 2022 Earnings Presentation
22 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, May 10, 2022
Slide 1: Q1 2022 Results
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q1 2022 RESULTS MAY 10, 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”) 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
OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3 3
Slide 4: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Marna Cloete, President 4
Slide 5: Q1 2022: Outstanding Results from Kamoa-Kakula
Q1 2022: OUTSTANDING RESULTS FROM KAMOA-KAKULA 55.6 kt copper production Commercial production from Phase 2 plant achieved in April 2022; combined copper production from Phase 1 and 2 plants ~450kt by Q2 2023 following de-bottlenecking 51.9 kt copper sales 2022 production guidance 290kt - 340kt of c
Slide 6: 2021 ESG Performance at a Glance
2021 ESG PERFORMANCE AT A GLANCE $1.1 billion total national 43% increase in Total workforce of 10,645 stakeholders value created and national value 12,374; distribution from 2020 97% local employees engaged distributed Global Copper Minesite Scope 1 + 2 Scope 1 Scope 2 11 10 Emissions, 2020 (t CO2-
Slide 7: Q1 2022 Financial Overview
Q1 2022 FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 7
Slide 8: Kamoa-Kakula: Quarterly Performance
KAMOA-KAKULA: QUARTERLY PERFORMANCE Copper Sold (kt) (Figures shown on 100% basis for Kamoa-Kakula) Record quarterly revenue achieved driven by strong copper production and high copper prices 53.2 51.9 41.5 Q1 EBITDA of US$399 million driven by increase in revenue and a decrease in cash cost Q3 2021
Slide 9: Kamoa Holding Operating Profit
KAMOA HOLDING OPERATING PROFIT Shown on 100% basis attributable to Kamoa Holding (All values in US$ million) Q1 Q4 Q3 51.9 kt copper sales 2022 2021 2021 $'000 $'000 $'000 $399 million EBITDA Ivanhoe's share Revenue 519,595 488,536 342,584 of profits (49.5%) ($123) Cost of sales (123,370) (130,853)
Slide 10: Ivanhoe Mines Q1 Financial Highlights
IVANHOE MINES Q1 FINANCIAL HIGHLIGHTS (All values in US$ million) ($9) ($4) $28 ($6) ($8) ($66) $87 ($1) $22 IVN's share of Finance income Project Western General Other Loss on fair Deferred tax Profit for the (1) profit from from Kamoa expenditure Foreland administrative valuation of period Kamoa H
Slide 11: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound of payable copper) Q1 2022 cash costs continue to trend downwards from $1.28 per pound 0.20 payable copper in Q4 2021 and $1.37 per pound in Q3 2021 0.20 Already at the bottom of the 2022 0.36 1.21 cash cost guidance range of between $1.20 and $
Slide 12: Kamoa-Kakula – First Quartile C1 Cash Cost
KAMOA-KAKULA – FIRST QUARTILE C1 CASH COST (1) $4.50 2022 C1 Cash Costs (US$/lb Cu) $4.00 $3.50 $3.00 $2.50 Kamoa-Kakula (Q1 2022): $1.21/lb $2.00 $1.50 $1.00 $0.50 – Source: Wood Mackenzie 0% 20% 40% 60% 80% 100% Cumulative Global Copper Production Source: Company filings, Wood Mackenzie (based on
Slide 13: Well-Funded, Strong Balance Sheet Position
WELL-FUNDED, STRONG BALANCE SHEET POSITION Cash and cash equivalents of $562 million Consolidated working capital of $615 million Total assets of $3,350 million Total debt of $922 million, including $575 million 2.50% convertible senior notes outstanding, due 2026 with possible earlier redemption Fo
Slide 14: Operations & Project Update
OPERATIONS & PROJECT UPDATE Alex Pickard, VP Corporate Development Marna Cloete, President 14
Slide 15: Kamoa-Kakula Phase 1 & 2 Now at Commercial Production
KAMOA-KAKULA PHASE 1 & 2 NOW AT COMMERCIAL PRODUCTION Record quarterly production of Kamoa-Kakula Copper in Concentrate 55,602 tonnes of copper in Q1 2022, with record monthly production of Phase 2 19,605 tonnes of copper in March steady state 2022 guidance ~450 kt Phase 2 concentrator declared 290
Slide 16: Kamoa-Kakula Phase 3 and Smelter
KAMOA-KAKULA PHASE 3 AND 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 Excavation work quickly advancing for new box cut at the Kamoa 1 and Kamoa 2 mines, with decline development expected to start i
Slide 17: On Track to Become World's Third-Largest Copper Mining Complex
ON TRACK TO BECOME THE WORLD'S THIRD-LARGEST COPPER MINING COMPLEX BY Q4 2024 Additional Phase 3 plant capacity of 5 Mtpa to Kamoa-Kakula Phased Ramp-Up to 600ktpa increase total processing capacity to greater than 14 Mtpa, positioning Kamoa Copper as the world’s third- ~600ktpa Cu largest copper mi
Slide 18: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER • Ivanhoe controls ~2,407 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 with th
Slide 19: Underground Development Underway at Platreef
UNDERGROUND DEVELOPMENT UNDERWAY AT PLATREEF First blast on Platreef’s 950-metre level completed on April 22, lateral development toward Flatreef orebody commences Ivanplats takes delivery of first battery-electric mining fleet, planning of Platreef’s initial solar power plant well underway Forecast
Slide 20: Kipushi: Moving Towards Construction
KIPUSHI: MOVING TOWARDS CONSTRUTION 2022 Feasibility Study Results at Different Zinc Prices: IRR (%) 97% Underground early works and recruitment of 83% key staff required for construction is underway 68% 47% 54% 41% Financing and offtake discussions are advancing with a number of interested parties
Slide 21: 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 2024 PRE-PRODUCTION EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORELAND The wo
Slide 22: Q1 2022 Results: Management Q&As
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q1 2022 RESULTS MANAGEMENT Q&As 22