31 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Mar 13, 2023
Slide 1: 2022 Annual Results
2022 ANNUAL RESULTS March 13, 2023 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
OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3
Slide 4: 2022 Annual Highlights
2022 ANNUAL HIGHLIGHTS Marna Cloete, President 4
Slide 5: 2022: Kamoa-Kakula Delivered a Year of Stellar Growth
2022: KAMOA-KAKULA DELIVERED A YEAR OF STELLAR GROWTH 333,497t copper production Kamoa-Kakula delivered on 2022 production and C1 cash costs within guidance De-bottlenecking program complete ahead of schedule in 323,733t payable copper sold Q1 2023. Phase 1 and 2 production capacity increased to ~45
Slide 6: Kamoa-Kakula: Shared Value and Local Partnership
KAMOA-KAKULA: SHARED VALUE AND LOCAL PARTNERSHIP 20% OWNERSHIP APPROX. 4% DRC GDP DRC government direct Kamoa-Kakula's contribution in 2022 of $2.35 Bn project shareholding >$40M IN COMMUNITY SPEND Kamoa-Kakula's total social and community development contribution to date 97% LOCAL EMPLOYMENT Congol
Slide 7: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT Recently became the joint 2nd As the host country, and as a largest global copper producer shareholder of Kamoa Copper, the DRC sees this local value creation Abundant hydro-power capacity as a strategic imperative Median population age of 17 His Excellency Félix Tshise
Slide 8: 2022 Annual Financial Overview
2022 ANNUAL FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 8
Slide 9: Kamoa-Kakula: Record Quarterly Performance
KAMOA-KAKULA: RECORD QUARTERLY PERFORMANCE (Figures shown on 100% basis for Kamoa-Kakula) Payable copper sold 92.2kt as Phase 1 & Phase 2 concentrators Copper Sold (kt) continue to operate above design capacity C1 cash costs stable in Q4 with logistics charges easing slightly 85.8 93.8 92.2 Record Q
Slide 10: Kamoa-Kakula: Outstanding 2022 Annual Results
KAMOA-KAKULA: OUTSTANDING 2022 ANNUAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) Revenue (US$ million) / Realized Copper Price (US$/lb.) Phase 2 expansion $4.51/lb. achieved commercial $4.34/lb. production in Q2 2022 $3.79/lb. $3.50/lb. $3.54/lb. $2,148 $520 $484 $460 $673 Q1 2022 Q2 202
Slide 11: Kamoa-Kakula: Cash Flow Funding Expansion Capital
KAMOA-KAKULA: CASH FLOW FUNDING EXPANSION CAPITAL (Figures shown on 100% basis for Kamoa-Kakula) Free Cash Flow before Financing (US$ million) $1,226 Kamoa-Kakula operating cash flow funded its expansion capital costs for Phase 2 and Phase 3 during $366 $316 $319 $378 2022 and is expected to $225 $2
Slide 12: Kamoa-Kakula: Annual Operating Profit
KAMOA-KAKULA: ANNUAL OPERATING PROFIT Waterfall of 2022 Attributable Profit to Ivanhoe Mines from Kamoa-Kakula (US$ million) 323,733 tonnes copper sales Ivanhoe’s ($775) $1.39 billion EBITDA share of profit (49.5%) ($98) $254 million $2,148 ($282) ($338) $1,274 ($141) $992 $654 $513 (1) (2) (3) Reve
Slide 13: Kamoa-Kakula: C1 Cash Costs Within Guidance
KAMOA-KAKULA: C1 CASH COSTS WITHIN GUIDANCE (All values in US$ per pound of payable copper) 2022 full-year C1 cash cost $1.39/lb. within Breakdown of C1 Cash Cost (US$ per lb.) original guidance Inflation in logistics charges eased in Q4 $0.56 $0.51 $0.50 2023 C1 cash cost guidance range set at $1.4
Slide 14: Smelter Drives Future Cash Cost to Lowest Quartile
SMELTER DRIVES FUTURE CASH COST TO LOWEST QUARTILE $4.50 Cash cost guidance impacted by: $4.00 • Increased power cost (from $0.04 per kWh to $0.06 per kWh including 40% rebate) • Costs arising from regional trucking market dynamics C1 Cash Cost (US$/lb.) $3.50 • Increased benchmark TC / RC $3.00 • I
Slide 15: Ivanhoe Mines: Record 2022 Net Profit
IVANHOE MINES: RECORD 2022 NET PROFIT (All values in US$ million) Record profit of $434 million driven by record income from the Kamoa-Kakula joint venture of $405 million Income from joint venture ($19) ($15) ($36) $ 23 ($10) ($27) $113 $151 $434 $254 IVN's share of Finance Kipushi Western General
Slide 16: Ivanhoe Mines Capital Expenditure Guidance to Production
IVANHOE MINES CAPITAL EXPENDITURE GUIDANCE TO PRODUCTION Capital Expenditure 2022 Actuals 2023 Guidance 2024 Guidance (100% Basis) ($’million) ($’million) ($’million) Kamoa-Kakula Kamoa-Kakula capital Phase 3 expansion $255 $1,400 - 1,800 $1,100 - 700 expenditure to be funded Phase 2 & other expansi
Slide 17: Ivanhoe Mines Adjusted EBITDA (Group Level)
IVANHOE MINES ADJUSTED EBITDA (GROUP LEVEL) (All values in US$ million) Ivanhoe’s share of Kamoa-Kakula’s EBITDA $551 million Ivanhoe’s 2022 Adjusted EBITDA: $ million $162 Ivanhoe ~39.6% share of Kamoa-Kakula EBITDA $551 Exploration and project evaluation expenditure ($34) $86 General administrativ
Slide 18: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE As at Shareholder Loan Balances Dec 31, 2022 ($ million) Kamoa-Kakula (39.6% equity interest) Ivanhoe will receive distributions (once payable) Total shareholder loans payable by Kamoa Holding $3,103 in excess of its ownership Portion of shareholder loan
Slide 19: Strong Balance Sheet Supports Ivanhoe's Growth
STRONG BALANCE SHEET SUPPORTS IVANHOE’S GROWTH Below figures as at December 31, 2022 (All values in US$ million and as at the end of each reporting period presented) Cash and cash equivalents of $597 Net Debt (inc. $575 million convertible notes) million; consolidated working capital of $611 million
Slide 20: Operations & Project Update
OPERATIONS & PROJECT UPDATE Alex Pickard, Senior VP, Corporate Development & IR Robert Friedland, Executive Co-Chairman Pictured are two-tonne bags of ~50% copper Marna Cloete, President contained in concentrate ready for export 20
Slide 21: Kamoa-Kakula Production and Throughput Performance
a ~. | and 2 production capacity increased to pe 2023 production guidance: 390kt — ‘430kt of |) Achieved daily record throughput and =~ Aiming to push copper recoveries Aaaa Kakula delivered on 2022 = Ore tonnes milled (000’s tonnes) | @Copper ore grade processed (%) production and C1 cash costs wit
Slide 22: Kamoa-Kakula Phase 3: Construction Advances on Schedule
KAMOA-KAKULA PHASE 3: CONSTRUCTION ADVANCES ON SCHEDULE Phase 3 expansion, copper smelter and refurbishment of turbine #5 on schedule for Q4 2024 completion All major equipment for Phase 3 concentrator ordered; pouring of concrete foundations underway; first steel erection expected in June 2023 Exca
Slide 23: Kamoa-Kakula 2023 IDP: High-Grade, Super-Giant Copper Mine
KAMOA-KAKULA 2023 IDP: HIGH-GRADE, SUPER-GIANT COPPER MINE World’s projected top 20 copper mines in 2025, by key metrics. 6.0% Bubble size: M&I Resource Kamoa-Kakula Copper Head Grade (%) 5.0% Kamoto 4.0% 3.0% Polish Copper 2.0% Oyu Tolgoi Grasberg Kansanshi Escondida 1.0% Collahuasi 0.0% 0 200 400
Slide 24: Western Foreland Exploration, DRC
WESTERN FORELAND EXPLORATION, DRC Results from 2022 drilling continued to improve understanding of underlying copper belt stratigraphy 26,483m drilled during 2022, including 4,633m of air core and 21,920m of diamond More detailed exploration activities took place in Lupemba, Mushiji & Makoko areas 2
Slide 25: Mokopane Feeder Exploration, South Africa
MOKOPANE FEEDER EXPLORATION, SOUTH AFRICA 80 km2 of new exploration rights awarded on South Africa’s Bushveld Complex, adjacent to Platreef Project 100%-owned, new exploration territory covers the largest-known gravity anomaly on the Bushveld, known as the “Mokopane Feeder” High resolution airborne
Slide 26: Mokopane Feeder Exploration, South Africa
MOKOPANE FEEDER EXPLORATION, SOUTH AFRICA Bushveld Complex and Northern Limb regional gravity geophysical surveys showing the anomaly known as the “Mokopane Feeder” 26
Slide 27: Platreef: Phase 1 Advancing Towards Production in Q3 2023
PLATREEF: PHASE 1 ADVANCING TOWARDS PRODUCTION IN Q3 2023 Underground mine works advancing well, with over 750 metres of lateral and vertical development Phase 1 processing plant construction advancing on schedule; concrete foundations being laid Reaming of ventilation shaft (Shaft 3) commenced, com
Slide 28: Platreef: Shaft 2 Headgear Slide Under Construction
PLATREEF: SHAFT 2 HEADGEAR SLIDE UNDER CONSTRUCTION >70 metres of total 104-metre high structure complete; top 20 metres will be the steel head frame. Shaft 1 headframe behind is 29 metres tall. 28
Slide 29: Kipushi: Under Construction; Production from Q3 2024
KIPUSHI: UNDER CONSTRUCTION; PRODUCTION FROM Q3 2024 Surface earthworks and civil works on schedule; over 1,700 cubic metres of foundation concrete poured to date Long lead-order equipment items expected to start arriving on site from Q3 2023 Study of options to upgrade the DRC-Zambia border crossin
Slide 30: Kipushi: Underground Development Ahead of Schedule
KIPUSHI: UNDERGROUND DEVELOPMENT AHEAD OF SCHEDULE Underground development of perimeter and access drives surrounding the Big Zinc orebody advancing ahead of schedule 30
Slide 31: 2022 Annual Results: Management Q&A
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF 2022 ANNUAL RESULTS MANAGEMENT Q&A 31