Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (March 2024)
35 slides from Ivanhoe Mines Ltd. Class A's investor presentation, Mar 18, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION March 2024 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”) 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$16.40 / share(1) MARKET CAP US$15.2 billion(1) SHARES, OPTIONS, Common Shares: 1,268.8 million(2) RSUs & DSUs Options, RSUs & DSUs: 17.7 million(2) CASH POSITION US$574 million(3) DEBT OUTSTANDING US$719 million(4
Slide 4: A Leading Producer, Developer and Explorer in Africa
A LEADING PRODUCER, DEVELOPER AND EXPLORER IN AFRICA World’s fastest growing major copper mine with the highest grades World’s highest-grade zinc project OWNERSHIP: OWNERSHIP: KAMOA-KAKULA KIPUSHI Ivanhoe Mines (39.6%) Ivanhoe Mines (62%) Zijin Mining Group (39.6%) Gécamines (38%) Government of DRC
Slide 5: The World's Newest Diversified Major Miner
THE WORLD’S NEWEST DIVERSIFIED MAJOR MINER Ivanhoe will be a responsible, leading supplier of critical metals for the clean-energy transition, including copper, nickel, zinc and PGMs. EXPLORATION COMISSIONING Q3 2024 FIRST PRODUCTION Q2 2024 GROWING PRODUCTION WESTERN FORELAND PLATREEF KIPUSHI KAMOA
Slide 6: 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 7: Kamoa-Kakula
Kamoa-Kakula Phase 3, 5 Mtpa concentrator construction site KAMOA-KAKULA The world’s fastest-growing, highest-grade, lowest-carbon major copper mine 7
Slide 8: Ivanhoe Mines' Kamoa-Kakula Copper Complex
IVANHOE MINES’ KAMOA-KAKULA COPPER COMPLEX The world’s fastest growing, highest grade, lowest-carbon, major copper mine Democratic Republic of the Congo is tied as world’s 2nd largest copper producer Mechanized underground mine; employing safe, modern mining methods Set to be world’s third largest c
Slide 9: Stakeholders Shared Value and Local Partnership
STAKEHOLDERS SHARED VALUE AND LOCAL PARTNERSHIP $2.8M INVESTED IN LOCAL BUSINESSES 20% OWNERSHIP Development of infrastructure and provision of DRC government direct farming and aquaculture inputs project shareholding >$60M IN COMMUNITY SPEND total social and community development contribution to da
Slide 10: Kamoa-Kakula: 2023 Record Annual Production
KAMOA-KAKULA: 2023 RECORD ANNUAL PRODUCTION (Figures shown on 100% basis for Kamoa-Kakula) 2023 production of 393,551 tonnes of Ore tonnes milled (‘000’s tonnes) / copper in concentrate (within guidance) Copper ore grade processed (%) 5.42% 5.21% 5.37% 4.95% 2023 copper recoveries averaged 87% 2,244
Slide 11: Kamoa-Kakula: 2023 Cash Cost Guidance Achieved
KAMOA-KAKULA: 2023 CASH COST GUIDANCE ACHIEVED (Figures shown on 100% basis for Kamoa-Kakula) FY 2024 C1 cash costs guidance of $1.50 - $1.70/lb. (1) C1 Cash costs $1.45/lb for 2023. (mid-point of guidance range) C1 Cash Cost (US$ per lb.) EBITDA(2) (US$ million) / EBITDA Margin (%) 66% 65% 61% $1.4
Slide 12: High Grade Copper = Unrivaled Capital Returns
HIGH GRADE COPPER = UNRIVALED CAPITAL RETURNS US$3.6 billion of EBITDA US$ million generated in 2.5 years; higher than combined Phase 1, 2 and 3 Capex of US$3.5 billion $1,500 $1,681 Remaining capex for Phase 3 expansion, plus subsequent expansions to $700 be funded from cashflows $1,388 generated b
Slide 13: Kamoa-Kakula 2023 Integrated Development Plan
KAMOA-KAKULA 2023 INTEGRATED DEVELOPMENT PLAN Four-stage ramp up to 19.2 Mtpa processing capacity 20.0 Phase 4 (2030) 6.0 18.0 Kamoa 2 Phase 3 5.0 16.0 (Q3 2024) Kansoko Sud PEA only 14.0 Kamoa 3 - 6 4.0 Grade (% Cu) 12.0 Milled (Mt) Kamoa Kamoa 1 10.0 Stockpile 3.0 8.0 Kakula 2.0 6.0 Stockpile Kaku
Slide 14: Kamoa-Kakula: The World's Best Copper Mine
KAMOA-KAKULA: THE WORLD’S BEST 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% 0 200 400 600 800 1,000 1,2
Slide 15: New Smelter Brings Transformational Benefits
NEW SMELTER BRINGS TRANSFORMATIONAL BENEFITS Aerial view of the Phase 1 and 2 concentrator, overlaid with a 3D rendering of the adjacent smelter complex, which is currently under construction ~$1 billion estimated capital cost for the massive, 100-hectare site 500,000 tonnes of 99+% pure blister ano
Slide 16: Kamoa-Kakula C1 Cash Costs
KAMOA-KAKULA C1 CASH COSTS (Figures shown on 100% basis for Kamoa-Kakula) $4.50 $4.00 C1 Cash Cost (US$/lb.) $3.50 Completion and ramp up of direct-to-blister smelter to drive cash cost improvement to the first quartile $3.00 $2.50 $2.00 2023 C1 Cash Cost: >20% reduction following $1.45/lb. copper $
Slide 17: Kamoa-Kakula Phase 3 Expansion: Completion in 2024
KAMOA-KAKULA PHASE 3 EXPANSION: COMPLETION IN 2024 Phase 3 expansion consists of 5 Mtpa concentrator, Phase 3 concentrator 82% complete and ahead copper smelter and refurbishment of turbine #5 of schedule for early Q3 2024 completion Smelter project 76% complete and on schedule for Q4 2024 completio
Slide 18: Shipments Commence Along Lobito Corridor
SHIPMENTS COMMENCE ALONG LOBITO CORRIDOR Dar es Salaam G7 and EU join the US investment LOBITO RAILWAY CORRIDOR partnership to accelerate the KAMOA 2,466 km Roundtrip: ~40 days development of Lobito Railway Corridor Lobito KIPUSHI Rail to Lobito 1,739 km Term sheet signed with Trafigura Roundtrip: ~
Slide 19: Western Foreland Exploration, DRC
WESTERN FORELAND EXPLORATION, DRC 2,654 km2 highly prospective licence package containing the high-grade Makoko and Kiala copper deposits, plus Kitoko copper discovery 2024 Exploration budget quadrupled to ~$90 million; exploration activities primarily focused on Western Foreland with 7 rigs drillin
Slide 20: Western Foreland: Makoko & Kiala
WESTERN FORELAND: MAKOKO & KIALA Maiden Mineral Resource released on Makoko & Kiala; 30.0 4.0 Contained Copper in Resources (Mt) world’s fourth-largest copper discovery in past decade Contained, M&I Copper Grade in Resources (%) 25.0 Contained, Inferred Makoko Indicated Mineral Resource of 16Mt at 3
Slide 21: Western Foreland: Kitoko Discovery
WESTERN FORELAND: KITOKO DISCOVERY Kitoko is Ivanhoe’s fifth high-grade Core from Kitoko discovery hole DD008, highlighting two sedimentary copper discovery in the DRC layers of high-grade mineralization Discovery hole of 5.2 metres at 11.6% copper; 2 km strike delineated so far and open in all dire
Slide 22: Platreef
Platreef Phase 1 800ktpa concentrator construction site, with Shaft #1 and Shaft #2 in the background PLATREEF World’s largest precious metals development project 22
Slide 23: Platreef: World's Largest Undeveloped Precious Metals Project
PLATREEF: WORLD’S LARGEST UNDEVELOPED PRECIOUS METALS PROJECT Multi-generational resource with significant exploration upside World’s best PGM project: highest margin and lowest cash costs Industry disruptor – safe, mechanized and highly productive mining Target to become the largest PGM mine; phase
Slide 24: Platreef: What Makes the Flatreef Unique?
PLATREEF: WHAT MAKES THE FLATREEF UNIQUE? 29 meters By way of visual comparison Khomanani Mine, Rustenburg Shaft 1 headframe, Platreef Deposit Merensky Reef / UG2 Flatreef(1) Bushveld Location Western / Eastern Limb Northern Limb Underground: narrow-reef, manual, Underground: efficient mechanised, M
Slide 25: Platreef: Shaft 2 Construction
PLATREEF: SHAFT 2 CONSTRUCTION Construction of Shaft #2 headgear 50% complete, installation of 1,124 tonnes of internal structural steel inside Shaft #2’s headgear advancing well Production winder and the main and material winder expected to be delivered in early Q3 2024 Reaming to initial diameter
Slide 26: Platreef: Optimized and Accelerated Phase 2
PLATREEF: OPTIMIZED AND ACCELERATED PHASE 2 Optimized Platreef development plan to accelerate and re-scope Phase 2 to 4 Mtpa capacity by equipping Shaft #3 for hoisting Reaming Shaft #3 to 5.1m diametre commenced in 2023. Shaft #3 scheduled to be ready for hoisting in Q4 2025 Looking northeast over
Slide 27: 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 PEA 3PE+Au Production 2019 (Pd Eq. oz) (LoM Average) 1,600 3PE+Au Production Palladium Equivalent Production (koz) 1,400 Ni+Cu Production Ni+Cu Production 2019 (Pd Eq. oz) Platreef 1,200 2022 FS (Phase 2) 1,0
Slide 28: Platreef: Industry Leading Cash Cost
PLATREEF: INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + sustaining capital (2021), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef 2022 FS 1,400 cash cost: US$514/oz 3PE+Au 1,200 US$/3PE+Au 1,000 800 600 400 200 0 Western Limb Eastern Lim
Slide 29: Kipushi
KIPUSHI Kipushi’s 800ktpa concentrator World’s highest-grade, lowest-carbon major zinc mine construction site, with Shaft P5 in the background
Slide 30: Kipushi: Historic, Ultra-High-Grade Zinc Deposit
KIPUSHI: HISTORIC, ULTRA-HIGH-GRADE ZINC DEPOSIT World’s top 10 major zinc mines (ranked by 2020 production) Brownfield, ultra-high-grade zinc mine with significant, rehabilitated 600 35 underground infrastructure Contained Zinc Production (kt) Contained zinc production (kt) 500 30 Ore milled head g
Slide 31: Kipushi: Ahead of Schedule for Q2 2024
KIPUSHI: AHEAD OF SCHEDULE FOR Q2 2024 New 800ktpa concentrator approximately 85% complete, expected in Q2 2024 200 kt of pre-development ore stockpiled at a grade of 20% zinc, which will be used for Aerial view of the Kipushi concentrator commissioning construction site 31
Slide 32: Kipushi: Strategic Partnership with Gecamines
KIPUSHI: STRATEGIC PARTNERSHIP WITH GECAMINES Agreement advancing for a new commercial DRC-Zambia border-crossing at Kipushi New border will benefit both the Kipushi Mine and Kamoa-Kakula as an additional route for exporting products from DRC Trucks fully-loaded with concentrate preparing to leave f
Slide 33: Investment highlights summary
29 Cu Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with 2024 production guidance mines with low costs, low management team with an partners CITIC and Zijin cash & cash equivalents of of 440kt to 490kt of copper capital intensity and established tra
Slide 34: Strong Balance Sheet Supports Growth Projects
STRONG BALANCE SHEET SUPPORTS GROWTH PROJECTS (Figures shown on 100% basis, US$ millions) 2024 FY Capex Ivanhoe Mines cash and cash Capital Expenditure Funding Arrangements equivalents of $574 million Guidance Kamoa-Kakula JV cash flow generation Phase 3, smelter & $1,540 - $1,940 and working capita
Slide 35: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE Dec 31, 2023 Shareholder Loan Balances ($ million) Kamoa-Kakula (39.6% equity interest) Total shareholder loans payable by Kamoa Holding $3,500 Ivanhoe will receive Portion of shareholder loan receivable by Ivanhoe $1,732 distributions (once Percentage o