Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Denver Gold Conference 2019
25 slides from Ivanhoe Mines Ltd. Class A's conference presentation, September 2019
Slide 1: Denver Gold Conference
Denver Gold Conference September 2019
Slide 2: Forward-looking statements & Qualified Person
Forward-looking statements & Qualified Person This presentation has been prepared solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction o
Slide 3: Ivanhoe at a glance
Ivanhoe at a glance Investment Highlights Corporate Information TSX: IVN Cu Zn Exposure to three disruptive world-class projects in Listings OTCQX: IVPAF PGM their respective commodities: copper, zinc and PGMs Share Price US$2.94 / share(1) Exposure to significant growth in reserves and Market Cap U
Slide 4: Ivanhoe corporate structure
Ivanhoe corporate structure 29.4% 9.8% Robert Friedland 14.3% 12.8% 64% 39.5% 100%(1) 68% PLATREEF KAMOA-KAKULA WESTERN FORELAND KIPUSHI 26% 9.9% 39.5% 20% 1% 32% BEE Japanese Government Crystal Consortium led Gécamines Partners by Itochu of DRC(2) River PGMs, Nickel, Copper Copper Copper Zinc, Germ
Slide 5: Platreef: The world's largest undeveloped precious metal deposit
Platreef: The world’s largest undeveloped precious metal deposit Large, High-Grade Deposit • 346Mt M&I Resources at 3.77 g/t 3PE+Au, and 506Mt Inferred Resources at 3.24g/t 3PE+Au, with significant base metal endowment: >0.3% Ni and >0.15% Cu on average • Significant exploration upside; deposit open
Slide 6: Bushveld Complex
Bushveld Complex The Bushveld Complex produces ~70% of global platinum PLATREEF DISCOVERY Mogalakwena Mine Mokopane Amplats Impala PTM Lonmin Other Town / City Smelter / refinery Source: Company filings, Wood Mackenzie. 6
Slide 7: Platreef: Asset overview
Platreef: Asset overview Location Map Mineral Reserves and Resources Platreef Tonnage and Grades Amplats’ Mines Mt 3PE+Au (g/t) Cu (%) Ni (%) Ivanhoe Mines Probable Mineral Reserves Ivanhoe Mines JV Total 125 4.40 0.17 0.34 South Indicated Mineral Resources (inclusive of Reserves) City Africa 3.0 g/
Slide 8: Potential to significantly add to Platreef's resources
Potential to significantly add to Platreef’s resources Open to expansion to the Shaft 1 south and west, beyond the area of the current Indicated Resources (in green) and Inferred Resources (in blue). Four target areas contain an estimated 245 – 410 million tonnes. Approximately 48km2 of unexplored g
Slide 9: Underground development at Platreef
Underground development at Platreef 750-metre and 850-metre stations on Shaft 1 will provide Members of Platreef’s underground mining team using a “cactus underground access to the high-grade “Flatreef” orebody grab” mucker to excavate rock from the bottom of Shaft 1 This type of underground mining
Slide 10: Platreef positioned to become a leading PGM producer
Platreef positioned to become a leading PGM producer Expected To Be Largest Primary PGM Producer (1) Pt Equivalent Production (kozpa) 1,400 Phase 3 Big! 3PE+Au Production (Pt Eq.) 1,200 (12Mtpa) 1,000 Phase 2 Ni+Cu+Cr Production (Pt Eq.) 800 (8Mtpa) Phase 1 600 (4Mtpa) 400 200 - Zimplats BRPM Lac de
Slide 11: Platreef: Strong returns and very long life
Platreef: Strong returns and very long life Highly Significant Production Scale Minimal First Quartile Cash Costs Preliminary Economic Assessment(1) Feasibility Study(2) 14.9% IRR 14.2% IRR US$2.2 billion After-Tax NPV US$916 million After-Tax NPV • $1.85 billion peak funding capex • $1.5 billion pe
Slide 12: Platreef in-situ value of reserves
Platreef in-situ value of reserves Platreef Revenue Per Tonne of Probable Reserves (US$/t ore) Platreef Revenue Per Tonne of Probable Reserves (ZAR/t ore) $240 3,000 July 31, 2017: Definitive Feasibility Study July 31, 2017: Definitive Feasibility Study $200 2,500 $160 2,000 $120 1,500 $80 Total Cas
Slide 13: Kamoa-Kakula: World's largest high-grade copper discovery
Kamoa-Kakula: World’s largest high-grade copper discovery Unrivalled Resource Base • World’s largest, high-grade undeveloped copper deposits with 36.6 Mt (Ind.) + 5.6 Mt (Inf.) of contained Cu (1) • Mineral reserves of 6.6 Mt of contained Cu at an average grade of 5.48% Cu(2) • Open down dip and alo
Slide 14: Kamoa-Kakula: Asset overview
Kamoa-Kakula: Asset overview Mineral Reserves & Resources Kamoa-Kakula Project Area Cu Category Mt Cu % Cu Mt Bnlb Probable (Kakula) 120 5.48 14.5 6.6 Probable (Kamoa) 125 3.81 10.5 4.7 Total Reserves 245 4.63 25.0 11.3 Indicated (Kakula) 628 2.72 37.6 17.1 Indicated (Kamoa) 759 2.57 43.0 19.5 M&I R
Slide 15: Kamoa-Kakula: In Construction
KAKULA MINE Mine geologists Paul Arscott and Micheline Kamoa-Kakula: In Construction Kyenge at the face of the high-grade ore (+4%) of one of the development drifts at the Kakula Mine, highlighting the massive size of the underground workings, ideal for large-scale mechanized mining operations. 15
Slide 16: Kamoa-Kakula Integrated Development Plan
Kamoa-Kakula Integrated Development Plan Once Fully Expanded, Kamoa-Kakula Will Become the World’s Second Largest Copper Mine -2 -1 1 2 3 4 25 16
Slide 17: Kamoa-Kakula: The world's next great copper mine
Kamoa-Kakula: The world’s next great copper mine One of the World’s Largest Copper Mines(1) The World’s Largest High-Grade Copper Deposit(2) Measured & Indicated Resource and Grade Inferred Resource and Grade Paid Copper Production (ktpa) 1,200 150 3.0% Contained Copper (Mt) Big! Very High Grade! Co
Slide 18: Kamoa-Kakula: Outstanding financial returns
Kamoa-Kakula: Outstanding financial returns Large Resource Very High Grade Low Cost Low Capital Intensity Phase 1(1) Phase 2,3(2) 47% IRR 41% IRR US$5.4 billion After-Tax NPV US$10.0 billion After-Tax NPV • $1.1 billion peak funding capex • $1.1 billion peak funding capex • 18 Mt per year steady sta
Slide 19: Exploration & Western Foreland
Exploration & Western Foreland Offers Significant Upside to The Quality and Economics of Our Copper Assets Significant exploration potential remains on both our Kamoa-Kakula joint venture, and 100%(1) owned Western Foreland ground Significant potential for mineralization continuing from JV groun
Slide 20: Exploration & Western Foreland
Exploration & Western Foreland Significant recent drilling intercepts (at the 3%, 2% and 1% copper cut-off) from Kamoa North Bonanza Zone DD1450 intersected 22.3 meters of 13.05% copper DD1486 intersected 16.70 metres of 15.84% copper DD1494 intersected 13.15 metres of 22 m@13.1% 9.88% copper
Slide 21: We are finding more bonanza-grade ore as our knowledge of the deposit increases
We are finding more bonanza-grade ore as our knowledge of the deposit increases Kansoko Kakula Kamoa North 1% cutoff 2% cutoff 3% cutoff 2% cutoff 1% cutoff 3% cutoff 2% cutoff 3% cutoff 2% cutoff 1% cutoff 3% cutoff 2% cutoff 1% R4.2 contact R4.2 contact R4.2 contact R4.2 contact 35.3m @ 11.0% Cu 9
Slide 22: Environment for Return Toward Peak Cycle Valuations
Environment for Return Toward Peak Cycle Valuations Valuation of Mining Majors – Peak Cycle Value (2011) vs. Today Market Cap. (US$bn) / Growth to Peak (%) $269 $154 $73 $57 $38 $25 121% 70% 121% 281% 263% 127% $91 $122 $33 $11 $15 $11 Peak Cycle Today Peak Cycle Today Peak Cycle Today Peak Cycle To
Slide 23: Ivanhoe Mines value proposition
Ivanhoe Mines value proposition Three large world-class mines, that are highlighted by low costs and low capital intensity – all three mines will be best of class! Strong experienced management team with an unrivalled track record of success, poised to grow Ivanhoe into the next world-class mining c
Slide 24: Year-to-date price change
Year-to-date price change (Jan 1 to Sep 13, 2019) Ivanhoe Mines (IVN:TSX) +63.71% Rhodium (Rd spot) +103.25% Nickel (Ni LME 3mth) +68.28% Palladium (Pd NYM) +39.63% Platinum (Pt spot) +19.29% Gold (Au Spot) +16.05% Silver (Ag Spot) +12.76% Copper (Cu CMX) +1.98% 24
Slide 25: Ivanhoe Mines invites you to attend one of the following site visits
Ivanhoe Mines invites you to attend one of the following site visits: October 25-28, 2019 November 22-25, 2019 February 2020 (Indaba) April 2020 May 2020