Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (November 2024)
41 slides from Ivanhoe Mines Ltd. Class A's investor presentation, November 2024
Slide 1: Investor Presentation
TSX: IVN | OTCQX: IVPAF INVESTOR PRESENTATION November 2024
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER AND FORWARD-LOOKING STATEMENTS THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED OR COMMUNICATED DURING ANY PRESENTATION OR DELIVERY OF THIS PRESENTATION ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED
Slide 3: Ivanhoe at a Glance
IVANHOE AT A GLANCE CORPORATE INFORMATION TSX: IVN LISTINGS OTCQX: IVPAF SHARE PRICE C$17.71 / share(1) MARKET CAP US$16.98 billion(1) SHARES, OPTIONS, Common Shares: 1,350.9 million(2) RSUs, PSUs & DSUs Options, RSUs & DSUs: 18.8 million(2) CASH POSITION US$180 million(2) DEBT OUTSTANDING US$231 mi
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 mine OWNERSHIP: OWNERSHIP: KAMOA-KAKULA KIPUSHI Ivanhoe Mines (39.6%) Ivanhoe Mines (62%) Zijin Mining Group (39.6%) Gécamines (38%) Government of DRC (20
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 PRODUCTION H2 2025 RAMPING UP PRODUCTION GROWING PRODUCTION WESTERN FORELANDS PLATREEF KIPUSHI KAMOA-KAK
Slide 6: 2024 Year-to-Date in Summary
2024 YEAR-TO-DATE IN SUMMARY (Figures shown on 100% basis for Kamoa-Kakula, as of Q3 2024) Ramp up of Phase 3 concentrator complete, increasing 303,328 tonnes copper production capacity to 600 ktpa Copper Produced Record production and revenue at Kamoa-Kakula $2,263 million Kamoa-Kakula increased im
Slide 7: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT Joint 2nd largest global copper As the host country, and as a exporter 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 Tshisekedi, President of t
Slide 8: Shared Value Model
SHARED VALUE MODEL 20% OWNERSHIP ~7% DRC GDP CONTRIBUTION DRC government direct project shareholding Estimated for 2024 – first $98M dividend paid in 2024 $70M IN COMMUNITY SPEND total social and community development contribution to date >90% LOCAL EMPLOYMENT Over 6,000 Congolese full-time employee
Slide 9: Kamoa-Kakula
KAMOA-KAKULA The world’s fastest growing, highest grade and greenest major copper mine Kamoa-Kakula’s Phase 1 & 2 concentrators 9
Slide 10: Kamoa-Kakula Copper Complex
KAMOA-KAKULA COPPER COMPLEX World’s fastest growing, highest grade, lowest-carbon, major copper mine Contributing to DRC’s growth to become world’s 2nd largest copper exporter Mechanized underground mine; employing safe, modern mining methods World’s third largest copper mine with production capacit
Slide 11: 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,
Slide 12: Kamoa-Kakula: Quarterly Production
KAMOA-KAKULA: QUARTERLY PRODUCTION (Figures shown on 100% basis for Kamoa-Kakula) Ore tonnes milled (‘000’s tonnes) / 116,313 tonnes of copper in concentrate Copper ore grade processed (%) produced in Q3 2024; tonnes and grade 4.95% 4.80% 4.91% increased following improved stability of 4.14% power g
Slide 13: Kamoa-Kakula: Quarterly Financial Results
KAMOA-KAKULA: QUARTERLY FINANCIAL RESULTS (Figures shown on 100% basis for Kamoa-Kakula) C1 cash cost increased in Q3 2024 driven by ramp up of Phase 3 with comparatively lower head grades. Year-to-date C1 cash cost of $1.60/lb at mid-point of guidance ($1.50 - $1.70/lb). EBITDA for Q3 2024 of $470
Slide 14: High Grade Copper = Unrivaled Return on Capital
HIGH GRADE COPPER = UNRIVALED RETURN ON CAPITAL $5.0 billion of EBITDA Total EBITDA: generated since first $5.0 billion production; higher than $1,382 combined Phase 1, 2 and 3 Capex of $4.0 billion Total Capex: $4.0 billion $2,000 Expansions of Kamoa-Kakula $1,681 have been funded using cashflows g
Slide 15: Smelter Brings Transformational Benefits
SMELTER BRINGS TRANSFORMATIONAL BENEFITS ~$1 billion capital cost; over 94% complete with furnace heat-up expected in Q1 2025 500,000 tonnes of 99+% pure anode copper production annually >600,000 tonnes of by-product acid production; in high demand in the DRC Volume of shipments of copper more than
Slide 16: 2024 Cash Cost Guidance
2024 CASH COST GUIDANCE $3.50 9M 2024 C1 Cost Breakdown 2024 YTD C1 Cash Cost: $1.60/lb. Smelter $3.00 (mid-point of guidance range) Charges 16% C1 Cash Cost ($/lb.) $2.50 Mining 32% Guidance range: $2.00 $1.50 - $1.70 $1.50 2024 Guidance Up to 20% $1.00 reduction Logistics 29% Processing following
Slide 17: Kamoa-Kakula: The Greenest Major Copper Mine
KAMOA-KAKULA: THE GREENEST MAJOR COPPER MINE 2022 Scope 1, 2 & 3 copper GHG emissions intensity curve1 Kamoa-Kakula Copper Complex is the world’s 16 lowest carbon-emitting major copper mine Top 10 largest copper 14 mining operations (2022) Scope 1, 2 and 3 Emissions Intensity Scope 1, 2 and 3 carbon
Slide 18: Phase 3 Expansion in Steady State Production
PHASE 3 EXPANSION IN STEADY STATE PRODUCTION Ramp-up complete of Phase 3 concentrator; copper production capacity up to ~600 ktpa Phase 3 concentrator completed well ahead of schedule (like Phase 1 and 2) Recently achieved 19,198 daily tonnes milled – 30% above design capacity 18
Slide 19: Power Stability Initiatives in Progress
POWER STABILITY INITIATIVES IN PROGRESS Rehabilitation of Turbine 5 at Inga II hydropower nears completion – set to deliver 178 MW into the grid from 2025 Long-term DRC grid improvement projects underway, in conjunction with SNEL; completion targeted for H2 2025 Imported power increased to 65 MW dur
Slide 20: Further Growth Plans at Kamoa-Kakula
FURTHER GROWTH PLANS AT KAMOA-KAKULA Project 95 in execution: 95% ~30ktpa Cu production Maximizing Optimize Phase 3 Recoveries recovery Increase Phase 3 nominal throughput by over 20% Throughput (6.5 Mtpa) Optimization Doubling up Phase 3 concentrator targeting Phase 4 throughput over 20 Mtpa Kamoa-
Slide 21: Shipments Commence Along Lobito Corridor
SHIPMENTS COMMENCE ALONG LOBITO CORRIDOR Dar es Salaam DRC TANZANIA G7 and EU join the US investment LOBITO RAIL CORRIDOR KAMOA partnership to accelerate the 2,466 km ANGOLA development of Lobito Railway Corridor Lobito KIPUSHI Roundtrip: ~40 days Rail to Lobito 1,739 km ZAMBIA First commercial expo
Slide 22: Western Forelands Exploration Project
WESTERN FORELANDS EXPLORATION PROJECT The next great copper frontier… 22
Slide 23: Western Forelands Overview
WESTERN FORELANDS OVERVIEW Same underlying geology as Kamoa-Kakula licence area; ~5x larger than Western Forelands’ Kamoa-Kakula’s licences are 60 - 100% mining rights owned by Ivanhoe Mines Over 48 million tonnes of copper discovered by Ivanhoe geologists since 2008 – over 2x global annual mine pro
Slide 24: Makoko & Kiala Discoveries
MAKOKO & KIALA DISCOVERIES Makoko first drilled in 2018 – over 20km step-out from Kakula, with significant resource drilling in 2022-2023 Makoko Indicated Mineral Resource of 16Mt at 3.55% copper plus Inferred Mineral Resource of 154Mt at 1.97% copper (1.5% cut-off) Kiala contains Indicated Mineral
Slide 25: 2024 Exploration Work Plan: Large-Scale Drill Program
2024EXPLORATION: 2024 WORK PLAN LARGE-SCALE DRILL PROGRAM • 70,200m diamond drilling • 11 Diamond rigs • >63,000m completed YTD • 24,480m RC drilling • $37 million in direct exploration • $38 million for JV payments and licence acquisitions DRC Zambia 25
Slide 26: Kipushi
KIPUSHI World’s highest-grade, lowest-carbon major zinc mine Kipushi’s 800ktpa concentrator, with Shaft P5 in the background 26
Slide 27: Kipushi: Historic, Ultra-High-Grade Zinc Deposit
KIPUSHI: HISTORIC, ULTRA-HIGH-GRADE ZINC DEPOSIT World’s top 10 major zinc mines (ranked by 2025 production) Measured & Indicated Resource of 11.8 Mt at 35.3% zinc, plus copper, 600 40.0% lead, silver and germanium Paid Zn Production Head Grade 35.0% Paid Zn Production Kt 500 Zn Head Grade % 30.0% 4
Slide 28: Kipushi: Ramp Up in Progress
KIPUSHI: RAMP UP IN PROGRESS Ramp up of Kipushi’s concentrator continued during Q3 with 17,817 tonnes of zinc in concentrate produced 2024 production guidance of 50,000 – 70,000 tonnes of zinc in concentrate (from 100,000 – 140,000 tonnes) Concentrator’s recoveries improved to over 90%, targeting a
Slide 29: Kipushi: Optimization Initiatives Underway
KIPUSHI: OPTIMIZATION INITIATIVES UNDERWAY Work underway to install separation for fines before dense media circuit and electrical upgrades to achieve nameplate in Q1 2025 Basic engineering underway to increase concentrator’s annual throughput by 20% to 960,000 tpa in Q3 2025 First truckload of Kipu
Slide 30: Platreef
PLATREEF Platreef Phase 1 800ktpa concentrator World’s largest precious metals development project construction site, with Shaft #1 and Shaft #2 in the background 30
Slide 31: 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 32: 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 33: Platreef: Phase 1 Completed on Schedule
PLATREEF: PHASE 1 COMPLETED ON SCHEDULE Phase 1 concentrator completed on-schedule. First ore deferred until H2 2025 to prioritize hoisting of waste for Shaft #3 development and Phase 2 underground development Ivanplats’ project team celebrating the on-schedule completion of the new 770 ktpa concent
Slide 34: Platreef: Accelerated Phase 2
PLATREEF: ACCELERATED PHASE 2 Phase 1 concentrator completed on-schedule. First ore planned H2 2025 while hoisting prioritizes Shaft #3 development and Phase 2 underground development Reaming of the 5.1-meter diameter Shaft #3 complete from 950m; equipping underway Shaft #3 to increase total hoistin
Slide 35: 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 36: Key Financials
Construction site of the new static compensator (STATCOM) at the Kolwezi Converter Substation KEY FINANCIALS 36
Slide 37: Ivanhoe Mines' Adjusted EBITDA
IVANHOE MINES’ ADJUSTED EBITDA Ivanhoe Mines Adjusted EBITDA(1) (US$ million) Near-term growth initiatives over next 12 – 18 months with limited additional capex: Kamoa-Kakula ✓ Phase 3 ramp-up and de-bottlenecking ✓ Project 95 ✓ Smelter ramp-up $203 Kipushi $152 $160 $126 ✓ Commercial production $1
Slide 38: Significant Cash Flow Attributable to Ivanhoe
SIGNIFICANT CASH FLOW ATTRIBUTABLE TO IVANHOE As at Shareholder Loan Balances September 30, 2024 ($ million) Kamoa-Kakula (39.6% equity interest) Ivanhoe will receive distributions (once payable) in Total shareholder loans payable by Kamoa Holding $3,845 excess of its ownership Portion of shareholde
Slide 39: Strong Balance Sheet Supports Ivanhoe's Growth
STRONG BALANCE SHEET SUPPORTS IVANHOE’S GROWTH (Figures shown on 100% basis, US$ millions) YTD 2024 2024 2025 $900 million in Kamoa-Kakula joint-venture Capital Expenditure Actual Guidance Guidance term loans and working capital facilities, with additional advance payment facilities Kamoa-Kakula und
Slide 40: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW Ivanhoe Mines Ltd (British Columbia) Cash $180.0m Debt $19.0m Consolidate Debt $230.8 100% Ivanhoe Mines US LLC (Delaware) Debt $0.0m 97% 49.5% 100% 100% Ivanplats Holding SARL Kamoa Holding Limited Kipushi Holding Limited Exploration HoldCo's (Luxembourg) (Barbados) (Barb
Slide 41: Three long-life, world-class Robust, experienced Committed support from key Strong balance sheet with 2024
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 425kt to 450kt of copper capital intensity and established tra
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