Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (October 2018)
57 slides from Ivanhoe Mines Ltd. Class A's investor presentation, Oct 31, 2018
Slide 1: Ivanhoe Mines Corporate Presentation October 2018
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Slide 2: Forward-looking statements & Qualified Person
Forward-looking statements & Qualified Person Certain statements in presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, the timing and results of: (i) statements regarding the ongoing d
Slide 3: Kamoa-Kakula, Platreef, Kipushi
KAMOA-KAKULA Initial development of two mining areas on world’s 4th-largest copper discovery Democratic Republic of Congo’s Central African Copperbelt PLATREEF KIPUSHI Ultra-high-grade Mine projected to be historic mine being Africa’s lowest-cost producer upgraded to produce of platinum-group metals
Slide 4: Strategic equity investment by CITIC Metal
September 19, 2018: Completion of a major strategic equity investment totalling C$723 million (approximately US$556 million) in Ivanhoe Mines by CITIC Metal to help advance three world-scale mine-development projects in Southern Africa. Ivanhoe Mines’ Executive Co-Chairman Robert Friedland (above, m
Slide 5: Key elements of Ivanhoe–CITIC strategic cooperation agreement
Key elements of Ivanhoe – CITIC long-term strategic cooperation and investment agreement • CITIC Metal invested C$723 million (US$556 million), at C$3.68 per share. • Zijin Mining exercised its anti-dilution rights at same price to raise an additional C$78 million (US$60 million). • Ivanhoe will use
Slide 6: More than 15 years of relationship with CITIC
A culmination of more than 15 years of a long-lasting and trust-based relationship with CITIC “We are confident that the CITIC Metal Group has the experience, financial resources – and a shared commitment to our objectives – to greatly assist us as we advance our projects to production.” In April 20
Slide 7: Platreef discovery & mine development
Platreef discovery & mine development South Africa
Slide 8: Platreef Shaft 1 reached top of Flatreef Deposit
September 26, 2018: Platreef’s Shaft 1 reached the top of the high-grade Flatreef Deposit at a depth of 780 metres below surface. Shaft 1 is expected to reach its projected, final depth of 980 metres below surface in early 2020. Development work focused on initial production by early 2022. 8
Slide 9: First underground mining intersection of Platreef
September 26, 2018: First underground mining intersection of the Platreef mineralized belt on the Northern Limb of South Africa’s Bushveld Complex. The first ore from the underground mine development was delivered to a surface stockpile for metallurgical sampling. 9
Slide 10: Completed 750-metre station on Shaft 1
Completed 750-metre station on Shaft 1 will provide initial, underground access to the high-grade Flatreef orebody 10
Slide 11: Platreef underground team from local communities
Platreef’s underground mine development team includes three members from local communities (from left): Nkone Madubana, Learner Sinker; Katlego Nkwana, Learner Sinker; and Caroline Dzivhani, Geologist – who recently became fully certified underground miners 11
Slide 12: Platreef Shaft 2 box cut
Platreef’s Shaft 2 box cut, with Shaft 1 headframe in the background 12
Slide 13: Shaft 2 box cut and hitch construction schedule
Construction of the box cut and hitch (foundation) for Shaft 2 is scheduled to be completed in January 2019 13
Slide 14: Shaft 2 concrete headframe perspectives
Two cut-away perspectives of Shaft 2’s 103-metre-tall concrete headframe and internal permanent hoisting facilities. 14
Slide 15: Definitive feasibility study issued for Platreef
July 31, 2017: Definitive feasibility study issued for Platreef Project First phase envisages annual throughput rate of four million tonnes of ore per year, producing 476,000 ounces of platinum, palladium, rhodium and gold (3PE+Au), plus 33 million pounds of nickel and copper. Projected to be Af
Slide 16: Platreef at the bottom of the cash-cost curve
Platreef’s potential US$351 per 3PE+Au ounce (net of base-metal by-products) at the bottom of the world’s cash-cost curve $1,600 $1,400 $1,200 Ivanhoe’s Platreef Project at the bottom $1,000 of the cash-cost curve. $800 $600 $400 $200 $0 3PE+Au oz production Platreef 4Mtpa FS Northern limb Zimbabwe
Slide 17: Platreef would be the world's largest PGM mine
At 12 million tonnes of ore per year, Platreef would be the world’s largest platinum-group metals mine 1,400 Platreef Phase 3 (12 Mtpa) Ni + Cu + Cr production (eq. Pt oz) 1,200 Ir + Ru production (eq. Pt oz) 1,000 Platreef Phase 2 (8 Mtpa) 4E production (eq. Pt oz) 800 Platreef Phase 1 (4 Mtpa) 600
Slide 18: Platreef's B-BBEE partnership
Platreef's B-BBEE partnership a top performer in South Africa’s platinum sector Platreef 26% ownership stake by Black Economic Empowerment (BBE) partners is one of the broadest empowerment transactions ever settled in South African mining. • 20% held by a trust to benefit 20 local host communities,
Slide 19: Strong and supportive strategic partners
Strong and supportive strategic partners Members of Itochu’s management team visit Platreef in August 2018. 19
Slide 20: Kamoa & Kakula: Development of two mining areas; ongoing exploration
Kamoa & Kakula: Development of two mining areas; ongoing exploration Democratic Republic of Congo
Slide 21: New resource estimate: world's fourth-largest copper discovery
February 2018: A new resource estimate established Kamoa-Kakula as the world’s fourth-largest copper discovery. Copper grades at the two adjacent deposits are the highest, by a wide margin, of the world’s top 10 copper deposits. 21
Slide 22: Indicated Mineral Resources, Kamoa-Kakula Project, February 2018
Indicated Mineral Resources, Kamoa-Kakula Project, February 2018 Cut-off Contained Contained Tonnes Area Copper Category Grade Copper Copper (millions) (Sq. km) Grade (Cu%) (kTonnes) (billion lbs) Indicated 3.0 396 33.2 4.79% 19,000 41.8 Indicated 2.5 535 44.0 4.25% 22,800 50.2 Indicated 2.0 780 53.
Slide 23: Kamoa, Kakula and Kakula West
Kamoa, Kakula and Kakula West Indicated and Inferred Mineral Resource areas, with existing power and rail infrastructure 23
Slide 24: Among the world's largest copper deposits with highest grades
Among the world’s largest copper deposits, Kamoa-Kakula also has the highest copper grades Measured & Indicated Resource and Grade Inferred Resource and Grade 150 3.0% Contained Copper (Mt) 125 2.5% Copper Grade (%) 100 2.0% 75 1.5% 50 1.0% 25 0.5% - - Source: Wood Mackenzie *Note: Selected based on
Slide 25: Largest undeveloped copper deposit in the world
Kamoa-Kakula is the largest undeveloped copper deposit in the world 45 Measured & Indicated Resource and Grade Inferred Resource and Grade 3.0% 40 Contained Copper (Mt) 2.5% 35 Copper Grade (%) 30 2.0% 25 1.5% 20 15 1.0% 10 0.5% 5 - - Source: Wood Mackenzie *Note: Contained copper in undeveloped dep
Slide 26: Kakula and Kakula West discovery areas grades
Kakula and Kakula West discovery areas showing grades of Indicated and Inferred Mineral Resource blocks at a 3% copper cut-off Kakula declines Kakula box cut 26
Slide 27: Kakula mine development site
Kakula mine development site, showing surface infrastructure and the portals for the twin declines to access the high-grade copper orebody. More than 2,700 metres – approximately 75% of the scheduled 3,600-metre decline development contract – have been completed 27
Slide 28: Exploration drilling at Kakula West
Exploration drilling is continuing to extend the northwestern limits of the Kakula West discovery 28
Slide 29: Exploration drilling at Kamoa North
Exploration drilling at the Kamoa North area testing the extent of a new zone of copper mineralization Kamoa North was identified in 2017 by the Kamoa-Kakula geology team as one of nine high-priority targets located in the untested areas of the Kamoa-Kakula Project. 29
Slide 30: Kakula North exploration drilling core
Extracting mineralized core from Kakula North exploration drilling 30
Slide 31: Development options
Development options Up to three mines, each 6 million tonnes a year, with central concentrator! That would be 18 million tonnes of ore each year! 1. Kakula mining area − being fast-tracked to production with capacity of 6 million tonnes of ore per year (Mtpa). 2. Kansoko mining area (at Kamoa) − dev
Slide 32: Underground development completed at Kakula
October 2018: More than 2,700 metres of underground development now have been completed at Kakula 32
Slide 33: Kamoa-Kakula PEA long-term development plan
Kamoa-Kakula PEA long-term development plan Source: OreWin 2017 33
Slide 34: 2025 top producing mines by paid copper production
2025 top 20 producing mines by paid copper production Paid Copper Production (ktpa) Note: Kamoa-Kakula production based on projected peak copper production (which occurs in year nine) of the 12 Mtpa development plan for the Kamoa-Kakula Project as detailed in the Kakula 2017 PEA. Source: Wood Macken
Slide 35: Top 10 largest new greenfield projects
Top 10 largest new greenfield projects (Nominal production and head grade) First tenyears’ First 10 years average grade average grade 400 7.0% 350 6.0% 300 5.0% 250 4.0% 200 3.0% 150 100 2.0% 50 1.0% -- -- Nominal Production (kt/a) Copper Resource Grade (%Cu) Note: Top 10 largest new greenfield copp
Slide 36: High-grade drill core from Kakula
High-grade drill core containing massive chalcocite (copper mineralization) from a new drill hole at Kakula Above: Recent Kakula drill core showing massive chalcopyrite mineralization within a carbonate vein. Below: Massive and bedded chalcocite within siltstone. 36
Slide 37: Ecolivelihood vegetable garden
Fabrice Mazeze with fresh tomatoes produced in the Ecolivelihood vegetable garden. The initiative is part of Kamoa-Kakula’s program to support and expand food production in nearby communities 37
Slide 38: Mwadingusha hydroelectric plant upgrade
Mwadingusha hydroelectric plant upgrade Mwadingusha is the first of three hydroelectric power plants in the DRC being upgraded by Ivanhoe, Zijin and SNEL to secure a supply of clean, sustainable electricity for the development of Kamoa-Kakula. Its output has tripled, to 32 megawatts (MW), and sh
Slide 39: Makoko Copper Discovery on Western Foreland
October 1, 2018: Ivanhoe announces the Makoko Copper Discovery on its 100%-owned Western Foreland licences Ivanhoe’s third Selected drill holes at the Makoko Discovery: major copper discovery in the DRC. The licence area remains open. Makoko’s high- grade copper shows characteristics identical t
Slide 40: Selected Makoko drill holes
October 1, 2018: Ivanhoe announces the Makoko Copper Discovery on its 100%-owned Western Foreland exploration licences Selected drill holes at the Makoko Discovery include (at a 2% copper cut-off): • DD010 intersected 3.21 metres (true width) of 6.78% copper, from a downhole depth of 441 metres. • D
Slide 41: Western Foreland
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Slide 42: Makoko shows characteristics identical to Kamoa-Kakula
Makoko high-grade copper shows characteristics identical to tier-one Kamoa-Kakula Discoveries Western Foreland 42
Slide 43: Makoko drilled area remains open
Makoko has been drilled over an area measuring 4.5 kilometres by 1.5 kilometres and remains open Western Foreland 43
Slide 44: Makoko selected mineralized zones copper grade
Makoko Discovery’s selected mineralized zones (SMZ) copper grade at a 2% copper cut-off and 3-metre minimum width Western Foreland 44
Slide 45: Western Foreland
Western Foreland A drill rig in action on the Makoko exploration area on a portion of Ivanhoe's 100%-owned Western Foreland licences. Makoko is approximately 20 kilometres west of the Kakula copper discovery. 45
Slide 46: Ongoing exploration drilling on other targets
Ongoing exploration drilling on other targets identified in the Western Foreland area to test for high-grade copper Western Foreland 46
Slide 47: Kipushi Mine development & upgrading for a new era
Kipushi Mine development & upgrading for a new era Democratic Republic of Congo
Slide 48: Kipushi Fault Zone and Big Zinc
Kipushi Fault Zone was mined 1924-1993 to approx. 1,150-metre level. Big Zinc discovered prior to 1993 closure; never mined. 48
Slide 49: Kipushi pre-feasibility study
December 13, 2017: Ivanhoe announced a pre-feasibility study for the rebirth of the historic Kipushi zinc-copper-silver-germanium mine The planned return to production would establish Kipushi as the world’s highest-grade major zinc mine. 49
Slide 50: Underground upgrading nearing completion at Kipushi
Underground upgrading nearing completion at Kipushi 50
Slide 51: Primary rock crusher ready for commissioning
Primary rock crusher 1,150 metres underground, ready for commissioning 51
Slide 52: Steel cable installation on Shaft 5 rock winder
KICO employees installing new, high-strength steel cable on Shaft 5’s rock winder that will be used to hoist broken rock from underground mining activities 52
Slide 53: Feed chute below ore silos
Kipushi employee at the feed chute, below one of the two ore silos, that will control the rate that crushed ore is fed onto the conveyor belt on the 1,200-metre level 53
Slide 54: Rock winder carrying frame installation
Kipushi employees installing wheels onto a carrying frame, or bridle, for Kipushi’s underground rock winder, prior to it being lowered down Shaft 5 54
Slide 55: New rock winder fully roped-up
Installing steel cable for the new rock winder. The rock winder now is fully “roped-up”, with the head and tail ropes successfully installed and both rock skips slung into their new carrying frames, or bridles 55
Slide 56: Artisanal miner training at Kipushi
Trainees from the DRC’s National Institute for Professional Training (INPP) for artisanal miners. The Kipushi Project is sponsoring training courses for the artisanal miners in plumbing, electricity and welding 56
Slide 57: Thank you
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