Ivanhoe Mines (IVN) Q3 2024 earnings summary

Executive summary

• Achieved record copper production and revenue at Kamoa-Kakula in Q3 2024, with Phase 3 concentrator ramp-up complete and nameplate capacity reached in early Q4; copper production capacity increased to 600,000 tonnes per annum.

• Net profit for Q3 2024 was $108 million, driven by Kamoa-Kakula JV profit and finance income, flat year-over-year but up from $67 million in Q2 2024.

• Smelter construction is over 94% complete, targeting mechanical completion by year-end and first feed in Q1 2025.

• Kipushi zinc mine ramped up, producing 17,817 tonnes of zinc in Q3 2024; recoveries now above 90%, with nameplate capacity targeted for Q1 2025.

• Platreef Phase 1 concentrator completed, with first ore expected H2 2025; feasibility updates for Phases 2 and 3 due in Q1 2025.

Financial highlights

• Kamoa-Kakula produced 116,313 tonnes of copper in Q3 2024, with revenue of $837 million and EBITDA of $470 million (57% margin).

• Ivanhoe recognized a Q3 profit of $108 million and normalized profit of $112 million; adjusted EBITDA was $160 million.

• C1 cash cost was $1.69/lb in Q3 2024, with year-to-date average at $1.60/lb, within guidance.

• Cash and equivalents at quarter-end were $180 million, with additional liquidity from a $75 million working capital facility and Platreef senior debt facility.

• Kamoa-Kakula cost of sales: $1.80/lb in Q3 2024; realized copper price: $4.16/lb (down from $4.34/lb in Q2).

Outlook and guidance

• 2024 copper production guidance revised to 425,000–450,000 tonnes due to power disruptions; C1 cash cost guidance unchanged at $1.50–$1.70/lb.

• 2025 copper production expected just below 600,000 tonnes, surpassing 600,000 tonnes in 2026 after Project 95 completion.

• Smelter commissioning and ramp-up to drive further cost and margin improvements, targeting 75% of nameplate capacity by Q3 2025.

• Kipushi 2024 zinc production guidance reduced to 50,000–70,000 tonnes due to slower ramp-up.

• Platreef Phase II expansion and feasibility study update due early 2025; first concentrate expected H2 2025.