Ivanhoe Mines (IVN) Q4 2024 earnings summary

Executive summary

• Achieved record copper production of 437,147 tonnes in 2024, up 11% year-over-year, with Kamoa-Kakula Phase 3 expansion delivered ahead of schedule and new mining footprints.

• Africa's largest copper smelter at Kamoa-Kakula completed, ramp-up deferred to Q2 2025 due to power constraints, expected to reduce costs and improve margins.

• Kipushi mine achieved commercial zinc production in Q4 2024 after a 30-year hiatus, producing 50,307 tonnes of zinc, with ramp-up ongoing and targeting major output in 2025.

• Platreef Phase 2 & 3 studies confirm pathway to become a world-scale, lowest-cost PGM, nickel, and copper producer, with Phase 1 production expected Q4 2025.

• Record year of exploration in Western Forelands, Angola, and Kazakhstan, expanding Kitoko and Makoko West discoveries.

Financial highlights

• Kamoa-Kakula generated $3.11 billion in revenue and $1.81 billion EBITDA in 2024, with a 58% margin and realized copper price of $4.09/lb.

• Group-level adjusted EBITDA reached a record $625 million; normalized profit for 2024 was $386 million, flat year-over-year due to higher exploration spend.

• Kipushi recognized $41 million revenue and $4 million EBITDA in Q4 2024, with C1 cash cost of $1.13/lb.

• Over $5.5 billion EBITDA and $4.7 billion operating cash flow generated at Kamoa-Kakula in 3.5 years.

• Cash and cash equivalents at year-end were $117 million, excluding $750 million from a subsequent notes issue.

Outlook and guidance

• 2025 copper production guidance: 520,000–580,000 tonnes; targeting ~600,000 tonnes from 2026 after optimizations and power upgrades.

• 2025 zinc production guidance: 180,000–240,000 tonnes; aiming for 250,000+ tonnes from 2026.

• 2025 C1 cash cost guidance for copper: $1.65–$1.85/lb, expected to decrease as smelter and power projects ramp up.

• Kipushi 2025 zinc cash cost guidance: $0.90–$1.00/lb.

• Platreef Phase 1 to start in Q4 2025, Phase 2 in Q4 2027, and Phase 3 expansion from 2030.