Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (September 2018)
45 slides from Ivanhoe Mines Ltd. Class A's investor presentation, September 2018
Slide 1: Ivanhoe Mines – September 2018
IVAN N E W H=©@ September 2018
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: Completion of C$723 million 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 and investment 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: Long-lasting 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: Development work focused on initial production by early 2022
September 2018: Lateral development completed on Platreef’s first mine-access station on Shaft 1, 750 metres below surface. Shaft sinking is expected to intersect the upper contact of the Flatreef Deposit at a depth of approximately 783 metres. Development work focused on initial production by early
Slide 9: Platreef underground mine development team
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 9
Slide 10: Platreef's Shaft 2 box cut
Platreef’s Shaft 2 box cut, with Shaft 1 headframe in the background 10
Slide 11: 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 11
Slide 12: Shaft 2 concrete headframe perspectives
Two cut-away perspectives of Shaft 2’s 103-metre-tall concrete headframe and internal permanent hoisting facilities. 12
Slide 13: Definitive feasibility study issued for Platreef Project
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 14: Platreef cash cost at bottom of 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 15: Platreef would be 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 16: 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 17: Strong and supportive strategic partners
Strong and supportive strategic partners Members of Itochu’s management team visit Platreef in August 2018. 17
Slide 18: Kamoa & Kakula: Development of two mining areas; ongoing exploration
Kamoa & Kakula: Development of two mining areas; ongoing exploration Democratic Republic of Congo
Slide 19: 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. 19
Slide 20: 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 21: Kamoa, Kakula and Kakula West
Kamoa, Kakula and Kakula West Indicated and Inferred Mineral Resource areas, with existing power and rail infrastructure 21
Slide 22: Kamoa-Kakula has the highest copper grades among largest deposits
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 23: 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% Copper Grade (%) 35 30 2.0% 25 1.5% 20 15 1.0% 10 0.5% 5 - - Source: Wood Mackenzie *Note: Contained copper in undeveloped dep
Slide 24: Kakula and Kakula West discovery areas
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 24
Slide 25: Exploration drilling extending Kakula West
Exploration drilling is continuing to extend the northwestern limits of the Kakula West discovery 25
Slide 26: 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. 26
Slide 27: Extracting mineralized core from Kakula North drilling
Extracting mineralized core from Kakula North exploration drilling 27
Slide 28: 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 29: More than 2,700 metres of underground development at Kakula
September 2018: More than 2,700 metres of underground development now have been completed at Kakula 29
Slide 30: Kamoa-Kakula PEA long-term development plan
Kamoa-Kakula PEA long-term development plan Source: OreWin 2017 30
Slide 31: 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 32: 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 33: High-grade drill core with massive chalcocite at 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. 33
Slide 34: Community food production program
Agronomist Fabrice Mazeze (left) and Livelihood Technician Olivier Kahilu Shimbi with banana seedlings that will be distributed to local farmers. The initiative is part of Kamoa-Kakula’s program to support and expand successful food production activities in nearby communities. 34
Slide 35: 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 36: Western Foreland
Western Foreland A drilling rig in operation at Ivanhoe’s 100%-owned Western Foreland exploration area, located to the west of the Kamoa-Kakula Project. Ivanhoe is exploring for Kamoa-Kakula-style copper mineralization on high-priority targets identified from an airborne gravity survey and detailed
Slide 37: Kipushi Mine development & upgrading for a new era
Kipushi Mine development & upgrading for a new era Democratic Republic of Congo
Slide 38: Kipushi Fault Zone mined 1924-1993; Big Zinc
Kipushi Fault Zone was mined 1924-1993 to approx. 1,150-metre level. Big Zinc discovered prior to 1993 closure; never mined. 38
Slide 39: Pre-feasibility study for Kipushi mine
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. 39
Slide 40: Underground upgrading nearing completion at Kipushi
Underground upgrading nearing completion at Kipushi 40
Slide 41: Primary rock crusher ready for commissioning
Primary rock crusher 1,150 metres underground, ready for commissioning 41
Slide 42: Installing steel cable 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 42
Slide 43: 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 43
Slide 44: Installing wheels on underground rock winder bridle
Kipushi employees installing wheels onto a carrying frame, or bridle, for Kipushi’s underground rock winder, prior to it being lowered down Shaft 5 44
Slide 45: Thank you.
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Ivanhoe Mines — Investor Presentation (September 2018) on 6ix