Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — BMO Capital Markets 30th Global Metals & Mining Conference 2021
33 slides from Ivanhoe Mines Ltd. Class A's conference presentation, March 2021
Slide 1: BMO Capital Markets 30th Global Metals & Mining Conference
BMO CAPITAL MARKETS 30TH GLOBAL METALS & MINING CONFERENCE MARCH 2021
Slide 2: Forward-Looking Statements and Qualified Persons
FORWARD-LOOKING STATEMENTS AND QUALIFIED PERSONS This presentation has been prepared solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transactio
Slide 3: Ivanhoe at a Glance
IVANHOE AT A GLANCE CORPORATE INFORMATION TSX: IVN LISTINGS OTCQX: IVPAF SHARE PRICE C$7.85 / share(1) MARKET CAP US$7.42 billion(1) SHARES, OPTIONS Common Shares: 1,203.8 million(2) & RSU Options and other: 31 million(2) CASH POSITION US$376 million(3) CITIC Metal 26.14% Zijin Mining 13.74% Robert
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Developing a responsible, long-life supply of critical metals for the clean-energy transition • Three disruptive, world- • Well-funded with strong • Strong partnerships with • Diverse and experienced scale projects in critical financial partners; CITIC, Zijin and ITOCHU managem
Slide 5: A Leading Explorer & Developer in Africa
A LEADING EXPLORER & DEVELOPER IN AFRICA LOCATION: KAMOA-KAKULA Central African Copperbelt; approx. 270 km west of the provincial capital, Lubumbashi, DRC OWNERSHIP: Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global (0.8%), Government of the DRC (20%) Copper WESTERN FORELAND LO
Slide 6: Ivanhoe Will Produce Green Metals
IVANHOE WILL PRODUCE GREEN METALS HYDROPOWER SMALL FOOTPRINT LOW IMPACT GREEN METAL Water efficiency; powered by clean, Underground Majority of tailings Ultra high grades; green hydro-electricity; Low water mines with limited returned underground; consumption per ounce of 4PE renewable power; surfac
Slide 7: Kamoa-Kakula: Tier-One Carbon Footprint
KAMOA-KAKULA: TIER-ONE CARBON FOOTPRINT Kamoa-Kakula 0.16t CO2e/t Cu Benchmarked Mines 0.19t 2.8t CO2e/t Cu CO2e/t Cu Emissions per tonne in copper concentrate 1. Based on the publicly-available information, not independently verified by Hatch. Hatch has relied on Feasibility Study data provided by
Slide 8: Kakula on Track for Production July 2021
KAKULA ON TRACK FOR PRODUCTION JULY 2021 Kamoa-Kakula Copper Project mines and Ivanhoe Mines plans stockpiles 269,000 expansive copper tonnes of ore from the exploration program on Kakula and Kansoko its 100%-owned Western Kamoa-Kakula secures mines in December, at Foreland licenses US$420 million i
Slide 9: Kamoa-Kakula: Unrivalled Resource Base
UNRIVALLED RESOURCE BASE • World’s largest, high-grade undeveloped copper deposits with 36.6 Mt KAMOA-KAKULA (Ind.) + 5.6 Mt (Inf.) of contained Cu(1) • Mineral reserves of 6.6 Mt of contained Cu at an average grade of 5.48%(2) • Open down dip and along strike – excellent exploration potential World
Slide 10: Kamoa-Kakula Is the First Major Copper Discovery
KAMOA-KAKULA IS THE FIRST MAJOR COPPER DISCOVERY WITHIN THE CENTRAL AFRICAN COPPERBELT SINCE THE EARLY 1990s Geologically distinct, yet geographically next door to the well-known Kolwezi deposits 10
Slide 11: Kamoa-Kakula Integrated Development Plan
KAMOA-KAKULA INTEGRATED DEVELOPMENT PLAN Kamoa-Kakula IDP20 envisions an integrated, 19 Mtpa mining, processing and smelting complex, built in three stages 11
Slide 12: Kamoa-Kakula: Integrated Development Plan
KAMOA-KAKULA: INTEGRATED DEVELOPMENT PLAN Kamoa-Kakula: On Track Become the World’s Second Largest Copper Mine Phase 5 (Full Processing Capacity) 19.0 Phase 4 15.2 Kakula West Mine Milled (Mtpa) 11.4 Phase 3 Kamoa North Kansoko Mine Mines 7.6 Phase 2 (7.6 Mtpa) Q1 2023 Phase 1 (3.8 Mtpa) Q3 2021 3.8
Slide 13: Key Highlights: DFS, PFS and PEA
KEYHIGHLIGHTS: KEY HIGHLIGHTS: Shown on 100%-basis Kakula DFS Kakula-Kansoko Kamoa-Kakula SEPTEMBER SEPTEMBER 2020 2020 in US dollars PFS PEA DFS, DFS,PFS PFSAND ANDPEA Annual Production 6 Mt 7.6 Mt 19 Mt (5 x 3.8Mt) PEA Mill Feed Grade (1) 6.2% 5.9% 5.1% Copper Metal Produced (1) 284 ktpa 331 ktpa
Slide 14: Phase 2: US$420 Million in Project-Level Credit Facilities
PHASE 2: US$420 Million in project-level credit facilities • US$211-million equipment • US$200-million line of financing facility; credit from Zijin • Provided by leading Mining; international lenders, the Swedish Export Credit • Secured by pre- Corporation (SEK) and production ore Standard Bank. st
Slide 15: Kakula Construction Gallery
KAKULA CONSTRUCTION GALLERY 15
Slide 16: Kamoa-Kakula – Among the World's Largest Copper Mines
KAMOA-KAKULA – AMONG THE WORLD’S LARGEST COPPER MINES (1) 1,400 1,200 Paid Copper Production (ktpa) 1,000 800 600 400 200 -- Source: Company filings, Wood Mackenzie. 1. Kamoa-Kakula 2020 PEA production based on projected peak copper production (which occurs in year 8) of the 19 Mtpa alternative deve
Slide 17: Kakula – First Quartile Mine Site Cash Cost
KAKULA – FIRST QUARTILE MINE SITE CASH COST (1) $4.00 2020 Mine Site Cash Costs (US$/lb) $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Kakula (First Ten Years): $0.52/lb -- -- 20% 40% 60% 80% 100% Source: Company filings, Wood Mackenzie. 1. Represents Wood Mackenzie mine site cash costs. Kakula is based
Slide 18: Kakula-Kansoko – Lowest Capital Intensity
KAKULA-KANSOKO – LOWEST CAPITAL INTENSITY (1) 30,000 US$ / tpa Copper Eq. Production Brownfield Greenfield 25,000 20,000 15,000 10,000 5,000 -- Source: Company filings, Wood Mackenzie. 1. Recently approved, probable and possible projects with nominal copper production capacity in excess of 200 kt/a.
Slide 19: Finding More Bonanza-Grade Ore as Geological Knowledge Increases
FINDING MORE BONANZA-GRADE ORE AS GEOLOGICAL KNOWLEDGE INCREASES Kansoko Kakula Kamoa North 1% cutoff 2% cutoff 3% cutoff 2% cutoff 1% cutoff 3% cutoff 2% cutoff 3% cutoff 2% cutoff 1% cutoff 3% cutoff 2% cutoff 1% R4.2 contact R4.2 contact R4.2 contact R4.2 contact 35.3m @ 11.0% Cu 9.0m @ 4.83% Cu
Slide 20: Kamoa-Kakula in Summary
KAMOA-KAKULA IN SUMMARY Fully funded to first copper production in less than six months TIER Among the largest and lowest cost copper mines in the ONE world Unparalleled financial returns for all stakeholders in a major mining project Significant expansions planned to 19 Mtpa production rate, funded
Slide 21: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER Offers Significant Upside to The Quality and Economics of Our Copper Assets • Significant exploration potential remains on both our Kamoa-Kakula joint venture, and 100%(1) owned Western Foreland ground • Significant potential for mineralization contin
Slide 22: Western Foreland: Initial 2021 Copper Exploration Program
WESTERN FORELAND: INITIAL 2021 COPPER EXPLORATION PROGRAM The 2021 phase-one US$16M exploration program includes: • 40,000m combined aircore and diamond drilling; • Airborne and ground-based geophysics; • Soil sampling and road construction. Selected drill holes at the Kiala Discovery include: • DKI
Slide 23: Platreef: The World's Next Great Precious Metals Mine
SET TO BECOME ONE OF WORLD’S LARGEST PLATREEF: THE WORLD’S PRIMARY PGM MINES NEXT GREAT PRECIOUS • Potential annual production of more than 600,000 oz. of palladium, platinum, rhodium and gold; plus over 40 million lbs. of nickel and copper METALS MINE • Studies underway on initial 0.7 Mtpa mine and
Slide 24: Platreef: Updated Feasibility Study
PLATREEF : UPDATED FEASIBILITY STUDY Plant ramp-up to 4.4 Mtpa 4.4 Mtpa Module 2 Platreef 2020 Feasibility Study 4.4 Mtpa Production 2.2 Mtpa Plant ramp-up to 2.2 Mtpa 2x 2.2Mt Plant Construction Module 1 Shaft 1 Underground Development Changeover Shaft 2 Shaft 2 Collar Shaft 2 Sinking Equipping 202
Slide 25: Platreef: 2020 PEA Phased Development Plan
5.2 Mtpa PLATREEF: 2020 PEA Plant ramp-up to 5.2 Mtpa PHASED DEVELOPMENT PLAN Expansion 2 Production 3.0 Mtpa Plant ramp-up to 3.0 Mtpa Expansion 1 Full concentrator 0.70 Mtpa initial capacity (0.77 Mtpa) rate 700ktpa Detailed 0.7 Mtpa Engineering 700kt Plant Construction Shaft 1 2x 2.2Mt Plant Init
Slide 26: Platreef: Evolution of Basket Price
PLATREEF : EVOLUTION OF BASKET PRICE Platreef basket price today is over Platreef Revenue Per Tonne of Probable Reserves (US$/t ore) US$2,500/oz(1) $360 $320 $280 $240 $200 $160 $120 Total Cash Cost (Mine Site + Realization) $80 Mine Site Cash Cost $40 -- Platinum Palladium Rhodium Gold Copper Nicke
Slide 27: Key Highlights: November 2020 FS and PEA
KEY HIGHLIGHTS: PEA (Phased Shown on 100%-basis in US$ Feasibility Study NOVEMBER 2020 Development) FS AND PEA Annual Throughput 4.4 Mt 0.7 Mt to 5.2 Mt 3PE+Au Produced(1) 508 kozpa 109 to 613 kozpa Ni + Cu Produced(1) 36 Mlbpa 7 to 43 Mlbpa Initial Capital $1.4 Bn $0.4 Bn Expansion Capital NA $1.3
Slide 28: Platreef: Industry Leading Cash Cost
PLATREEF : INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + SIB capital (2019), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef cash cost: US$442/oz 3PE+Au, 1,400 net of by-products 1,200 1,000 800 600 400 200 0 4E production Western Limb Ea
Slide 29: Platreef: Potential to Become Largest Primary PGM Producer
PLATREEF : POTENTIAL TO BECOME LARGEST PRIMARY PGM PRODUCER Platreef 2014 1,600 3PE+Au Production 2019 (Pd Eq. oz) 12 Mtpa PEA Palladium Equivalent Production (koz) 3PE+Au Production 1,400 Ni+Cu Production 2019 (Pd Eq. oz) Ni+Cu Production 1,200 1,000 Platreef 2020 4.4 Mtpa FS 800 600 400 200 - East
Slide 30: Platreef 2021: Next Steps
PLATREEF 2021: NEXT STEPS Shaft 1 preparation for permanent hoisting in early 2022 Shaft 2 headframe to collar construction ($10M) for expansion optionality Detailed engineering underway on mine design, 770-ktpa concentrator and infrastructure design 2021 budget of $59M – arranging project-level fin
Slide 31: Kipushi: The World's Highest-Grade Zinc Mine
2,900 Zinc Futures – 9 month KIPUSHI: THE WORLD’S 2,700 HIGHEST-GRADE ZINC MINE THE HIGHEST-GRADE MAJOR ZINC MINE 2,500 • Big Zinc Zone with M&I Mineral Resources of 11.8Mt at 35.3% Zn • Top 10 largest zinc project by contained zinc; with grade more than twice as high as the world’s next highest- US
Slide 32: Ivanhoe Summary
• Three long-life, • Robust, experienced • Strong shareholder • Strong balance sheet world-class mines management team with register of global with no debt with low costs, low an unrivalled track institutional investors capital intensity and record of success • Fully funded to first low environmenta
Slide 33: Thank You
THANK YOU
Ivanhoe Mines — BMO Capital Markets 30th Global Metals & Mining Conference 2021 on 6ix