Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Shareholder Meeting (June 2003)
24 slides from Ivanhoe Mines Ltd. Class A's shareholder meeting presentation, June 2003
Slide 1: Ivanhoe Mines – New Horizons
IVANHOE M@N ES NEW HORIZONS UNLOCKING IIREASURELCHES TO” é tp Mentecniats pyar ts
Slide 2: Ivanhoe Mines Directors
Ivanhoe Mines Directors Name Title Robert M. Friedland Chairman and President R. Edward Flood Deputy Chairman Dr. Marc Faber Managing Director, Marc Faber Ltd. Robert W. Hanson Chairman, Hanson Capital Kjeld Thygesen Managing Director, Lion Resource Management Gordon Toll Deputy Chairman John Weathe
Slide 3: Ivanhoe Mines – Getting It Right
Ivanhoe Mines – Getting It Right Ø Major player in world-class copper and gold province in Mongolia’s South Gobi Ø Oyu Tolgoi ranks among the world’s largest gold and copper deposits, and is still growing Ø Large exploration focus in China Ø Mining operations in Asia/Pacific region generated US$87 m
Slide 4: Leading the Charge in the Land of Genghis Khan
Leading the Charge in the Land of Genghis Khan
Slide 5: Mongolia: The Dragon's Doorstep
Mongolia: The Dragon’s Doorstep Oyu Tolgoi
Slide 6: Oyu Tolgoi Project - Flyover
> Oyu Tolgoi Project - Flyover
Slide 7: Ivanhoe's Mongolia History
Ivanhoe’s Mongolia History 1996 - First Mongolian visit 1997 - Follow up 1996 visit after new minerals law and commence reconnaissance exploration 1999 - Signed an agreement to acquire the exploration license for Oyu Tolgoi 2002 - Acquired the exploration license for the Kharmagtai project and enter
Slide 8: The Tien Shan Mineral Belt
The Tien Shan Mineral Belt b Southern Tien Shan Northern and middle Tien Shan Boroo Major mesothermal-type gold deposits 10.7 Mt at 3.3 g/t Au in production or development Erdenet 1.78 Bt at 0.62% Cu 0 250 500 km Other significant gold deposits and 0.025% Mo Taseevskoye-Baley Porphyry Copper Russia
Slide 9: Ivanhoe's Mongolian Projects
Ivanhoe’s Mongolian Projects
Slide 10: Turquoise Hill Project – Dec. 2002
Turquoise Hill Project – Dec. 2002 Central Oyu Chalcocite Blanket SW Oyu Cu, Au 0.5% Cu Shell South Oyu
Slide 11: Turquoise Hill - Core Logging
Turquoise Hill - Core Logging Central Oyu Chalcocite Blanket SW Oyu Cu, Au 0.5% Cu Shell South Oyu
Slide 12: Ivanhoe's New Discoveries
Ivanhoe’s New Discoveries Ø July 2001 – Hole 150 drilled at Southwest Oyu intersects 508 metres grading 1.17 g/t gold & 0.81% copper Ø October 2002 – Hole 270 drilled at Far North Oyu Central Oyu intersects 638 metres grading Chalcocite Blanket 1.61% copper & 0.07 g/t gold Ø March 2003 – Hole 367A d
Slide 13: Oyu Tolgoi Long Section
> Oyu Tolgoi Long Section DISCOVERY AREA #1: TURQUOISE HILL (OYU TOLGO!) Ivanhoe’s remarkable, unfolding chain of gold and copper discoveries SOUTH & SOUTHWEST OYU CENTRAL OYU FAR NORTH OYU & EXTENSION SOUTH re NORTH o . Nf chalcocite blanket 1 | 1 New zone discovered depth / 1 after February 26, 20
Slide 14: IP Chargeability Long Section
IP Chargeability Long Section
Slide 15: Growing Oyu Tolgoi's Resources
Growing Oyu Tolgoi’s Resources 30 Gold - Millions of ozs. Copper - Billions of lbs. 25 20 15 10 5 0 Gold Gold Gold Copper Copper Copper March May Feb March May Feb 2002 2002 2003 2002 2002 2003
Slide 16: How does Oyu Tolgoi compare?
How does Oyu Tolgoi compare? Approximate Annual Approximate Annual Gold Production Copper Production Cadia 740,000 oz 130 million lbs Hill/Ridgeway Batu Hijau 500,000 oz 610 million lbs Alumbrera 590,000 oz 400 million lbs Collahuasi None 960 million lbs La Candelaria 120,000 oz 485 million lbs Bing
Slide 17: Oyu Tolgoi in the 'A' League
Oyu Tolgoi in the ‘A’ League $2,500 Grasberg US$325 gold $000 million per annum US$0.85 copper $2,000 $1,500 Turquoise Hill $1,000 Collahuasi Yanacocha Goldstrike Batu Hiju $500 $0 10 Year Average Revenue
Slide 18: Preliminary Development Concepts
Preliminary Development Concepts Proposed Oyu Tolgoi Far North Total Parameters Open Pit Underground Range of US$450 to US$230 to US$680 to Capital Costs US$550 million US$270 million US$820 million Mill 70,000 tpd 30,000 tpd 100,000 tpd Throughput Annual Gold 350,000 to 50,000 to 60,000 400,000 to
Slide 19: Preliminary Development Timetable
Preliminary Development Timetable ØScoping/Prefeasibility Study – Late 2003 ØFeasibility Study – 2004/2005 ØConstruction Begins - 2005 ØProduction Begins – 2007/2008
Slide 20: The Ivanhoe Advantage
Ivanhoe’s The Ivanhoe Experience Advantage Technical expertise Experience in Developing Asian Economies Ability to raise risk oriented capital Full-time in-country commitment Establishing a working partnership with the Mongolian government
Slide 21: Ivanhoe/CITIC Strategic Alliance
Ivanhoe/CITIC Strategic Alliance Central Oyu Chalcocite Blanket April 23, 2003 - Wang Jun, Chairman of CITIC, and Robert Friedland, Chairman of Ivanhoe Mines, form a strategic alliance to work together in mineral exploration, development and production projects throughout the world. South Oyu
Slide 22: Creating Shareholder's Value
Creating Shareholder’s Value C$465 Million of Shareholder Value Created since June 2001 CND CND IVN Market Cap 4.00 IVN Share Price 900,000,000 800,000,000 3.50 700,000,000 3.00 600,000,000 500,000,000 2.50 400,000,000 2.00 300,000,000 200,000,000 1.50 100,000,000 1.00 0 1/01 1/01 1/02 1/02 1/02 1/0
Slide 23: Shares Outstanding and Market Capitalization
Shares Outstanding: 248.1 Million Market capitalization: ~C$800 Million 52-week high/low: C$3.60/C$2.00
Slide 24: ivanhoemines.com
ivanhoemines.com TSX & ASX