Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Investor Presentation (June 2022)
26 slides from Ivanhoe Mines Ltd. Class A's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION JUNE 2022 TSX: IVN | OTCQX: IVPAF
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER AND FORWARD-LOOKING STATEMENTS The information contained in this presentation and other information furnished by or on behalf of Ivanhoe Mines Ltd. (“Ivanhoe”) is confidential and has been prepared to assist the recipients hereof in conducting their own evaluation of Ivanhoe and does not
Slide 3: Ivanhoe at a Glance
IVANHOE AT A GLANCE CORPORATE INFORMATION TSX: IVN LISTINGS OTCQX: IVPAF SHARE PRICE C$8.00 / share(1) MARKET CAP US$7.5 billion(1) SHARES, OPTIONS, Common Shares: 1,211.4 million(2) RSUs & DSUs Options, RSUs & DSUs: 24.7 million(2) CASH POSITION US$562 million(3) CITIC Metal 26.0% Zijin Mining 13.7
Slide 4: A Leading Explorer & Developer in Africa
A LEADING EXPLORER & DEVELOPER IN AFRICA OWNERSHIP: KAMOA-KAKULA Ivanhoe Mines (39.6%) Zijin Mining Group (39.6%) Government of the DRC (20%) Crystal River Global (0.8%) STAGE: Production WESTERN FORELAND Copper OWNERSHIP: Ivanhoe Mines (90-100%) STAGE: Copper Exploration OWNERSHIP: PLATREEF KIPUSHI
Slide 5: The World's Next Diversified Major Miner
THE WORLD’S NEXT DIVERSIFIED MAJOR MINER • Ivanhoe will be a responsible, leading supplier of critical metals for the clean-energy transition, including copper, nickel, zinc and PGMs. IN PRODUCTION FIRST PRODUCTION 2024 PRE-PRODUCTION EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORELAND The wo
Slide 6: DRC: Awakening a Copper Giant
DRC: AWAKENING A COPPER GIANT DEMOCRATIC REPUBLIC OF THE CONGO On track to become the 3rd largest global copper producer Change in status for 2015 copper projects by country, % in 2020 100% Abundant hydro-power capacity 80% Median population age of 17 New government since 2019 – first 60% peaceful t
Slide 7: Ivanhoe Will Produce Green Metals
IVANHOE WILL PRODUCE GREEN METALS HYDROPOWER SMALL FOOTPRINT LOW IMPACT GREEN METAL Powered by clean, green hydro- Underground Majority of tailings Ultra high grades; electricity in DRC; low water mines with limited returned underground; consumption per ounce of 3PE+Au renewable power; surface footp
Slide 8: 2021 ESG Performance at a Glance
2021 ESG PERFORMANCE AT A GLANCE $1.1 billion total value 43% increase in Total workforce of 10,645 stakeholders created and distributed national value 12,374; distribution from 2020 97% local employees engaged Global Copper Minesite Scope 1 + 2 Scope 1 Scope 2 11 10 Emissions, 2020 (t CO2-e / t Cu
Slide 9: Q1 2022: Outstanding Results from Kamoa-Kakula
Q1 2022: OUTSTANDING RESULTS FROM KAMOA-KAKULA 55.6 kt copper production Commercial production from Phase 2 plant achieved in April 2022; combined copper production from Phase 1 and 2 plants ~450kt by Q2 2023 following de-bottlenecking 51.9 kt copper sales 2022 production guidance 290kt - 340kt of c
Slide 10: The World's Fastest Growing Copper Mining Complex
THE WORLD’S FASTEST GROWING COPPER MINING COMPLEX Phase 2 nearing steady-state production Phase 3 on track for production by Q4 2024 10
Slide 11: Kamoa-Kakula: Quarterly Performance
KAMOA-KAKULA: QUARTERLY PERFORMANCE Copper Sold (kt) (Figures shown on 100% basis for Kamoa-Kakula) Record quarterly revenue achieved driven by strong copper production and high copper prices 53.2 51.9 41.5 Q1 EBITDA of US$399 million driven by increase in revenue and a decrease in cash cost Q3 2021
Slide 12: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound of payable copper) Q1 2022 cash costs continue to trend downwards from $1.28 per pound 0.20 payable copper in Q4 2021 and $1.37 per pound in Q3 2021 0.20 Currently at the bottom of the 2022 0.36 1.21 cash cost guidance range of between $1.20 and
Slide 13: Kamoa-Kakula – First Quartile Mine Site Cash Cost
KAMOA-KAKULA – FIRST QUARTILE MINE SITE CASH COST (1) $4.50 2022 C1 Cash Costs (US$/lb Cu) $4.00 $3.50 $3.00 $2.50 Kamoa-Kakula (Q1 2022): $1.21/lb $2.00 $1.50 $1.00 $0.50 – Source: Wood Mackenzie 0% 20% 40% 60% 80% 100% Cumulative Global Copper Production Source: Company filings, Wood Mackenzie (ba
Slide 14: Kamoa-Kakula Phase 1 & 2: Now at Steady State
KAMOA-KAKULA PHASE 1 & 2: NOW AT STEADY STATE Phase 2 plant declared commercial Kamoa-Kakula Copper in Concentrate production on April 7, now operating at comparable throughputs to Phase 1 plant Phase 1 & 2 de- bottlenecking Record monthly production of 29,800 2022 guidance ~450 kt tonnes of copper
Slide 15: Kamoa-Kakula Phase 3 and Smelter
KAMOA-KAKULA PHASE 3 AND SMELTER Engineering and early works for the Phase 3 expansion progressing quickly, with a new, 5-Mtpa plant expected to be commissioned in Q4 2024 Construction on the new box cut at the Kamoa 1 and Kamoa 2 mines nearing completion, with decline development well underway to p
Slide 16: On Track to Become the World's Third-Largest Copper Mining Complex
ON TRACK TO BECOME THE WORLD'S THIRD-LARGEST COPPER MINING COMPLEX BY Q4 2024 Phase 3 to increase Kamoa-Kakula’s processing capacity to over 14 Mtpa, positioning Kamoa Copper Kamoa-Kakula Phased Ramp-Up to 600ktpa as the world’s third-largest copper mining complex ~600ktpa Cu by 2024 16 Design throu
Slide 17: Kamoa-Kakula Among the World's Largest Copper Deposits
KAMOA–KAKULA AMONG THE WORLD’S LARGEST COPPER DEPOSITS Measured & Indicated Resource and Grade Inferred Resource and Grade 150 3.0% Contained Copper (Mt) Copper Grade (%) 125 2.5% 100 2.0% 75 1.5% 50 1.0% 25 0.5% - - Source: Company filings, Wood Mackenzie. 17 Note: Selected based on copper containe
Slide 18: Kamoa-Kakula: Integrated Development Plan
KAMOA-KAKULA: INTEGRATED DEVELOPMENT PLAN 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) Q3 2022 Phase 1 (3.8 Mtpa) July 2021 3.8 Kakula Mine Direct-to-Blister Smelter Commences (PEA Only) – 2020
Slide 19: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER • Ivanhoe controls ~2,400 km2 of exploration licences adjacent to the Kamoa-Kakula mining complex, covering a strike length of ~175 km • Regional large-scale exploration drilling targeting Kamoa-Kakula-style copper mineralization has commenced • $25 m
Slide 20: Underground Development at Platreef
UNDERGROUND DEVELOPMENT AT PLATREEF First blast on Platreef’s 950-metre level completed on April 22, lateral development toward Flatreef orebody commences Ivanplats takes delivery of initial battery-electric mining fleet, planning of Platreef’s initial solar power plant well underway Forecast spend
Slide 21: Key Highlights: February 2022 FS (Platreef)
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ 2022 FS (Phase 1 → 2) Annual Throughput 0.7Mt → 5.2Mt Annual 3PE+Au 113koz → 591koz Annual Ni + Cu 8Mlb → 42Mlb Total Cash Costs (LOM) (1) $514/oz 3PE+Au Initial / Expansion Capital $0.5 Bn / $1.5 Bn LONG- After-tax NPV8%(2) $1.7 Bn TERM PR
Slide 22: Platreef: Potential to Become Among the World's Largest Primary PGM Producers
PLATREEF : POTENTIAL TO BECOME AMONG THE WORLD’S LARGEST PRIMARY PGM PRODUCERS Platreef 2014 PEA 3PE+Au Production 2019 (Pd Eq. oz) (LoM Average) 1,600 3PE+Au Production Palladium Equivalent Production (koz) 1,400 Ni+Cu Production Ni+Cu Production 2019 (Pd Eq. oz) Platreef 1,200 2022 FS Platreef 202
Slide 23: Platreef: Industry Leading Cash Cost
PLATREEF : INDUSTRY LEADING CASH COST Global primary PGM producer net total cash cost + sustaining capital (2021), US$/3PE+Au oz Quartile 1 Quartile 2 Quartile 3 Quartile 4 1,800 1,600 Platreef 2022 FS cash cost: 1,400 US$514/oz 3PE+Au 1,200 US$/3PE+Au 1,000 800 600 400 200 0 Western Limb Eastern Li
Slide 24: Kipushi: Moving Towards Construction
KIPUSHI: MOVING TOWARDS CONSTRUTION World’s top 10 major zinc mines (ranked by 2020 production) 600 35 Underground early works and Contained Zinc Production (kt) Contained zinc production (kt) 500 30 recruitment of key staff required for Ore milled head grade Zn (%) construction is underway 25 Mille
Slide 25: Key Highlights: February 2022 FS (Kipushi)
KEY HIGHLIGHTS: FEBRUARY 2022 FS Shown on 100%-basis in US$ FS Throughput 800ktpa Zinc Produced(1) 240ktpa C1 Cash Costs(1) US$0.65/lb Initial Capital $382M LONG- After-tax NPV8%(2) $941M TERM PRICES IRR (Real %)(2) 41% SPOT After-tax NPV8%(3) $2.98B PRICES (Mar 2022) IRR (Real %)(3) 86% (1) Life-of
Slide 26: Investment highlights summary
29 Cu • Three long-life, world- • Robust, experienced • Committed support from • Strong balance sheet • Kakula is on track to class mines with low management team with key partners CITIC and with cash & cash double annual copper costs, low capital an established track Zijin equivalents of approx. pr