Ivanhoe Mines Ltd. Class A · TSX:IVN
Ivanhoe Mines Ltd. Class A — Q2 2022 Earnings Presentation
21 slides from Ivanhoe Mines Ltd. Class A's earnings presentation, Aug 15, 2022
Slide 1: Q2 2022 Results
Q2 2022 RESULTS AUGUST 15, 2022 www.ivanhoemines.com | 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”) has been prepared to assist the reader in understanding the business and financial results of Ivanhoe for the periods indicated a
Slide 3: Opening Remarks
OPENING REMARKS Robert Friedland, Founder & Executive Co-Chairman 3
Slide 4: Q2 2022 Highlights
Q2 2022 HIGHLIGHTS Marna Cloete, President 4
Slide 5: Q2 2022: Kamoa-Kakula Phase 2 Ramp-Up Continues
Q2 2022: KAMOA-KAKULA PHASE 2 RAMP-UP CONTINUES 87.3kt copper production Phase 2 commercial production in April 2022; combined copper production from Phase 1 and 2 to reach ~450kt by Q2 2023 following de-bottlenecking program 85.8kt payable copper sales FY 2022 production guidance increased to 310kt
Slide 6: 2021 ESG Performance at a Glance
2021 ESG PERFORMANCE AT A GLANCE 91 local enterprises 100% renewable Ivanhoe Mines 120 new female hires supported electricity purchased issues fifth annual in the DRC Sustainability Report 6
Slide 7: Q2 2022 Financial Overview
Q2 2022 FINANCIAL OVERVIEW David van Heerden, Chief Financial Officer 7
Slide 8: Kamoa-Kakula: Quarterly Performance
KAMOA-KAKULA: QUARTERLY PERFORMANCE Copper Sold (kt) (Figures shown on 100% basis for Kamoa-Kakula) Significant increase in copper sold to 85.8kt of copper in concentrate driven by the ramp up of the Phase 2 concentrator 85.8 C1 cash costs higher in Q2 due to higher logistics charges and 53.2 51.9 4
Slide 9: Kamoa Holding Operating Profit
KAMOA HOLDING OPERATING PROFIT Shown on 100% basis attributable to Kamoa Holding 85.8 kt copper sales (All values in US$ million) Q2 Q1 2022 2022 $'000 $'000 ($205) Ivanhoe's share Revenue from contract receivables 699,381 467,453 $286 million EBITDA of profit (49.5%) Remeasurement(1) (205,248) 52,1
Slide 10: Ivanhoe Mines Q2 Financial Highlights
IVANHOE MINES Q2 FINANCIAL HIGHLIGHTS (All values in US$ million) $114 ($13) $352 $184 ($10) ($4) ($4) $35 $50 (1) IVN's share of Finance income Project Western General Gain on fair Finance costs Deferred tax Profit for the profit from from Kamoa expenditure Foreland administrative valuation of and
Slide 11: Kamoa-Kakula C1 Cash Cost
KAMOA-KAKULA C1 CASH COST (All values in US$ per pound of payable copper) Logistics charges in Q1 2022 were $0.36/lb. Q2 2022 C1 cash costs increased due to 0.17 higher logistics charges and inflationary pressures 0.21 FY 2022 cash cost guidance reiterated at between $1.20/lb. and $1.40/lb. of payab
Slide 12: Strong Balance Sheet Supports Growth
STRONG BALANCE SHEET SUPPORTS GROWTH Cash and cash equivalents of $507 million Consolidated working capital of $530 million Total assets of $3.5 billion Total debt of $734 million, including $575 million at 2.50% convertible senior notes, due 2026 with possible earlier redemption Forecast spend of $
Slide 13: Operations & Project Update
OPERATIONS & PROJECT UPDATE Alex Pickard, VP Corporate Development Marna Cloete, President 13
Slide 14: Kamoa-Kakula Phase 2: Record Breaking Ramp-Up
KAMOA-KAKULA PHASE 2: RECORD BREAKING RAMP-UP Record quarterly production of 87.3kt of Ore milled (000’s tonnes) Recovery copper in Q2 2022, with record monthly 720 87.9% 87.4% 660 673 production of 32.9kt of copper in July 618 86.2% 85.0% 85.1% 85.4% Phase 2 concentrator declared commercial 355 387
Slide 15: Kamoa-Kakula Logistics Cost Optimization
KAMOA-KAKULA LOGISTICS COST OPTIMIZATION Significant increased in volumes of copper products 000’s dry metric tonnes exported from Kamoa-Kakula during Q2 2022, as well as 178 scheduled maintenance at Lualaba Copper Smelter Higher C1 cash costs for the quarter largely due to a 42% increase in logisti
Slide 16: Kamoa-Kakula Phase 3 and Smelter
KAMOA-KAKULA PHASE 3 AND SMELTER Phase 3 engineering and early works progressing quickly, with a new, 5-million-tonne-per-annum plant expected to be commissioned in Q4 2024 Phase 3 boxcut for the new Kamoa 1 and Kamoa 2 underground mines nearing completion, excavation of the twin declines advancing
Slide 17: Western Foreland: The Next Great Copper Frontier
WESTERN FORELAND: THE NEXT GREAT COPPER FRONTIER • Ivanhoe controls ~2,407 km2 of exploration licences adjacent to the 400 km2 Kamoa-Kakula mining complex, covering a strike length of ~175 km • Regional large-scale exploration drilling targeting Kamoa-Kakula-style copper mineralization has commenced
Slide 18: Platreef: Underground Development Underway
PLATREEF: UNDERGROUND DEVELOPMENT UNDERWAY First blast on Platreef’s 950-metre level was completed on April 22 Underground mine works advancing well, with over 200-metres of lateral development completed towards the location of the first ventilation shaft Construction of Platreef’s first solar-power
Slide 19: Kipushi: Moving Towards Construction
KIPUSHI: MOVING TOWARDS CONSTRUCTION 2022 Feasibility Study Results at Different Zinc Prices: Ultra high-grade, past-producing, zinc-copper- germanium-silver-lead project in the DRC IRR (%) 97% 83% Development budget approved and ordering of 68% 54% long-lead equipment underway; early-works 41% 47%
Slide 20: 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 CONSTRUCTION DEVELOPMENT EXPLORATION KAMOA-KAKULA PLATREEF KIPUSHI WESTERN FORELAND World’s fastest Phas
Slide 21: Q2 2022 Results – Management Q&A
www.ivanhoemines.com | TSX: IVN; OTCQX: IVPAF Q2 2022 RESULTS MANAGEMENT Q&A 21