2026 Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Confirms High-Grade, Low-Cost Project with Strong Economics Initial Capital of $1.43 Billion and Cash Operating Costs of $1.47 Per Pound of Copper Result in an After-Tax Net Present
1
September 23, 2026
2026 Preliminary Feasibility Study for the Santa Cruz Copper
Project in Arizona Confirms High-Grade, Low-Cost Project with
Strong Economics
Initial Capital of $1.43 Billion and Cash Operating Costs of
$1.47 Per Pound of Copper Result in an After-Tax Net Present
Value8% of $3.5 Billion and a 30.0% Internal Rate of Return at
Current COMEX Copper Price Approximating $6.79 per Pound
2026 Preliminary Feasibility Study Incorporates the Industry-
Leading Robbins Crossover Tunnel Boring Machine for
Improved Mine Access
Improved Mine Ramp-Up Increases First 15 Years’ Average
Annual Copper Production to ~75 Thousand Metric Tonnes
Santa Cruz is the Most Advanced Development Project of Scale
in the United States Designed to Produce Pure Copper Cathode
without Smelting
Initial Development Activities have Commenced with First
Copper Cathode Production Projected in 2029
Santa Cruz has Significant Copper Mineral Resources Beyond
Current Mine Plan to Support Future Expansion Potential on
Existing Private Land
Management will Host a Conference Call on Wednesday,
September 23rd at 10am ET
2
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American:
IE; TSX: IE) Executive Chairman Robert Friedland and President and Chief
Executive Officer Taylor Melvin are pleased to announce the completion of the
2026 Preliminary Feasibility Study (the “2026 Study”) for the Company’s 100%-
owned Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, a
state with a prolific copper mining history and booming technology and defense
industries, the Santa Cruz Copper Project is poised to become the United States’
next major domestic producer of 99.99% pure refined copper cathode. The highly
engineered 2026 Study incorporates The Robbins Company’s Crossover Tunnel
Boring Machine (“TBM”), manufactured in Solon, Ohio, for mine access. The 2026
Study confirms the strong economics of a modern, high-grade underground
copper mining operation and heap leach processing facility supported by
advanced technologies.
The 2026 Study also reflects the continued advancement of detailed design and
engineering, and updated cost estimates based on current market conditions.
Highlights of the 2026 Preliminary Feasibility Study
Low Capital Intensity, Low Cash Operating Costs and High-Grade Copper
Reserves Deliver Strong Project Economics
• Initial project capital of $1.43 billion results in capital intensity of
$19,100/tonne of copper produced (first 15 years’ average production)
• Life-of-mine C1 cash costs of $1.47 per pound and all-in sustaining costs of
$2.28 per pound of copper
• Life-of-mine average copper grade of 1.08%
• At a base-case copper price of $4.75 per pound, after-tax NPV8% of $1.5
billion, after-tax IRR of 19% and after-tax payback of 4.8 years
• At current COMEX spot-case copper price of $6.79 per pound, after-tax
NPV8% of $3.5 billion, after-tax IRR of 30% and after-tax payback of 3 years
Robbins Tunnel Boring Machine Provides Enhanced Underground Mine
Access and Material Handling
• The TBM will excavate a single decline of approximately 4 kilometers in
length and 9.3 meters in diameter through variable ground conditions to
access the Santa Cruz deposit
• The TBM process installs a continuous, sealed, steel-reinforced concrete
lining and incorporates a permanent conveyor for development material
and production ore handling
• Further information available: Robbins Video on the Crossover XRE TBM
and material handling system
Key Aspects of the Santa Cruz Copper Project Derisked Through Advanced
Engineering Since 2025 Preliminary Feasibility
• Improved mine access and ventilation shaft design
3
• Optimized material haulage system to include conveyor systems
throughout mine life
• Optimized paste backfill plant design allows faster production ramp up
• Optimized heap leach design reduces pad footprint
• Completion of six-meter column tests support 92.3% life-of-mine copper
recovery
• Optimized mine plan results in faster production ramp-up and 75,000
tonnes of average annual copper cathode production over first fifteen
years
Low Sulfuric Acid Consumption Limits Exposure to Volatile Leaching Input
Costs
• Naturally high chloride content and chloride-assisted leach process results
in low acid consumption of approximately 9 kilograms of acid per tonne of
copper ore processed
• Sulfuric acid represents less than 5% of total cash operating costs
Advanced Permitting and Development Readiness
• Project located on 5,975 of private land near Casa Grande, Arizona
• All necessary city, county and state permits have been obtained to advance
surface construction, complete the box cut and commence TBM decline
development
• Early site preparation and development activities have commenced
• Box cut development expected to commence in October 2026
• TBM decline development targeted for Summer 2027
• First copper cathode production targeted for 2029
Significant Additional Mineral Resources at Santa Cruz, East Ridge and
Texaco Deposits Provide Expansion Potential Beyond Current PFS Mine
Plan
• 3.3 million tonnes of contained copper included in inferred mineral
resources across the three key deposits within the Santa Cruz land
package
• Texaco Deposit remains open in several directions
• Robbins Crossover TBM provides enhanced development options for
phased expansion of the high-grade Texaco deposit
Mr. Friedland commented: “Our Santa Cruz Project is the highest grade, most
advanced United States pure copper cathode project. We are building the most
modern of copper mines in the heart of Arizona, with passionate, talented people
and the most advanced technologies available to our industry. Arizona sits at the
epicenter of economic growth in the southwest United States. Arizona, “The
Copper State,” boasts immense investments in technology, including $265 billion
in announced chip manufacturing projects by Taiwan Semiconductor and over
4
$30 billion of investments by Intel. Both Taiwan Semiconductor and Intel benefit
from strong support from the US Government through the CHIPS and Sciences
Act of 2022…. Clean and secure 99.99% copper cathode from Santa Cruz will go
directly into the US economy from our mine gate. The United States needs
massive amounts of critical metals to support our rapidly growing technology
industry and infrastructure at the scale of the American economy. Copper is the
king of all metals.
Under the current Administration’s leadership, the United States mining industry
is answering the call to restore domestic production of the critical metals
required to support American industry, technology, and national security.
Ivanhoe Electric’s Santa Cruz Copper Project is at the leading edge of this
resurgence.”
Mr. Melvin commented: “Since we announced the decision in May 2026 to acquire
the Robbins Tunnel Boring Machine, our engineers and underground specialists
at Santa Cruz have worked tirelessly with our team of consultants to incorporate
the Tunnel Boring Machine into our project design. The 2026 Study includes
advanced engineering for mine access, mine design, surface processing design,
and updated input costs based on current market conditions to provide a real-
time estimate of projected capital and operating costs. We are currently
transitioning into early construction. The 2026 Study confirms Santa Cruz’s
status as the most advanced, highest grade copper project in the United States
capable of producing pure copper metal to support American industry and our
nation’s supply chain security.”
5
2026 Santa Cruz Copper Project Preliminary Feasibility Study Summary
Table 1. Summary Results
Description Units Life of Mine First 15 Years
Production Data
Mine Life Year 24 15
Reserve Tonnes Million tonne 140 110
Copper Grade % 1.08 1.11
Daily Throughput Tonne per day 15,346 20,030
Annual Copper Production Tonne per year 58,385 74,722
Total Copper Cathode Produced Thousand tonne 1,401 1,121
Recovery % 92.3% 92.3%
Capital Costs
Initial Capital $ million 1,426 1,426
Sustaining Capital $ million 1,546 1,463
Unit Costs
Mining Cost $ per tonne processed 21.95 21.52
Processing Cost $ per tonne processed 7.50 7.45
General and Administrative Cost $ per tonne processed 2.99 3.11
Royalties $ per tonne processed 6.90 6.93
Total Operating Cost $ per tonne processed 39.35 39.00
Operating + Sustaining Cost $ per tonne processed 50.41 52.50
C1 Cash Cost $ per pound of copper 1.47 1.42
All-in-sustaining Cost $ per pound of copper 2.28 2.27
Financial Analysis
Copper Price $ per pound 4.75 4.75
Domestic Cathode Premium $ per pound 0.14 0.14
Pre-tax Free Cashflow $ million 6,761 4,971
Pre-tax Net Present Value8% $ million 1,898 -
Pre-tax Internal Rate of Return % 20.2% -
After-tax Free Cashflow $ million 5,575 4,133
After-tax Net Present Value8% $ million 1,519 -
After-tax Internal Rate of Return % 18.7% -
After-tax Payback Period1 Year 4.8
1. After-tax payback period from the start of operations in 2029.
6
Table 2. Life of mine copper price sensitivity
Copper
Price
($/pound)
Pre-tax After-tax
Life of
Mine Free
Cashflow
($ billon)
Net
Present
Value8%
($ billion)
Internal
Rate of
Return (%)
Life of
Mine Free
Cashflow
($ billion)
Net
Present
Value8%
($ billion)
Internal
Rate of
Return (%)
4.00 4.6 1.0 15% 3.9 0.8 14%
4.75 (Base) 6.8 1.9 20% 5.6 1.5 19%
5.00 7.5 2.2 22% 6.1 1.8 20%
6.00 10.4 3.4 28% 8.4 2.7 26%
6.79 (Spot) 12.6 4.3 33% 10.2 3.5 30%
7.00 13.2 4.6 34% 10.6 3.7 31%
*COMEX spot price of $6.79 per pound of copper as of September 21, 2026.
The 2026 Study reflects higher overall copper production as well as updates to
initial capital and operating costs when compared to the 2025 PFS.
Table 3. Initial Capital and Operating Costs in 2025 PFS and 2026 Study
2025 PFS 2026 PFS
Initial Capital 2025 PFS ($ million) 1,236
Updated Capital Reflects Changes due to:
Cost Escalation (approx. 8% inflation) 88
Mine Development 18
Surface Capital, Indirects and Contingency 84
Initial Capital 2026 PFS ($ million) 1,426
C1 Cash Cost ($ per pound of copper) $1.32 $1.47
All-in-sustaining Cost ($ per pound of copper) $2.02 $2.28
Updates to Initial Capital in the 2026 Study reflect:
• Cost escalation driven by inflation of construction materials and labor
• Initial capital for Mine Development updated to include advanced
engineering and design of ventilation shafts and TBM access
• Surface Capital, Indirect Costs and Contingency includes changes to
the construction scope of the solvent extraction and electrowinning
facility and associated indirect cost estimates
Updates to C1 Cash Operating and All-in-Sustaining Costs reflect:
• Cost escalation resulting from inflation of consumables, power and
labor inputs
• Increase in quantity of binder in paste backfill based on advanced
engineering and testwork
7
• All-in-Sustaining Cost includes higher sustaining capital in mine
development to access additional reserve tonnes in the 2026 study
Figure 1. Cash cost curve of copper mines in the Americas, highlighting United
States operating mines in blue
Study Supports Ongoing Project Financing Activities
The 2026 Preliminary Feasibility Study builds on the 2025 Preliminary Feasibility
Study and provides the necessary engineering studies to support the Company’s
current project financing activities. Ivanhoe Electric is in advanced discussions
on multiple project financing alternatives, including an application with the
Export-Import Bank of the United States (“US EXIM”) under the Make More in
America initiative. On August 24, Ivanhoe Electric announced receipt of a
Preliminary Project Letter (“PPL”) from US EXIM for potential debt funding of up
to $1.1 billion (link: refer to Ivanhoe Electric’s August 24, 2026 news release). The
PPL is an important milestone in the US EXIM loan application process, marking
the completion of US EXIM’s Phase 1 due diligence and transition to Phase 2 due
diligence and final commitment phase.
The 2026 Study Incorporates the Purpose-Built Robbins Crossover XRE
Tunnel Boring Machine
Ivanhoe Electric announced its intention to acquire the TBM and material
handling system from The Robbins Company of Solon, Ohio, in May 2026. The
TBM is designed to operate through the hard-rock, wet and mixed-face ground
conditions expected during decline development at Santa Cruz. Its earth-
pressure-balance capability controls face stability and helps mitigate
groundwater inflow, while the bi-directional cutterhead and high-torque, high-
8
speed drive are designed to manage changing geological conditions in a single
drive.
During excavation, the TBM system will install a continuous, fully supported and
sealed segmental steel-reinforced concrete lining. The completed flat-bottomed
decline will form permanent life-of-mine infrastructure and will contain an
integrated conveyor system used first for excavated development material and
later enhanced for ore handling during production.
Photo 1. Photo of a Robbins Crossover XRE TBM