Ivanhoe Mines issues 2024 fourth quarter and annual financial results, overview of construction and exploration activities ■ Ivanhoe Mines posts $193M net profit, $386M normalized profit ■ Ivanhoe Mines reports record $625M adjusted EBITDA in 2024,
February 19, 2025
Ivanhoe Mines issues 2024 fourth quarter and annual financial
results, overview of construction and exploration activities
■
Ivanhoe Mines posts $193M net profit, $386M normalized profit
■
Ivanhoe Mines reports record $625M adjusted EBITDA in 2024,
up from $604M in 2023
■
Kamoa-Kakula delivers record copper production of 437,061
tonnes in 2024, including 133,819 tonnes in Q4
■
Kamoa-Kakula achieves record $3.11B revenue, and $1.81B
EBITDA in 2024
■
Kamoa-Kakula maintains competitive cost structure: $1.71/lb
Cost of Sales, $1.65/lb. cash cost (C1), meeting guidance for
fourth consecutive year
■
Africa’s largest and greenest copper smelter construction
complete, set to boost margins in H2 2025
■
Kipushi zinc-copper-silver mine achieved commercial
production in Q4 2024; advancing to nameplate milling rate in
Q1 2025
■
Ivanhoe announces Phase 2 & 3 expansion studies for Platreef
platinum-palladium-rhodium-nickel-gold-copper mine; Phase 1
production expected in Q4 2025
■
Exploration update set for February 24, 2025, at BMO Global
Metals & Mining Conference
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF)
President Marna Cloete and Chief Financial Officer David van Heerden are
pleased to present today the company’s financial results for the fourth quarter
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and year ended December 31, 2024, and provide an operations and project
development update.
Ivanhoe Mines is a leading Canadian mining company developing and operating
its four principal mining and exploration projects in Southern Africa: expanding
production at the world-class Kamoa-Kakula Copper Complex in the Democratic
Republic of the Congo (DRC); ramping up the ultra-high-grade Kipushi zinc-
copper-lead-germanium mine in the DRC; building the tier-one Platreef platinum,
palladium, rhodium, nickel, gold, and copper mine in South Africa; as well as and
advancing exploring for new copper discoveries across the expansive
exploration licenses of Ivanhoe’s Western Forelands Exploration Project, which
hosts the Makoko, Kitoko, and Kiala copper discoveries near Kamoa-Kakula. All
figures are in U.S. dollars unless otherwise stated.
Watch a February 2025 video highlighting Ivanhoe Mines’ financial
results, as well as construction and exploration activities:
https://vimeo.com/1057866017/026367c9cd?share=copy
Founder and Co-Chairman Robert Friedland commented:
“In 2024, Ivanhoe Mines achieved remarkable milestones, solidifying our
position as a global leader in the copper mining sector and reinforcing our
commitment to sustainable development and production growth. The
extraordinary performance at Kamoa-Kakula, highlighted by record-breaking
copper production levels and industry-leading operational efficiency,
reflects our dedication to innovation and excellence in every aspect of our
operations. The completion of Africa’s largest and greenest copper smelter
marks a pivotal moment, unlocking new potential for enhanced profitability,
reduced costs, and streamlined efficiencies.
“Beyond our achievements at Kamoa-Kakula, the steady progress on the
Phase 2 and Phase 3 development plans at the Platreef Project further
underscores Ivanhoe Mines’ unwavering commitment to long-term value
creation. Platreef stands as a world-class operation poised to produce a
diversified suite of critical metals vital to the global energy transition,
advancing our goal of driving sustainable production growth. These
advancements align with our ambition to become a pre-eminent supplier of
responsibly sourced metals while creating lasting economic benefits for the
communities in which we operate.
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“With peak capital expenditures now behind us at Kamoa-Kakula, Ivanhoe
Mines is entering an era of exceptional free cash flow generation. Our
disciplined approach to capital allocation will enable us to expand
exploration programs across our high-potential, diversified portfolio and
pursue strategic opportunities that align with our core values. The success
we have achieved to date is reflective of the dedication, resilience, and
expertise of our global team. It is their contributions that empower us to rise
above challenges and deliver consistent value to our shareholders and
stakeholders alike. Our vision for the future is clear—to responsibly grow,
innovate, and lead in the critical metals sector as we continue to build a
legacy of excellence.”
FINANCIAL HIGHLIGHTS
• Ivanhoe Mines recorded a profit of $193 million in 2024, equivalent to a basic
profit of $0.17 per share, and normalized profit of $386 million, equivalent to
$0.32 per share. This compares with profit of $303 million in 2023, equivalent
to $0.26 per share, and normalized profit of $388 million, equivalent to $0.33
per share. The normalized profit in 2024 excludes a $164 million loss on fair
value on the convertible notes following the 40% appreciation in the share
price from C$12.85 on December 31, 2023, to a weighted average of C$17.95
during the redemption period as well as $28 million in finance costs
associated with the early redemption of the notes.
• Ivanhoe’s profit for the year includes Ivanhoe Mines’ share of profit and
finance income from the Kamoa-Kakula joint venture of $516 million for 2024,
up from $482 million in 2023.
• Ivanhoe Mines’ record adjusted EBITDA was $625 million in 2024, up from
$604 million in 2023, which includes an attributable share of EBITDA from
Kamoa-Kakula of $712 million.
• Kamoa-Kakula recognized record revenue of $3.11 billion, operating profit of
$1.43 billion, and EBITDA of $1.81 billion for 2024, equivalent to a margin of
58%.
• Kamoa-Kakula recognized EBITDA of $432 million for the fourth quarter of
2024, compared with $470 million in the third quarter, in part impacted by a
negative remeasurement of contract receivables of $52 million due to a fall in
the copper price from $4.41/lb. at the beginning of the quarter to $4.01/lb. at
the end of the quarter.
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• Kamoa-Kakula sold 396,972 tonnes of copper (net of payability) in 2024 at an
average realized copper price of $4.09/lb., compared with 375,779 tonnes in
2023 at an average realized copper price of $3.84/lb. Concentrate produced
from Phase 3 is being toll-treated into blister copper at the Lualaba Copper
Smelter (LCS) to maximize profitability until the on-site smelter is completed.
At year-end, there were approximately 30,000 tonnes of unsold copper in
inventory, up from approximately 16,000 tonnes of unsold copper in
concentrate at the end of the third quarter. The unsold copper in inventory is
expected to be sold during the first and second quarter.
• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was
$1.71/lb. for 2024 compared with $1.33/lb. in 2023. Cash cost (C1) per pound of
payable copper produced in 2024 totaled $1.65/lb., compared with $1.45/lb. in
2023, and within the guidance range of $1.50/lb. to $1.70/lb. for a fourth
consecutive year.
• The year-on-year increase in cash costs was due to an increased use of
imported power and on-site back-up power to make up for shortfalls in
available DRC grid power, and; the processing of lower-grade surface
stockpiles and run-of-mine ore during the commissioning of the Phase 3
concentrator in H2 2024.
• Ivanhoe Mines announces Kamoa-Kakula’s full-year cash cost (C1) guidance
for 2025 of $1.65/lb. to $1.85/lb. of payable copper produced. Cash cost (C1)
per pound of payable copper produced for the fourth quarter of 2024
amounted to $1.75/lb.
• The increase in cash cost guidance in 2025, relative to 2024, is in part due to
the expectation that Kamoa-Kakula will continue to use imported and back-up
power sources, particularly until Turbine #5 at Inga II is commissioned in the
second half of 2025. In addition, that the savings associated with the on-site
copper smelter are not expected to be realized until ramp up is well underway
later in the year.
• Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-
Kakula joint venture has generated $5.5 billion of EBITDA and $4.7 billion of
operating cash flow, excluding working capital movements, which has largely
been re-invested in the now-complete Phase 2 and 3 expansions and the
direct-to-blister copper smelter, as well as optimization initiatives.
• Kipushi achieved commercial production during Q4 2024 and sold 16,999
tonnes of zinc (net of payability) during the quarter, which was significantly
affected by ramp-up, recognizing revenue of $41 million at a cost of sales of
$52 million and EBITDA of $4 million. Kipushi’s cost of sales per pound (lb.) of
payable zinc sold was $1.38/lb. and cash cost (C1) per pound of payable zinc
sold totaled $1.13/lb.
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• Ivanhoe Mines announces Kipushi’s full-year cash cost (C1) guidance for 2025
of $0.90/lb. to $1.00/lb. of payable zinc. Cash costs are expected to steadily
improve over the course of 2025.
• Ivanhoe Mines continued its excellent record of project execution in 2024, with
capital expenditure, excluding sustaining capital, of $1.62 billion at Kamoa-
Kakula on the now-complete Phase 3 expansion and smelter, $267 million at
Platreef on advancing Phase 1 and 2, and $185 million completing the Kipushi
mine re-start, all being within capex guidance.
• During the fourth quarter of 2024, Ivanplats drew $70 million of a $150 million
senior debt facility for the Platreef Phase 1 mine; Ivanhoe Mines’ marketing
subsidiary entered into a $75 million revolving credit facility and drew $40
million; and Kipushi entered into a $50 million revolving credit facility and
drew $26 million.
• On January 24, 2025, Ivanhoe Mines closed the inaugural offering of an
aggregate principal amount of $750 million senior unsecured notes due 2030,
bearing a coupon rate of 7⅞%.
• Ivanhoe Mines’ cash and cash equivalents on hand as at December 31, 2024,
was $117 million, which excludes the net proceeds from the subsequent $750
million notes issue.
OPERATIONAL HIGHLIGHTS
• The Kamoa-Kakula Copper Complex produced 437,061 tonnes of copper in
concentrate in 2024, a year-over-year increase of 11% compared with 393,551
tonnes in 2023 following the ramp-up of the Phase 3 concentrator in the
second half of 2024.
• Kamoa-Kakula achieved record quarterly production of 133,819 tonnes of
copper in concentrate in the fourth quarter of 2024, compared with 100,812
tonnes in Q2 2024 and 116,313 tonnes in Q3 2024. This included record
monthly production in December of 47,058 tonnes of copper in concentrate.
• Kamoa-Kakula’s Phase 1 and 2 milled 8.9 million tonnes of ore during 2024 at
an average grade of 4.95% and Phase 3 milled 2.3 million tonnes of ore at an
average grade of 2.70% since first ore was fed on May 26, 2024. The three
concentrators combined achieved a milling record of approximately 3.7 million
tonnes of ore during the fourth quarter, as Phase 3 reached and at times
exceeded nameplate capacity.
• Kamoa-Kakula’s 2025 production guidance has been set at 520,000 to 580,000
tonnes of copper in concentrate. Kamoa-Kakula is targeting a production rate
of approximately 600,000 tonnes of copper in concentrate for 2026, following
the completion of power initiatives currently underway, together with
optimization projects for improved Phase 1 and 2 recoveries (“Project 95”) and
increased Phase 3 throughput underway.
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• Construction of Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-
blister copper smelter, the largest in Africa, is now complete. The ramp-up of
the smelter complex has been deferred by up to three months due to power
availability and is expected to commence in Q2 2025 and will drive
improvement in margins.
• The refurbishment of Turbine #5 at Inga II is expected to be completed in H2
2025. Wet commissioning has been delayed and is expected during the
second half of 2025. Simultaneously, Kamoa-Kakula is expected to receive an
initial 70 MW of grid-supplied hydropower, increasing to the Turbine #5
nameplate capacity of 178 MW as the ongoing grid improvement initiatives are
completed over the remainder of the year.
• The “Project 95” initiative on Kamoa-Kakula’s Phase 1 and 2 concentrators is
advancing towards completion in Q1 2026. The increase in concentrator
recoveries to 95% is expected to increase annualized copper production by up
to 30,000 tonnes, with an industry-leading capital intensity of $6,000 per tonne
of copper.
• The ongoing ramp-up of the ultra-high-grade Kipushi zinc mine continued
during the fourth quarter, following first ore feed on May 31, 2024. The
nameplate milling rate is expected to be achieved later in the first quarter of
2025.
• Kipushi produced 50,307 tonnes of zinc during its inaugural year. A monthly
record of 14,900 tonnes of zinc was achieved in December.
• The Kipushi debottlenecking program is advancing on schedule for
completion early in the fourth quarter. The debottlenecking program is
targeting a 20% increase in the Kipushi concentrator’s processing capacity,
up to 960,000 tonnes of ore per annum. Engineering and the procurement of
long-lead order equipment items are well underway.
• Kipushi’s 2025 production guidance has been set at 180,000 to 240,000 tonnes
of zinc in concentrate based on the ramp-up schedule. Kipushi is targeting a
production rate of over 250,000 tonnes of zinc in concentrate for 2026,
following the completion of ramp-up and debottlenecking activities.
• Ivanhoe Mines announced on February 18, 2025, two independent studies on
the Phase 2 and Phase 3 expansion of the Platreef platinum-palladium-
rhodium-nickel-gold-copper mine, outlining plans for Platreef to become one
of the world’s largest and lowest-cost platinum group metal producers, with
significant nickel and copper by-products.
• Platreef’s first production is expected from the completed Phase 1
concentrator in Q4 2025. The Phase 2 expansion is accelerated to Q4 2027,
increasing production to over 450 koz of platinum, palladium, rhodium, and
gold per annum, as well as significant nickel and copper byproducts.
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• Platreef’s Phase 3 expansion is expected to produce over 1.0 million ounces
of platinum, palladium, rhodium, and gold per annum, plus approx. 25,000
tonnes of nickel and 15,000 tonnes of copper.
• Reaming of the 5.1-meter diameter Shaft #3 from the 950-meter level was
completed in Q4 2024 and equipping has commenced. Shaft #3 is expected to
commence hoisting from Q1 2026 with a capacity of approximately 4 million
tonnes per annum.
• Ivanhoe continues exploration across its vast Western Forelands licenses,
adjacent to Kamoa-Kakula. Diamond drilling during the fourth quarter of 2024
focused on wide-spaced, step-out drilling to define the extent of copper
mineralization at the Makoko, Makoko West, and Kitoko discoveries. Drilling
during the fourth quarter was conducted using eight contractor rigs and
produced a total of 18,703 metres of core in 38 holes. A total of 81,734 metres
were drilled in 2024 in 126 holes, exceeding the planned diamond drilling by
more than 11,500 metres.
• Ivanhoe Mines announced on February 12, 2025, that it has formed a joint
venture to explore the Chu-Sarysu Basin in Kazakhstan, the world’s third-
largest sedimentary copper basin. The joint venture is targeted a licence
package of 16,000 km2, the largest in the basin, with $18.7 million committed
to exploration activities over the first two years.
Construction of Africa’s largest and greenest smelter project at Kamoa-
Kakula is now complete. Smelting of Kamoa's concentrate is expected to
drive a material improvement in margins.
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Conference call for investors on Thursday, February 20, 2025
Ivanhoe Mines will hold an investor conference call to discuss the results at 10:30
a.m. Eastern time / 7:30 a.m. Pacific time on February 20, 2025. The conference
call will conclude with a question-and-answer (Q&A) session. Media are invited to
attend on a listen-only basis.
To view the webcast, use the link: https://meetings.lumiconnect.com/400-631-436-
236
Audience Phone Number:
Local – Toronto (+1) 289 514 5005
Toll Free – North America (+1) 800 206 4400
An audio webcast recording of the conference call, together with supporting
presentation slides, will be available on Ivanhoe Mines’ website at
www.ivanhoemines.com.
After issuance, the condensed consolidated interim financial statements and
Management’s Discussion and Analysis will be available at
www.ivanhoemines.com and www.sedarplus.ca.
Read Ivanhoe's Fourth Quarter 2024 Sustainability Review:
For 2024, the group achieved an industry-leading
combined Lost Time Injury Frequency Rate (LTIFR) of
0.33 and a Total Recordable Injury Frequency Rate
(TRIFR) of 0.9 per 1,000,000 hours worked. For the
fourth quarter, the group achieved an impressive LTIFR
of 0.14 and a TRIFR of 0.62 per 1,000,000 hours worked.
For more information on each project’s health and
safety performance, as well as more information on the
various sustainability initiatives underway across the
group, read Ivanhoe’s Q4 2024 Sustainability Review. In
addition, the group’s 2024 Sustainability Report will be
release in the second quarter:
https://www.ivanhoemines.com/investors/document-
library/#sustainability