Ivanhoe Mines issues 2025 first quarter financial results, overview of construction and exploration activities ■ Ivanhoe Mines reports net profit of $122M and record $226M adjusted EBITDA in Q1 2025, up from $136M in Q4 2024
April 30, 2025
Ivanhoe Mines issues 2025 first quarter financial results,
overview of construction and exploration activities
■
Ivanhoe Mines reports net profit of $122M and record $226M
adjusted EBITDA in Q1 2025, up from $136M in Q4 2024
■
Kamoa-Kakula produced a near-record 133,120 tonnes of
copper in Q1 2025, with annualized production rates increasing
to approx. 614,000 tonnes since mid-March
■
Kamoa-Kakula set to achieve record month in April with
approximately 50,000 tonnes of copper produced
■
Kamoa-Kakula achieves record $973M revenue, operating
profit of $471M, and $585M EBITDA in Q1 2025
■
Kamoa-Kakula maintains competitive cost structure with
$1.69/lb. cash cost (C1); near low end of annual guidance
■
Commissioning of Africa’s largest and greenest copper smelter
nearing completion; start-up expected in May with first anodes
from July
■
Western Forelands Mineral Resource update
set for mid-May, 2025
■
Ivanhoe Mines notes the Declaration of Principles, jointly
signed by the governments of the DRC and Rwanda, and
witnessed by the US Secretary of State, to bring peace and
prosperity to eastern DRC region
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF)
President & Chief Executive Officer Marna Cloete and Chief Financial Officer
2
David van Heerden are pleased to announce the company’s financial results for
the first quarter of 2025, as well as 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 tier-one 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; and advancing
exploration 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 video highlighting Ivanhoe Mines’ first quarter financial
results, as well as an operational update:
https://vimeo.com/1079754785/ef469c412a?ts=0&share=copy
Founder and Co-Chairman Robert Friedland commented:
"Ivanhoe Mines is proud to report strong financial and operational
performance in the first quarter of 2025, reflecting the significant efforts of
our team and the broad shoulders of the world-class Kamoa-Kakula Copper
Complex.
“As we announced earlier this month, the initiatives to overcome power
challenges and secure sustainable short, medium, and long-term energy
sources for the growth of the world’s most important copper mine are
beginning to bear fruit.
“Kamoa-Kakula is set for record production in the shorter month of April,
achieving approximately 50,000 tonnes of copper in concentrate, equivalent
to an annualized rate of over 600,000 tonnes – a remarkable achievement.
This will provide the basis from which to continue our growth in 2026,
including our optimization projects such as Project 95, even before the
Phase 4 expansion.
3
"The start-up of Africa’s largest and greenest direct-to-blister is just a few
weeks away, which transforms Kamoa-Kakula into a fully integrated, low-
cost, multi-generational supermajor copper complex. First production of
99+% pure copper anodes is expected in July. This milestone will lower
transportation costs by more than 50% per unit of contained copper while
enabling us to sell by-product sulphuric acid locally to meet rising demand
in the Democratic Republic of the Congo’s copper industry.
"Exploration continues to play a vital role in our future growth. On our
Western Forelands licenses, we are making significant progress and will
release an interim Mineral Resource update by mid-May. This update will
highlight the immense potential of this highly prospective region adjacent to
Kamoa-Kakula.
"We have also recently expanded our exploration efforts into Zambia – a
country with tremendous geological prospectivity outside of the known
Copperbelt region. The government of Zambia is also a critical partner in
addressing long-term energy in the Southern African region.
“Finally, we praise the leadership of the governments of the United States
and Qatar for bringing together the governments of the DRC and Rwanda to
agree on principles of peace and prosperity, opening the way for increased
investment and the responsible development of DRC’s huge critical
minerals endowment that will be required to meet the rising global demand
for these essential metals.”
FINANCIAL HIGHLIGHTS
• Ivanhoe Mines recorded a profit of $122 million during Q1 2025, equivalent to a
basic profit of $0.10 per share, up from $88 million in Q4 2024. Profit included
Ivanhoe Mines’ share of profit and finance income from the Kamoa-Kakula
joint venture of $142.0 million, up from $127.3 million in Q4 2024.
• Ivanhoe Mines’ Q1 2025 adjusted EBITDA was a record $226 million, up from
$136 million in Q4 2024, which includes an attributable share of EBITDA from
Kamoa-Kakula of $231 million.
• Kamoa-Kakula recognized record revenue of $973 million, operating profit of
$471 million, and EBITDA of $585 million for Q1 2025, equivalent to a margin of
60%.
• Kamoa-Kakula’s first quarter record EBITDA of $585 million, compares with
$431 million in Q4 2024 and benefits in part from a positive remeasurement of
contract receivables of $51 million due to a rise in the copper price during the
quarter.
4
• Kamoa-Kakula sold 109,963 tonnes of copper (net of payability) during the first
quarter at an average realized copper price of $4.19/lb., compared with 112,881
tonnes in Q4 2024 at an average realized copper price of $4.08/lb. Sales
continued to lag production due to a build-up of inventory for the
commissioning of the smelter next month. At the end of the first quarter, there
were approximately 48,000 tonnes of unsold copper in inventory, up from
approximately 30,000 tonnes at the end of 2024.
• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was
$1.87/lb. for the first quarter compared with $1.94/lb. in Q4 2024. Cash cost
(C1) per pound of payable copper produced in the quarter averaged $1.69/lb.,
compared with $1.75/lb. in Q4 2024, a reduction was achieved despite an
increase in energy costs resulting from backup generator usage.
• Kamoa-Kakula maintains its 2025 cash cost (C1) guidance of $1.65/lb. to
$1.85/lb. of payable copper produced, with first quarter cash cost at the lower
end of the range.
• Kamoa Copper signed offtake agreements with CITIC Metal (HK) Limited and
Gold Mountains International Mining Company Limited, a subsidiary of Zijin
Mining, for a combined 80% of the smelter’s anode production. CITIC Metal
and Gold Mountains also provided an advance payment facility of $250 million
each, totaling $500 million, the full amount of which was received in January
2025.
• Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-
Kakula joint venture has generated over $6.1 billion of EBITDA and $5.2 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 sold 30,108 tonnes of zinc (net of standard 85% payability for zinc
concentrate) during the quarter, which was up from the 16,999 tonnes of zinc
sold in Q4 2024 and still affected by ramp-up, recognizing revenue of $77
million and quarterly segmented EBITDA of $11 million. Kipushi’s cost of sales
per pound (lb.) of payable zinc sold was $1.23/lb. and cash cost (C1) per
pound of payable zinc sold totaled $0.93/lb.
• Ivanhoe Mines maintains Kipushi’s 2025 cash cost (C1) guidance of $0.90/lb.
to $1.00/lb. of payable zinc.
• 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 also entered into a $120 million
revolving credit facility agreement, which remains undrawn.
• Ivanhoe Mines’ cash and cash equivalents on hand as at March 31, 2025, was
$717 million.
5
OPERATIONAL HIGHLIGHTS
• Kamoa-Kakula produced a near-record 133,120 tonnes of copper during the
first quarter. This compares with the quarterly record of 133,819 tonnes of
copper produced in Q4 2024 and 86,117 tonnes of copper in Q1 2024
• Imported hydroelectric power increased by 20 megawatts (MW) to 70 MW in
mid-March. Imported hydropower further increased to 100 MW after quarter
end. Further increases in grid power are expected during the second half of
2025 as the smelter ramps up.
• Copper production rate on an annualized basis increased to an average of
614,000 tonnes of copper since March 18, 2025, with daily records reaching as
high as 700,000 tonnes of copper annualized. Kamoa-Kakula is set to produce
a monthly record of approximately 50,000 tonnes of copper in April, a 30-day
month.
• Kamoa-Kakula’s Phase 1, 2, and 3 concentrators achieved a combined milling
record of approximately 3.7 million tonnes of ore during the first quarter, at an
average record recovery rate of 87.4%. The outperformance was underpinned
by the Phase 3 concentrator averaging throughput 20% above its design
capacity, equivalent to an annualized milling rate of 6 million tonnes per
annum.
• The Phase 1 and 2 concentrators milled 2.2 million tonnes of ore during Q1
2025 at an average grade of 5.01%, despite shutdowns for plant maintenance
in March. The Phase 3 concentrator milled 1.5 million tonnes of ore at an
average grade of 2.76%.
• Kamoa-Kakula’s 2025 production guidance is maintained at 520,000 to 580,000
tonnes of copper in concentrate. Annualized copper production at Kamoa-
Kakula is targeting approximately 600,000 tonnes of copper in concentrate
from 2026, following the completion of power initiatives currently underway,
as well as the optimization projects for improved Phase 1 and 2 recoveries
(“Project 95”) and increased Phase 3 throughput.
• Construction of Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-
blister copper smelter, the largest in Africa, is now complete with the smelter
undergoing commissioning. Start-up of the smelter is expected to commence
in May, with first copper anode production expected in July. Offtake
agreements with local buyers for the by-product, high-strength sulphuric acid
are well advanced.
• The “Project 95” initiative on Kamoa-Kakula’s Phase 1 and 2 concentrators is
advancing on schedule for completion in Q1 2026. The increase in
concentrator recoveries to 95% is expected to increase annualized copper
6
production by up to 30,000 tonnes, with an industry-leading capital intensity of
$6,000 per tonne of copper.
• Kamoa-Kakula’s 2025 Integrated Development Plan, covering all the planned
growth initiatives of the copper complex, is advancing well for completion in
mid-2025.
• In Q1 2025, the Kipushi concentrator milled a record 151,403 tonnes of ore at a
record average grade of 32.5% zinc, producing a record 42,736 tonnes of zinc
in concentrate at a contained grade of over 53% zinc. The ramp-up to steady
state of the ultra-high-grade Kipushi zinc mine is progressing well into the
second quarter.
• The Kipushi debottlenecking program is 66% complete and advancing on
schedule for completion late in the third 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.
• Kipushi’s 2025 production guidance is maintained at 180,000 to 240,000
tonnes of zinc in concentrate. 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.
• On February 18, 2025, Ivanhoe Mines announced 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 producers.
• Platreef’s first production from the Phase 1 concentrator is expected in Q4
2025. The Phase 2 expansion is expected from Q4 2027, increasing production
to over 450 koz of platinum, palladium, rhodium, and gold per annum, as well
as significant nickel and copper by-products.
• 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.
• Equipping of Shaft #3 progressed well during the reporting period. Installation
of the rock winder commenced, with the mechanical and electrical work
advancing well. Shaft #3 is expected to be ‘ready to hoist’ from Q1 2026 with a
capacity of approximately 4 million tonnes per annum.
• Underground development at Platreef’s 850-metre level is imminently
expected to reach the Flatreef orebody. Further development in ore will be
stockpiled on surface and processed in the Phase 1 concentrator from Q4
2025.
7
• Ivanhoe continues exploration across its Western Forelands licences,
adjacent to Kamoa-Kakula, with 5 rigs drilling during the wet season. A
Mineral Resource update is expected to be released within the coming weeks
that will include all drilling completed since the maiden resource in December
2023 up to the end of March 2025. Drilling from the remainder of the 2025
program will be included in a subsequent Mineral Resource update next year.
• Ivanhoe Mines notes the Declaration of Principles jointly signed on April 25,
2025, by the governments of the Democratic Republic of the Congo and the
Republic of Rwanda, and witnessed by the government of the United States, to
support a pathway to peace, stability, and integrated economic development
in the eastern DRC, as well as the resumption of normal bilateral relations.
• On February 12, 2025, Ivanhoe Mines announced the forming of a joint venture
with a UK private company to commence exploration activities for sediment-
hosted copper discoveries in the Chu-Sarysu Basin, Central Kazakhstan. The
Chu-Sarysu Basin is the world’s third-largest known sedimentary copper
basin. The licence package currently under application is over 18,000 km2 and
is set to be the largest in the Chu-Sarysu Basin.
• On April 2, 2024, the Zambian government granted Ivanhoe Mines 7,757 km2 in
new exploration licences in North-Western Province, which are over three
times larger in area than Ivanhoe’s Western Forelands Exploration Project.
Exploration activities are expected to commence in this quarter after the wet
season ends.
Construction of Africa’s largest and greenest smelter project at Kamoa-
Kakula is now complete. Commissioning of the smelter is nearing
completion, with the first production of 99.7% copper anodes expected in
July.
8
Conference call for investors on Thursday, May 1, 2025
Ivanhoe Mines will hold an investor conference call to discuss the results on
Thursday, May 1, 2025 at 10:30 a.m. Eastern time / 7:30 a.m. Pacific time. 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.400.lumiconnect.com/r/participant/live-meeting/400-384-567-484
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 8th Annual Sustainability Report and First Quarter
2025 Sustainability Review:
https://www.ivanhoemines.com/investors/document-library/#sustainability
Ivanhoe’s 2024 Annual Sustainability Review and Q1
2025 Quarterly Sustainability Review are both
available in the sustainability section of our website.
The reports provide a detailed review of each
project’s health and safety, environmental, and social
activities, as well as more information on the various
sustainability initiatives underway across the group.
During the first quarter of 2025, the group achieved a
combined Lost Time Injury Frequency Rate (LTIFR) of
0.40 and a Total Recordable Injury Frequency Rate
(TRIFR) of 1.19 per 1,000,000 hours worked. A breakdown
of Ivanhoe’s industry-leading health and safety
performance can be found in the Q1 2025 Sustainability
Review.