Ivanhoe Mines issues 2025 second quarter financial results, overview of construction and exploration activities ■ Ivanhoe Mines’ reports Q2 2025 profit of $35 million and adjusted EBITDA of $123M, including $128M of attributable
July 30, 2025
Ivanhoe Mines issues 2025 second quarter financial results,
overview of construction and exploration activities
■
Ivanhoe Mines’ reports Q2 2025 profit of $35 million and
adjusted EBITDA of $123M, including $128M of attributable
EBITDA from Kamoa-Kakula
■
Kamoa-Kakula produced 112,009 tonnes of copper in Q2
2025, Phase 1 and 2 operating at 85% design capacity, Phase
3 concentrator operating 30% above design capacity
■
Mining rates on the western side of Kakula improve;
operations in line with revised 2025 production guidance
■
Stage One dewatering of the Kakula Mine advances; Stage
Two dewatering to commence imminently
■
Kamoa-Kakula capex reviewed for dewatering and ramp-up
plan; upper end of 2025 guidance range lowered
■
Africa’s largest and greenest copper smelter on schedule to
commence start-up in September
■
Recent rise in platinum and palladium prices improves
Platreef NPV8% (10.7 Mtpa PEA) by over 20% to approx. $3.8
billion; first production on schedule for next quarter
■
Kipushi operations achieved another record quarter;
imminent completion of debottlenecking program to boost
processing rates by 20%
■
Ivanhoe Mines’ balance sheet has $774 million in attributable
cash and equivalents
■
Democratic Republic of the Congo and AFC/M23 sign
declaration of principles agreement in Qatar to end fighting
in eastern DRC
2
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX:
IVPAF) President and Chief Executive Officer, Marna Cloete, and Chief
Financial Officer David van Heerden are pleased to announce the company’s
financial results for the second quarter of 2025, as well as an operations and
project development update.
Ivanhoe Mines is a leading Canadian mining company with three principal tier-
one mining operations in Southern Africa. The company is primarily focused
on operations at the Kamoa-Kakula Copper Complex in the Democratic
Republic of the Congo (DRC); ramping up production and debottlenecking the
ultra-high-grade Kipushi zinc-copper-lead-germanium mine in the DRC; and
soon, commencing the startup of the Platreef platinum, palladium, rhodium,
nickel, gold, and copper mine in South Africa.
In addition, Ivanhoe Mines is expanding the Makoko District copper discovery
in the Western Forelands, as well as exploring for new sedimentary-hosted
copper discoveries across its expansive and highly prospective exploration
licence packages across the DRC, Angola, Zambia, and Kazakhstan. All figures
are in U.S. dollars unless otherwise stated.
Watch a video highlighting Ivanhoe Mines’ second quarter financial
results, as well as an operational update:
https://vimeo.com/1105228328/945ffda895?share=copy
Founder and Co-Chairman Robert Friedland commented:
“More important than the financial results of this second quarter are the
milestones achieved beneath the surface at Kakula. Since resuming operations
in early June, our underground teams have delivered remarkable outcomes,
exceeding our expectations and demonstrating extraordinary dedication under
challenging circumstances. Their efforts are driving steady, week-on-week
improvements, as we work our way back towards full capacity. Guided by
technical assessments and strategic leadership directives, this progress
showcases robust momentum and a clear path forward.
“Equally commendable are our colleagues in China, whose exceptional
coordination has been instrumental in sourcing, assembling, and shipping four
high-capacity submersible pumps. These critical infrastructure components,
set to begin operation in August, will expedite the dewatering efforts of Kakula.
3
By the end of 2025, these pumps are expected to enable us access back into
the mine's eastern high-grade zones.
“However, the most groundbreaking transformation is yet to come. With the
Platreef Mine poised to begin production next quarter, this will be a new
frontier for the global platinum group metals industry and South Africa.
Platreef signifies the future of sustainable mining, combining large-scale
operations, mechanization, cost efficiency, environmental stewardship, and an
emphasis on social and community partnership. It is not merely a new mine but
a redefinition of how platinum group metals, as well as nickel and copper, are
produced responsibly. The dawn of the Platreef era is upon us, and the world is
watching.”
FINANCIAL HIGHLIGHTS
• Ivanhoe Mines’ Q2 2025 adjusted EBITDA was $123 million, compared with
$226 million for Q1 2025, which includes an attributable share of EBITDA
from Kamoa-Kakula of $128 million. Ivanhoe Mines recorded a profit after tax
of $35 million for Q2 2025, compared to $67 million for the same period in
2024 and $122 million in Q1 2025.
• Kamoa-Kakula sold 101,714 tonnes of copper (net of payability) during the
second quarter at an average realized copper price of $4.34/lb., compared
with 109,963 tonnes in Q1 2025 at an average realized copper price of
$4.19/lb. Sales continued to lag production due to a build-up of inventory
for the smelter, which is expected to start up in September. At the end of
the second quarter, there were approximately 53,600 tonnes of unsold
copper in inventory, up from approximately 48,000 tonnes at the end of Q1
2025.
• Kamoa-Kakula recognized revenue of $875 million, an operating profit of
$190 million, and EBITDA of $325 million for the quarter, equivalent to an
EBITDA margin of 37%. This compares with Q1 2025 EBITDA of $594
million.
• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was
$2.85/lb. for the second quarter, compared with $1.87/lb. in Q1 2025. Cash
cost (C1) per pound of payable copper produced in the quarter averaged
$1.89/lb., compared with $1.69/lb. during Q1 2025. The costs of sales
include abnormal costs while Phase 1 and Phase 2 concentrators were
temporarily suspended after May 18, 2025.
• Kamoa-Kakula revised its 2025 cash cost (C1) guidance range to $1.90/lb. –
$2.20/lb., from previously $1.65/lb. – $1.85/lb. of payable copper produced.
Kamoa-Kakula is anticipating higher cash costs during the second half of
2025, which is primarily due to the processing of lower-grade ore.
Additionally, the financial benefits of operating the smelter are unlikely to
have a significant positive impact until ramp-up is advanced towards the
end of the year.
4
• In June, Kamoa Copper signed an offtake agreement with Trafigura Asia
Trading Pte Ltd for the remaining 20% of the smelter’s annual anode
production. The agreement is over a three-year term and also includes a
$200 million offtake-linked advance payment facility. The facility has an
interest rate of the 1-month Secured Overnight Financing Rate (SOFR) plus
3.75%. Offtake agreements for the other 80% of anode production were
signed in Q1 with CITIC Metal (HK) Limited and Gold Mountains
International Mining Company Limited, a subsidiary of Zijin Mining. CITIC
Metal and Gold Mountains also provided advance payment facilities totaling
$500 million.
• 2025 capital expenditure guidance for Kamoa-Kakula has been
comprehensively reviewed with respect to the ongoing dewatering and
ramp-up plan. The lower end of guidance is maintained at $1,420 million
with the upper end lowered to $1,600 million from $1,670 million.
Discretionary Phase 3 optimization expenditure in the original 2025 budget
is deferred to 2026, partially offset by increased sustaining costs
associated with the rehabilitation and dewatering of Kakula and the ramp-
up of Kamoa.
• Despite operational challenges during the second quarter, the Kamoa-
Kakula joint venture returned a positive net cash flow of $169 million.
• Kipushi sold 43,348 tonnes of zinc (net of payability) during the quarter, up
by almost 44% from the 30,108 tonnes of zinc sold in Q1 2025. Kipushi
recognized a quarterly revenue of $97 million, a segmented loss of $6
million and EBITDA of $9 million. Kipushi’s cost of sales per pound of
payable zinc sold was $1.05/lb. and the cash cost (C1) per pound of payable
zinc sold totaled $0.96/lb.
• Kipushi Mine’s cash costs (C1) for the first half of 2025 are just below the
mid-point of guidance at $0.94/lb. of payable zinc. Ivanhoe Mines maintains
Kipushi’s 2025 cash cost (C1) guidance of $0.90/lb. to $1.00/lb. of payable
zinc.
• Platreef capital expenditure is tracking at the lower end of 2025 guidance,
with the Phase 1 project nearing completion. Negotiations are progressing
well for a $700 million Phase 2 senior project finance facility, which is
expected to close in Q1 2026.
• Ivanhoe Mines has a strong balance sheet with cash and cash equivalents
on hand of $672 million and attributable group pro-rata cash and cash
equivalents of $774 million on hand, as at June 30, 2025.
OPERATIONAL HIGHLIGHTS
• During the second quarter, Kamoa-Kakula’s Phase 1, 2, and 3
concentrators milled 3.62 million tonnes of ore, producing 112,009 tonnes
of copper, representing an 11% increase when compared with the same
period in 2024. This included a monthly record of approximately 50,000
5
tonnes of copper in April, prior to the occurrence of seismic activity in May
2025. Copper production for the first half of 2025 totaled 245,127 tonnes.
• Quarterly copper production was significantly impacted by seismic activity
on the eastern side of the Kakula Mine, as reported on May 20, 2025. This
resulted in the suspension of underground mining activities at the Kakula
Mine. Mining recommenced on the western side of the Kakula Mine on June
7, 2025. Kamoa-Kakula’s 2025 production guidance was revised to between
370,000 and 420,000 tonnes of copper.
• The Phase 1 and 2 concentrators commenced the processing of ore from
the western side of the Kakula Mine on June 8, 2025. For the remainder of
the year, the Phase 1 and 2 concentrators are expected to operate at
between 80% and 85% of plant capacity, targeting 50% of ore feed from
surface stockpiles and 50% from ore mined from the western side of
Kakula. The processing of surface stockpiles is expected to continue until
they are depleted in Q1 2026.
• The Phase 3 concentrator milled a record 1.6 million tonnes of ore in the
second quarter, producing a record 40,608 tonnes of copper. The milling
record is equivalent to an annualized rate of 6.5 million tonnes, which is
30% higher than the Phase 3 concentrator’s design capacity of 5.0 million
tonnes per annum. The average quarterly feed grade for the Phase 3
concentrator was a record 2.92% copper.
• Stage One dewatering continues as planned, with water levels modestly
decreasing. The delivery of the four Stage Two, submersible, high-capacity
dewatering pumps has recently commenced with the first of three cargo
flights arriving in Lubumbashi. Stage Two dewatering is on schedule to
start in August.
• Ivanhoe Mines is targeting to provide in September 2025 an update on
Kamoa-Kakula’s recovery plan and ramp-up to steady-state operations over
the medium term. Work has also commenced on an updated life-of-mine
integrated development plan, which is targeted for completion in the first
quarter of 2026.
• Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-blister copper
smelter, the largest in Africa, is expected to commence start up in
September. All concentrates produced by Phase 1, 2, and 3 concentrators
are expected to be treated by the on-site smelter.
• Site clearance and early earthworks for Kamoa-Kakula’s 60-megawatt (MW),
on-site solar (PV) facility with battery storage have commenced. The solar
facility is expected to be operational in mid-2026, supplying up to 25% of
Kakula’s energy requirements.
• Mechanical and electrical equipment installation for the refurbished Turbine
#5 at the Inga II hydroelectric facility is now completed. Pre-commissioning
activities have already commenced and are expected to be completed early
in the fourth quarter.
6
• At Kipushi, during Q2 2025, the concentrator milled a record 153,342 tonnes
of ore at a record average grade of 33.4% zinc, producing a near-record
41,788 tonnes of zinc in concentrate at a contained grade of over 51% zinc.
• The first phase of Kipushi’s debottlenecking program was completed in
June with the second phase on schedule to be completed in the coming
weeks, requiring a shutdown to tie in the newly installed equipment. In mid-
July following completion of the first phase, Kipushi achieved a daily
production record equivalent to 327,000 tonnes of zinc in concentrate on an
annualized basis, and a weekly production record equivalent to 289,000
tonnes of zinc in concentrate on an annualized basis.
• Kipushi produced 84,524 tonnes of zinc during H1 2025. The production
rate in H2 2025 is expected to significantly improve following improved
availability of the dense media separation (DMS) circuit and the imminent
completion of the debottlenecking program. Kipushi’s 2025 production
guidance is maintained at 180,000 to 240,000 tonnes of zinc in concentrate.
• At Platreef, the first feed of ore into the Phase 1 concentrator is on
schedule to take place in Q4 2025. Phase 1 is the first step of a three-phase
expansion plan, which aims to make the Platreef Mine one of the world’s
largest producers of platinum, palladium, rhodium, and gold, with
significant copper and nickel credits.
• Phase 2 expansion activities are underway and on track for first production
in Q4 2027. Platreef’s Phase 2 expansion is expected to produce over
460,000 ounces of platinum, palladium, rhodium, and gold per annum, plus
approximately 9,000 tonnes of nickel and 6,000 tonnes of copper.
• The Platreef Mine is projected to be the lowest-cost primary platinum-
group-metals producer globally. The Phase 2 life-of-mine total cash cost is
estimated to be $599 per ounce of 3PE+Au, net of nickel and copper by-
product credits. This compares very favourably with a basket spot price of
approximately $1,600 per ounce of 3PE+Au, as at July 29, 2025.
• On May 8, 2025, mining crews at the Platreef Mine started underground
development into the high-grade polymetallic Flatreef orebody for the first
time, as the mine rapidly advances to commercial production later this
year. This significant milestone comes 15 years after the discovery of the
26-metre thick, flat-lying Flatreef orebody was made. Development ore is
being stockpiled on the surface and will be used in the ramp-up of the
Phase 1 concentrator. The Ivanplats team aims to accumulate a stockpile of
approximately 60,000 tonnes of development ore ahead of the first feed of
ore into the Phase 1 concentrator.
• Equipping of Shaft #3 is progressing well. Installation of the rock winder
has commenced, with the mechanical and electrical work nearing
completion. Shaft #3 is expected to be “ready to hoist” from Q1 2026 with a
capacity of approximately 4 million tonnes per annum.
7
• In the Western Forelands, Ivanhoe continues exploration across its vast
licence area, adjacent to Kamoa-Kakula. Drilling activity increased as the
wet season ended in late April, with the deployment of four more rigs. In
total, nine contractor-operated diamond drill rigs were active during the
quarter, which completed a total of 14,843 meters of drilling.
• On May 14, 2025, Ivanhoe announced its independently verified, updated
Mineral Resource estimate for the Makoko District in the Western
Forelands. The total copper contained in the Makoko District has
approximately doubled in the past 18 months, during which 86,000 metres
of diamond drilling were completed. The Makoko District ranks as the
world’s fifth-largest copper discovery since Kakula in 2015.
• In Kazakhstan, drilling commenced in July on Ivanhoe’s joint venture
licences. Two rigs have been deployed for the 17,500-metre maiden
diamond drilling program. In addition, over 95% of the planned 16,911 km²
in licences have now been fully granted. Concurrent with the drilling
program, extensive geophysical and geochemical programs are underway
across the licence package.
• On July 19, 2025, representatives from the DRC and the Congo River
Alliance/March 23 Movement (AFC/M23) signed a declaration of principles
in Doha, Qatar. The declaration is intended as a roadmap towards a
permanent settlement. Both parties agree to implement the terms of the
deal by July 29, 2025. In addition, a final peace deal is expected to be
agreed by August 18, 2025, and must align with last month's US-brokered
Peace Agreement signed on June 27, 2025, between the DRC and Rwanda.
Africa’s largest and greenest copper smelter at Kamoa-Kakula is
expected to commence start-up in September.
This press release includes “EBITDA”, “Adjusted EBITDA”, “EBITDA margin”, “Pro-rata cash and cash
equivalents” and "Cash cost (C1)", which are non-GAAP financial performance measures. For a detailed
description of each of the non-GAAP financial performance measures used herein and a detailed reconciliation to
the most directly comparable measure under IFRS Accounting Standards, please refer to the non-GAAP
Financial Performance Measures and Pro-Rata Financial Ratios sections of the company’s MD&A for the three
and six months ended June 30, 2025.
8
Conference call for investors on Thursday, July 31, 2025
Ivanhoe Mines will hold an investor conference call to discuss the results on
Thursday, July 31, 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/400-061-613-
503
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 Q2 2025 Sustainability Review:
During the second quarter of 2025, the group achieved a
combined Lost Time Injury Frequency Rate (LTIFR) of
0.34 and a Total Recordable Injury Frequency Rate
(TRIFR) of 1.06 per 1,000,000 hours worked. A breakdown
of Ivanhoe’s industry-leading health and safety
performance can be found in the Q2 2025 Sustainability
Review, on the company’s website:
https://www.ivanhoemines.com/investors/document-library/#sustainability