Ivanhoe Mines provides 2023 production results and 2024 production guidance for the Kamoa-Kakula Copper Complex
January 8, 2024
Ivanhoe Mines provides 2023 production results and 2024
production guidance for the Kamoa-Kakula Copper Complex
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Kamoa-Kakula produced 393,551 tonnes of copper in
concentrate in 2023, within guidance
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Year-over-year copper production increased by 18%
■
Kamoa-Kakula sets 2024 production guidance at between
440,000 and 490,000 tonnes of copper, with Phase 3
concentrator ahead of schedule for completion in Q3 2024
■
Daily milling record achieved of 31,084 tonnes by Phase 1 and
2 concentrators of ore on January 1, 2024
■
Kamoa-Kakula’s 2024 cash cost and capital expenditure
guidance will be included in 2023 year-end financial results on
February 26, 2024
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Kamoa Copper’s outstanding growth profile aligns with first-
class sustainability and social initiatives, as well as the goal of
producing the world’s ‘greenest copper’
RIYADH, SAUDI ARABIA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) Executive
Co-Chair Robert Friedland and President Marna Cloete announced today, ahead
of the 2024 Future Minerals Forum at the King Abdulaziz International Conference
Centre in Riyadh, Saudi Arabia, that the Kamoa-Kakula Copper Complex in the
Democratic Republic of the Congo (DRC) produced 393,551 tonnes of copper in
concentrate in 2023, inside the 2023 production guidance range of 390,000 to
430,000 tonnes. Kamoa-Kakula’s 2023 production achievement represents a year-
over-year increase of 18%.
The 2024 annual production guidance for Kamoa-Kakula is estimated at between
440,000 to 490,000 tonnes of copper in concentrate, following the anticipated
completion of the Phase 3 concentrator during the third quarter of 2024.
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Watch the video showcasing Kamoa-Kakula’s 2023 operational
highlights: https://vimeo.com/900591734/dd488ea4b5
2024 Production Guidance for the Kamoa-Kakula Copper Complex
Kamoa-Kakula’s 2024 production guidance is based on several assumptions and
estimates as of December 31, 2023, including among other things, assumptions
about the timing for the completion and ramp-up of the new 5-million-tonne-per-
annum Phase 3 concentrator. Guidance involves estimates of known and
unknown risks, uncertainties and other factors that may cause the actual results
to differ materially.
Kamoa-Kakula 2024 Guidance
Contained copper in concentrate (tonnes) 440,000 - 490,000
All figures are on a 100%-project basis and metal reported in concentrate is before refining losses or
payability deductions associated with smelter terms.
Ivanhoe Mines will provide 2024 guidance ranges for C1 cash costs (C1) per
pound of payable copper and capital expenditure in its year-end financial results,
which will be released on February 26, 2024. Ivanhoe will provide further
guidance on Kipushi and Platreef, which are expected to be commissioned in Q2
2024 and Q3 2024, respectively.
Kamoa-Kakula produced 393,551 tonnes of copper in 2023, an
increase of 18% compared with 2022
Kamoa-Kakula produced 393,551 tonnes of copper in 2023, achieving its
production guidance of 390,000 to 430,000 tonnes. Guidance was achieved
following the successful ramp-up of Kamoa Copper’s debottlenecking program,
which was completed ahead of schedule on February 27, 2023.
During 2023, Kamoa-Kakula Phase 1 and 2 concentrators milled approximately
8.5 million tonnes of ore at an average feed grade of 5.2% copper, producing
824,382 dry metric tonnes of copper concentrate. Copper flotation recoveries for
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the year averaged 87.4%, above the Phase 1 and 2 concentrator design recovery
rate of 86.0%.
During the fourth quarter, a total of 2.1 million ore tonnes were milled at an
average feed grade of 4.9% copper, producing 92,215 tonnes of copper in
concentrate. Quarterly production was impacted by intermittent grid instability,
particularly in November where plant utilization was significantly hampered by
unplanned outages.
As with previous quarters, ore is drawn as required from surface stockpiles to
maximize copper production. Kamoa-Kakula’s high- and medium-grade ore
surface stockpiles totaled approximately 4.13 million tonnes at an estimated,
blended average grade of 3.5% copper. Contained copper in the stockpiles at the
end of December totaled more than 143,000 tonnes.
After year-end, a daily milling record was achieved on January 1, 2024. 31,084
tonnes of ore were processed by the Phase 1 and 2 concentrators over 24 hours,
which is equivalent to an annual milling rate of 10.4 million tonnes (after
accounting for availability).
Dodo Mbay, Kamoa Copper, Executive, Concentrators, taking part in the
‘Kuwa Salama’ (Be Safe) campaign. The safety initiative requests that staff
submit their top 4 reasons why they should be safe every day.
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Kamoa Copper has been working extensively with DRC’s state-owned power
company, La Société Nationale d’Electricité (SNEL), to identify the causes of the
instability across the southern DRC’s grid infrastructure and to identify long-
lasting solutions.
In December 2023, SNEL and Ivanhoe Mines Energy DRC, a subsidiary of Kamoa
Holding Limited, signed an amendment to the existing financing agreement to
fund the identified infrastructure upgrades. The original financing agreement
consisted of a loan of up to $250 million to fund the refurbishment of 78
megawatts (MW) of generation capacity at the Mwadingusha dam and 178 MW of
generation capacity from Turbine #5 at the Inga II dam. The refurbishment of the
Mwadingusha facility was completed in September 2021, and the refurbishment of
Turbine #5 at Inga II is on schedule to be completed in the fourth quarter of 2024.
The amendment to the financing agreement expands the loan up to a total of $450
million. The funding will be assigned specifically to grid infrastructure upgrades,
such as an increase in grid capacity between Inga and Kolwezi, a new harmonic
filter at the Inga Converter Station, as well as a new static compensator at the
Kolwezi Converter Station. As with the existing financing agreement, the $200
million in additional funding by Ivanhoe Mines Energy to SNEL bears interest at
the Secured Overnight Financing Rate (SOFR) plus 3% and will be repaid via a
40% discount on the tariff of grid energy consumed by Kamoa-Kakula.
Mobilization of resources is underway, with project delivery expected to take
place over the next 18 months.
In addition, Kamoa Copper’s engineering team is currently expanding the on-site
backup generation capacity to ensure there is full on-site redundancy for the
current Phase 1 and 2 operations, as well as future Phase 3 operations. On-site
backup-power generation capacity is set to increase, via a phased roll-out, from
the current 48 MW to a total of over 200 MW in time for the completion of the
Phase 3 smelter in Q4 2024. An additional 30 MW of installed generation capacity
is expected to be fully commissioned early in Q2 2024, with a further 50 MW
commissioned by the end of the quarter. This will bring backup generation
capacity to 128 MW, which is enough for the combined Phase 1, 2 and 3
concentrators to operate. The generator farm sites are being built adjacent to the
Phase 1 and 2 concentrators, and smelter at Kakula as well as adjacent to the
Phase 3 concentrator at Kamoa.
Negotiations to source up to an additional 30 MW of power from the Zambian grid
interconnector are complete, with the delivery of power expected to commence
imminently. In the longer term, power supplied via the Zambian interconnector is
expected to increase up to 100 MW.
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(L-R) Fabrice Lusinde Wa Lusangi Kabemba, Directeur Général, SNEL SA
and Ben Munanga, Chairman, Kamoa Copper SA, signing the second
amendment to the 2014 Financing Agreement between SNEL and Ivanhoe
Mines Energy DRC. The amendment funds an additional $200 million of
infrastructure upgrades focused on delivering long-term stability to the
southern DRC grid.
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A two-tonne copper concentrate bag ready for export. Kamoa-Kakula’s
concentrate is amongst the World’s highest grade of any major mining
copper operation, containing approximately 50% contained copper.
840 employees from T3 Projects, the Electrical Controls and
Instrumentation (EC&I) engineering contractor for Kamoa-Kakula,
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celebrating the achievement of 1,500,000 lost time injury (LTI) free
construction man-hours.
Ivanhoe Mines to issue 2023 financial results and host conference call
for investors on February 26
Ivanhoe Mines will report its Q4 and full-year 2023 financial results, and a detailed
update on its operations, before the market opens on Monday, February 26, 2024.
The company plans to hold an investor conference call to discuss the full-year
2023 financial results on the same day. Details of the call will be shared closer to
the date.
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 Financial Statements and Management’s Discussion and
Analysis will be available at www.ivanhoemines.com and www.sedarplus.ca.
Qualified Persons
Disclosures of a scientific or technical nature at the Kamoa-Kakula Copper
Complex in this news release have been reviewed and approved by Steve Amos,
who is considered, by virtue of his education, experience and professional
association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not
considered independent under NI 43-101 as he is Ivanhoe Mines’ Executive Vice
President, Projects. Mr. Amos has verified the technical data disclosed in this
news release.
Other disclosures of a scientific or technical nature regarding the stockpiles in
this news release have been reviewed and approved by George Gilchrist, who is
considered, by virtue of his education, experience and professional association, a
Qualified Person under the terms of NI 43-101. Mr. Gilchrist is not considered
independent under NI 43-101 as he is the Vice President, Resources of Ivanhoe
Mines. Mr. Gilchrist has verified the other technical data regarding the surface
stockpiles disclosed in this news release.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for
the Kamoa-Kakula Project, which is available on the company’s website and
under the company’s SEDAR profile at www.sedarplus.ca:
• Kamoa-Kakula Integrated Development Plan 2023 Technical Report dated
March 6, 2023, prepared by OreWin Pty Ltd.; China Nerin Engineering Co.
Ltd.; DRA Global; Epoch Resources; Golder Associates Africa; Metso
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Outotec Oyj; Paterson and Cooke; SRK Consulting Ltd.; and The MSA
Group.
The technical report includes relevant information regarding the assumptions,
parameters and methods of the mineral resource estimates on the Kamoa-Kakula
Copper Complex cited in this news release, as well as information regarding data
verification, exploration procedures and other matters relevant to the scientific
and technical disclosure contained in this news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three
principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper
Complex in the DRC, the construction of the tier-one Platreef palladium-nickel-
platinum-rhodium-copper-gold project in South Africa; and the restart of the
historic ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the
DRC.
Ivanhoe Mines also is exploring for new copper discoveries across its circa
2,400km2 of 80-100% owned exploration licences, as well as on the 247km2 of
newly acquired joint venture licences, in the Western Foreland located adjacent
to the Kamoa-Kakula Copper Complex in the DRC.
Information contact
Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_)
on X.
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Tanya Todd +1.604.331.9834
Website www.ivanhoemines.com
Forward-looking statements
Certain statements in this news release constitute "forward-looking statements" or
"forward-looking information" within the meaning of applicable securities laws. Such
statements and information involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements of the
company, its projects, or industry results, to be materially different from any future