Ivanhoe Mines provides 2024 production results, 2025 production guidance
January 8, 2025
Ivanhoe Mines provides 2024 production results, 2025
production guidance
■
Kamoa-Kakula produced record 437,061 tonnes of copper in
concentrate in 2024
■
Kamoa-Kakula quarterly production record of 133,819 tonnes
of copper, a quarter-on-quarter increase of 15%, and monthly
production record of 47,058 tonnes in December
■
Kamoa-Kakula sets 2025 production guidance at between
520,000 and 580,000 tonnes of copper
■
Smelter commissioning may be delayed by up to three months
following limited fire damage to back up generation capacity,
expedited repairs underway
■
Kipushi produced 50,307 tonnes of zinc in concentrate in 2024,
including a monthly record 14,900 tonnes in December as
ramp-up approaches nameplate capacity
■
Kipushi sets 2025 production guidance at between 180,000 and
240,000 tonnes of zinc
■
Ivanhoe Mines provides update to 2025 capital expenditure
guidance
■
Ivanhoe Mines to issue 2024 financial results after market close
on February 19, host conference call for investors
on February 20
2
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF)
Executive Co-Chair Robert Friedland and President Marna Cloete announced
today the company’s fourth quarter and full-year production results for the
Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC)
and the ultra-high-grade Kipushi zinc mine, also in the DRC. In addition, the
company has announced its 2025 production guidance for Kamoa-Kakula and
Kipushi, as well as updated 2025 group capital expenditure guidance.
Watch the video summarizing Kamoa-Kakula’s 2024 operational
highlights and future production guidance:
https://vimeo.com/1044780723/a114ecda2d?share=copy
Kamoa-Kakula delivers another record-breaking year with 437,061
tonnes of copper produced in 2024, a year-on-year increase of 12%
Kamoa-Kakula delivered record production in 2024 of 437,061 tonnes of copper in
concentrate, a 12% year-on-year increase, following the ramp up of the Phase 3
concentrator in the second half of 2024.
Production for the fourth quarter of 133,819 tonnes of copper in concentrate, a
15% increase from the third quarter, is also a record. This was a result of strong
performance from the Phase 1 and 2 concentrators, delivering record throughput
with improved grade and recovery, as well as the Phase 3 concentrator reaching
and at times exceeding nameplate design parameters.
Kamoa-Kakula summary of quarterly and annual production data
Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024
Phase 1 & 2
Ore tonnes milled (000’s tonnes) 2,061 2,288 2,215 2,329 8,893
Copper ore grade processed (%) 4.80% 5.04% 4.86% 5.08% 4.95%
Copper recovery (%) 87.4% 87.0% 86.6% 87.0% 87.0%
Copper in concentrate produced (tonnes) 86,117 99,706 94,214 102,042 382,078
Phase 3
Ore tonnes milled (000’s tonnes) - 93 1,050 1,326 2,469
Copper ore grade processed (%) - 1.67% 2.64% 2.82% 2.70%
Copper recovery (%) - 83.3% 79.9% 85.1% 82.9%
Copper in concentrate produced (tonnes) - 1,106 22,099 31,777 54,983
3
Combined Phase 1, 2 and 3
Ore tonnes milled (000’s tonnes) 2,061 2,381 3,266 3,655 11,362
Copper ore grade processed (%) 4.80% 4.91% 4.14% 4.26% 4.46%
Copper recovery (%) 87.4% 86.9% 85.3% 86.6% 86.5%
Copper in concentrate produced (tonnes) 86,117 100,812 116,313 133,819 437,061
Numbers in red denote a quarterly record
During the month of December, Kamoa-Kakula delivered record production of
47,058 tonnes of copper in concentrate. The Phase 3 concentrator milled at an
annualized rate of 5.7 million tonnes per annum during the month, 13% above
design capacity, and achieved an average recovery rate of 86.6%, in line with
design parameters.
Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled
approximately 4.19 million tonnes at an estimated, blended average grade of
3.18% copper. Contained copper in the stockpiles at the end of December totaled
approximately 133,000 tonnes.
At year-end, there were approximately 30,000 tonnes of unsold copper in
inventory, up from 16,000 tonnes of unsold copper in concentrate at the end of
the third quarter. The inventory of unsold copper is largely undergoing toll
treatment at Lualaba Copper Smelter (LCS) and is expected to reduce during the
first quarter.
Figure 1: Kamoa-Kakula’s monthly growth in 2024 copper production
4
Figure 2: Kamoa-Kakula’s total annual copper production growth since first
production in May 2021.
A limited portion of Kamoa-Kakula’s on-site back up generator
capacity damaged by fire; expedited repairs underway
On January 2, 2025, a fire occurred at an on-site generator bank near the Kakula
operations. The fire was rapidly contained and extinguished by Kamoa-Kakula’s
emergency response team. There were no injuries reported, no damage to other
infrastructure, and production operations were not impacted.
Prior to the fire, Kamoa-Kakula had over 190 megawatts (MW) of on-site diesel-
generated back up power installed, supplementing the grid-supplied domestic
and imported hydroelectric power. On-site back up power increased during the
fourth quarter, following the installation of 48 MW of new diesel-generated power.
36 MW of Kamoa-Kakula’s onsite, diesel-generated back up power was damaged
by the recent fire. Initial estimates indicate that 34 MW, out of the total 36 MW of
damaged capacity, are repairable. It will take between three and six months to
return the back up units to operation. An insurance claim will be made based on
existing policies in place. A full assessment of the damage is expected to be
completed within the coming weeks.
Kamoa-Kakula’s engineering team is conducting a full investigation into the
cause of the fire to assess the need for additional preventative measures across
the generator farms. In the meantime, surveillance of the back up generators has
increased, including the deployment of dedicated fire crews at each bank of
generators.
105,884
333,500
393,551
437,061
FY2021 FY2022 FY2023 FY2024
5
Approximately 160 MW of diesel-generated back up power remains available,
which is distributable across the Kakula and Kamoa operating sites. Currently,
Kamoa-Kakula is drawing 90 MW of domestic and imported hydropower. Kamoa-
Kakula’s management are in discussions to secure increased domestic and
imported hydropower as soon as possible. Even in the extremely unlikely event
that all grid-supplied power were to completely fail, there is sufficient onsite back
up generator capacity available to run Kamoa-Kakula’s Phase 1, 2, and 3
operations, excluding the smelter.
Total power required to operate the Phase 1, 2, and 3 operations, as well as the
smelter at full capacity, is approximately 240 MW. Kamoa-Kakula’s smelter
operations team is considering delaying the heat-up of the on-site copper smelter
by up to three months, while the damaged generators are being repaired or
additional domestic or imported hydropower is secured.
In addition, wet commissioning of Turbine #5 at Inga II, with a hydroelectric
generation capacity of 178 MW, is now expected to commence in the second
quarter. Kamoa-Kakula is expected to be allocated an initial, additional 70 MW of
hydropower from the grid in the second quarter, which will increase over time to
178 MW as grid improvement initiatives are completed.
The blasting and painting team from Prezioso Congo SA inside the spiral
case of the new 178-MW Turbine #5 at Inga II hydroelectric facility.
6
In December, the new turbine runner was lowered into place and installed
inside Turbine #5 at Inga II. Wet commissioning of Turbine #5 at Inga II is
expected to commence in the second quarter and will provide Kamoa-
Kakula with 178 MW of clean, hydropower by year-end.
Ivanhoe Mines exploring options for future hydropower imports from
Angola
On July 4, 2024, Trafigura Group of Geneva, Switzerland and ProMarks of Luanda,
Angola signed a Memorandum of Understanding (MOU) with the Government of
Angola to study the technical and economic viability of building a 2,000 MW high-
voltage electricity “interconnector” (a high-voltage direct current transmission
line) to export surplus green electricity to the DRC Copperbelt and Zambia. The
project enables electricity generated by hydroelectric dams located in the north
of Angola to be connected to the Southern Africa Power Pool. A joint venture will
be formed between ProMarks and Trafigura to develop, finance, construct and
operate the electricity “interconnector”. The project is intended to be financed
through a combination of equity capital and third-party debt. Planning, approvals
and construction would take around four years after the final investment decision
is made.
7
Kipushi produced 50,307 tonnes of zinc during inaugural year,
including a monthly record 14,900 tonnes in December as ramp-up
approaches nameplate capacity
In 2024, the Kipushi concentrator milled 228,293 tonnes of ore at an average
grade of 29% zinc, producing 50,307 tonnes of zinc in concentrate at a grade of
approximately 50%.
Following slower than anticipated ramp up progress in the third quarter,
operations at the Kipushi concentrator significantly improved during the fourth
quarter, with several processing records achieved. 135,285 tonnes of ore were
milled at an average grade of 28%, producing a record 32,323 tonnes of zinc. This
includes a record 14,900 tonnes produced during December, which is equivalent
to an annualized production rate of approximately 175,000 tonnes of zinc.
In addition, during the last day of the year, a record 750 tonnes of zinc were
produced over 24 hours, exceeding nameplate capacity. Over the same period,
2,200 tonnes of ore were milled by the concentrator, in line with the design rate.
The Kipushi concentrator is expected to consistently achieve its nameplate
milling rate during the first quarter.
At the end of December, Kipushi’s high- and medium-grade ore surface
stockpiles totaled approximately 344,000 tonnes at an estimated average grade of
23% zinc. Contained zinc in the stockpiles totaled approximately 79,500 tonnes.
Kipushi’s 800,000 tonnes per annum concentrator set several milling and
production records in December 2024.
8
2025 Production Guidance
Ivanhoe Mines’ 2025 production guidance is based on several assumptions and
estimates as of December 31, 2024. The guidance provided involves estimates of
known and unknown risks, uncertainties, and other factors that may cause the
actual results to differ materially.
In recent months, imported power available to Kamoa-Kakula has been reduced
due to drought conditions affecting hydroelectric capacity in Zambia and
Mozambique. Although the rainy season has begun, it is too early to predict the
degree to which reservoirs that provide hydropower in Zambia and Mozambique
will be recharged. Given this uncertainty, 2025 production guidance will be
reviewed at the end of the rainy season in the second quarter.
Kamoa-Kakula is targeting a production rate of approximately 600,000 tonnes of
copper in concentrate for 2026, following power generation and grid improvement
initiatives in progress, together with optimization projects for improved Phase 1
and 2 recoveries (Project 95) and increased Phase 3 throughput underway.
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 targeted for Q3 2025.
Ivanhoe Mines will provide C1 cash cost (C1) per pound of payable copper and
payable zinc guidance for 2025 in its 2024 year-end financial results release.
Guidance on Platreef’s production and C1 cash costs will be provided after ramp-
up, which is expected to commence in H2 2025.
2025 Production Guidance
Kamoa-Kakula 520,000 – 580,000 Contained copper in concentrate (tonnes)
Kipushi 180,000 – 240,000 Contained zinc in concentrate (tonnes)
All figures are on a 100%-project basis and metal reported in concentrate is before refining losses or
payability deductions associated with smelter terms.