Ivanhoe Mines unveils Independent Phase 2 and Phase 3 Expansion Studies for the super-giant Platreef Mine – a world-class, lowest-cost precious metals and critical minerals producer
February 18, 2025
Ivanhoe Mines unveils Independent Phase 2 and Phase 3 Expansion
Studies for the super-giant Platreef Mine – a world-class, lowest-cost
precious metals and critical minerals producer
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Platreef, one of the world’s largest undeveloped precious metals
deposits, to be lowest cost platinum, palladium, rhodium, and gold
producer; with significant nickel and copper
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Phase 1 production commencing Q4 this year, with Phase 2 expansion
accelerated to 2027
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4.1 Mtpa Feasibility Study (Phase 1 & 2) yields after-tax NPV8% of $1.4
billion and IRR of 20%, producing over 450,000 ounces platinum,
palladium, rhodium and gold per annum
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10.7 Mtpa PEA (Phase 1, 2 & 3) yields an after-tax NPV8% of $3.2 billion
and 25% IRR, scaling up annualized production to over 1.0 million
ounces of platinum, palladium, rhodium, and gold, plus approx. 25,000
tonnes of nickel and 15,000 tonnes of copper
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Platreef’s vast, open-ended deposit contains 42 million ounces of
precious metals in Indicated Resources and 53 million ounces in
Inferred Mineral Resources at 2 g/t cut-off
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Ivanhoe Mines to issue Q4 and Full Year 2024 Financial Results after
market close on February 19 and host a conference call for investors
on February 20, 2025
MOKOPANE, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) Executive Co-
Chairman Robert Friedland and President Marna Cloete announced today that the
company’s subsidiary, Ivanplats, and its partners, welcome the positive and significant
results from two independent technical studies completed on the Phase 2 and Phase 3
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expansions of the tier-one Platreef platinum, palladium, rhodium, nickel, gold, and
copper mine in South Africa.
The two completed independent studies cover the three-phase development of the
Platreef mine, as shown in Figure 1. This includes an updated Feasibility Study on the
Phase 2 expansion to 4.1 Mtpa of processing capacity (4.1 Mtpa FS), followed by a
Preliminary Economic Assessment covering a new Phase 3 expansion to 10.7 Mtpa of
processing capacity (10.7 Mtpa PEA).
The excellent results from both studies reinforce the industry-leading margins of the
multi-generational Platreef mine. The estimated life of mine (LOM) total cash cost for the
4.1 Mtpa FS is $599 per ounce (oz.) of platinum, palladium, rhodium, and gold (3PE+Au),
net of nickel and copper by-product credits. LOM total cash costs fall to $511 per oz. of
3PE+Au in the 10.7 Mtpa PEA. This compares with a near-multi-year low basket spot price
of $1,205 per oz. of 3PE+Au, as at February 17, 2025. This ranks Platreef as the lowest-
cost primary platinum-group-metals producer globally, as shown in Figure 2.
Compared with other Southern African and North American primary platinum-group
metal (PGM) producers, Platreef’s low cash costs are predominantly due to its unique,
thick orebody. The Platreef orebody will be mined using safe, mechanized, and highly
productive bulk mining methods, achieving superior economies of scale. In addition, the
Platreef orebody has high grades of nickel and copper as payable by-products.
The study outlines Phase 1 production from Q4 2025, followed by the Phase 2 expansion
2 years later in Q4 2027. Phase 2 delivers, as outlined in the 4.1 Mtpa FS, a near five-fold
increase in platinum, palladium, nickel, rhodium, and gold production to over 460,000 oz.
of 3PE+Au, plus approximately 9,000 tonnes of nickel and 6,000 tonnes of copper. The 4.1
Mtpa FS generates a net present value (NPV8%) of $1.4 billion and an internal rate of
return (IRR) of 20%, at consensus long-term metal prices.
The 10.7 Mtpa PEA considers the Phase 3 expansion once the major Shaft #2 is available
for hoisting in 2029. This expansion further doubles the annualized platinum, palladium,
rhodium, and gold production to over 1 million ounces of 3PE+Au, plus approximately
22,000 tonnes of nickel and 13,000 tonnes of copper. The 10.7 Mtpa PEA is expected to
rank Platreef as one of the world’s largest primary platinum group metal producers on a
platinum-equivalent basis, as shown in Figure 3. The 10.7 Mtpa PEA generates an NPV8%
of $3.2 billion, and an IRR of 25%, at consensus long-term metal prices.
The PEA is preliminary in nature and includes an economic analysis that is based, in
part, on Inferred Mineral Resources. Inferred Mineral Resources are considered too
speculative geologically for the application of economic considerations that would allow
them to be categorised as Mineral Reserves — and there is no certainty that the results
will be realised. Mineral Resources do not have demonstrated economic viability and are
not Mineral Reserves.
Platreef is one of the largest undeveloped precious metals deposits globally, with 56
million oz in platinum equivalent Indicated Mineral Resources and 74 Moz in platinum
equivalent Inferred Mineral Resources, at a 2.0 g/t 3PE+Au cut-off. Platreef is also one of
the world’s largest undeveloped nickel sulphide resources.
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The Platreef mine has the potential to be a significant platinum, palladium, rhodium, and
gold producer for many generations to come. The 35-year mine life, reflected in the 4.1
Mtpa FS, is based only on Indicated Mineral Resources using drilling across
approximately one-third of Platreef’s licence package, with mineralisation open in
multiple directions.
Watch a new video showcasing Platreef’s phased development
plan: https://vimeo.com/1057060042/02dfaa6c11?share=copy
Ivanhoe Mines’ Founder and Co-Chairman, Robert Friedland commented:
“The results of these studies mark the culmination of three decades of tireless
efforts by thousands of our people to discover, then delineate, and finally build a
world-class, polymetallic mining complex that will have a life span of many human
generations.
“With over 38 million ounces of precious metal on a gold-equivalent basis, Platreef
is one of the largest precious metals project under development on our planet... The
project also contains one of the largest nickel-sulphide systems in the world. To be
clear… there is more contained nickel in sulphide form at Platreef than there is
remaining in Canada’s entire Sudbury basin… Beyond this globally significant
resource base, Platreef has vast potential over coming generations to grow its
endowment even further… since we last drilled the discovery from surface ten years
ago. The massive polymetallic Platreef is open in many directions… even though we
have drilled over 1.4 billion tonnes of the world’s best platinum, palladium, rhodium,
and gold system.
“This Godzilla of a mine is built to last! The global supply chain will no longer be
dependent on deep, antiquated reefs utilizing obsolete 19th-century mining
methods... many of these one-metre thick, narrow, oppressively hot and humid old
mines rely on the exploitation of human labour operating at extreme depths... The
unmatched thickness and grade of the Platreef orebody will allow us to mine at the
most profitable margins in the industry, ensuring the strength of the operations
through every phase of the commodity cycle. Platreef is a mine that will deliver
metals critical to the modern world for generations to come… while using the latest
and safest state-of-the-art, mechanized mining technology.
"For Ivanhoe Mines, achieving first production at Platreef this year will mark the
next step of growth in our journey to become the world's next major diversified
mining company. Our Phase 1 ‘baby’ mine is only the beginning for this tier-one
asset… the independent studies clearly light the path to our becoming the world
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leader in platinum-group-metals, nickel, and copper… we are determined to become
the largest primary producer in the platinum group metals industry over time.”
Ivanhoe Mines’ President, Marna Cloete added:
“At Platreef, we intend to build on the exceptional momentum we have achieved in the
Democratic Republic of the Congo, at the Kamoa-Kakula Copper Complex and the ultra-
high grade Kipushi zinc-copper-silver mine. We will leverage this knowledge and
experience to build another, great industry-leading tier-one asset, while delivering
sustained benefits across our communities, our employees and our stakeholders alike.
“We could not achieve this without the support of our partners, including our industry-
leading broad-based black empowerment trust, representing over 150,000 community
members, and of course our Japanese shareholders – including Itochu; Japan Oil, Gas
and Metals National Corporation; and Japan Gas Corporation of Tokyo, Japan – whose
forward-thinking investment made possible one of the largest exploration campaigns
ever conducted in South Africa.
“We will continuing Ivanhoe’s high standard for responsible and impactful resource
development, because our commitment extends beyond production. As an industry-
leader in employing locally, buying locally and supporting the growth of both women and
men in our business, Platreef will epitomize the integration of cutting-edge industry
practices with a steadfast dedication to social and economic progress.”
Platreef’s Indicated and Inferred Mineral Resources
Platreef’s Indicated Mineral Resources contain an estimated 18.9 million ounces of
palladium, 18.7 million ounces of platinum, 3.1 million ounces of gold, and 1.2 million
ounces of rhodium (a combined 41.9 million ounces PGMs plus gold), plus 2.4 billion
pounds of nickel and 1.2 billion pounds of copper, at a 2.0 g/t 3PE+Au cut-off.
Platreef’s Inferred Mineral Resources contain an additional 23.8 million ounces of
palladium, 23.2 million ounces of platinum, 4.3 million ounces of gold, and 1.6 million
ounces of rhodium (a combined 52.8 million ounces PGMs plus gold), plus 3.4 billion
pounds of nickel and 1.78 billion pounds of copper, also at a 2.0 g/t 3PE+Au cut-off.
Highlights of 2025 4.1 Mtpa Feasibility Study and 10.7 Mtpa Preliminary
Economic Assessment
All figures are in U.S. dollars unless otherwise stated.
Feasibility Study targets first production from Phase 1 in Q4 2025 and Phase
2 expansion in Q4 2027.
• The first feed of ore into the 770-ktpa Phase 1 concentrator is expected in Q4 2025.
• Phase 1 annualized production is expected to ramp up to approximately 100,000 oz.
of platinum, palladium, rhodium, and gold (3PE+Au), plus 2,000 tonnes of nickel and
1,000 tonnes of copper.
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• Phase 1 will use both Shaft #1 and Shaft #3 for hoisting ore and waste, with a total
combined hoisting capacity of up to 5.0 Mtpa.
• The remaining capital expenditure for Phase 1 is $70 million.
• The 4.1 Mtpa FS outlines an increase the total processing capacity to approximately
4.1 Mtpa. This is achieved from a new 3.3-Mtpa Phase 2 concentrator module from
Q4 2027.
• The 4.1 Mtpa FS ranks Platreef as the lowest-cost primary PGM producer, with LOM
total cash costs of $599 per oz. of 3PE+Au, including royalties, streams and net of
by-products. Including sustaining capital, total cash costs are $704 per oz of
3PE+Au, as shown in Figure 2.
• The 4.1 Mtpa FS estimates LOM annualized production, once fully ramped up, of
between 450,000 and 550,000 oz. of 3PE+Au, plus approximately 9,000 tonnes of
nickel and 5,600 tonnes of copper. This is expected to rank Platreef as the eighth-
largest primary PGM producer on a platinum-equivalent basis, as shown in Figure 3.
• The 4.1 Mtpa FS will initially use Shaft #1 and Shaft #3 for hoisting ore and waste to
feed the Phase 2 concentrator module. Shaft #2 is expected to be initially equipped
for hoisting labour and materials from 2029, further increasing total hoisting
capacity, providing significant operational flexibility.
• The expansion capital cost for 4.1 Mtpa FS is estimated at $1.2 billion, which is
expected to be funded from an expanded project finance facility and equity.
• The 4.1 Mtpa FS delivers an after-tax net present value at an 8% discount rate
(NPV8%) of $1.4 billion and an internal rate of return (IRR) of 20%, based on long-
term consensus prices over a mine-life of 35 years.
The 10.7 Mtpa PEA outlines an expansion from 2030 to rank Platreef as one
of the largest global primary PGM producers, as well as a significant nickel
producer
• The 10.7 Mtpa PEA includes a further phase of expansion, Phase 3, to a total
processing capacity of 10.7 Mtpa, following the completion of two additional 3.3-
Mtpa concentrator modules in 2030 and 2032.
• LOM total cash costs for the 10.7 Mtpa PEA are expected to be $511 per oz. of
3PE+Au, net of by-products, benefitting from significant economies of scale.
Including sustaining capital, total cash costs are expected to be $641 per ounce of
3PE+Au, net of by-products, as shown in Figure 2.
• Annualized production in the 10.7 Mtpa PEA, once fully ramped up, is expected to be
between 1.0 and 1.2 million oz. of 3PE+Au, plus approximately 22,000 tonnes of
nickel and 13,000 tonnes of copper. Phase 3 is expected to rank Platreef as one of
the largest primary PGM producers on a platinum equivalent basis, as shown in
Figure 3, as well as a significant nickel producer
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• The 10.7 Mtpa PEA uses Shaft #2 and Shaft #3 for hoisting ore and waste with a
combined total capacity of over 12 Mtpa.
• The incremental expansion capital cost for the 10.7 Mtpa PEA is estimated at $803
million, leveraging the significant surface and underground infrastructure already
constructed during Phase 2.
• The 10.7 Mtpa PEA delivers an NPV8% of $3.2 billion and an IRR of 25%, based on
long-term consensus prices over a mine life of 29 years.
The PEA is preliminary in nature and includes an economic analysis that is based, in
part, on Inferred Mineral Resources. Inferred Mineral Resources are considered too
speculative geologically for the application of economic considerations that would allow
them to be categorized as Mineral Reserves — and there is no certainty that the results
will be realized. Mineral Resources do not have demonstrated economic viability and are
not Mineral Reserves.
Figure 1: Phased development schematic of the Platreef mine, showing the
annualized mining rate over life of mine.
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Figure 2: Global primary PGM producers’ 2024 total cash costs, net of by-products
and sustaining capital ($ per oz of 3PE+Au).
Source: SFA (Oxford), Ivanplats. Notes: Cost and production data for the Platreef project is based on the Platreef’s 2025 4.1
Mtpa FS and 10.7 Mtpa PEA parameters, applying SFA South African industry average smelting and refining costs. SFA’s
estimated peer group cost and production data for 2024 is based on H1 2024 figures, extrapolated out to produce an estimate
for the full calendar year and follows a methodology to provide a level playing field for smelting and refining costs on a pro-rata
basis from the producer processing entity. Net total cash costs have been calculated using 2024 average basket prices and
exchange rates of 18.78:1 ZAR:USD, US$980/oz platinum, US$1,009/oz palladium, US$4,753/oz rhodium, US$2,300/oz gold,
US$17,150/t nickel and US$8,727/t copper. (1) Platreef 4.1 Mtpa between years 4 to 35. (2) Platreef 10.7 Mtpa between years 4
to 29.
Figure 3: Ranking of selected global primary PGM producers, based on 2024E
platinum equivalent production (000 Pt eq. ounces).
Source: SFA (Oxford), Ivanplats. Notes: Chart only includes primary PGM producers. Cost and production data for the Platreef
project is based on the Platreef’s 2025 4.1 Mtpa FS and 10.7 Mtpa PEA parameters. Production data for the peer group is
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provided by SFA (Oxford). Equivalent platinum production has been calculated using average 2024 prices and exchange rates
of 18.78:1 ZAR:USD, US$980/oz platinum, US$1,009/oz palladium, US$4,753/oz rhodium, US$2,300/oz gold, US$17,150/t
nickel and US$8,727/t copper. (1) Platreef 4.1 Mtpa FS between years 4 to 35, (2) Platreef 10.7 Mtpa PEA between years 4 to
29.
Phase 1 production from Q4 2025
Construction of the 770-ktpa Phase 1 concentrator was completed on schedule in June
2024. The concentrator was subsequently temporarily placed on care and maintenance.
The first feed of ore into the Phase 1 concentrator is expected to commence in Q4 2025.
The average annualized PGM production from the Phase 1 concentrator, once ramped
up, is estimated to be approximately 100,000 oz. of 3PE+Au, plus 2,000 tonnes of nickel
and 1,000 tonnes of copper.
The Phase 1 concentrator will be initially fed by ore hoisted to surface via Shaft #1, which
was commissioned for hoisting labour and materials in 2022. Shaft #1 is currently the
only access to the three underground mining levels (750-metre level, 850-metre level, and
950-metre level), carrying workers, construction materials, and equipment for
underground development, while concurrently hoisting development waste rock to the
surface. Underground development at the end of January 2025 was within 75 metres of
the Platreef orebody on the 850-metre level.
Platreef’s surface infrastructure with the Phase 1 concentrator in the foreground
with Shaft #1, #2 and #3 in the background.