Ivanhoe Mines’ Earnings Call: Achievements and Challenges

Ivanhoe Mines ((TSE:IVN)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ivanhoe Mines’ recent earnings call painted a picture of cautious optimism, highlighting both significant achievements and ongoing challenges. The company celebrated milestones such as a substantial investment from the Qatar Investment Authority, successful dewatering at Kamoa-Kakula, and record zinc production at Kipushi. However, these positive developments were tempered by issues including lower production and increased costs at Kamoa-Kakula, the lingering effects of a seismic event, and power supply challenges. Overall, the sentiment was one of cautious optimism, with recovery plans and new projects underway.

Qatar Investment Authority Investment

Ivanhoe Mines has bolstered its institutional shareholder base with a $500 million equity investment from the Qatar Investment Authority. This strategic move is expected to provide the company with enhanced financial stability and growth opportunities.

First Ore Fed to Platreef Concentrator

A significant milestone was achieved at the Platreef project as the first ore was successfully fed to the concentrator. This marks a pivotal step in the development of one of the largest precious metals projects globally, setting the stage for future production.

Successful Dewatering and Recovery at Kamoa-Kakula

The company reported significant progress in dewatering efforts at Kamoa-Kakula, with expectations to return to copper production levels exceeding 550,000 tonnes in the future. This recovery is crucial for maintaining production targets and financial performance.

Record Zinc Production at Kipushi

Kipushi mine achieved a record quarterly revenue of $129 million, with nearly 50,000 tonnes of payable zinc sold. This positions Kipushi as a significant player in the global zinc market.

Completion of Kipushi Debottlenecking Program

The debottlenecking program at Kipushi was completed ahead of schedule and under budget, enhancing the mine’s capacity and efficiency. This positions Kipushi as the third largest zinc producer globally, reinforcing its competitive edge.

Launch of Kamoa-Kakula Smelter

The smelter project at Kamoa-Kakula is progressing as planned, with heating scheduled for November and first concentrate feeding in December. This development is expected to reduce logistics costs and generate acid credits, contributing to improved profitability.

Lower Production at Kamoa-Kakula

Kamoa-Kakula faced challenges with lower ore grades and production levels, impacting the quarterly EBITDA and resulting in a margin of 35%. The company is actively addressing these issues to stabilize production.

Increased Cash Costs at Kamoa-Kakula

The third quarter saw increased cash costs at Kamoa-Kakula, reaching $2.62 per pound of payable copper. This was attributed to lower production and lower grade feed, prompting efforts to optimize cost management.

Seismic Event Impact on Kamoa-Kakula

Operations at Kamoa-Kakula continue to recover from a seismic event in May 2025. While significant progress has been made in rehabilitation, the event’s impact is still being felt, necessitating ongoing recovery efforts.

Challenges in Power Supply

Despite the completion of the Inga turbine project, the power supply network remains fragile, requiring further upgrades for stability. Ensuring a reliable power supply is critical for uninterrupted operations and future growth.

Forward-Looking Guidance

Ivanhoe Mines provided forward-looking guidance, reporting a quarterly revenue of $566 million from Kamoa-Kakula and an EBITDA of $196 million. The company holds a strong liquidity position with $1 billion cash on hand, supported by the Qatar Investment Authority’s investment. Ivanhoe is on track to meet production and cash cost guidance at both Kipushi and Kamoa-Kakula, with anticipated improvements as recovery progresses. The Platreef project has commenced ore feeding, and updated life-of-mine plans are expected in early 2026. Future copper production at Kamoa-Kakula is anticipated to exceed 550,000 tonnes.

In conclusion, Ivanhoe Mines’ earnings call reflects a balanced view of achievements and challenges. The company’s strategic investments and project milestones underscore its commitment to growth and stability. While challenges persist, particularly at Kamoa-Kakula, Ivanhoe’s proactive measures and forward-looking strategies position it well for future success.