Ivanhoe Mines Issues Third Quarter 2023 Financial Results, and Review of Construction and Exploration Activities

FINANCIAL HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $108 million for Q3 2023, which includes a $12 million non-cash gain on the $575 million convertible bond fair valuation, compared with a profit of $87 million for Q2 2023. The profit in the quarter includes Ivanhoe Mines’ share of profit and finance income from the Kamoa-Kakula joint venture of $121 million for Q3 2023.
• Kamoa-Kakula sold 96,509 tonnes of payable copper during Q3 2023, recognizing revenue of $695 million, an operating profit of $373 million and quarterly EBITDA of $423 million.
• Copper in concentrate held in inventory at Kamoa-Kakula at quarter end increased to more than 3,000 tonnes. In addition, approximately 48,000 dry metric tonnes of concentrate were sent for tolling at the local smelter in Q3, with copper in work in progress at the end of the quarter exceeding 7,000 tonnes. Excess inventory is expected to be sold in the fourth quarter.
• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was $1.34/lb. for Q3 2023 compared with $1.24 and $1.05 in Q2 2023 and Q3 2022, respectively. Cash costs (C1) per pound of payable copper produced during the quarter totaled $1.46/lb., compared to $1.41/lb. and $1.43/lb. in Q2 2023 and Q3 2022, respectively.
• Ivanhoe Mines Adjusted EBITDA was $152 million for Q3 2023, compared with $85 million for the same period in 2022, and $172 million for Q2 2023, which includes an attributable share of EBITDA from Kamoa-Kakula.
• Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-Kakula joint venture has generated $2.14 billion of net cash from operating activities, which has funded both the Phase 2 and Phase 3 expansions to date.
• Ivanhoe Mines has a strong balance sheet with cash and cash equivalents of $303 million on hand as at September 30, 2023. The company expects Kamoa-Kakula’s Phase 1 and Phase 2 cash flow, together with additional local financing facilities that are advancing well, to be sufficient to fund the Phase 3 expansion capital cost requirements at current copper prices.
• Kamoa-Kakula’s full-year cash cost (C1) guidance is unchanged at $1.40 – $1.50 per pound and full-year production guidance is also maintained at 390,000 to 430,000 tonnes of copper in concentrate.

https://www.barchart.com/story/news/21745739/ivanhoe-mines-issues-third-quarter-2023-financial-results-and-review-of-construction-and-exploration-activities