Ivanhoe Mines, 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 2 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 lowestcost 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.
Watch a new video showcasing Platreef’s phased development plan:
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.
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.
