Ivanhoe Mines has reported a significant financial and operational achievement for the third quarter of 2024, with a net profit of $108 million, up from $67 million in Q2.
The good performance is attributed to robust copper production at its flagship Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC), where copper output reached 116,313 tonnes for Q3, marking a year-to-date production of 303,328 tonnes.
Ivanhoe’s Kamoa-Kakula Copper Complex also reported its highest-ever quarterly revenue of $828 million, driven by the sale of 103,106 tonnes of payable copper.
Kamoa-Kakula’s operational growth has been bolstered by the ongoing Phase 3 expansion, which has enhanced its annual copper production capacity to 600,000 tonnes, placing it among the top global copper producers.
President Marna Cloete and Chief Financial Officer David van Heerden shared optimism for the company’s growth trajectory, citing both increased copper sales and enhanced operational efficiency.
Adjusted EBITDA for the quarter was reported at $160 million, though lower than Q2’s $203 million due to higher operational costs associated with the Phase 3 expansion ramp-up.
Ivanhoe’s capital expenditures are expected to decline following the completion of Africa’s largest smelter at Kamoa-Kakula.
The $470 million smelter, set to be completed by the end of 2024, will enhance operational profitability by reducing logistics costs and furthering Ivanhoe’s commitment to sustainable mining practices.
“Kamoa-Kakula has reached a major milestone with the ramp-up of the Phase 3 expansion. Phase 3 provides steady-state milling capacity of 600,000 tonnes of copper per annum. We have reached the top tier of the world’s most significant copper complexes, which at every phase were delivered ahead of schedule … a true rarity in our industry,” said Robert Friedland, Ivanhoe Founder and Co-Chairman.
He added that the Africa’s largest and greenest copper smelter is nearing construction completion this year. The smelter will reduce cash costs and improve profitability.
“With capital expenditures largely behind us at Kamoa-Kakula, we look forward to a period of strong profit and free cash flow, even as we continue to advance further copper growth initiatives on the joint venture.”
“We expect 2025 to be a banner year as we deliver these significant production milestones, as well as advance our industry-leading exploration efforts in the Western Forelands, which continue to deliver some of the world’s most significant, tier-one copper discoveries,” said Friedland.
The company expects the smelter to generate 600,000 to 700,000 tonnes of high-strength sulfuric acid annually, which is anticipated to meet local demand within the DRC.
Ivanhoe’s exploration ventures are also progressing, with expanded drilling activities in the Western Forelands. These initiatives underscore the company’s commitment to sustainable resource growth and infrastructure improvements across its mining operations.
