In This Article:
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ivanhoe Mines Ltd (IVPAF) achieved a record annual revenue of $3.1 billion in 2024, up from $2.7 billion in 2023.
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The company completed the construction of the largest smelter in Africa, which is expected to significantly reduce transport costs and increase margins.
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Ivanhoe Mines Ltd (IVPAF) set a production guidance of 550,000 to 580,000 tons of copper for 2025, with a target of over 600,000 tons from 2026 onwards.
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The company achieved a record annual EBITDA of $1.8 billion with a healthy margin of 58%.
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Kapushi mine reached commercial production in Q4 2024, with a zinc production guidance of 180,000 to 240,000 tons for 2025.
Negative Points
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The company's Q4 revenue was negatively impacted by a $52 million remeasurement of contract receivables.
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There was a mark-to-market write-down of 80,000 tons of provisionally priced copper, affecting Q4 revenue.
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Power instability led to a loss of approximately 40,000 tons of copper production in 2024.
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The smelter's commissioning has been delayed due to the need for a stable power source.
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The conflict in the east of the DRC poses a potential risk, although it is currently far from Ivanhoe Mines Ltd (IVPAF)'s operations.
Q & A Highlights
Q: Can you comment on the interaction with the government and the impact of the M23 rebel insurgency in the northeast of the country? A: The situation in the east has escalated, but it remains far from our operations. We have on-site intelligence and engage with local and national authorities to monitor the situation. We have contingency plans in place for both Kapushi and Comawa. We hope for a peaceful resolution through dialogue.
Q: Regarding Comoa, how has the change to bulk mining impacted the grade profile and cash costs? A: The new mining method, long haul stoping, is more efficient and safer than the previous method. It allows for better fleet efficiency and lower costs. We expect cash costs to decrease as we transition back to clean hydropower and reduce diesel generator use.
Q: Is the existing power supply sufficient for phases 1, 2, and 3, and what are the constraints for the smelter? A: Yes, the existing power supply, including backup generation and imports, covers phases 1, 2, and 3. The main constraint is ensuring stable power for the smelter, which requires consistent power for optimal operation.
Q: Are there any exploration plans for Kapushi, particularly for high-grade copper or byproduct metals? A: Exploration outside the current footprint falls under the joint venture agreement with Gecamines. We are considering introducing a copper circuit within the current area, but broader exploration is not planned at this time.