- Ivanhoe Mines (IVN) has released quarterly results from across its operations
- Its projects include Kamoa-Kakula, Platreef, Kipushi, and Western Foreland
- The company reported revenue of $342.6 million from sales and cash and cash equivalents of $579.7 million on hand at the end of the quarter
- Much of the positive results were driven by production at Kamoa-Kakula
- Ivanhoe Mines is a mineral exploration and development company
- Ivanhoe Mines Ltd. (IVN) is down 3.82 per cent, trading at $10.06 per share
Ivanhoe Mines (IVN) has released quarterly results after its first quarter of commercial production at the Kamoa-Kakula Project.
The Kamoa-Kakula Project is located in the Democratic Republic of Congo (DRC).
The company reported revenue of $342.6 million from sales in Q3, with nearly 41,500 tonnes of payable copper sold during the first production quarter at the Kamoa-Kakula joint venture.
The Kamoa-Kakula Project began producing copper in May 2021 and achieved commercial production on July 1, 2021.
Production for the third quarter was 41,545 tonnes of copper in concentrate, with year-to-date production of more than 77,500 tonnes as of November 15, 2021.
The quarter’s cost of sales reflects the measured ramp-up of production at Kamoa-Kakula to steady-state, coming in at $1.08/lb.
Costs are expected to trend downward as the Phase 2 concentrator plant is commissioned and the mine’s fixed operating costs are spread over increased copper production. Construction on the Phase 2 plant is expected to reach completion in Q2 2022.
The company has a strong balance sheet with cash and cash equivalents of $579.7 million on hand at the end of the quarter. Total assets increased by $591.9 million compared to the previous year.
Robert Friedland, executive co-chair and founder of Ivanhoe Mines, commented on the quarterly results.
“We are immensely proud,” he said, “to say that Kamoa-Kakula […] is well on its way to joining the ranks of the world’s largest and greenest copper producers, with the highest copper grades by a wide margin.”
“Turning an operating profit in just the first quarter of commercial production at Kamoa-Kakula highlights the ability of the mine to deliver as promised,” added Mr. Friedland, “and to self-fund its expansion to produce up to 800,000 tonnes of copper yearly, as demonstrated in previous independent studies.”
Ivanhoe also released an update for its Platreef Project in South Africa, the Kipushi Project in the DRC, and the Western Foreland Exploration Project, also in the DRC.
The company is conducting a feasibility study for its phased development plan at Platreef and expects to complete the study in early 2022.
At Kipushi, Ivanhoe continues to support the local community through its Sustainable Livelihoods Program and educational initiatives.
Exploration activities at the Western Foreland area continued during Q3 2021, with diamond drilling covering a total of 9,699 metres across the property.
Ivanhoe Mines is a mineral exploration and development company with interests in Africa.
Shares in Ivanhoe Mines Ltd. (IVN) are down 3.82 per cent, trading at $10.06 per share as of 10:12 am ET.