Ivanhoe Mines Ltd. press release

Ivanhoe Mines Unveils Independent Phase 2 and Phase 3 Expansion Studies for the Super-Giant Platreef Mine - a World-Class, Lowest-Cost Precious Metals and Critical Minerals Producer

2025-02-19

TSX - Toronto Stock Exchange · Copper · Silver · Germanium · Zinc · Lead · Platinum · Palladium · Rhodium · Nickel · Gold · Cobalt · Platinum Group Metals · Canada · Technical Studies

Platreef, one of the world's largest undeveloped precious metals deposits, to be lowest cost platinum, palladium, rhodium, and gold producer; with significant nickel and copper

Phase 1 production commencing Q4 this year, with Phase 2 expansion accelerated to 2027

4.1 Mtpa Feasibility Study (Phase 1 & 2) yields after-tax NPV8%of $1.4 billion and IRR of 20%, producing over 450,000 ounces platinum, palladium, rhodium and gold per annum

10.7 Mtpa PEA (Phase 1, 2 & 3) yields an after-tax NPV8% of $3.2 billion and 25% IRR, scaling up annualized production to over 1.0 million ounces of platinum, palladium, rhodium, and gold, plus approx. 25,000 tonnes of nickel and 15,000 tonnes of copper

Platreef's vast, open-ended deposit contains 42 million ounces of precious metals in Indicated Resources and 53 million ounces in Inferred Mineral Resources at 2 g/t cut-off

Ivanhoe Mines to issue Q4 and Full Year 2024 Financial Results after market close on February 19 and host a conference call for investors on February 20, 2025

Mokopane, South Africa--(Newsfile Corp. - February 18, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) 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 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 lowest-cost 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.

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.

Watch a new video showcasing Platreef's phased development plan: https://vimeo.com/1057060042/02dfaa6c11?share=copy

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_002full.jpg)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_002full.jpg

Ivanhoe Mines' Founder and Co-Chairman, Robert Friedland commented:

"The results of these studies mark the culmination of three decades of tireless efforts by thousands of our people to discover, then delineate, and finally build a world-class, polymetallic mining complex that will have a life span of many human generations.

"With over 38 million ounces of precious metal on a gold-equivalent basis, Platreef is one of the largest precious metals project under development on our planet... The project also contains one of the largest nickel-sulphide systems in the world. To be clear… there is more contained nickel in sulphide form at Platreef than there is remaining in Canada's entire Sudbury basin… Beyond this globally significant resource base, Platreef has vast potential over coming generations to grow its endowment even further… since we last drilled the discovery from surface ten years ago. The massive polymetallic Platreef is open in many directions… even though we have drilled over 1.4 billion tonnes of the world's best platinum, palladium, rhodium, and gold system.

"This Godzilla of a mine is built to last! The global supply chain will no longer be dependent on deep, antiquated reefs utilizing obsolete 19th-century mining methods... many of these one-metre thick, narrow, oppressively hot and humid old mines rely on the exploitation of human labour operating at extreme depths... The unmatched thickness and grade of the Platreef orebody will allow us to mine at the most profitable margins in the industry, ensuring the strength of the operations through every phase of the commodity cycle. Platreef is a mine that will deliver metals critical to the modern world for generations to come… while using the latest and safest state-of-the-art, mechanized mining technology.

"For Ivanhoe Mines, achieving first production at Platreef this year will mark the next step of growth in our journey to become the world's next major diversified mining company. Our Phase 1 'baby' mine is only the beginning for this tier-one asset… the independent studies clearly light the path to our becoming the world leader in platinum-group-metals, nickel, and copper… we are determined to become the largest primary producer in the platinum group metals industry over time."

Ivanhoe Mines' President, Marna Cloete added:

"At Platreef, we intend to build on the exceptional momentum we have achieved in the Democratic Republic of the Congo, at the Kamoa-Kakula Copper Complex and the ultra-high grade Kipushi zinc-copper-silver mine. We will leverage this knowledge and experience to build another, great industry-leading tier-one asset, while delivering sustained benefits across our communities, our employees and our stakeholders alike.

"We could not achieve this without the support of our partners, including our industry-leading broad-based black empowerment trust, representing over 150,000 community members, and of course our Japanese shareholders - including Itochu; Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation of Tokyo, Japan - whose forward-thinking investment made possible one of the largest exploration campaigns ever conducted in South Africa.

"We will continuing Ivanhoe's high standard for responsible and impactful resource development, because our commitment extends beyond production. As an industry-leader in employing locally, buying locally and supporting the growth of both women and men in our business, Platreef will epitomize the integration of cutting-edge industry practices with a steadfast dedication to social and economic progress."

Platreef's Indicated and Inferred Mineral Resources

Platreef's Indicated Mineral Resources contain an estimated 18.9 million ounces of palladium, 18.7 million ounces of platinum, 3.1 million ounces of gold, and 1.2 million ounces of rhodium (a combined 41.9 million ounces PGMs plus gold), plus 2.4 billion pounds of nickel and 1.2 billion pounds of copper, at a 2.0 g/t 3PE+Au cut-off.

Platreef's Inferred Mineral Resources contain an additional 23.8 million ounces of palladium, 23.2 million ounces of platinum, 4.3 million ounces of gold, and 1.6 million ounces of rhodium (a combined 52.8 million ounces PGMs plus gold), plus 3.4 billion pounds of nickel and 1.78 billion pounds of copper, also at a 2.0 g/t 3PE+Au cut-off.

Highlights of 2025 4.1 Mtpa Feasibility Study and 10.7 Mtpa Preliminary Economic Assessment

All figures are in U.S. dollars unless otherwise stated.

Feasibility Study targets first production from Phase 1 in Q4 2025 and Phase 2 expansion in Q4 2027.

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The first feed of ore into the 770-ktpa Phase 1 concentrator is expected in Q4 2025.

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Phase 1 annualized production is expected to ramp up to approximately 100,000 oz. of platinum, palladium, rhodium, and gold (3PE+Au), plus 2,000 tonnes of nickel and 1,000 tonnes of copper.

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Phase 1 will use both Shaft #1 and Shaft #3 for hoisting ore and waste, with a total combined hoisting capacity of up to 5.0 Mtpa.

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The remaining capital expenditure for Phase 1 is $70 million.

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The 4.1 Mtpa FS outlines an increase the total processing capacity to approximately 4.1 Mtpa. This is achieved from a new 3.3-Mtpa Phase 2 concentrator module from Q4 2027.

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The 4.1 Mtpa FS ranks Platreef as the lowest-cost primary PGM producer, with LOM total cash costs of $599 per oz. of 3PE+Au, including royalties, streams and net of by-products. Including sustaining capital, total cash costs are $704 per oz of 3PE+Au, as shown in Figure 2.

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The 4.1 Mtpa FS estimates LOM annualized production, once fully ramped up, of between 450,000 and 550,000 oz. of 3PE+Au, plus approximately 9,000 tonnes of nickel and 5,600 tonnes of copper. This is expected to rank Platreef as the eighth-largest primary PGM producer on a platinum-equivalent basis, as shown in Figure 3.

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The 4.1 Mtpa FS will initially use Shaft #1 and Shaft #3 for hoisting ore and waste to feed the Phase 2 concentrator module. Shaft #2 is expected to be initially equipped for hoisting labour and materials from 2029, further increasing total hoisting capacity, providing significant operational flexibility.

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The expansion capital cost for 4.1 Mtpa FS is estimated at $1.2 billion, which is expected to be funded from an expanded project finance facility and equity.

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The 4.1 Mtpa FS delivers an after-tax net present value at an 8% discount rate (NPV8%) of $1.4 billion and an internal rate of return (IRR) of 20%, based on long-term consensus prices over a mine-life of 35 years.

The 10.7 Mtpa PEA outlines an expansion from 2030 to rank Platreef as one of the largest global primary PGM producers, as well as a significant nickel producer

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The 10.7 Mtpa PEA includes a further phase of expansion, Phase 3, to a total processing capacity of 10.7 Mtpa, following the completion of two additional 3.3-Mtpa concentrator modules in 2030 and 2032.

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LOM total cash costs for the 10.7 Mtpa PEA are expected to be $511 per oz. of 3PE+Au, net of by-products, benefitting from significant economies of scale. Including sustaining capital, total cash costs are expected to be $641 per ounce of 3PE+Au, net of by-products, as shown in Figure 2.

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Annualized production in the 10.7 Mtpa PEA, once fully ramped up, is expected to be between 1.0 and 1.2 million oz. of 3PE+Au, plus approximately 22,000 tonnes of nickel and 13,000 tonnes of copper. Phase 3 is expected to rank Platreef as one of the largest primary PGM producers on a platinum equivalent basis, as shown in Figure 3, as well as a significant nickel producer

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The 10.7 Mtpa PEA uses Shaft #2 and Shaft #3 for hoisting ore and waste with a combined total capacity of over 12 Mtpa.

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The incremental expansion capital cost for the 10.7 Mtpa PEA is estimated at $803 million, leveraging the significant surface and underground infrastructure already constructed during Phase 2.

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The 10.7 Mtpa PEA delivers an NPV8%of $3.2 billion and an IRR of 25%, based on long-term consensus prices over a mine life of 29 years.

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 categorized as Mineral Reserves - and there is no certainty that the results will be realized. Mineral Resources do not have demonstrated economic viability and are not Mineral Reserves.

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_003full.jpg)

Figure 1: Phased development schematic of the Platreef mine, showing the annualized mining rate over life of mine.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_003full.jpg

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_004full.jpg)

Figure 2: Global primary PGM producers' 2024 total cash costs, net of by-products and sustaining capital ($ per oz of 3PE+Au).

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_004full.jpg

Source: SFA (Oxford), Ivanplats. Notes: Cost and production data for the Platreef project is based on the Platreef's 2025 4.1 Mtpa FS and 10.7 Mtpa PEA parameters, applying SFA South African industry average smelting and refining costs. SFA's estimated peer group cost and production data for 2024 is based on H1 2024 figures, extrapolated out to produce an estimate for the full calendar year and follows a methodology to provide a level playing field for smelting and refining costs on a pro-rata basis from the producer processing entity. Net total cash costs have been calculated using 2024 average basket prices and exchange rates of 18.78:1 ZAR:USD, US$980/oz platinum, US$1,009/oz palladium, US$4,753/oz rhodium, US$2,300/oz gold, US$17,150/t nickel and US$8,727/t copper. (1) Platreef 4.1 Mtpa between years 4 to 35. (2) Platreef 10.7 Mtpa between years 4 to 29.

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_005full.jpg)

Figure 3: Ranking of selected global primary PGM producers, based on 2024E platinum equivalent production (000 Pt eq. ounces).

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_005full.jpg

Source: SFA (Oxford), Ivanplats. Notes: Chart only includes primary PGM producers. Cost and production data for the Platreef project is based on the Platreef's 2025 4.1 Mtpa FS and 10.7 Mtpa PEA parameters. Production data for the peer group is provided by SFA (Oxford). Equivalent platinum production has been calculated using average 2024 prices and exchange rates of 18.78:1 ZAR:USD, US$980/oz platinum, US$1,009/oz palladium, US$4,753/oz rhodium, US$2,300/oz gold, US$17,150/t nickel and US$8,727/t copper. (1) Platreef 4.1 Mtpa FS between years 4 to 35, (2) Platreef 10.7 Mtpa PEA between years 4 to 29.

Phase 1 production from Q4 2025

Construction of the 770-ktpa Phase 1 concentrator was completed on schedule in June 2024. The concentrator was subsequently temporarily placed on care and maintenance. The first feed of ore into the Phase 1 concentrator is expected to commence in Q4 2025.

The average annualized PGM production from the Phase 1 concentrator, once ramped up, is estimated to be approximately 100,000 oz. of 3PE+Au, plus 2,000 tonnes of nickel and 1,000 tonnes of copper.

The Phase 1 concentrator will be initially fed by ore hoisted to surface via Shaft #1, which was commissioned for hoisting labour and materials in 2022. Shaft #1 is currently the only access to the three underground mining levels (750-metre level, 850-metre level, and 950-metre level), carrying workers, construction materials, and equipment for underground development, while concurrently hoisting development waste rock to the surface. Underground development at the end of January 2025 was within 75 metres of the Platreef orebody on the 850-metre level.

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_006full.jpg)

Platreef's surface infrastructure with the Phase 1 concentrator in the foreground with Shaft #1, #2 and #3 in the background.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_006full.jpg

[](https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_007full.jpg)

Once fully ramped up, the Phase 1 concentrator is expected to produce approximately 100,000 oz ounces of 3PE+Au, plus nickel and copper. First production is expected in Q4 2025

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/241421_9a022cb31419cbef_007full.jpg

Shaft #1 has a nameplate hoisting capacity of up to 1 Mtpa. During 2025, Shaft #1 will continue to hoist infrastructure development waste rock as well as development ore as the underground footprint expands in preparation for the Phase 2 expansion. First ore into the Phase 1 concentrator will be from development ore that will be stockpiled on surface once underground development reaches the Platreef orebody in the coming months. Ore from the long-hole stoping areas will be hoisted to surface and processed in the Phase 1 concentrator once Shaft #3 is operational in Q1 2026.

Shaft #3 to increase nameplate hoisting capacity by almost five-fold from Q1 2026

Shaft #3 will provide an additional 4 Mtpa of hoisting capacity. Once Shaft #3 is operational, the nameplate hoisting capacity of Shaft #1 will be temporarily decreased to hoist only labour and materials, while Shaft #3 hoists exclusively ore and waste rock. The hoisting capacity of Shaft #1 will return to its original 1 Mtpa once Shaft #2 is operational. The increase in total hoisting capacity to 5.0 Mtpa will be sufficient for hoisting both development waste rock, ore for both the Phase 1, and the future Phase 2 concentrator module.

Construction of Shaft #3 is 60% complete and is on target to be fully equipped and ready for hoisting during Q1 2026. Raise boring of the 5.1-metre diameter shaft was completed in late Q4 2024. The focus for 2025 will be equipping the shaft and constructing the head frame.

Shaft #2 hoisting from 2028 to support 4.1 Mtpa FS operations and enable 10.7 Mtpa PEA expansion

Construction of Shaft #2 is advancing with hoisting targeted from Q3 2028. Shaft #2 will commence first with hoisting labour and materials, to support the Phase 1 and 2 concentrators in the 4.1 Mtpa FS. Shaft #2 will then commence the hoisting of ore and waste rock from H2 2029. The raise boring of Shaft #2 to an initial diameter of 3.1 metres was completed in late 2024. The final diameter of Shaft #2 will be 10 metres. A shaft construction method called "slipe-and-line", will be used to expand the initial 3.1-metre diameter shaft out to the final diameter of 10 metres, by blasting benches of up to 4.0 metres from surface down to shaft bottom. Waste from the blasting will be collected from the shaft bottom and hoisted to surface.