Ivanhoe Mines Ltd. press release

Ivanhoe Mines Issues 2026 Third-Quarter Financial Results, Overview of Operations and Exploration Activities

2026-11-03

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

Updated Kamoa-Kakula life-of-mine plan to be released in March 2027, detailing the route to restoring Kamoa-Kakula Copper Complex to the very top tier of global producers

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Refreshed operating plan will deliver a flexible and derisked operation, introducing shallow, high-grade open-pit mining at Kamoa to complement the underground mines

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Short-term 2027 Kamoa-Kakula copper production guidance revised to 300,000 to 350,000 tonnes of copper at a cash cost (C1) of $2.50/lb. to $3.00/lb.

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All full capacity, the existing Phase 1, 2 and 3 concentrators target 400,000 to 450,000 tonnes of copper production

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Kamoa-Kakula to increase steady-state copper production to ~500,000 tonnes per annum with Phase 4 milling expansion; utilizing pre-built foundations and Phase 3 mill design

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Western Forelands' 2027 in-fill drilling and engineering program to bring additional copper production from wholly-owned, shallow, high-grade open-pit mines

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60-MW hybrid solar facilities fully operational, significantly reducing power and diesel costs; expanding to 120 MW by Q1 2028

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Sulphuric acid production averaging ~1,250 tonnes per day; contract prices averaging over $900 per tonne

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Kipushi on track for another record-breaking year

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Platreef’s Phase 2 concentrator on schedule for completion in Q4 2027, inaugurating our world-leading producer of platinum, palladium, nickel, rhodium, gold, and copper

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Ivanhoe Mines reports Q3 2026 profit of $45M and Adjusted EBITDA of $241M, including $190M of attributable EBITDA from Kamoa-Kakula and $108M EBITDA from Kipushi

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Kamoa-Kakula recognized record quarterly revenue of over $1 billion

Johannesburg, South Africa--(Newsfile Corp. - November 3, 2026) - Ivanhoe Mines' (TSX: IVN) (OTCQX: IVPAF)President and Chief Executive Officer, Marna Cloete, and Chief Financial Officer, David van Heerden, today announced the company's financial results for the third quarter of 2026, as well as an operations and project development update.

Ivanhoe Mines is a leading Canadian mining company with three principal tier-one mining operations in Southern Africa: the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC); the ultra-high-grade Kipushi zinc-copper-lead-germanium mine, also in the DRC; and the Platreef platinum, palladium, nickel, rhodium, gold, and copper mine in South Africa.

In addition, Ivanhoe Mines is expanding the Makoko District copper discovery in the Western Forelands, in the DRC, as well as exploring for new sedimentary-hosted copper discoveries across its vast and highly prospective exploration licence packages in the DRC, Angola, Zambia, and Kazakhstan.

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

Founder and Co-Chairman Robert Friedland commented:

"Our engineering teams have made the necessary decisions at Kamoa-Kakula to derisk and restore one of the world's greatest copper complexes to the top of tier-one status. The revised production and cost guidance over the short term reflects a disciplined approach to the ongoing turnaround at Kamoa-Kakula, prioritizing operational stability, mining flexibility and the sustainable recovery of annualized copper production to approximately 500,000 tonnes.

"Operational improvements that we've already made are delivering strong tangible results… Mining rates increased significantly during the quarter, concentrator recoveries continue to improve, and our copper smelter is generating substantial economic benefits… Sales from sulphuric acid are now more than paying for our smelter's operating costs… We continue to benefit from the substantially lower transportation costs of delivering our copper to the world market in 99.7%-pure copper anodes… Our phased investment in solar power is already displacing very expensive diesel-powered generation. These structural improvements will strengthen Kamoa-Kakula's competitiveness long after our current challenges have been overcome.

"We have updated our pathway at Kamoa-Kakula to restore annual copper production to approximately 500,000 tonnes through the Phase 4 expansion, while the introduction of very high-grade open-pit mining will create resilience and operational flexibility across the entire complex. Kamoa-Kakula will unveil this next chapter of development in March 2027.

“Meanwhile, Kipushi has grown to be the world’s third-largest zinc mine, demonstrating the unique quality of the highest-grade zinc orebody in the world… delivering record zinc production and more than doubling quarterly EBITDA to $108 million… At Platreef, we continue to build one of the world's most important producers of platinum, palladium, nickel, rhodium, gold, and copper… and immediately to the west of Kamoa-Kakula, our exploration team continues to unlock and prove the immense potential of the Western Forelands, home to the world's largest, fastest-growing and highest-grade copper discovery of the past decade.

"The world is entering an era of unprecedented demand for the metals that underpin electrification, reduction of global warming gases, artificial intelligence, advanced manufacturing and national security. The importance of discovering, developing and responsibly producing these metals has never been greater. Ivanhoe's team is more intensely dedicated than ever to the task."

FINANCIAL HIGHLIGHTS

Ivanhoe Mines recorded a profit after tax of $45 million for Q3 2026, compared to $31 million for the same period in 2025 and a profit of $46 million for Q2 2026. The quarterly profit was attributable to the segmental profit from the Kipushi Mine of $47 million and the company's share of profit from the Kamoa-Kakula joint venture of $25 million, partly offset by increased exploration expenditure.

Ivanhoe Mines' Q3 2026 Adjusted EBITDA was $241 million, compared to $86 million for the same period in 2025 and $179 million for Q2 2026, which includes an attributable share of EBITDA from Kamoa-Kakula of $190 million for Q3 2026, compared with $76 million for the same period in 2025.

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Kamoa-Kakula sold 67,025 tonnes of copper (net of payability) during the third quarter at an average realized copper price of $6.12/lb., the majority of which were realized earlier in the quarter, when copper prices were lower.

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The relatively low average realized copper price of $6.12/lb. for the third quarter was due to a high proportion of third quarter copper sales, totaling 61,958 tonnes of payable copper, that was sold but remained provisionally priced at the end of Q3. This balance was remeasured to the quarter-end closing copper price of $6.55/lb., which is the reason for the majority of the $20.8 million positive remeasurement to revenue in the third quarter.

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At the end of the third quarter, there were approximately 43,000 tonnes of unsold copper in inventory.

Kamoa-Kakula recognized record revenue of $1,034 million, an operating profit of $288 million and EBITDA of $478 million for the quarter, equivalent to an EBITDA margin of 46%. This compares to recognized revenue of $880 million, an operating profit of $160 million and EBITDA of $385 million for the second quarter, equivalent to an EBITDA margin of 44%.

Kamoa-Kakula's cost of sales per pound of payable copper sold was $4.59/lb. for the third quarter, compared with $4.86/lb. in Q2 2026.

Despite elevated diesel prices, full-year cash costs (C1) are on target to achieve 2026 guidance range from $2.60/lb. to $3.00/lb. Kamoa-Kakula's cash cost (C1) per pound of payable copper produced averaged $3.00/lb. for Q3 2026. Cash cost (C1) for the first nine months of 2026 averaged $2.80/lb., at the mid-point of the full-year guidance range.

Ivanhoe Mines revises 2027 Kamoa-Kakula cash cost guidance range to $2.50 - $3.00 per pound (previously $2.10 - $2.50 per pound) as a result of prolonged, elevated diesel prices, lower grades and lower production for 2027. Cash costs are expected to trend lower than $2.50 per pound prior to the Phase 4 expansion.

Kamoa-Kakula's Q3 2026 smelter operating costs averaged $0.51/lb., which were more than offset by $0.69/lb. in sulphuric acid by-product credits. In addition, logistics charges in Q3 2026 of $0.29/lb. were less than half of the equivalent cost prior to the commencement of smelter operations, due to the export of 99.7%-pure copper anodes instead of exporting concentrate containing 35% to 40% copper.

Kamoa-Kakula sold 109,424 tonnes of high-strength sulphuric acid during the quarter, at an average price of $915 per tonne. Sulphuric acid prices are expected to remain elevated for the foreseeable future, with 3-month contracts from November expected to average approximately $900 per tonne.

Kamoa-Kakula's capital expenditure in Q3 2026 was $206 million. Capital expenditure for the nine months ended September 30, 2026, was $797 million. 2026 capital expenditure guidance has been updated by lowering the upper end of the range by $200 million to $1,100 million - $1,200 million (previously $1,100 million - $1,400 million). The $200 million underspend has been deferred to 2027, where the full-year capital expenditure guidance range has been increased to $950 million - 1,150 million (previously $750 million - $950 million). This estimate excludes capitalized pre-stripping for open pits estimated to be $100 million to $200 million.

Kipushi sold a record 69,384 tonnes of zinc (net of payability) during the quarter, at an average realized zinc price of $1.73/lb., compared with 43,424 tonnes in Q2 2026 at an average realized zinc price of $1.58/lb. Unsold zinc in concentrate held in inventory decreased by approximately 2,000 tonnes from the end of Q2 2026, but was still approximately 12,000 tonnes more than at the end of Q1 2026.

Kipushi recognized a quarterly revenue of $255 million, a segmented profit of $47 million and EBITDA of $108 million in Q3 2026, which is equivalent to an EBITDA margin of 43%. This compares with EBITDA of $51 million and EBITDA margin of 35% in Q2 2026.

Kipushi's cost of sales per pound of payable zinc sold was $1.14/lb. for the third quarter and was $1.06/lb. in Q2 2026. Cash cost (C1) per pound of payable zinc sold in the third quarter averaged $0.91/lb. and year-to-date averaged $0.89/lb. Kipushi is on track to achieve the full-year cash cost (C1) guidance of $0.85/lb. to $0.95/lb.

Platreef's capital expenditure during Q3 2026 was $124 million. The full-year guidance range has been increased to $415 million - $445 million (previously $350 million - $380 million) to account for additional capitalized costs related to Phase 1 operations prior to commercial production.

Ivanhoe Mines has a strong treasury position with cash and cash equivalents on hand of $643 million as at September 30, 2026.

OPERATIONAL HIGHLIGHTS

In Q3 2026, Kamoa-Kakula produced 76,401 tonnes of copper in saleable products. 61,506 tonnes of anode and 5,645 tonnes of copper in slag concentrate were produced by Kamoa-Kakula's copper smelter, 2,347 tonnes of copper in blister were produced by the Lualaba Copper Smelter (LCS) in Kolwezi and 6,904 tonnes of copper fines were designated for sale. In Q2 2026, Kamoa-Kakula produced 64,328 tonnes of copper contained in anode, blister and slag concentrate held for sale, of which 62,072 tonnes of anode and 2,256 tonnes of copper in blister.

Kamoa-Kakula 2026 production is expected to be approximately 290,000 tonnes of copper in saleable products.

Work on the updated life-of-mine plan is advancing well and is on track to be released in March 2027, building on the key recommendations from the 2026 Kamoa-Kakula Mineral Resource Estimate (2026 Kamoa-Kakula MRE), which was released on March 31, 2026. Work completed to date includes updated geological, hydrological and geotechnical models for Kamoa and Kakula, supported by in-fill drilling and engineering trade-off studies.

High-grade open-pit mining will be introduced in shallow areas of the Kamoa orebodies to provide greater mining flexibility and reduce operational risk. Pre-stripping of the first starter pits to commence in Q1 2027, with first ore expected in Q3 2027.

2027 production guidance lowered to 300,000 - 350,000 tonnes of copper. In addition, Kamoa-Kakula's steady-state capacity of the Phase 1, 2 & 3 concentrators is reduced to 400,000 - 450,000 tonnes of copper, prior to the Phase 4 expansion, due to prioritizing ore from open pits while the Kakula turnaround is underway.

Detailed engineering design for the Phase 4 expansion, to increase production capacity to approximately 500,000 tonnes of copper, will commence in Q1 2027. Similar to prior concentrator expansions, Phase 4 shares certain civil infrastructure with Phase 3, and can be completed in a timeline of 18 to 24 months from project approval.

Mining rates across the complex increased by 20% quarter-on-quarter to over 1.2 million tonnes per month, equivalent to approximately 14.4 million tonnes per annum, as tonnes mined from stoping increased by 84%.

Kamoa-Kakula's on-site copper smelter, the largest in Africa, has been operating at approximately 1,250 tonnes per day, or 60% of capacity, since mid-February. The smelter produced a record 118,638 tonnes of high-strength sulphuric acid during the quarter.

Kamoa-Kakula's on-site hybrid solar photovoltaic (PV) facility with battery energy storage system (BESS) fully ramped up by quarter end, delivering 60 MW of continuous baseload power to the complex. This is expected to reduce energy costs by $0.10/lb. to $0.20/lb. of payable copper produced, as Kakula dewatering is switched over from being powered by back-up diesel generators, to the new facility in mid-October.

Kamoa-Kakula is advancing plans to double baseload power from the hybrid solar facilities to 120 MW by the end of Q1 2028. Two tenders, totaling 60 MW, were awarded, along with accompanying power purchase agreements (PPA) signed in Q2 and Q3. In addition, discussions are underway to expand the existing hybrid solar facilities by a further 30 MW, bringing total on-site planned capacity to 150 MW.

Recoveries at the Phase 1 and 2 concentrators have improved at Kamoa-Kakula by approximately 5%, driven by the completion of Project 95 upgrades. Concentrator recoveries averaged 89% in Q3, with a record 92% achieved over two weeks in mid-October.

At Kipushi, the concentrator milled 193,581 tonnes of ore at a record average grade of 41.6% zinc during the third quarter, producing a record 77,147 tonnes of zinc in concentrate. The concentrator milled 200,774 tonnes of ore at an average grade of 38.7% zinc during the second quarter, producing 70,177 tonnes of zinc in concentrate.

Ivanhoe Mines tightens its 2026 production guidance for the Kipushi Mine to the upper end of the range of 270,000 to 290,000 (previously 240,000 to 290,000) tonnes of zinc in concentrate, which is expected to rank Kipushi as one of the world's top three largest zinc mines.

The tender for Kipushi's hybrid solar PV project is expected to be awarded in the first quarter of 2027. The facility will be designed to provide 10 MW of continuous baseload power, providing approximately 50% of the site's energy needs. The facility is expected to be operational by mid-2028 and will significantly reduce diesel consumption from on-site backup generators.

Since quarter-end, Kipushi's operations have been supported by an additional 10 MW of grid-supplied power from third-party providers. The additional power is expected to reduce power instability at Kipushi and reduce power costs from the back-up diesel generators.

At Platreef, the Phase 1 concentrator milled 99,391 tonnes of ore during Q3 2026, at an average feed grade of 2.30 grams per tonne, producing 4,552 ounces of platinum, palladium, rhodium and gold (3PE +Au). Phase 1 operations continue to ramp up to commercial production, therefore, production rates achieved to date do not reflect steady-state conditions.

The Phase 1 concentrator continued to be campaigned during the quarter, fed by lower-grade development ore. Identified bottlenecks in the underground materials handling and tailings filtration systems are largely resolved, with mining and milling rates expected to improve further in the fourth quarter. Milling is expected to progressively increase over the next few months, with the Phase 1 concentrator milling approximately 70% of design in October 2026.

Earthworks on the Phase 2 expansion's 3.3-million-tonne-per-annum concentrator is nearing completion with civil works advancing. The concentrator is on schedule for completion by the end of 2027. Once fully ramped up, Phase 2 operations are expected to have a design capacity of over 450,000 ounces of platinum, palladium, rhodium, and gold (3PE + Au), plus approximately 9,000 tonnes of nickel and 6,000 tonnes of copper.

The widening of Shaft #2 from its current diameter of 3.1 metres to 10 metres continued during the quarter. Shaft #2 is expected to be ready to hoist labour and materials by the end of 2028 and ore by the end of 2029.

In the Western Forelands, an updated Mineral Resource estimate was announced on September 8, 2026, with Indicated Mineral Resources of 42 million tonnes at 2.66% copper, plus Inferred Mineral Resources of 612 million tonnes at 1.80% copper (100% basis). The updated Mineral Resource firmly ranks the Western Forelands as the world's largest and highest-grade copper discovery of the past decade.

In the 15 months since the 2025 Mineral Resource update, approximately 64,000 metres of drilling have been completed across 106 holes, adding 0.13 million tonnes of contained copper in the Indicated Mineral Resource category, and 2.63 million tonnes of contained copper in the Inferred category.

Western Forelands' 2026 exploration drill program of 94,500 metres, the largest ever, is on schedule to be completed by year-end. By the end of Q3, drilling was approximately 80% complete. The drill program is set to be upsized to 120,000 metres from Q4 2026, primarily focused on infill drilling of shallow mineralization with potential for open-pit extraction.

Conference call for investors on Wednesday, November 4, 2026

Ivanhoe Mines will hold an investor conference call to discuss the results on Wednesday, November 4, at 10:30 a.m. Eastern Time / 8:30 a.m. Pacific Time. The conference call will conclude with a question-and-answer (Q&A) session. Media are invited to attend on a listen-only basis.

To view the webcast, use the link: https://meetings.lumiconnect.com/400-316-378-071

Audience phone numbers: Local - Toronto +1 (416) 855-9085 Toll Free - North America +1 (800) 990-2777 Conference ID: 32677

An audio webcast recording of the conference call, together with supporting presentation slides, will be available on Ivanhoe Mines' website at www.ivanhoemines.com.

After issuance, the condensed consolidated interim financial statements and Management's Discussion and Analysis will be available at www.ivanhoemines.comand www.sedarplus.ca.

Read Ivanhoe's Third Quarter 2026 Sustainability Review:

Ivanhoe Mines' MSCI ESG rating was upgraded to AA this quarter, reflecting the company's management of material environmental, social and governance risks relative to industry peers.

https://www.ivanhoemines.com/investors/document-library/#sustainability

During Q3 2026, the group achieved a combined Lost Time Injury Frequency Rate (LTIFR) of 0.41 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.98 per 1,000,000 hours worked. As previously disclosed, regrettably, one loss-of-life incident occurred underground at the Kakula Mine at the start of the quarter.

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A breakdown of Ivanhoe's health and safety performance is available in the Q3 2026 Sustainability Review.

In Memoriam: Ivano Manini

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