Kootenay Silver Inc. press release

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

2026-05-06

TSXV - TSX Venture Exchange · Silver · Lead · Zinc · Gold · Canada · Corporate Finance

Ivanhoe Mines' reports Q1 2026 loss of $2M and adjusted EBITDA of $191M, including $158M of attributable EBITDA from Kamoa-Kakula

Updated Kamoa-Kakula life-of-mine integrated development plan details launchpad for annualized copper production to return to over 500,000 tonnes per annum

Kamoa-Kakula Q1 2026 cost of sales of $3.90/lb. and cash cost (C1) of $2.58/lb. of copper, below guidance range of $2.60/lb. to $3.00/lb.

Kamoa-Kakula's operating margins boosted by the new on-site smelter; from sulphuric acid sales and significantly lower logistics costs

High-strength sulphuric acid production averaging 1,350 tonnes per day; new contract prices up >50% year-to-date at $725 per tonne

Construction of Platreef's Shaft #3 was completed on schedule, increasing hoisting capacity five-fold

Earthworks underway on Platreef’s Phase 2 concentrator, targeting massive production increase from Q4 2027

Kipushi produced a record 65,044 tonnes of zinc in Q1 2026, at average cash cost (C1) of $0.86/lb. of zinc; cash costs tracking at low end of 2026 guidance range

Ivanhoe's 2026 group exploration budget upsized to $127M; $86M allocated to Makoko District in Western Forelands

Johannesburg, South Africa--(Newsfile Corp. - May 6, 2026) - Ivanhoe Mines' (TSX: IVN) (OTCQX: IVPAF) President and Chief Executive Officer, Marna Cloete, and Chief Financial Officer David van Heerden today announce the company's financial results for the first 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:

Ivanhoe has a portfolio of tier-one mines powered by hydroelectric and solar power… built to withstand disruption. Our company is ideally positioned in this volatile environment, with exploding global demand for the copper, zinc, nickel and precious metals that we produce.

“Our Kamoa-Kakula Copper Complex and smelter are ramping up in a very strong price environment for the two most critical elements on our planet: copper, which is the King of Metals, and sulphuric acid (H2SO4), which is the King of Chemicals. Kamoa-Kakula benefits from a powerful natural hedge: our sulphuric acid production. H2SO4, which is a by-product of our copper smelter, is growing into a one-million-dollar-a-day operating credit, massively offsetting rising diesel prices. This advantage is supported by our high-grade ore, which has the lowest hydrocarbon intensity per tonne of produced copper of any major mine in the world.

“At the same time, our team are executing a disciplined turnaround at Kamoa-Kakula. The plan is clear, the execution is underway… and the strong tailwinds in copper prices adds to the momentum. We will fully capitalize on our strategic advantages.

“Ivanhoe leads the copper world in our exploration programs. We have extremely strong momentum in the discovery process for major copper systems. The Makoko District copper discovery in the Western Forelands is an emerging giant in the making, and its significance is growing around the clock. Soon, we will reveal our development plans for the Western Forelands.”

FINANCIAL HIGHLIGHTS

Ivanhoe Mines recorded a loss of $2 million for Q1 2026, compared with a profit of $122 million for Q1 2025. The main contributor to the loss for the period was the Company's share of loss from Kamoa-Kakula of $42 million, compared to a profit of $108 million for the same period in 2025. Kamoa-Kakula incurred a loss for the quarter as a result of a $183 million tax adjustment following the settlement of tax claims.

Ivanhoe Mines recorded Adjusted EBITDA of $191 million in Q1 2026, compared to $226 million for the same period in 2025. The Adjusted EBITDA includes an attributable share of EBITDA from Kamoa-Kakula of $158 million, compared to $231 million for the same period in 2025.

Kamoa-Kakula sold 66,619 tonnes of copper (net of payability) during the first quarter at an average realized copper price of $5.79/lb., compared with 78,469 tonnes in Q4 2025 at an average realized copper price of $4.98/lb. At the end of the first quarter, there were more than 40,000 tonnes of unsold copper in inventory, down from approximately 50,000 tonnes at the end of Q4 2025.

Kamoa-Kakula recognized revenue of $862 million, an operating profit of $221 million and EBITDA of $397 million for the quarter, equivalent to an EBITDA margin of 46%.

Kamoa-Kakula's cost of sales per pound (lb.) of payable copper sold was $3.90/lb. for the first quarter, compared with $3.80/lb. in Q4 2025. Included in the cost of sales for the quarter is $0.90/lb. in depreciation.

Kamoa-Kakula’s cash cost (C1) per pound of payable copper produced during the quarter averaged $2.58/lb., compared with $2.99/lb. in Q4 2025. Cash cost (C1) for the quarter was slightly below the lower end of the full year guidance range of $2.60/lb. to $3.00/lb.

Kamoa-Kakula's improved cash costs (C1) were primarily due to the savings from the smelter operations. After producing the first batch of anodes in late Q4 2025, the smelter ramped up to 60% capacity during the quarter. All concentrates produced by the Phase 1, 2 and 3 concentrators during the quarter were either smelted at the Kamoa-Kakula smelter or at the Lualaba Copper Smelter (LCS) in Kolwezi.

Kamoa-Kakula's Q1 2026 smelter operating costs averaged $0.27/lb., which were more than offset by $0.32/lb. in sulphuric acid by-product credits. In addition, logistics charges in Q1 2026 were significantly lower at $0.22/lb, compared with $0.70/lb. in Q4 2025. The logistics cost improve was due to only exporting 99.7%-pure copper anodes in Q1 2026, compared only exporting 35% to 40% contained copper in concentrates in Q4 2025.

Kamoa-Kakula's capital expenditure in Q1 2026 was $307 million. The full year guidance range of $1,100 million to $1,400 million is unchanged.

Kipushi sold a record 54,940 tonnes of zinc (net of payability) during the quarter, at an average realized zinc price of $1.47/lb., compared with 48,075 tonnes in Q4 2025 at an average realized zinc price of $1.44/lb.

Kipushi recognized a record quarterly revenue of $162 million, a segmented profit of $16 million and EBITDA of $58 million in Q1 2026, which is equivalent to a record EBITDA margin of 36%. This compares with an EBITDA of $44 million and an EBITDA margin of 32% in Q4 2025.

Kipushi's cost of sales per pound of payable zinc sold was $1.06/lb. for the first quarter, compared with $1.13/lb. in Q4 2025. Cash cost (C1) per pound of payable zinc sold in the first quarter averaged $0.86/lb., tracking at the low end of full-year guidance of $0.85/lb. to $0.95/lb.

Platreef's capital expenditure during Q1 2026 was $67 million. The full year guidance range of $350 million to $380 million is unchanged, which relates to the ongoing Phase 2 expansion.

Financial close of the Platreef Mine's $700 million Phase 2 senior project finance facility was achieved on April 30, 2026. The Phase 2 facility amends and upsizes the Phase 1 facility, resulting in approximately $600 million in net additional capital provided by a syndicate comprising of Societe Generale, Absa Bank Limited, and Nedbank Limited.

Ivanhoe Mines had cash and cash equivalents and short-term deposits on hand of $754 million as of March 31, 2026.

OPERATIONAL HIGHLIGHTS

An updated independent technical report for the Kamoa-Kakula Copper Complex ("Kamoa-Kakula MRE") was released on March 31, 2026.The Kamoa-Kakula MRE underpins a mine plan for the Kamoa-Kakula Copper Complex to ramp up production to over 500,000 tonnes of copper per annum from 2028 onwards, at a target cash cost (C1) of less than $2.00/lb. This includes operating the Phase 1, 2 and 3 concentrators at a steady-state rate of 17 million tonnes per annum over approximately 25 years.

Following recommendations from the Kamoa-Kakula MRE, Kamoa Copper has commenced work on an optimized Feasibility Study, which will cover the first five years in higher definition and will take into consideration additional drilling data gathered throughout the remainder of the year.

Kamoa-Kakula produced 71,417 tonnes of copper in blister and anode in Q1 2026. The quarterly total consists of 63,671 tonnes of copper in anode produced by Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-blister copper smelter and 7,746 tonnes of copper in blister produced by the Lualaba Copper Smelter (LCS), in Kolwezi.

Kamoa-Kakula's on-site smelter is the largest copper smelter in Africa and has been operating at approximately 60% of capacity since mid-February. Management is currently evaluating the purchase and toll treatment of local third-party copper concentrates to further advance the smelter ramp-up and improve margins.

Kamoa-Kakula's on-site copper smelter produced 117,871 tonnes of high-strength sulphuric acid during the quarter, with 107,700 tonnes sold to six offtakers at an average realized price of $467 per tonne. The production rate is currently approximately 1,350 tonnes per day, which is equivalent to approximately 60% of design capacity. A sulphuric acid offtake contract was recently signed for delivery next month at $725 per tonne. The remaining contracts will be retendered and repriced by the end of the quarter.

The first shipment of 99.7%-pure copper anodes produced by Kamoa-Kakula's copper smelter was shipped along the Lobito Railway Corridor during the quarter. The anodes arrived at the Atlantic port of Lobito shortly before quarter-end and were subsequently shipped to Europe for refining, where they are expected to arrive imminently. Subsequently, shipments along Lobito were temporarily halted until June while flood damage in Angola is repaired.

Ivanhoe Mines maintains 2026 production guidance for Kamoa-Kakula of 290,000 to 330,000 tonnes of copper anodes or blister and 380,000 to 420,000 tonnes of copper anodes or blister for 2027.

Construction of Kamoa-Kakula's on-site solar (PV) facility, with battery storage, is advancing on schedule. The two facilities are expected to be operational, delivering a total baseload of 60 MW to the copper complex from early Q3 2026. The solar facility is already the largest solar project with battery storage on the African continent.

Kamoa-Kakula is planning to increase the total on-site solar power generation capacity, with battery storage, to 120 MW by the end of 2027. A tender was awarded, and a power purchase agreement (PPA) was signed in late April for an initial 30-MW expansion of the existing on-site solar facilities. A further 30-MW facility is currently being tendered and is expected to be awarded in the next month.

Kamoa-Kakula's Project 95 upgrades to the Phase 1 and 2 concentrators nears completion, with commissioning underway. Both sets of upgrades are expected to be operational in June.

Preparations have been made across the group to secure on-site consumables in the event of continued global supply chain disruptions. This includes Kamoa-Kakula securing 5 months' worth of diesel supply. Use of backup diesel generators to be curtailed to rationalize diesel consumption.

At Kipushi, the concentrator milled a record 196,774 tonnes of ore at an average grade of 37.0% zinc during the first quarter, producing a record 65,044 tonnes of zinc in concentrate.

Kipushi is currently tendering for a dedicated solar project with up to 200 megawatt hours (MWh) of battery energy storage. The facility would provide 10 MW of baseload power, reducing reliance on the backup diesel generators that are used intermittently. The facility would be located on a 70-hectare site near the Kipushi Mine, and it is expected to be operational by the end of 2027.

Ivanhoe Mines maintains 2026 production guidance for the Kipushi Mine of 240,000 to 290,000 tonnes of zinc in concentrate.

At Platreef, the Phase 1 concentrator milled 27,512 tonnes of ore during Q1 2026, at an average feed grade of 2.78 grams per tonne, producing 1,428 ounces of platinum, palladium, rhodium and gold (3PE +Au). Production rates are expected to improve significantly in the second quarter as hoisting of ore up Shaft #3 commences.

Construction of Platreef's Shaft #3 was completed on schedule in late March, increasing the total hoisting capacity fivefold to approximately 5.0 million tonnes per annum (Mtpa). Shaft #3 enables greater flexibility in hoisting both ore and waste rock to the surface, supporting the Phase 1 ramp-up to full capacity and the Phase 2 expansion from Q4 2027.

Once Shaft #3 is ramped up, the low-grade development ore currently feeding the concentrator will be replaced with higher-grade ore from stoping (production mining).

Platreef's project team continue to advance the Phase 2 expansion. Construction activities broke ground on the 3.3-million-tonne-per-annum Phase 2 concentrator site on April 9, 2026. Phase 2 is expected to increase production by more than four times, to 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.

In the Western Forelands, the footprint of the Makoko District continues to expand, with Makoko now within eight kilometres of Kamoa-Kakula's Kakula West deposit. An updated Mineral Resource estimate is expected to be released in early Q3 2026.

In Kazakhstan, the drilling program across our vast licence package is set to double to over 40,000 metres, following promising initial results.

Conference call for investors on Thursday, May 7, 2026

Ivanhoe Mines will hold an investor conference call to discuss the results on Thursday, May 7, 2026, at 10:30 a.m. Eastern time / 7:30 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/400-357-152-754

Audience Phone Number: Local – Toronto: (+1) 416-855-9085 Toll Free – North America: (+1) 800- 990-2777

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.com and www.sedarplus.ca.

Read Ivanhoe's 9thAnnual Sustainability Report and First Quarter 2025 Sustainability Review:

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

Ivanhoe's 2025 Annual Sustainability Review and Q1 2026 Quarterly Sustainability Review are both available in the sustainability section of our website.

The reports provide a detailed review of each project's health and safety, environmental, and social activities, as well as more information on the various sustainability initiatives underway across the group.

[](https://images.newsfilecorp.com/files/3396/296293_ivanhoesustainability1.jpg)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/296293_ivanhoesustainability1.jpg

During the first quarter of 2026, the group achieved a combined Lost Time Injury Frequency Rate (LTIFR) of 0.41 and a Total Recordable Injury Frequency Rate (TRIFR) of 2.15 per 1,000,000 hours worked. Regrettably, two loss-of-life incidents occurred at Kamoa-Kakula during the quarter.

A breakdown of Ivanhoe's health and safety performance is available in the Q1 2025 Sustainability Review.

[](https://images.newsfilecorp.com/files/3396/296293_ivanhoesustainability2.jpg)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/3396/296293_ivanhoesustainability2.jpg

Principal projects and review of activities

1. Kamoa-Kakula Copper Complex 39.6%-owned by Ivanhoe Mines Democratic Republic of the Congo

The Kamoa-Kakula Copper Complex is operated as the Kamoa Holding joint venture between Ivanhoe Mines and Zijin Mining. The complex covers a licence area of 400 square kilometres and is approximately 25 kilometres southwest of the town of Kolwezi on the far western edge of the Central African Copperbelt.

Kamoa Holding holds an 80% interest in Kamoa-Kakula, with the DRC government holding the remaining 20% interest. Ivanhoe and Zijin Mining, therefore, each hold an indirect 39.6% interest in Kamoa-Kakula, with Crystal River holding an indirect 0.8% interest. Kamoa-Kakula's full-time employee workforce is over 7,481, and over 90% are Congolese.

Copper production at Kamoa-Kakula commenced in May 2021 from the Phase 1 concentrator, which was delivered ahead-of-schedule. Two further concentrator expansions were also subsequently successfully delivered, also ahead of schedule, as well as an on-site 500,000-tonne-per-annum, direct-to-blister copper smelter that was completed in 2025. Kamoa-Kakula ranks among the largest and highest-grade copper complexes globally.

| Kamoa-Kakula summary of operating and financial data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2026 | | | Q4 2025 | | | Q3 2025 | | | Q2 2025 | | | Q1 2025 | | | | | | | | | | | | | | | | | | | | Ore tonnes milled (000's tonnes) | | 3,108 | | | 3,374(3) | | | 3,456 | | | 3,622 | | | 3,723 | | | Copper ore grade processed (%) | | 2.32% | | | 2.35% | | | 2.47% | | | 3.58% | | | 4.10% | | | Copper recovery (%) | | 85.6% | | | 85.7% | | | 82.7% | | | 85.4% | | | 87.4% | | | Copper in concentrate produced (tonnes) | | 61,906 | | | 71,569 | | | 72,143 | | | 112,009 | | | 133,120 | | | Contained copper in blister or anode produced (tonnes)(1) | | 71,417 | | | - | | | - | | | - | | | - | | | Payable copper sold (tonnes)(2) | | 66,619 | | | 78,469 | | | 61,528 | | | 101,714 | | | 109,963 | | | Cost of sales per pound ($ per lb.) | | 3.90 | | | 3.80 | | | 3.23 | | | 2.85 | | | 1.87 | | | Cash cost (C1) ($ per lb.) | | 2.58 | | | 2.99 | | | 2.62 | | | 1.89 | | | 1.69 | | | Realized copper price ($ per lb.) | | 5.79 | | | 4.98 | | | 4.42 | | | 4.34 | | | 4.19 | | | | | | | | | | | | | | | | | | | | Sales revenue before remeasurement ($'000) | | 872,539 | | | 782,691 | | | 555,293 | | | 868,846 | | | 922,411 | | | Remeasurement of contract receivables ($'000) | | (10,237) | | | 83,353 | | | 11,072 | | | 6,443 | | | 50,986 | | | Sales revenue after remeasurement ($'000) | | 862,302 | | | 866,044 | | | 566,365 | | | 875,289 | | | 973,397 | | | | | | | | | | | | | | | | | | | | EBITDA ($'000) | | 397,476 | | | 331,121 | | | 195,597 | | | 325,181 | | | 594,337 | | | EBITDA margin (% of revenue) | | 46% | | | 38% | | | 35% | | | 37% | | | 61% | |

All figures in the above tables are on a 100%-project basis. Metal reported in concentrate is before refining losses or deductions associated with smelter terms. This release includes "EBITDA", "Adjusted EBITDA", "EBITDA margin", "Pro-rata cash and cash equivalents" and "Cash cost (C1)", which are non-GAAP financial performance measures. For a detailed description of each of the non-GAAP financial performance measures used herein and a detailed reconciliation to the most directly comparable measure under IFRS Accounting Standards, please refer to the non-GAAP Financial Performance Measures and Pro-Rata Financial Ratios sections of the MD&A for the three months ended March 31, 2026. (1) For 2026 only, contained copper includes copper produced by both Kamoa-Kakula's on-site smelter, as well as the toll-treatment of Kamoa-Kakula concentrate at the LCS smelter in Kolwezi. For 2025, toll-treated concentrate into blister at the LCS smelter is captured in the concentrate production of the Phase 1, 2 and 3 concentrators. (2) Payable copper in concentrate sold is net of 96.7% payability. Payable copper in anode or blister sold is net of 99.7% payability. (3) Ore tonnes milled in Q4 2025, excludes 160,000 tonnes of ore milled at the smelter's slag flotation plant.