Ivanhoe Mines Issues 2025 Fourth Quarter and Annual Financial Results

2026-02-18

CSE - Canadian National Stock Exchange · Phosphate · Iron · Titanium · Canada

Ivanhoe Mines reports profit of $228M and adjusted EBITDA of $578M for 2025

Kamoa-Kakula generates 2025 revenue of $3.28B and EBITDA of $1.45B, at a margin of 44%, despite lower production and sales since May

Kamoa-Kakula cost of sales of $2.82/lb., and cash cost (C1) of $2.16/lb., achieving revised 2025 guidance

Kamoa-Kakula cash cost (C1) guidance of $2.20/lb. to $2.50/lb. for 2026, decreasing to $1.90/lb. to $2.30/lb. for 2027

Ramp up of Africa's largest and highest-technology copper smelter advancing ahead of schedule at over 60% capacity

First shipment of 99.7%-pure copper anodes along Lobito Railway Corridor expected imminently

Kipushi generates 2025 revenue of $441M and EBITDA of $91M during ramp-up; revenue of $138M and EBITDA of $44M in Q4 alone, at a margin of 32%

Kipushi cost of sales of $1.12/lb. and cash cost (C1) of $0.92/lb., achieving guidance

Kipushi 2026 cash cost (C1) guidance of $0.85/lb. to $0.95/lb.

Engineering contractor mobilized for Phase 2 expansion of Platreef; over 400+% increase in production from Phase 1 expected from Q4 2027

Updated Mineral Resource Estimate for Makoko District in Western Forelands targeted for mid-year

Johannesburg, South Africa--(Newsfile Corp. - February 18, 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 fourth quarter and year ended December 31, 2025, and provide 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 company is primarily focused on operations at the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC); the ultra-high-grade Kipushi zinc-copper-lead-germanium mine 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, as well as exploring for new sedimentary-hosted copper discoveries across its expansive and highly prospective exploration licences across the DRC, Angola, Zambia, and Kazakhstan.

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

Founder and Co-Chairman Robert Friedland commented:

"2026 marks a decisive turning point for Ivanhoe Mines… a year in which the extraordinary efforts made at each of our Tier-One mines coincide with increasingly tighter global commodity markets.

"As copper prices push to historic highs, we are turning the corner at Kamoa-Kakula following the 2025 seismic event. This extraordinary complex, which is the highest-grade major copper complex, has many decades of life ahead, powered by clean hydroelectric power… And, in the Western Forelands, we continue to expand our copper resource at a discovery cost of below a penny per pound of copper, at a 1% cut-off grade… a statistic unmatched anywhere else in the world.

"In addition, at Platreef, we are ramping up the Phase 1 concentrator, as platinum, palladium, nickel, rhodium, copper and gold prices approach multi-year highs, positioning the operation as one of the most important polymetallic mines on the planet… And, Kipushi is ascending to its place as the world's fourth-largest zinc mine, as zinc prices also reach multi-year highs.

"We remain, as always, engaged in strategic discussions with sovereign governments and leading industry participants around the globe. Our growth pipeline is aligned with the intense and ever-increasing long-term demand for responsibly produced critical metals.

"Finally, I would like to extend our warmest wishes to our Chinese friends and partners for prosperity and success in the Year of the Fire Horse, and to thank all of our stakeholders for their continued confidence as we advance the next phase of our growth."

FINANCIAL HIGHLIGHTS

Ivanhoe Mines recorded a profit after tax of $228 million in 2025 compared with a profit of $193 million in 2024, equivalent to basic earnings per share of $0.19 and $0.17, respectively.

Ivanhoe Mines' adjusted EBITDA was $578 million in 2025 compared with $625 million in 2024, which includes an attributable share of EBITDA from Kamoa-Kakula of $569 million.

Kamoa-Kakula sold 351,674 tonnes of copper (net of payability) in 2025 at an average realized copper price per pound (lb.) of $4.40/lb., compared with 396,972 tonnes in 2024 at an average realized copper price of $4.09/lb.

2026 copper sales from Kamoa-Kakula are expected to be approximately 30,000 tonnes higher than copper production as the on-site inventory of unsold copper concentrate is destocked now that the smelter is operational, predominantly during the first half of the year.

Kamoa-Kakula recognized revenue of $3.28 billion, operating profit of $0.91 billion and EBITDA of $1.45 billion for 2025, equivalent to a margin of 44%. This compares with revenue of $3.11 billion, operating profit of $1.43 billion and EBITDA of $1.81 billion in 2024.

Kamoa-Kakula recognized EBITDA of $331 million for the fourth quarter of 2025, up from $196 million in the third quarter, in part impacted by stronger sales during the quarter and a favourable remeasurement of contract receivables due to higher copper prices.

Kamoa-Kakula's cost of sales per pound of payable copper sold was $2.82/lb. for 2025 compared with $1.71/lb. in 2024. Cash cost (C1) per pound of payable copper produced in 2025 totaled $2.16/lb., achieving guidance, compared with $1.65/lb. in 2024. The higher cash costs during Q4 2025 were primarily due to processing low-grade surface stockpiles and lower-grade run-of-mine ore, as well as elevated logistics costs on a per pound basis due to lower contained copper in concentrate being transported and one-off higher charges associated with G&A.

Ivanhoe Mines announces Kamoa-Kakula's 2026 cash cost (C1) guidance of $2.20/lb. to $2.50/lb. of payable copper produced. Cash cost (C1) for 2026 is expected to improve throughout the year as head grades increase and production improves. 2027 cash cost (C1) guidance is set to improve to between $1.90/lb. and $2.30/lb. of payable copper, as production continues to ramp-up to full capacity.

Kamoa-Kakula's 2025 capital expenditure was $1.24 billion, below the revised guidance range of $1.30 billion to $1.50 billion. Ivanhoe Mines adjusts Kamoa-Kakula's 2026 capital expenditure guidance range to include the underspend from 2025 to between $1.10 billion and $1.40 billion, from $800 million to $1,30 billion. In addition, the 2027 capital expenditure guidance range has been set at $750 million to $950 million.

Kipushi sold 171,275 tonnes of zinc (net of payability) during ramp-up in 2025 at an average realized zinc price of $1.31/lb., recognizing revenue of $441 million.

Kipushi's cost of sales per pound (lb.) of payable zinc sold was $1.12/lb. for 2025 and cash cost (C1) per pound of payable zinc sold totaled $0.92/lb., towards the lower end of the guidance range. During the fourth quarter Kipushi cash cost (C1) decreased to $0.86/lb.

Kipushi recognized 2025 EBITDA of $91 million, equivalent to an EBITDA margin of 21%. This includes $44 million of EBITDA in the fourth quarter alone, at a margin of 32%.

Ivanhoe Mines announces Kipushi's 2026 cash cost (C1) guidance of $0.85/lb. to $0.95/lb. of payable zinc sold.

Kipushi's 2026 capital expenditure was $86 million, close to guidance of $80 million, and included the completion of the de-bottlenecking project. 2026 guidance for Kipushi is now sustaining capital of $60 million, falling to $35 million in 2027.

Platreef's 2025 capital expenditure of $252 million was at the lower end of guidance, as Phase 1 was completed under budget. Ivanhoe Mines reconfirms Platreef's 2026 capital expenditure guidance range of $350 million to $380 million. In addition, the 2027 capital expenditure guidance range has been set at $380 million to $420 million, as execution of the Phase 2 expansion continues.

Platreef's 2026 and 2027 capital expenditure will be focused predominantly on the Phase 2 expansion, which will partly be funded by the $700 million senior project finance facility, as announced on January 12, 2026. The new Phase 2 senior project finance facility was signed on February 18, 2026, with financial close targeted for the end of the first quarter. Funding will be drawn in stages, subject to the satisfaction of conditions precedent.

Ivanhoe Mines has a strong balance sheet with cash and cash equivalents and short-term deposits on hand of $885 million as at December 31, 2025.

OPERATIONAL HIGHLIGHTS

Kamoa-Kakula's concentrators milled a record total of 14.3 million tonnes of ore, at an average grade of 3.14% copper, producing 388,841 tonnes of copper in 2025. This includes a record contribution from the Phase 3 concentrator, which milled 6.4 million tonnes of ore, which is approximately 30% above design capacity, at an average grade of 2.62% producing a record 144,489 tonnes of copper

Ivanhoe Mines maintains 2026 production guidance for Kamoa-Kakula of 380,000 to 420,000 tonnes of copper, and 500,000 to 540,000 tonnes of copper for 2027, as announced on December 3, 2025.

Stage Two dewatering of the Kakula Mine was completed in December, as planned. With the completion of Stage Two, dewatering activities are now off the critical path and selective mining on the eastern side of the Kakula Mine restarted. Dewatering below the Stage Two pumps will continue into Q2 2026, using refurbished underground pumping infrastructure that was previously water-damaged (Stage Three dewatering).

An updated life-of-mine plan for Kamoa-Kakula is on track for the end of March 2026. The plan will update reserve and resource estimates, based on updated mining methods and technical parameters implemented since the seismic event and subsequent recovery plan, and targets increasing mining rates to 17 million tonnes per annum, to fully utilize Phase 1, 2 and 3 concentrator capacity, prior to a potential Phase 4 expansion.

Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-blister copper smelter, the largest in Africa, cast the first batch of anodes in late December 2025. Ramp-up of the smelter is advancing ahead of expectations, with the concentrate feed rate already at over 60% of design capacity.

Most of the copper concentrate produced by Kamoa-Kakula in the future is expected to be smelted on-site, resulting in significant cost savings on logistics costs, as well as by-product credits from sulphuric acid sales.

Production of by-product, high-strength sulphuric acid from the smelter is averaging 1,200 tonnes per day, equivalent to over 60% of design capacity. The average realized price for high-strength acid sales to date is over $450 per tonne. Kamoa-Kakula expects the realized price for acid to moderate between $350 and $400 per tonne over the medium-term.

The first batch of copper anodes produced by the Kamoa-Kakula smelter is set to be delivered to the Atlantic port of Lobito, in Angola, via the Lobito Atlantic Railway in the coming days. The anodes will then be shipped to Europe for refining, to produce some of the world’s lowest-carbon intensive refined copper.

Kamoa-Kakula's Project 95 is 75% complete, with completion expected in early Q2 2026. The "Project 95" initiative for the Phase 1 and 2 concentrators aims to increase the overall recovery rate up to 95%, up from the design recovery rate of 87%.

Construction of Kamoa-Kakula's on-site, solar (PV) facilities, with battery storage, is advancing to plan at approximately 70% complete. The two sites, with a total capacity of 60 MW, are expected to be operational during Q2 2026.

The refurbishment of the 178-MW Turbine #5 at the Inga II hydroelectric dam was completed in early Q4 2025. Kamoa-Kakula is receiving an initial 50 MW of power from Inga II, ramping up to 85 MW in late Q1 2026. As transmission improvement initiatives are completed over the next 12 months, power delivered to Kamoa-Kakula from Inga II is expected to increase to 150 MW.

At Kipushi, the concentrator milled a record 667,747 tonnes of ore at an average grade of 35.2% zinc during 2025, producing a record 203,168 tonnes of zinc in concentrate, achieving guidance.

Kipushi's concentrator throughput rates notably improved in the fourth quarter, following the completion of the debottlenecking program in August. Multiple concentrator records have since been achieved, including a monthly record of 22,629 tonnes of zinc in concentrate produced in December.

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

At the Platreef Mine, the first production of platinum-palladium-nickel-rhodium- gold-copper concentrate from the Phase 1 concentrator took place on November 19, 2025. Phase 1 is the first step in a three-phase expansion plan that aims to make the Platreef Mine one of the world's largest and lowest-cost producers of platinum, palladium, rhodium and gold, with significant nickel and copper by-products.

Production from the Phase 1 concentrator is currently being campaigned with development ore until the new Shaft #3 is commissioned and is ready to hoist ore in late April 2026. Thereafter, long-hole stoping (production mining) of the Flatreef orebody is expected to commence in early Q2 2026, enabling the ramp-up of the concentrator to continue with run-of-mine ore.

Work on the Phase 2 expansion has commenced, with the appointment of the engineering, procurement, and construction management (EPCM) in Q4 2025. Early works on the 3.3-million-tonne-per-annum, Phase 2 concentrator site, located adjacent to the Phase 1 concentrator, and associated infrastructure have commenced.

Platreef's Phase 2 expansion is targeting completion in Q4 2027. Phase 2 production is expected to be more than four times larger than Phase 1, producing approximately 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 Platreef Mine is projected to be the lowest-cost primary platinum-group-metals producer globally. The Phase 2 life-of-mine total cash cost is estimated to be $599 per ounce of 3PE+Au, net of nickel and copper by-product credits. This compares very favourably with a basket spot price of approximately $2,318 per ounce of 3PE+Au, as at February 16, 2026.

In the Western Forelands, Ivanhoe continues exploration across its vast licence area, adjacent to Kamoa-Kakula. Drilling efforts during 2025 focused on the Makoko District, as well as the new target areas of Tshipaya and Kamilli. Drilling to the east of the Makoko District has identified an extension of mineralization that will continue to be tested during the wet season. An updated Mineral Resource Estimate for the Makoko District is planned by mid-2026.

Ivanhoe Mines announces an exploration budget of approximately $90 million across its portfolio, including approximately $50 million budgeted in the Western Forelands, and $40 million spread across its exploration activities in Angola, Kazakhstan, South Africa and Zambia. This represents an increase of 88% compared to 2024 spend of $48 million.

99.7%-pure copper anodes, produced by the recently commissioned Kamoa-Kakula smelter, are stacked in the smelter yard awaiting export. Ramp-up of Africa's largest and greenest copper smelter is ahead of schedule, operating at a feed rate of over 60% of capacity.

To view an enhanced version of this graphic, please visit:

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Conference call for investors on Thursday, February 19, 2026

Ivanhoe Mines will hold an investor conference call to discuss the results on Thursday, February 19, 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/400-110-047-205

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 audited consolidated annual financial statements and Management's Discussion and Analysis will be available at www.ivanhoemines.com and www.sedarplus.ca.

Read Ivanhoe's Q4 2025 Sustainability Review:

During the fourth quarter of 2025, the group achieved a combined Lost Time Injury Frequency Rate (LTIFR) of 0.49 and a Total Recordable Injury Frequency Rate (TRIFR) of 2.29 per 1,000,000 hours worked. Regrettably, after quarter-end, a fatality occurred at Kamoa-Kakula. Two contractors were conducting surface maintenance at the Phase 2 concentrator when a flammable liquid ignited, causing a flash fire. Despite all efforts, one of the contractors sadly succumbed to his injuries. The other contractor is stable and recovering.

A breakdown of Ivanhoe’s health and safety performance can be found in the latest quarterly Sustainability Review on the company’s website. The Ivanhoe Mines 2025 Annual Sustainability Report will be published in April.

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

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Principal projects and review of activities

1. Kamoa-Kakula Copper Complex

39.6%-owned by Ivanhoe Mines

Democratic Republic of 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 6,800, and over 90% are Congolese.

Copper production at Kamoa-Kakula commenced in May 2021, following the ahead-of-schedule completion of the Phase 1 concentrator. Since then, the Phase 2 and Phase 3 mine and concentrator expansions have also been successfully delivered ahead of schedule, ranking Kamoa-Kakula among the largest and highest-grade copper operations globally.

The first cast of anodes from the 500,000-tonne-per-annum on-site direct-to-blister copper smelter took place in December 2025, significantly lowering the carbon footprint and boosting the margins of Kamoa-Kakula's copper production.

Kamoa-Kakula summary of operating and financial data

FY 2025Q4 2025Q3 2025Q2 2025Q1 2025

Ore tonnes milled (000's tonnes)14,335 3,5343,4563,6223,723

Copper ore grade processed (%)3.15%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)388,84171,56972,143112,009133,120

Payable copper sold (tonnes)(1)351,67478,46961,528101,714109,963

Cost of sales per pound ($ per lb.)2.823.803.232.851.87

Cash cost (C1) ($ per lb.)2.162.992.621.891.69

Realized copper price ($ per lb.)4.404.984.424.344.19

Sales revenue before remeasurement ($'000)3,129,241782,691555,293868,846922,411

Remeasurement of contract receivables ($'000)151,85483,35311,0726,44350,986

Sales revenue after remeasurement ($'000) 3,281,095 866,044566,365875,289973,397

EBITDA ($'000)1,446,236331,121195,597325,181594,337

EBITDA margin (% of sales revenue)44%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 press 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 this press release and the company's MD&A for the three and twelve months ended December 31, 2025.

Ivanhoe Mines Issues 2025 Fourth Quarter and Annual Financial Results

Earlier from First Phosphate Corp.