Earnings release
Page 1
July 30, 2025 Ivanhoe Mines issues 2025 second quarter financial results, overview of construction and exploration activities ■ Ivanhoe Mines’ reports Q2 2025 profit of $35 million and adjusted EBITDA of $123M, including $128M of attributable EBITDA from Kamoa-Kakula ■ Kamoa-Kakula produced 112,009 tonnes of copper in Q2 2025, Phase 1 and 2 operating at 85% design capacity, Phase 3 concentrator operating 30% above design capacity ■ Mining rates on the western side of Kakula improve; operations in line with revised 2025 production guidance ■ Stage One dewatering of the Kakula Mine advances; Stage Two dewatering to commence imminently ■ Kamoa-Kakula capex reviewed for dewatering and ramp-up plan; upper end of 2025 guidance range lowered ■ Africa’s largest and greenest copper smelter on schedule to commence start-up in September ■ Recent rise in platinum and palladium prices improves Platreef NPV8% (10.7 Mtpa PEA) by over 20% to approx. $3.8 billion; first production on schedule for next quarter ■ Kipushi operations achieved another record quarter; imminent completion of debottlenecking program to boost processing rates by 20% ■ Ivanhoe Mines’ balance sheet has $672 million in cash and cash equivalents on hand ■ Democratic Republic of the Congo and AFC/M23 sign declaration of principles agreement in Qatar to end fighting in eastern DRC Notice to Reader This press release has been re-filed to correct certain typographical errors on the cover page, page 21 and page 49 in the press release filed on SEDAR+ by Ivanhoe Mines Ltd. (the “Company”) earlier today entitled ‘Ivanhoe Mines Issues 2025 Second Quarter Financial Results, Overview of Construction and Exploration Activities’ as the Company initially inadvertently filed an incorrect version. This press release is the version disseminated by the Company by newswire at approximately 4:43 p.m. EDT on July 30, 2025, and readers should only rely on this version of the press release.
Page 2
2 JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) President and Chief Executive Officer, Marna Cloete, and Chief Financial Officer David van Heerden are pleased to announce the company’s financial results for the second quarter of 2025, 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 company is primarily focused on operations at the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC); ramping up production and debottlenecking the ultra-high-grade Kipushi zinc-copper-lead-germanium mine in the DRC; and soon, commencing the startup of the Platreef platinum, palladium, rhodium, nickel, 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 licence packages across the DRC, Angola, Zambia, and Kazakhstan. All figures are in U.S. dollars unless otherwise stated. Watch a video highlighting Ivanhoe Mines’ second quarter financial results, as well as an operational update: https://vimeo.com/1105228328/945ffda895?share=copy Founder and Co-Chairman Robert Friedland commented: “More important than the financial results of this second quarter are the milestones achieved beneath the surface at Kakula. Since resuming operations in early June, our underground teams have delivered remarkable outcomes, exceeding our expectations and demonstrating extraordinary dedication under challenging circumstances. Their efforts are driving steady, week-on-week improvements, as we work our way back towards full capacity. Guided by technical assessments and strategic leadership directives, this progress showcases robust momentum and a clear path forward. “Equally commendable are our colleagues in China, whose exceptional coordination has been instrumental in sourcing, assembling, and shipping four high-capacity submersible pumps. These critical infrastructure components, set to begin operation in August, will expedite the dewatering efforts of Kakula.
Page 3
3 By the end of 2025, these pumps are expected to enable us access back into the mine's eastern high-grade zones. “However, the most groundbreaking transformation is yet to come. With the Platreef Mine poised to begin production next quarter, this will be a new frontier for the global platinum group metals industry and South Africa. Platreef signifies the future of sustainable mining, combining large-scale operations, mechanization, cost efficiency, environmental stewardship, and an emphasis on social and community partnership. It is not merely a new mine but a redefinition of how platinum group metals, as well as nickel and copper, are produced responsibly. The dawn of the Platreef era is upon us, and the world is watching.” FINANCIAL HIGHLIGHTS • Ivanhoe Mines’ Q2 2025 adjusted EBITDA was $123 million, compared with $226 million for Q1 2025, which includes an attributable share of EBITDA from Kamoa-Kakula of $128 million. Ivanhoe Mines recorded a profit after tax of $35 million for Q2 2025, compared to $67 million for the same period in 2024 and $122 million in Q1 2025. • Kamoa-Kakula sold 101,714 tonnes of copper (net of payability) during the second quarter at an average realized copper price of $4.34/lb., compared with 109,963 tonnes in Q1 2025 at an average realized copper price of $4.19/lb. Sales continued to lag production due to a build-up of inventory for the smelter, which is expected to start up in September. At the end of the second quarter, there were approximately 53,600 tonnes of unsold copper in inventory, up from approximately 48,000 tonnes at the end of Q1 2025. • Kamoa-Kakula recognized revenue of $875 million, an operating profit of $190 million, and EBITDA of $325 million for the quarter, equivalent to an EBITDA margin of 37%. This compares with Q1 2025 EBITDA of $594 million. • Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was $2.85/lb. for the second quarter, compared with $1.87/lb. in Q1 2025. Cash cost (C1) per pound of payable copper produced in the quarter averaged $1.89/lb., compared with $1.69/lb. during Q1 2025. The costs of sales include abnormal costs while Phase 1 and Phase 2 concentrators were temporarily suspended after May 18, 2025. • Kamoa-Kakula revised its 2025 cash cost (C1) guidance range to $1.90/lb. – $2.20/lb., from previously $1.65/lb. – $1.85/lb. of payable copper produced. Kamoa-Kakula is anticipating higher cash costs during the second half of 2025, which is primarily due to the processing of lower-grade ore. Additionally, the financial benefits of operating the smelter are unlikely to have a significant positive impact until ramp-up is advanced towards the end of the year.
Page 4
4 • In June, Kamoa Copper signed an offtake agreement with Trafigura Asia Trading Pte Ltd for the remaining 20% of the smelter’s annual anode production. The agreement is over a three-year term and also includes a $200 million offtake-linked advance payment facility. The facility has an interest rate of the 1-month Secured Overnight Financing Rate (SOFR) plus 3.75%. Offtake agreements for the other 80% of anode production were signed in Q1 with CITIC Metal (HK) Limited and Gold Mountains International Mining Company Limited, a subsidiary of Zijin Mining. CITIC Metal and Gold Mountains also provided advance payment facilities totaling $500 million. • 2025 capital expenditure guidance for Kamoa-Kakula has been comprehensively reviewed with respect to the ongoing dewatering and ramp-up plan. The lower end of guidance is maintained at $1,420 million with the upper end lowered to $1,600 million from $1,670 million. Discretionary Phase 3 optimization expenditure in the original 2025 budget is deferred to 2026, partially offset by increased sustaining costs associated with the rehabilitation and dewatering of Kakula and the ramp- up of Kamoa. • Despite operational challenges during the second quarter, the Kamoa- Kakula joint venture returned a positive net cash flow of $169 million. • Kipushi sold 43,348 tonnes of zinc (net of payability) during the quarter, up by almost 44% from the 30,108 tonnes of zinc sold in Q1 2025. Kipushi recognized a quarterly revenue of $97 million, a segmented loss of $6 million and EBITDA of $9 million. Kipushi’s cost of sales per pound of payable zinc sold was $1.05/lb. and the cash cost (C1) per pound of payable zinc sold totaled $0.96/lb. • Kipushi Mine’s cash costs (C1) for the first half of 2025 are just below the mid-point of guidance at $0.94/lb. of payable zinc. Ivanhoe Mines maintains Kipushi’s 2025 cash cost (C1) guidance of $0.90/lb. to $1.00/lb. of payable zinc. • Platreef capital expenditure is tracking at the lower end of 2025 guidance, with the Phase 1 project nearing completion. Negotiations are progressing well for a $700 million Phase 2 senior project finance facility, which is expected to close in Q1 2026. • Ivanhoe Mines has a strong balance sheet with cash and cash equivalents on hand of $672 million and attributable group pro-rata cash and cash equivalents of $774 million on hand, as at June 30, 2025. OPERATIONAL HIGHLIGHTS • During the second quarter, Kamoa-Kakula’s Phase 1, 2, and 3 concentrators milled 3.62 million tonnes of ore, producing 112,009 tonnes of copper, representing an 11% increase when compared with the same period in 2024. This included a monthly record of approximately 50,000
Page 5
5 tonnes of copper in April, prior to the occurrence of seismic activity in May 2025. Copper production for the first half of 2025 totaled 245,127 tonnes. • Quarterly copper production was significantly impacted by seismic activity on the eastern side of the Kakula Mine, as reported on May 20, 2025. This resulted in the suspension of underground mining activities at the Kakula Mine. Mining recommenced on the western side of the Kakula Mine on June 7, 2025. Kamoa-Kakula’s 2025 production guidance was revised to between 370,000 and 420,000 tonnes of copper. • The Phase 1 and 2 concentrators commenced the processing of ore from the western side of the Kakula Mine on June 8, 2025. For the remainder of the year, the Phase 1 and 2 concentrators are expected to operate at between 80% and 85% of plant capacity, targeting 50% of ore feed from surface stockpiles and 50% from ore mined from the western side of Kakula. The processing of surface stockpiles is expected to continue until they are depleted in Q1 2026. • The Phase 3 concentrator milled a record 1.6 million tonnes of ore in the second quarter, producing a record 40,608 tonnes of copper. The milling record is equivalent to an annualized rate of 6.5 million tonnes, which is 30% higher than the Phase 3 concentrator’s design capacity of 5.0 million tonnes per annum. The average quarterly feed grade for the Phase 3 concentrator was a record 2.92% copper. • Stage One dewatering continues as planned, with water levels modestly decreasing. The delivery of the four Stage Two, submersible, high-capacity dewatering pumps has recently commenced with the first of three cargo flights arriving in Lubumbashi. Stage Two dewatering is on schedule to start in August. • Ivanhoe Mines is targeting to provide in September 2025 an update on Kamoa-Kakula’s recovery plan and ramp-up to steady-state operations over the medium term. Work has also commenced on an updated life-of-mine integrated development plan, which is targeted for completion in the first quarter of 2026. • Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-blister copper smelter, the largest in Africa, is expected to commence start up in September. All concentrates produced by Phase 1, 2, and 3 concentrators are expected to be treated by the on-site smelter. • Site clearance and early earthworks for Kamoa-Kakula’s 60-megawatt (MW), on-site solar (PV) facility with battery storage have commenced. The solar facility is expected to be operational in mid-2026, supplying up to 25% of Kakula’s energy requirements. • Mechanical and electrical equipment installation for the refurbished Turbine #5 at the Inga II hydroelectric facility is now completed. Pre-commissioning activities have already commenced and are expected to be completed early in the fourth quarter.
Page 6
6 • At Kipushi, during Q2 2025, the concentrator milled a record 153,342 tonnes of ore at a record average grade of 33.4% zinc, producing a near-record 41,788 tonnes of zinc in concentrate at a contained grade of over 51% zinc. • The first phase of Kipushi’s debottlenecking program was completed in June with the second phase on schedule to be completed in the coming weeks, requiring a shutdown to tie in the newly installed equipment. In mid- July following completion of the first phase, Kipushi achieved a daily production record equivalent to 327,000 tonnes of zinc in concentrate on an annualized basis, and a weekly production record equivalent to 289,000 tonnes of zinc in concentrate on an annualized basis. • Kipushi produced 84,524 tonnes of zinc during H1 2025. The production rate in H2 2025 is expected to significantly improve following improved availability of the dense media separation (DMS) circuit and the imminent completion of the debottlenecking program. Kipushi’s 2025 production guidance is maintained at 180,000 to 240,000 tonnes of zinc in concentrate. • At Platreef, the first feed of ore into the Phase 1 concentrator is on schedule to take place in Q4 2025. Phase 1 is the first step of a three-phase expansion plan, which aims to make the Platreef Mine one of the world’s largest producers of platinum, palladium, rhodium, and gold, with significant copper and nickel credits. • Phase 2 expansion activities are underway and on track for first production in Q4 2027. Platreef’s Phase 2 expansion is expected to produce over 460,000 ounces of platinum, palladium, rhodium, and gold per annum, 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 $1,600 per ounce of 3PE+Au, as at July 29, 2025. • On May 8, 2025, mining crews at the Platreef Mine started underground development into the high-grade polymetallic Flatreef orebody for the first time, as the mine rapidly advances to commercial production later this year. This significant milestone comes 15 years after the discovery of the 26-metre thick, flat-lying Flatreef orebody was made. Development ore is being stockpiled on the surface and will be used in the ramp-up of the Phase 1 concentrator. The Ivanplats team aims to accumulate a stockpile of approximately 60,000 tonnes of development ore ahead of the first feed of ore into the Phase 1 concentrator. • Equipping of Shaft #3 is progressing well. Installation of the rock winder has commenced, with the mechanical and electrical work nearing completion. Shaft #3 is expected to be “ready to hoist” from Q1 2026 with a capacity of approximately 4 million tonnes per annum.
Page 7
7 • In the Western Forelands, Ivanhoe continues exploration across its vast licence area, adjacent to Kamoa-Kakula. Drilling activity increased as the wet season ended in late April, with the deployment of four more rigs. In total, nine contractor-operated diamond drill rigs were active during the quarter, which completed a total of 14,843 meters of drilling. • On May 14, 2025, Ivanhoe announced its independently verified, updated Mineral Resource estimate for the Makoko District in the Western Forelands. The total copper contained in the Makoko District has approximately doubled in the past 18 months, during which 86,000 metres of diamond drilling were completed. The Makoko District ranks as the world’s fifth-largest copper discovery since Kakula in 2015. • In Kazakhstan, drilling commenced in July on Ivanhoe’s joint venture licences. Two rigs have been deployed for the 17,500-metre maiden diamond drilling program. In addition, over 95% of the planned 16,911 km² in licences have now been fully granted. Concurrent with the drilling program, extensive geophysical and geochemical programs are underway across the licence package. • On July 19, 2025, representatives from the DRC and the Congo River Alliance/March 23 Movement (AFC/M23) signed a declaration of principles in Doha, Qatar. The declaration is intended as a roadmap towards a permanent settlement. Both parties agree to implement the terms of the deal by July 29, 2025. In addition, a final peace deal is expected to be agreed by August 18, 2025, and must align with last month's US-brokered Peace Agreement signed on June 27, 2025, between the DRC and Rwanda. Africa’s largest and greenest copper smelter at Kamoa-Kakula is expected to commence start-up in September. 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 the company’s MD&A for the three and six months ended June 30, 2025.
Page 8
8 Conference call for investors on Thursday, July 31, 2025 Ivanhoe Mines will hold an investor conference call to discuss the results on Thursday, July 31, 2025, 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.400.lumiconnect.com/r/participant/live-meeting/400-061-613- 503 Audience Phone Number: Local - Toronto (+1) 289 514 5005 Toll Free - North America (+1) 800 206 4400 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 Q2 2025 Sustainability Review: During the second quarter of 2025, the group achieved a combined Lost Time Injury Frequency Rate (LTIFR) of 0.34 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.06 per 1,000,000 hours worked. A breakdown of Ivanhoe’s industry-leading health and safety performance can be found in the Q2 2025 Sustainability Review, on the company’s website: https://www.ivanhoemines.com/investors/document-library/#sustainability
Page 9
9 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. Copper production at Kamoa-Kakula commenced in May 2021, following the completion of the Phase 1 concentrator. Since, the Phase 2 and Phase 3 mine and concentrator expansions have been completed, as well as the construction of a 500,000 tonne per annum direct -to- blister copper smelter. A production record was achieved in April 2025, with 50,000 tonnes of copper in concentrate produced during the month, exceeding the target annualized production capacity of 600,000 tonnes. Production since May 18, 2025, has been impacted by the seismic activity and subsequent flooding on the eastern side of the Kakula Mine , which has resulted in production rates being curtailed. Dewatering and rehabilitation work are underway with the target to increase production from underground to meet Phase 1 and 2 concentrator capacity. The Phase 3 concentrator, supplied by the Kamoa mines, continues uninterrupted. Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining and a 1% share interest in Kamoa Holding to privately owned Crystal River in December 2015. Kamoa Holding holds an 80% interest in the project , and the DRC government holds the remaining 20% interest . Ivanhoe and Zijin Mining , therefore, each hold an indirect 39.6% interest in Kamoa -Kakula, with Crystal River hold ing an indirect 0.8% interest. Kamoa- Kakula’s full-time employee workforce is over 7,300, and approximately 90% are Congolese. Kamoa-Kakula summary of operating and financial data Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Ore tonnes milled (000’s tonnes) 3,622 3,723 3,655 3,266 2,381 Copper ore grade processed (%) 3.58% 4.10% 4.26% 4.14% 4.91% Copper recovery (%) 85.4% 87.4% 86.6% 85.3% 86.7% Copper in concentrate produced (tonnes) 112,009 133,120 133,819 116,313 100,812 Payable copper sold (tonnes)(1) 101,714 109,963 112,811 103,106 95,900 Cost of sales per pound ($ per lb.) 2.85 1.87 1.94 1.80 1.53 Cash cost (C1) ($ per lb.) 1.89 1.69 1.75 1.69 1.52 Realized copper price ($ per lb.) 4.34 4.19 4.08 4.16 4.34 Sales revenue before remeasurement ($'000) 868,846 922,411 895,758 836,871 813,817 Remeasurement of contract receivables ($'000) 6,443 50,986 (52,428) (8,983) 3,256 Sales revenue after remeasurement ($'000) 875,289 973,397 843,330 827,888 817,073 EBITDA ($'000) 325,181 594,337 431,802 469,735 547,257 EBITDA margin (% of sales revenue) 37% 61% 51% 57% 67%
Page 10
10 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 the company’s MD&A for the three and six months ended June 30, 2025. (1) Payable copper sold is net of the payability factor of circa 97%. Copper in concentrate produced net of the payability factor is noted in the non -GAAP Financial Performance Measures section of the company’s MD&A for the three and six months ended June 30, 2025 C1 cash cost per pound of payable copper produced can be further broken down as follows: Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Mining ($ per lb.) 0.73 0.63 0.61 0.62 0.45 Processing ($ per lb.) 0.34 0.29 0.30 0.26 0.21 Logistics charges ($ per lb.) 0.49 0.41 0.40 0.42 0.48 TC, RC, smelter charges ($ per lb.) 0.14 0.19 0.27 0.26 0.25 General & Administrative ($ per lb.) 0.19 0.17 0.17 0.13 0.13 Cash cost (C1) per pound of payable copper produced ($ per lb.) 1.89 1.69 1.75 1.69 1.52 The cost of power, which is allocated between mining and processing in the above cash cost split, can be split out as follows: Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Power costs included in Mining and Processing cost ($ per lb.) 0.20 0.24 0.22 0.19 0.12 Power costs as a proportion of cash cost (C1) per pound of payable copper produced (%) 10.6% 14.2% 12.6% 11.2% 7.9% Cash cost (C1) is prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines, but is not a measure recognized under IFRS Accounting Standards. In calculating the C1 cash cost, the costs are measured on the same basis as the company's share of profit from the Kamoa Holding joint venture which is contained in the financial statements. C1 cash cost is used by management to evaluate operating performance and includes all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to the final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered, finished metal. C1 cash cost excludes royalties, production taxes, and non-routine charges as they are not direct production costs. All figures are on a 100% project basis , and metal reported in concentrate is before refining losses or deductions associated with smelter terms.
Page 11
11 Kamoa-Kakula produced 112,009 tonnes of copper in Q2 2025, following disruption from seismic activity in mid-May; rehabilitation plans advancing on track During the second quarter of 2025, the Phase 1, 2, and 3 concentrators milled 3.62 million tonnes of ore, producing 112,009 tonnes of copper, representing an 11% increase when compared with the same period in 2024. Copper production for the first half of 2025 totaled 245,127 tonnes. Quarterly performance was impacted by the seismic activity on the eastern side of the Kakula Mine as reported on May 20, 2025, which resulted in the suspension of underground mining activities at the Kakula Mine until June 7, 2025. In June, Kamoa-Kakula’s Phase 1, 2, and 3 concentrators produced a total of 28,147 tonnes of copper. During the month, approximately 15,000 tonnes of copper were produced by the Phase 1 and 2 concentrators, at an average grade of 3.3% copper and an average recovery rate of 79%. The lower-than-average recovery rate is primarily due to lower recoveries achieved from processing lower-grade ore from surface stockpiles. Underground development to a new mining area, located on the far eastern side of the Kakula Mine, commenced in early July. The development of the two new access drives will be conducted from existing underground infrastructure. Kamoa-Kakula summary of quarterly production data: Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Phase 1 & 2 Ore tonnes milled (000's tonnes) 1,991* 2,211 2,329 2,215 2,288 Copper ore grade processed (%) 4.12%* 5.01% 5.08% 4.86% 5.04% Copper recovery (%) 85.4%* 88.3% 87.0% 86.6% 87.0% Copper in concentrate produced (tonnes) 71,401* 97,575 102,042 94,214 99,706 Phase 3 Ore tonnes milled (000’s tonnes) 1,631 1,512 1,326 1,050 93 Copper ore grade processed (%) 2.92% 2.76% 2.82% 2.64% 1.67% Copper recovery (%) 85.5% 85.1% 85.1% 79.9% 83.3% Copper in concentrate produced (tonnes) 40,608 35,545 31,777 22,099 1,106 Combined Phase 1, 2, and 3 Ore tonnes milled (000’s tonnes) 3,622 3,723 3,655 3,266 2,381 Copper ore grade processed (%) 3.58% 4.10% 4.26% 4.14% 4.91% Copper recovery (%) 85.4% 87.4% 86.6% 85.3% 86.7% Copper in concentrate produced (tonnes) 112,009 133,120 133,819 116,313 100,812 Data in red denotes a quarterly record. *As announced on May 20, 2025, Phase 1 & 2 production in Q2 2025 was impacted by seismic activity at the Kakula Mine As revised on June 11, 2025 , Kamoa -Kakula’s annual production guidance of 370,000 to 420,000 tonnes of copper is maintained. As at June 30, 2025, Kamoa-Kakula’s useable ore surface stockpiles totaled approximately 3.0 million tonnes at an estimated blended average grade of 2.49% copper. Contained copper in the stockpiles at the end of June totaled approximately 76,555 tonnes. At current run rates, surface stockpiles are expected to provide mill feed to the Phase 1 and Phase 2 concentrators until Q1 2026.
Page 12
12 Phase 1 and 2 concentrators to operate at between 80% and 85% of design capacity, with approximately 50% of feed coming from the western side of the Kakula Mine The Phase 1 and 2 concentrators commenced the processing of ore from the western side of the Kakula Mine on June 8, 2025. Kamoa-Kakula’s management is targeting that for the remainder of the year, the Phase 1 and 2 concentrators will operate at between 80% and 85% of plant capacity. The ore feed is targeted to be 50% from surface stockpiles and 50% from ore mined from the western side of Kakula. The processing of surface stockpiles is expected to continue until they are depleted in Q1 2026. As announced on June 11, 2025, mining on the western side of the Kakula Mine restarted. By mid-June, the mining rate had ramped up to 300,000 tonnes per month (3.6 million tonnes on an annualized basis), with grades ranging from 3% to 4% copper. As previously guided, mining in the western side of the Kakula Mine will initially focus on higher-elevation areas in the north and southwest, as shown in Figure 1 and Figure 2, where copper grades range between 3% and 4%. Mining of these areas will continue into the fourth quarter until Stage Two dewatering of the eastern side of the Kakula Mine is well advanced. From late 2025, mining crews plan to advance deeper into the western side of the Kakula Mine, where copper grades are expected to increase to approximately 5%. The Phase 3 concentrator milled a record 1.6 million tonnes of ore in the second quarter, producing a record 40,608 tonnes of copper. The milling record is equivalent to an annualized rate of 6.5 million tonnes, which is 30% higher than the Phase 3 concentrator’s design capacity of 5.0 million tonnes per annum. The average quarterly feed grade for the Phase 3 concentrator was a record 2.92% copper. For the remainder of 2025, it is expected that the feed grade into the Phase 3 concentrator will average approximately 2.5% copper, as the cut-off grade is lowered to achieve a greater mining rate. Currently, all ore mined at the Kamoa and Kansoko mines is processed by the Phase 3 concentrator. During the second half of 2025, the combined mining rate from the Kamoa and Kansoko mines will increase, with up to 100,000 tonnes per month of this ore fed into the Phase 1 and 2 concentrators, replacing a portion of the stockpile feed. Stage One dewatering continues as planned; shipping of Stage Two dewatering pumps has started and expected to arrive As announced on June 2, 2025, following the seismic activity, Kamoa-Kakula has implemented a two-stage plan to dewater the eastern side of the Kakula Mine. “Stage One” dewatering activities, which involved the installation of temporary underground pumping infrastructure to stabilize and maintain current water levels, have been in place and operating to plan since early June 2025. This has enabled the water levels on the eastern side of the Kakula Mine to decrease modestly, ahead of “Stage Two” dewatering activities that are expected to commence in the coming weeks. In the meantime, the declining water levels have enabled mining crews to access additional areas and commence selective rehabilitation. “Stage Two” dewatering involves the installation of high-capacity, submersible pumps and new permanent surface infrastructure to fully dewater the eastern side of the Kakula Mine from surface. Kamoa Copper has ordered five high-capacity, submersible pumps, each rated with pumping capacity of 650 litres per second, from Hefei Hengda Jianghai Pump Co., Ltd. of Anhui Province, China.
Page 13
13 The transportation of four, out of the five, high-capacity, submersible pumps has commenced. The first of three cargo flights departed China on July 24, 2025, landing into Lubumbashi, DRC, the following day. The first equipment package has since arrived on site at Kamoa-Kakula. Two further cargo flights, carrying the remaining pumping equipment, are scheduled to land in Lubumbashi within the coming days. The remaining, fifth, pump will shipped at a later date and kept in reserve as a spare. Concurrently, site preparation activities are advancing well. The high-capacity, submersible pumps will be installed in pairs down two adjacent shafts that access a deep section of the eastern side of the Kakula Mine, as shown in Figure 1. The pumps will be connected to piping and lowered down the existing shafts from the surface. Discharged water from the submersible pumps will be fed into existing surface water channels that feed into on-site settling and treatment ponds. The total capital cost of the Stage One and Stage Two dewatering activities, including the purchase, transport, and installation of the high-capacity, submersible dewatering pumps, is expected to be up to $70 million, including contingency. Kayembe Mundula Jean, Fitter and Baba Franck, General worker operating one of the nine temporary ‘Stage One’ dewatering pumps underground at Kakula , which in total are pumping to surface approximately 3,700 litres per second.
Page 14
14 Mining Superintendents, Werner Basson and Tony Kongolo, are inspecting the recently installed rehab support underground at Kakula. Site preparation for the Stage Two dewatering infrastructure is advancing well. Delivery of the submersible, high-capacity pumps has commenced, with pumping expected to commence next month.
Page 15
15 On Thursday, July 24, 2025, the first of three flights departed China, carrying the Stage Two dewatering pump ing equipment. The flight landed in Lubumbashi, DRC, the following day and the cargo has since arrived on site. The remaining two flights are expected to arrive in Lubumbashi within the coming days. Figure 1. An illustration of the Kakula Mine’s existing underground infrastructure as of July 2025, showing the depth profile of the western and eastern sections and existing Stage One vertical pumping locations (in green) and the new Stage Two vertical pumping locations (in yellow). The areas currently being mined are also highlighted.
Page 16
16 Development to the new mining area on the far eastern side of the Kakula Mine has commenced A new mining area, located on the far eastern side of the Kakula Mine, as indicated by the red arrows in Figure 2, will be initially accessed via two new access drives. The mining crews commenced construction of the access drives in early July. Development of the new mining area is expected to be initially conducted in waste before entering ore from early 2026. Mining of the area is expected to commence in Q2 2026. The new access drives will be developed simultaneously, advancing east from existing underground infrastructure. The new mining area will not require new mine access from the surface. The area will be accessed from existing underground infrastructure that is not affected by the ongoing dewatering activities. Figure 2. An illustration of the Kakula Mine’s existing underground infrastructure, showing the areas on the western side of the mine currently being mined, the copper grade profile, as well as the location of the two access drives (red arrows) to the new far eastern mining area. Notes: Existing underground development as at July 2025. Illustration is based on the 2023 Kamoa - Kakula IDP showing the estimated average grade of each vertical stack of blocks above a 2% total copper cut-off. A minimum 6-metre thickness is applied.
Page 17
17 Smelter heat-up on schedule for start-up in September The heat-up of Kamoa-Kakula’s state-of-the-art, 500,000-tonne-per-annum direct-to-blister copper smelter is expected to commence in September 2025. The smelter can operate at a minimum operating capacity of 50%, or approximately 250,000 tonnes of copper on an annualized basis. Kamoa-Kakula’s management team expects to prioritize the processing of all concentrates produced by the Phase 1, 2, and 3 concentrators through the on-site smelter, with any excess concentrate toll-treated at the nearby Lualaba Copper Smelter. At the end of June , Kamoa -Kakula held approximately 53,600 tonnes of unsold copper in concentrate, compared to approximately 48,000 tonnes at the end of Q1 2025. Of the 53,600 tonnes of unsold copper in concentrate, approximately 31,500 tonnes are located at Kamoa- Kakula’s on-site copper smelter. Kamoa -Kakula expects to hold at the smelter up to 35,000 tonnes of copper in stockpiles at the end of the third quarter as a buffer during ramp-up. Total unsold copper in concentrate at the smelter, held in stockpiles and the smelting circuit, is expected to reduce to approximately 17,000 tonnes as the smelter reaches full ramp-up. Approximately 18,500 tonnes of the remaining unsold copper at the end of the second quarter were stored at the nearby Lualaba Copper Smelter (LCS) awaiting toll treatment. The stored copper in concentrate at LCS is expected to be treated throughout the remainder of 2025. Kamoa-Kakula’s on-site copper smelter, with the concentrate blending facility in the foreground. A buffer stockpile of up to 35,000 tonnes of copper in concentrate is being accumulated on-site in anticipation of the smelter start-up in September. Kamoa-Kakula’s Project 95 is approximately 55% complete, with completion expected in Q2 2026 Kamoa-Kakula’s Project 95 is advancing well at 55% complete with completion now expected in early Q2 2026. The “Project 95” initiative for Kamoa-Kakula’s Phase 1 and 2 concentrators aims to increase the overall recovery rate to 95%, up from the design recovery rate of 87%, based on a high-grade feed of 5% copper.
Page 18
18 During the interim period, while the Kakula Mine is undergoing turnaround, a portion of the ore feed to the Phase 1 and 2 concentrators, sourced from both the Kakula and Kamoa mines, will be of lower grade. Kamoa-Kakula’s engineering team aims to maintain a recovery rate from the lower-grade sources of at least 90%. Project 95 construction works are advancing well, with completion expected in early Q2 2026. The foreground shows the civil works for the new thickeners, with the adjacent Phase 1 and 2 concentrator storage shed in the background, and the on-site copper smelter further behind. Final offtake agreement signed for copper anode production from Kamoa-Kakula’s on-site smelter; offtake-linked advance payment facility of $200 million also signed In June, an agreement for the remaining 20% of the smelter’s anode offtake was signed over a three-year term with Trafigura Asia Trading Pte Ltd. The offtake agreement with Trafigura also included a $200 million offtake-linked advance payment facility. The facility has an interest rate of the 1-month SOFR plus 3.75%. As previously announced on January 8, 2025, CITIC Metal Limited and Gold Mountains International Mining Company Limited, a subsidiary of Zijin Mining, signed offtake agreements with Kamoa Copper for a combined 80% of the copper anode production from the Kamoa-Kakula smelter. The CITIC Metal and Gold Mountains anode offtake agreements also included offtake-linked advance payment facilities totalling $500 million. This facility was in addition to a $300 million Phase 3 concentrate offtake-linked advanced payment facility signed with both offtakers in 2024. Also in June, Kamoa Copper’s existing $200 million loan facility with Standard Bank has been extended for a further 12 months on favourable terms. The funding arrangements will provide balance sheet flexibility in supporting the ongoing turnaround of the Kakula Mine.
Page 19
19 Site clearance and early earthworks for Kamoa-Kakula’s 60- megawatt, on-site solar (PV) facility with battery storage have commenced During late March and early April 2025, Kamoa Copper signed power purchase agreements (PPA) with CrossBoundary Energy DRC of Nairobi, Kenya, and La Societe Green World Energie SARL of Beijing, China, to provide up to 60 MW in baseload clean energy to Kamoa-Kakula’s operations from an on-site solar facility. The facilities, which will be owned, operated, and funded by CrossBoundary Energy and Green World Energie, will comprise a total peak of 406 MW of solar photovoltaic (PV) capacity, with up to 1,107 megawatt hours (MWh) of battery energy storage (BESS) capacity. Kamoa Copper will be the sole off-taker of the electricity produced by both facilities. Kamoa-Kakula plans to expand the on-site solar facilities further over time, targeting a capacity of up to 120 MW. Early construction works commenced in the second quarter with geotechnical surveying of the site, site clearing, and the ordering of long-lead items, including the BESS, E-house, and mounting structures. Construction completion is expected in mid-2026. Map of Kamoa-Kakula’s licence package, showing the existing powerlines (in blue) and the site of the on-site 60 MW solar PV power plant, battery storage, and substation (in red). The facility is scheduled for completion in mid-2026 and aims to supply up to 25% of Kamoa-Kakula’s energy requirements. Refurbishment of Inga II Hydroelectric facility nearing completion; mechanical installation complete and commissioning underway Mechanical and electrical equipment installation for the refurbished Turbine #5 at the Inga II hydroelectric facility is now completed. Pre-commissioning activities have already commenced and are expected to be completed early in the fourth quarter. In addition, the replacement of the resistor banks at the Inga substation was completed during the quarter. The new resistors are expected to improve voltage stability and reliability of the network supply of electricity from the Inga hydroelectric facilities.
Page 20
20 COPPER PRODUCTION, CAPITAL EXPENDITURE AND CASH COST GUIDANCE FOR 2025 Kamoa-Kakula 2025 Guidance Previous Revised Cash cost (C1) ($ per pound of payable copper produced) 1.65 – 1.85 1.90 – 2.20 Capital expenditure ($ million) 1,420 – 1,670 1,420 – 1,600 Contained copper in concentrate (tonnes) 520,000 – 580,000 370,000 – 420,000 Guidance figures are on a 100% project basis. Kamoa-Kakula’s 2025 guidance is based on several assumptions and estimates. It involves estimates of known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially. The 2025 production guidance, as revised on June 11, 2025, takes into account the probable effect of seismic activity as reported on May 20, 2025, and associated interruptions in mining operations at the Kakula Mine. Although mining in the western side of the Kakula Mine has restarted, risk factors remain, including that it is too early to accurately predict potential disruption caused by further unexpected seismic activity, the integrity of underground infrastructure, the ability to ramp up underground operations, the ability to complete dewatering activities and the time required to access the new mining areas. The updated 2025 production guidance is based on an assessment of these factors that management believes are reasonable at this time, given all available information. Metal reported in concentrate is before refining losses or deductions associated with smelter terms. Cash cost (C1) guidance is based primarily on assumptions, including tonnes of ore mined, feed grades of processed copper ore, concentrator recoveries, as well as the timing and ramp-up of the on-site smelter, among other variables. Cash cost (C1) is a non-GAAP measure used by management to evaluate operating performance and includes all direct mining, processing, stockpile rehandling charges, and general and administrative costs. Smelter charges and freight deductions on sales to the final port of destination (typically China), which are recognized as a component of sales revenues, are added to cash cost (C1) to arrive at an approximate cost of delivered finished metal. For historical comparatives and a reconciliation to the most directly comparable measure under IFRS, see the non-GAAP Financial Performance Measures section of this release and the company’s MD&A for the three and six months ended June 30, 2025. Revised 2025 cash cost (C1) guidance for Kamoa-Kakula The increase in cash cost (C1) guidance to $1.90 to $2.20 per pound of payable copper produced is primarily driven by an expected lower feed grade of ore into the concentrators for the remainder of 2025. Average feed grades into the Phase 1 and 2 concentrators of approximately 3% copper are expected to continue until year-end, sourced from both surface stockpiles, as well as ore from the western side of the Kakula Mine. In addition, the cost benefits of the smelter are expected to positively impact cash costs from the end of 2025, as the smelter ramp-up advances.
Page 21
21 Revised 2025 capital expenditure guidance for Kamoa-Kakula The guidance ranges provided reflected uncertainty in the turnaround of the Kakula underground mine during 2025 and 2026. Kamoa-Kakula’s revised 2025 capital expenditure of $1,420 million to $1,600 million includes the deferral of approximately $170 million in project capital, including $100 million in various surface infrastructure projects, $50 million in Phase 3 debottlenecking and $20 million relating to Project 95. Sustaining capital has increased by $110 million, including $70 million relating to Stage One and Two pumping activities and $40 million relating to mining activities including a new box cut and decline at Kansoko, decline at Kamoa 2 and increased underground development at Kamoa, partially offset by reduced underground development at Kakula. All capital expenditure figures are presented on a 100%-project basis. The capital expenditure guidance range for 2026, as issued on February 19, 2025, has been widened from between $680 million and $930 million, to between $700 million and $1,200 million. Kamoa-Kakula intends to narrow the guidance range in due course as the recovery and ramp-up plan is completed. .
Page 22
22 2. Kipushi Mine 68%-owned by Ivanhoe Mines Democratic Republic of Congo The ultra-high grade Kipushi underground zinc-copper-germanium-silver-lead mine in the DRC is located adjacent to the town of Kipushi on the Zambian border, approximately 30 kilometres southwest of Lubumbashi on the Central African Copperbelt. Kipushi is approximately 250 kilometres southeast of the Kamoa-Kakula Copper Complex. Ivanhoe acquired a 68% interest in the Kipushi Mine in November 2011, through Kipushi Holding, which is 100%-owned by Ivanhoe Mines. The balance of 32% in the Kipushi Mine was held by the DRC state-owned mining company, Gécamines. As per the updated joint venture agreement signed in late 2023, Gécamines’ ownership increased to 38% during Q1 2025. Ivanhoe, together with its joint-venture partner, restarted the Kipushi zinc mine in mid-2024, with the ramp-up to steady state operations continuing during the quarter. On November 17, 2024, His Excellency Félix Tshisekedi, President of the Democratic Republic of the Congo, along with a government delegation, officially reopened the Kipushi zinc mine. Ramp up of Kipushi is ongoing, with the completion of a debottlenecking program expected to be completed in Q3 2025. Kipushi summary of operating and financial data Q2 2025 Q1 2025 Q4 2024 Q3 2024 Ore tonnes milled (tonnes) 153,342 151,403 119,619 108,065 Feed grade of ore processed (% zinc) 33.37% 32.16% 31.72% 32.12% Zinc recovery (%) 85.22% 87.93% 85.07% 75.78% Zinc in concentrate produced (tonnes) 41,788 42,736 32,490 18,946 Payable zinc sold (tonnes) 43,348 30,108 16,999 - Cost of sales per pound ($ per lb.) 1.05 1.23 1.38 - Cash cost (C1) ($ per lb.) 0.96 0.93 1.13 - Realized zinc price ($ per lb.) 1.23 1.29 1.38 - Sales revenue before remeasurement ($'000) 92,875 79,713 41,600 - Remeasurement of contract receivables ($'000) 3,882 (2,693) (782) - Sales revenue after remeasurement ($'000) 96,757 77,020 40,818 - EBITDA ($'000) 9,295 10,508 4,050 - EBITDA margin (% of sales revenue) 10% 14% 10% - C1 cash cost per pound of payable zinc can be further broken down as follows: Q2 2025 Q1 2025 Q4 2024 Mining ($ per lb.) 0.16 0.16 0.26 Processing ($ per lb.) 0.08 0.12 0.12 Logistics charges ($ per lb.) 0.50 0.47 0.48 Treatment charges ($ per lb.) 0.07 0.05 0.17 Support services ($ per lb.) 0.15 0.13 0.10 Cash cost (C1) per pound of payable zinc sold ($ per lb.) 0.96 0.93 1.13
Page 23
23 Cash cost (C1) is prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines, but cash cost per pound for the Kipushi Mine has been presented on a per ton sold basis to eliminate the impact of unsold tonnes of zinc concentrate in inventory. Cash cost (C1) and cash cost per pound are not measures recognized under IFRS Accounting Standards. C1 cash cost is used by management to evaluate operating performance and includes all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to the final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered, finished metal. C1 cash cost excludes royalties, production taxes, and non-routine charges as they are not direct production costs. All figures are on a 100% project basis, and metal reported in concentrate is before refining losses or deductions associated with smelter terms. Kipushi produced a near-record 41,788 tonnes of zinc; zinc production rates expected to significantly improve in the second half of 2025 Summary of quarterly production data from Kipushi Q2 2025 Q1 2025 Q4 2024 Q3 2024 Kipushi Concentrator Ore tonnes milled (tonnes) 153,342 151,403 119,619 108,065 Feed grade of ore processed (% zinc) 33.37 32.16 31.72 32.12 Zinc recovery (%) 85.22 87.93 85.07 75.78 Zinc in concentrate produced (tonnes) 41,788 42,736 32,490 18,946 Data in red denotes a quarterly record. Zinc production from the Kipushi concentrator continued to improve during the second quarter as the ramp-up advances to steady state. Multiple production records were achieved in May, with a record 60,182 tonnes of ore processed, producing a record 18,305 tonnes of zinc. In June, only 41,107 tonnes of ore were processed due to a temporary feed of lower- grade ore for the three weeks ahead of a planned shutdown, and a nine-day shutdown to integrate the first phase of the debottlenecking program. The first phase of the debottlenecking program focused on improving the tailings pumping systems to enable the concentrator to consistently operate at its nameplate capacity. This work is now complete. Since the completion of the first phase of debottlenecking program, the Kipushi concentrator has achieved a number of additional production records. The daily zinc production record of 898 tonnes of zinc in concentrate, which was achieved in mid-July, is equivalent to 327,000 tonnes of zinc on an annualized basis. The weekly zinc production record of 5,545 tonnes of zinc in concentrate, which was also achieved in mid-July, is equivalent to 289,000 tonnes of zinc on an annualized basis. The second and final phase of the debottlenecking program will upgrade certain processing equipment within the concentrator to boost the throughput by 20%, from 800,000 to 960,000 tonnes of ore per annum. This phase is on track to be complete in the third quarter, with a 7- day shutdown planned in August to integrate all remaining equipment upgrades.
Page 24
24 Concurrent with the integrations of the debottlenecking program, the June shutdown also included upgrades to the concentrator’s DMS circuit. As reported on October 7, 2024, excessive fine material in the ore (fines) was causing unscheduled shutdowns due to blockages in the DMS circuit. Following the completion of the upgrades, the availability of the DMS has increased from approximately 6 hours per day to 16 hours per day, resulting in a significant reduction in lost operating time. Further upgrades will take place during the planned August shutdown, after which DMS circuit availability is expected to further increase up to 22 hours per day. Based on the completion of the above initiatives, Kipushi’s 2025 production guidance remains unchanged at between 180,000 and 240,000 tonnes of zinc. Fitters Albert Mukendi and Honoré Mwilambwe are installing piping and instrumentation as part of Kipushi’s debottlenecking program. The debottlenecking program is nearing completion and is expected to increase concentrator processing capacity by 20% from late Q3 2025. Kipushi’s project engineering team continues its strong track record of safe and reliable project delivery. The debottlenecking program, which commenced in Q3 2024, continues to advance on schedule with zero lost time injuries (LTI) reported. Since Septemb er 2022, when construction of the Kipushi concentrator commenced, up until today, the project engineering team has not recorded a single LTI, an incredibly rare industry feat.
Page 25
25 3. Platreef Project 64%-owned by Ivanhoe Mines South Africa The Platreef Project is located on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province – approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane in South Africa. The project is owned by Ivanplats (Pty) Ltd. (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with approximately 150,000 people, project employees, and local entrepreneurs. The remaining 10% interest is held by a Japanese consortium, consisting of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation (JOGMEC), and Japan Gas Corporation. Platinum-group metals (PGM) mineralization in the Northern Limb is primarily hosted within a 30-kilometre mineralized sequence called the Platreef. The Platreef Project is contiguous with, and along strike from, Valterra’s (formerly known as Anglo Platinum) Mogalakwena PGM operations. The Platreef Project hosts an underground deposit of platinum-group metals, nickel, copper, and gold mineralization, called the Flatreef deposit. The Flatreef is a thick, relatively flat-lying and high-grade orebody, which is amenable to highly mechanized, highly productive, underground bulk mining methods. Since 2007, Flatreef has become one of the largest undeveloped precious metals deposits globally, with 56 million ounces in platinum equivalent Indicated Mineral Resources and 74 million ounces in platinum equivalent Inferred Mineral Resources, at a 2.0 g/t platinum, palladium, rhodium, and gold (3PE + AU) cut-off. The Flatreef is also host to one of the world’s largest undeveloped nickel sulphide mineral resources. Aerial view of the Platreef Mine, showing the central shaft infrastructure, the Phase 1 concentrator (right), the dry stack tailings facility (top left), as well as the reef development ore stockpiles (bottom left).
Page 26
26 Platreef, one of the world’s largest undeveloped precious metals deposits, set to be lowest cost platinum, palladium, rhodium, and gold producer, with significant nickel and copper On February 18, 2025, two independent studies were completed on the three-phase development of the Platreef Mine. This included an updated Feasibility Study on the Phase 2 expansion to 4.1 million tonnes per annum (Mtpa) of processing capacity, as well as a Preliminary Economic Assessment covering a new Phase 3 expansion to 10.7 Mtpa of processing capacity. The excellent results from both studies reinforce the industry-leading margins of the multi-generational Platreef Mine. 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. Life-of-mine total cash costs are projected to fall further to $511 per ounce of 3PE+Au following the Phase 3 expansion. This compares very favourably with a basket spot price of approximately $1,600 per ounces. of 3PE+Au, as at July 29, 2025. The Platreef Mine’s low cash costs are primarily due to its unique thick orebody, which enables economies of scale, as well as the high grades of nickel and copper that are payable by-products. Following the Phase 3 expansion, as shown in Figure 3, the Platreef Mine is expected to be one of the world’s largest primary platinum group metal producers on a platinum-equivalent basis. First production from the Phase 1 concentrator is expected in Q4 2025, ramping up to an annualized production of approximately 100,000 ounces of 3PE+Au. Development has already commenced on the Phase 2 expansion, which is expected to be completed 2 years later in Q4 2027. Annualized production increases almost five-fold following the Phase 2 expansion to over 460,000 ounces. of 3PE+Au, plus approximately 9,000 tonnes of nickel and 6,000 tonnes of copper. The Phase 3 expansion further doubles annualized production to over 1 million ounces of 3PE+Au, plus approximately 22,000 tonnes of nickel and 13,000 tonnes of copper. Figure 3: Phased development schematic of the Platreef Mine, showing the annualized mining rate over life of mine.
Page 27
27 First production from the Platreef Mine’s Phase 1 concentrator is on schedule for first production in the fourth quarter As announced on May 8, 2025, underground development of the Flatreef orebody on the 850-metre level commenced on April 30, 2025. Since then, a total of 90 metres of reef development in ore has been completed. From now on, the rate of reef development is expected to increase to 80 metres per month. Reef development at the 750-metre level is scheduled to commence in October 2025. Development ore is being hoisted to the surface and stored in stockpiles. The Ivanplats team aims to accumulate a stockpile of approximately 60,000 tonnes of development ore ahead of the first feed into the Phase 1 concentrator. First production from the Platreef Phase 1 concentrator remains on track to take place in the fourth quarter. The concentrator will be fed primarily by development ore during the initial stages of ramp-up. Stoping (production mining) is expected to commence in Q1 2026, following the completion of Shaft #3. The proportion of ore from stoping will gradually increase, compared with development ore, as the ramp-up advances. The underground delineation drilling program, which commenced last year, is progressing well. The first ore block on the 850-metre level, where the initial stoping will take place, has been drilled, and the assays reconcile well with Ivanplats' grade models. Equipping of Shaft #3 continues to progress well and is on schedule to be ‘ready to hoist’ ore in Q1 2026. The shaft’s 5.1-metre-diameter barrel support is complete from surface to shaft bottom at 950 metres depth, and the excavation for the shaft loading box has also been completed. The head-gear assembly and rock winder installation are advancing well, with the rock winder mechanical installation nearing completion. As the mining rate increases, as shown in Figure 3, the number of mining crews at Platreef is expected to double over the next 18 months. Currently, there are five development crews, primarily focused on reef development at the 850-metre and 950-metre levels. Two additional mining crews will be added during the second half of 2025, with a further three crews to be added in 2026. The increased number of crews aims to increase the mining development rate across all three levels from 500 metres per month at the end of 2025 to over 800 metres per month by the end of 2026. Significant increase in platinum and palladium prices boosts project value On February 18, 2025, Ivanhoe Mines announced the results of the 2025 Platreef Integrated Development Plan, which included two completed independent studies covering the three- phase development of the Platreef mine. This comprised the 4.1 Mtpa (Phase 2) expansion Feasibility Study, and the 10.7 Mtpa (Phase 3) expansion Preliminary Economic Assessment (PEA). Since the 2025 Platreef Integrated Development Plan was released, the spot prices of platinum and palladium have risen by 42% and 26%, respectively. In reference to the sensitivity tables included in the reports, as filed on March 31, 2025, the net present values (NPV8%) of the Feasibility Study and PEA have increased by over 20% to $1.7 billion and $3.8 billion, respectively.
Page 28
28 Negotiations for the Platreef Mine’s Phase 2 project finance are advancing well In December 2023, Ivanplats concluded a $150 million senior debt facility with Société Générale and Nedbank Limited to fund the construction of Phase 1. An initial $70 million was drawn, with a further $30 million draw in the second quarter of 2025. Following the completion of the 4.1 Mtpa feasibility study, Ivanhoe Mines has been focused on arranging an enlarged project finance package for the majority of the expansion capital requirements for Phase 2. Negotiations are advancing well for a $700 million Phase 2 senior project finance facility. Ivanhoe is anticipating that the new financing will be in place during Q1 2026. Financing for the future Phase 3 expansion is expected to be underpinned by cash flow generated from Platreef’s Phase 1 and 2 operations. Shaft #3 head gear assembly and rock winder installation are advancing well, with the mechanical installation of the rock winder (pictured below) nearing completion. Shaft #3 is on schedule to be ready to hoist in Q1 2026.
Page 29
29 Structural steel and cladding to house the winder at the top of the Shaft #2 headgear were recently completed, taking the total height of Shaft #2 to 96 metres.
Page 30
30 4. Global Exploration Portfolio Western Forelands Exploration Project, DRC 54%- to 100%-owned by Ivanhoe Mines The Western Forelands Exploration Project consists of a licence package covering 2,390 km2 adjacent to the Kamoa-Kakula Copper Complex. The area of the Western Forelands licence package is approximately six times larger than that of the Kamoa-Kakula Copper Complex. Drilling efforts during the second quarter focused on the Makoko, Makoko West, and Kitoko areas, now called the Makoko District. The drilling program employed wide-spaced drilling to delineate the extent of the mineralized envelope. At Kitoko, mineralization remains open down-dip to the southeast. The deepest hole drilled to date in 2025 intersected mineralization, indicating strong potential for further resource expansion. Additionally, drilling south of Makoko West has confirmed mineralization between Makoko and Kitoko. During the second quarter, nine contractor-operated diamond drill rigs were active, completing a total of 14,843 meters of drilling across 27 holes. This included four wedge holes, which were deviated from the original drill holes at depth. These wedges are used to collect additional mineralized samples for future metallurgical testing and to bypass difficult ground conditions. An Audio-frequency Magnetotellurics (AMT) survey began in May and continued through June, covering two lines extending from the Kibaran basement across the Western Foreland Shelf. Completion is expected during the third quarter. A ground gravity survey is scheduled to begin in August. Drilling doubles the size of Makoko-Kitoko copper discoveries in 18 months On May 14, 2025, the company announced the independently verified, updated Mineral Resource estimate for the Makoko District. Since the maiden Mineral Resource on Makoko and Kiala was announced on November 13, 2023, more than 86,000 metres of diamond drilling were completed in the Western Forelands up to February 2025. Since November 2023, the Makoko District has increased by 2 kilometres to 13 kilometres in strike length, and the total contained copper has approximately doubled. The Makoko District ranks as the world’s fifth-largest copper discovery since Kakula in 2015. The Makoko discovery was first made in 2018 when drilling intersected flat-lying, sedimentary-hosted copper mineralization geologically similar, and at comparable depths to the nearby Kamoa and Kakula orebodies. Subsequent drilling has delineated a continuously mineralized region, now called the Makoko District, joining the three discoveries of Makoko, Makoko West, and Kitoko. Copper mineralization in the Makoko District currently spans a corridor at least 13 kilometres in length and between 1.7 kilometres and 5.8 kilometres wide. The eastern edge of the Makoko District is situated approximately 10 kilometres from the western edge of Kakula. Mineralization remains open to the northeast and downdip of the current footprint, with a high potential for further resource expansion.
Page 31
31 There is abundant deposition of copper across the Makoko District, with approximately two- thirds of holes drilled intersecting copper. In addition, there are higher-grade sub-zones at Makoko, Makoko West, and Kitoko, which mirror the style of mineralization of the Kamoa orebody that feeds the Phase 3 concentrator and will feed the future Phase 4 concentrator. The highest-grade section of the Makoko deposit occurs between 300 and 600 metres in depth and coincides with the Indicated Resource area. The updated Mineral Resource estimate for the Makoko District is based on the results of 147,000 metres drilled in 311 holes, of which 86,000 metres in 123 holes have been added since the maiden Mineral Resource was announced in November 2023. The total area of the updated Mineral Resource has increased by 37.4 km2, with the Indicated Resource covering 1.6 km2 and the Inferred Resource covering 57 km2. The average dip of the mineralized zone in the Mineral Resource is between 11 and 18 degrees, dipping to the southeast. Figure 4: The Makoko District ranks as the world’s fifth-largest copper discovery of the past decade. Ivanhoe’s geologists have discovered a total of 52.5 million tonnes (115.7 billion pounds) of contained copper in the Western Foreland Shelf, including Kamoa-Kakula. Source: Company filings, S&P Global Market Intelligence. Notes: Chart ranks all other new copper discoveries made since 2015 based on contained copper in resources on a 100% basis. Kamoa-Kakula Copper Complex consists of the deposits of Kamoa (discovered in 2008) and Kakula (discovered in 2015). Vicuña consists of the deposits of Filo Del Sol and Josemaria. Information based on public disclosure as of May 9, 2025. Mineral Resources estimates for the Western Forelands include the Makoko District (consisting of Makoko, Makoko West, Kitoko) and Kiala at a 1.0% cut -off grade. Data has not been reviewed by S&P Global.
Page 32
32 Highlights of the interim, updated Mineral Resource estimate for the Makoko District The interim, updated Mineral Resource estimate for the Makoko District, which has an effective date of May 1, 2025, was prepared by Ivanhoe Mines under the direction of the MSA Group of Johannesburg, South Africa, in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves: • Indicated Resources total 27.7 million tonnes at a grade of 2.79% copper, containing 773,000 tonnes (1.7 billion pounds) of copper at a 1% copper cut-off. At a higher 1.5% copper cut-off, Indicated Resources total 25.3 million tonnes at a grade of 2.93% copper, containing 741,000 tonnes (1.6 billion pounds) of copper. • Inferred Resources total 494 million tonnes at a grade of 1.70% copper, containing 8.38 million tonnes (18.4 billion pounds) of copper, at a 1% copper cut-off. At a higher 1.5% copper cut-off, Inferred Resources total 221 million tonnes at a grade of 2.23% copper, containing 4.93 million tonnes (10.9 billion pounds) of copper. The Makoko District spans a mineralized strike length of 13 kilometres, with the Kitoko area extending laterally down-dip, to the southeast for approximately six kilometres. The stratiform copper lies close to surface along the western edge of Makoko and Makoko West, dipping down towards the southeast to Kitoko. Mineralization depth from surface ranges from 200 metres to as deep as 1,250 metres. The highest-grade zone at Makoko lies between 400 and 700 metres below surface and coincides with the Indicated Resource area, which has been drilled on a 200-metre by 200- metre grid. A second, sub-parallel zone of shallower mineralization occurs up-dip across a strike extent of approximately 11 kilometres. Closer-spaced drilling in 2023 connected these two zones, allowing the entire area to be classified in the Inferred category of the 2025 Mineral Resource update. North-Western Province, Zambia 100%-owned by Ivanhoe Mines As announced on April 2, 2025, the Government of the Republic of Zambia granted Ivanhoe Mines a 7,757-square-kilometre package of new exploration licences in the highly- prospective North-Western Province of Zambia. Ivanhoe’s thesis behind the strategically selected licence package is to explore for an extension of the Central African Copperbelt. The award of licences follows a memorandum of understanding (MOU) that was signed between Ivanhoe Mines and the Republic of Zambia’s Ministry of Mines and Minerals Development (Ministry of Mines) on September 10, 2024. The new licence package is strategically located between Ivanhoe’s Western Forelands Exploration Project (230 km to the northeast) and the company’s Angolan exploration licence package (130 km southwest). The Zambia licences cover an area over three times larger than the Western Forelands Exploration Project. Ivanhoe’s geological team are targeting copper mineralization associated with Basement Domes, Katangan-age sediment-hosted copper systems, and iron-oxide-copper-gold (IOCG) systems. The western edge of the Central African Copperbelt in the DRC hosts the Western Foreland Shelf, where the Kamoa-Kakula Copper Complex and the Mineral Resources of Makoko and Kiala in the Western Forelands are located. Ivanhoe’s geological team believes that the Western Foreland Shelf facies of the Nguba Group sediments continue to arc southwest into Zambia and Angola.
Page 33
33 During the quarter, work was mostly focussed on recruitment of key personnel and establishing a local core storage warehouse. Stakeholder engagement on the licence area commenced after quarter end, which started with meeting many of the traditional leaders and district administrators across the licence area. In parallel, desktop work continues on the recovery of historical geophysical and geological data on the licence area, which was conducted by the previous licence holders, such as BHP and Anglo American. Moxico and Cuando Cubango Provinces, Angola 100%-owned by Ivanhoe Mines Ivanhoe’s exploration team is also targeting Western-Forelands-style sedimentary copper mineralization in Angola. The team is deploying its exploration expertise developed from its discoveries in the Western Forelands and from Kamoa-Kakula to its vast greenfield exploration package in Angola. The team has developed an exploration thesis that the DRC’s Western Forelands Shelf extends into eastern Angola. As announced on November 27, 2023, Ivanhoe acquired approximately 22,000 km2 of prospecting rights in the Moxico and Cuando Cubango provinces of Angola. Concurrently, Ivanhoe signed a mining investment contract with the Angolan National Agency for Mineral Resources. After receiving the required permitting, access to the licenses was first made by Ivanhoe’s geologists in August 2024. The team undertook a mapping and baseline soil geochemical sampling program over an area of 600 km2, which covered the same portion of the license flown by the airborne electromagnetic survey. A ground-based geophysics program was also completed, including Audio-frequency (AMT) and Magnetotellurics (MT) in conjunction with a Passive Seismic survey, down the eastern portion of the license area. Results from the 2024 work streams have been analyzed, with several targets generated for drilling. The contract for 2025 diamond drilling program was recently awarded with mobilization expected in the coming weeks. Two diamond core drill rigs will conduct an initial 6,400-metre stratigraphic diamond drill program. The Chu-Sarysu Basin Exploration Joint Venture, Central Kazakhstan 20%-owned by Ivanhoe Mines Ivanhoe Mines has formed an exploration joint venture with UK-based private company Pallas Resources to explore the Chu-Sarysu Copper Basin in Kazakhstan, the world’s third- largest sediment-hosted copper district. The joint venture covers a highly prospective licence package of up to 16,911 km2, which spans an accumulated dataset of Soviet-era exploration data. As announced on February 12, 2025, Ivanhoe has committed to fund $18.7 million in exploration activities over an initial two-year period, with earn-in rights to further increase ownership up to 80% over time. Exploration activities began on the joint venture licences in the first quarter of 2025, including the hiring of an exploration team and tendering of the drilling and airborne geophysics contracts. Drilling subsequently commenced in July 2025, with the mobilization of two rigs for a maiden 17,500-metre diamond drilling program. In addition, over 95% of the planned 16,911 km² in licences have now been fully granted. Concurrent with the drilling program, the
Page 34
34 extensive geophysical and geochemical programs are now underway across the licence package. Mokopane Feeder Project, South Africa 100%-owned by Ivanhoe Mines Ivanhoe Mines is exploring the Northern Limb of South Africa’s Bushveld Complex, adjacent to Ivanplats’ Platreef Project. Ivanhoe’s geologists are testing a large gravity-high anomaly based on wide-spaced historical Council for Geoscience data. The anomaly is interpreted to represent. The working hypothesis is that the large gravity-high anomaly is interpreted by scientific research to represent a potential primary feeder zone of magma and mineralization into the Northern Limb of the Bushveld Complex, essentially the sources of mineralization that make up the Platreef and other Northern Limb deposits. The collection, interpretation, and review process of all geological and geophysical data was completed early in 2024. The geological understanding of the anomaly continues to evolve, with numerous targets identified for drilling. Following the completion of heritage surveys and community engagement around the proposed drilling sites, Geosearch, a diamond drilling contractor, commenced a 6,000-metre diamond-core drill program in Q1 2025. By the end of the second quarter, the drilling of the first hole of 2,000 metres was completed. The drill rig is currently being mobilized to a new site nearby, while downhole geophysics is being conducted on the completed hole. Completion of the program is expected by the end of 2025.
Page 35
35 SELECTED QUARTERLY FINANCIAL INFORMATION The following table summarizes selected financial information for the prior eight quarters. Revenue from commercial production at the Kipushi Mine commenced in Q4 2024. All revenue from production at Kamoa-Kakula is recognized within the Kamoa Holding joint venture. Ivanhoe did not declare or pay any dividend or distribution in any financial reporting period. Three months ended June 30, March 31, December 31, September 30, 2025 2025 2024 2024 $'000 $'000 $'000 $'000 Revenue 96,757 77,020 40,818 – Cost of sales (100,217) (81,771) (51,563) – Share of profit from joint venture 15,704 107,948 73,620 83,507 Finance income 43,583 41,623 56,041 60,164 Deferred tax recovery 7,842 4,374 12,663 575 General administrative expenditure (10,378) (9,957) (19,633) (10,573) Exploration and project evaluation expenditure (8,585) (9,145) (15,845) (12,813) Finance costs (4,947) (7,838) (6,849) (471) Share-based payments (4,447) (2,418) (2,977) (7,504) Loss on fair valuation of embedded derivative liability – – – (4,171) Profit (loss) attributable to: Owners of the Company 44,051 129,760 99,344 117,942 Non-controlling interests (8,726) (7,560) (11,338) (9,760) Total comprehensive income (loss) attributable to: Owners of the Company 60,900 135,033 60,964 141,525 Non-controlling interest (7,066) (7,161) (15,158) (7,469) Basic profit per share 0.03 0.10 0.07 0.09 Diluted profit per share 0.03 0.10 0.07 0.09 Three months ended June 30, March 31, December 31, September 30, 2024 2024 2023 2023 $'000 $'000 $'000 $'000 Share of profit from joint venture 89,616 45,165 49,272 69,829 Finance income 62,873 62,457 63,110 56,671 (Loss) gain on fair valuation of embedded derivative liability (20,727) (139,271) (39,961) 12,218 General administrative expenditure (12,345) (14,001) (14,947) (9,841) Finance costs (32,871) (8,944) (6,741) (8,752) Share-based payments (8,505) (8,933) (7,715) (6,732) Exploration and project evaluation expenditure (10,589) (8,901) (8,637) (6,264) Deferred tax recovery 1,398 3,221 4,201 1,212 (Loss) profit attributable to: Owners of the Company 76,401 (65,552) 27,739 112,510 Non-controlling interests (9,885) (3,858) (1,980) (4,988) Total comprehensive (loss) income attributable to: Owners of the Company 88,223 (73,648) 37,155 109,681 Non-controlling interest (8,672) (4,728) (1,003) (5,250) Basic (loss) profit per share 0.06 (0.05) 0.02 0.09 Diluted (loss) profit per share 0.06 (0.05) 0.02 0.08
Page 36
36 DISCUSSION OF RESULTS OF OPERATIONS Review of the three months ended June 30, 2025, vs. June 30, 2024 The company recorded a profit for Q2 2025 of $35 million and a total comprehensive income of $54 million compared to a profit of $67 million and a total comprehensive income of $80 million for the same period in 2024. The decrease in profit is mainly due to the lower share of profit from the Kamoa Holding joint venture in Q2 2025, which was impacted by the seismic activity on the eastern side of the Kakula Mine in May 2025, resulting in the suspension of underground mining activities at the Kakula Mine until June 7, 2025. The Kamoa-Kakula Copper Complex sold 101,714 tonnes of payable copper in Q2 2025, realizing revenue of $875 million for the Kamoa Holding joint venture, compared to 95,900 tonnes of payable copper sold for revenue of $817 million for the same period in 2024. The company recognized income in aggregate of $51 million from the joint venture in Q2 2025 and $148 million for the same period in 2024, which can be summarized as follows: Three months ended June 30, 2025 2024 $'000 $'000 Company's share of profit from joint venture 15,704 89,616 Interest on loan to joint venture 34,927 58,123 Company's income recognized from joint venture 50,631 147,739 The company’s share of profit from the Kamoa Holding joint venture was $74 million less in Q2 2025 compared to the same period in 2024. The joint venture recorded an impairment of $59 million in Q2 2025 based on the assessment performed, in which specific assets, including fleet, pumps, and other assets impacted by the seismic activity and resulting water inflow, were identified that may be lost or irrecoverable. Cost of sales of the joint venture includes certain costs incurred during Q2 2025 that were excluded from the inventory valuation in accordance with IAS 2 and classified within cost of sales for presentation purposes. These costs, amounting to $90 million, were deemed abnormal as they did not contribute to production and were not capitalized.
Page 37
37 The company’s share of profit from the Kamoa Holding joint venture is broken down in the following table: Three months ended June 30, 2025 2024 $'000 $'000 Revenue from contract receivables 868,846 813,817 Remeasurement of contract receivables 6,443 3,256 Revenue 875,289 817,073 Cost of sales (640,194) (324,428) Gross profit 235,095 492,645 General and administrative costs (40,087) (26,712) Amortization of mineral property (4,799) (3,071) Profit from operations 190,209 462,862 Finance costs (52,873) (71,143) Impairment (59,025) – Foreign exchange loss (15,926) (12,258) Finance income and other 5,405 1,058 Profit before taxes 67,790 380,519 Current tax expense (147,856) (141,020) Deferred tax recovery (expense) 116,773 (3,056) Profit after taxes 36,707 236,443 Non-controlling interest of Kamoa Holding (4,982) (55,401) Total comprehensive income for the period 31,725 181,042 Company's share of profit from joint venture (49.5%) 15,704 89,616 The realized and provisional copper prices used for the remeasurement (mark-to-market) of contract receivables for the three months ended June 30, 2025, and for the same period in 2024, can be summarized as follows:
Page 38
38 Three months ended June 30, 2025 2024 $'000 $'000 Realized during the period - open at the start of the period Opening forward price ($/lb.)(1) 4.44 3.99 Realized price ($/lb.)(1) 4.27 4.30 Payable copper tonnes sold 64,422 29,142 Remeasurement of contract receivables ($'000) (23,066) 20,218 Realized during the period - new copper sold in the current period Provisional price ($/lb.)(1) 4.23 4.31 Realized price ($/lb.)(1) 4.42 4.37 Payable copper tonnes sold 63,522 31,345 Remeasurement of contract receivables ($'000) 25,473 4,453 Open at the end of the period - new copper sold in current period Provisional price ($/lb.)(1) 4.45 4.47 Closing forward price ($/lb.)(1) 4.50 4.32 Payable copper tonnes sold 38,192 64,555 Remeasurement of contract receivables ($'000) 4,036 (21,415) Total remeasurement of contract receivables ($'000) 6,443 3,256 (1) Calculated on a weighted average basis The finance costs recognized in the Kamoa Holding joint venture can be broken down as follows: Three months ended June 30, 2025 2024 $'000 $'000 Interest on shareholder loans 70,521 117,386 Interest on provisional and advance payment facilities 35,137 26,704 Interest on syndicated loans 11,376 – Interest on bank loans and overdraft facilities 7,250 3,280 Lease liability unwinding 1,651 1,778 Interest on equipment financing facilities 1,643 2,537 Rehabilitation unwinding 759 – Interest capitalized as borrowing costs (75,464) (80,542) 52,873 71,143
Page 39
39 Ivanhoe’s exploration and project evaluation expenditure amounted to $9 million in Q2 2025 and $11 million for the same period in 2024. Exploration and project evaluation expenditure for Q2 2025 related mainly to exploration at Ivanhoe’s Western Forelands exploration licences. Finance income for Q2 2025 amounted to $44 million and was $19 million less than for the same period in 2024 ($63 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund past development which amounted to $35 million for Q2 2025, and $58 million for the same period in 2024, and decreased due to the effects of the subscription and set-off agreement entered into by Kamoa Holding and its shareholders in December 2024. The company sold 43,348 tonnes of payable zinc produced by the Kipushi Mine in the second quarter of 2025, realizing revenue of $97 million at a cost of sales of $100 million. Kipushi’s margin is expected to improve as production increases. The cost of sales for the quarter also included depreciation and amortization of $16 million. The realized, provisional, and forward zinc prices used for the remeasurement (mark-to- market) of contract receivables of Kipushi for the three months ended June 30, 2025, can be summarized as follows: Q2 2025 Q1 2025 $'000 $'000 Realized during the period - open at the start of the period Opening forward price ($/lb.)(1) 1.29 1.34 Realized price ($/lb.)(1) 1.31 1.28 Payable zinc tonnes sold 9,690 11,596 Remeasurement of contract receivables ($'000) 425 (1,496) Realized during the period - new zinc sold in the current period Provisional price ($/lb.)(1) 1.19 1.32 Realized price ($/lb.)(1) 1.20 1.30 Payable zinc tonnes sold 21,800 20,432 Remeasurement of contract receivables ($'000) 484 (878) Open at the end of the period - new zinc sold in the current period Provisional price ($/lb.)(1) 1.20 1.31 Closing forward price ($/lb.)(1) 1.26 1.29 Payable zinc tonnes sold 21,547 9,676 Remeasurement of contract receivables ($'000) 2,973 (319) Total remeasurement of contract receivables ($'000) 3,882 (2,693) (1) Calculated on a weighted average basis
Page 40
40 Review of the six months ended June 30, 2025, vs. June 30, 2024 The company recorded a profit of $158 million and a total comprehensive income of $182 million for the six months ended June 30, 2025, compared to a loss of $3 million and a total comprehensive income of $1 million for the same period in 2024. The main contributor to the profit for Q2 2025 was the company’s share of profit from the Kamoa Holding joint venture of $124 million. The loss for the six months ended June 30, 2024, included a loss on fair valuation of embedded derivative liability of $160 million. The company’s share of profit from the Kamoa Holding joint venture for the six months ended June 30, 2025, was impacted by the seismic activity on the eastern side of the Kakula Mine in May 2025, which resulted in the suspension of underground mining activities at the Kakula Mine until June 7, 2025. The Kamoa-Kakula Copper Complex sold 211,677 tonnes of payable copper in the first six months of 2025, realizing revenue of $1.85 billion for the Kamoa Holding joint venture, compared to 181,055 tonnes of payable copper sold for revenue of $1.44 billion for the same period in 2024. The company recognized income in aggregate of $193 million from the joint venture in the six months ended June 30, 2025 (2024: $248 million), which can be summarized as follows: Six months ended June 30, 2025 2024 $'000 $'000 Company's share of profit from joint venture 123,652 134,781 Interest on loan to joint venture 69,007 113,514 Company's income recognized from joint venture 192,659 248,295 The joint venture recorded an impairment of $68 million in the six months ended June 30, 2025, of which $59 million was based on the assessment performed, in which specific assets, including fleet, pumps, and other assets impacted by the seismic activity and resulting water inflow, were identified that may be lost or irrecoverable. The impairment recognized in the six months ended June 30, 2025, also includes $9 million relating to damage caused by a generator fire that occurred in January 2025. The insurance claims relating to these impaired assets are under assessment. Cost of sales of the joint venture includes certain costs incurred during the six months ended June 30, 2025, that were excluded from the inventory valuation in accordance with IAS 2 and classified within cost of sales for presentation purposes. These costs, amounting to $90 million, were deemed abnormal as they did not contribute to production and were not capitalized. The company’s share of profit from the Kamoa Holding joint venture was $124 million for the six months ended June 30, 2025, compared to a profit of $135 million for the same period in 2024, the breakdown of which is summarized in the following table:
Page 41
41 Six months ended June 30, 2025 2024 $'000 $'000 Revenue from contract receivables 1,791,257 1,426,313 Remeasurement of contract receivables 57,429 9,080 Revenue 1,848,686 1,435,393 Cost of sales (1,093,457) (606,769) Gross profit 755,229 828,624 General and administrative costs (74,607) (73,740) Amortization of mineral property (9,795) (5,836) Profit from operations 670,827 749,048 Finance costs (112,229) (144,859) Foreign exchange loss (16,741) (20,988) Finance income and other 10,721 5,109 Impairment (68,202) – Profit before taxes 484,376 588,310 Current tax expense (250,084) (201,319) Deferred tax recovery (expense) 68,835 (17,388) Profit after taxes 303,127 369,603 Non-controlling interest of Kamoa Holding (53,325) (97,319) Total comprehensive income for the period 249,802 272,284 Company's share of profit from joint venture (49.5%) 123,652 134,781 The realized and provisional copper prices used for the remeasurement (mark-to-market) of contract receivables for the six months ended June 30, 2025, and for the same period in 2024, can be summarized as follows:
Page 42
42 Six months ended June 30, 2025 2024 $'000 $'000 Realized during the period - open at the start of the period Opening forward price ($/lb.)(1) 4.01 3.86 Realized price ($/lb.)(1) 4.14 3.78 Payable copper tonnes sold 79,985 35,966 Remeasurement of contract receivables ($'000) 21,811 (6,040) Realized during the period - new copper sold in the current period Provisional price ($/lb.)(1) 4.25 3.96 Realized price ($/lb.)(1) 4.33 4.11 Payable copper tonnes sold 173,485 116,500 Remeasurement of contract receivables ($'000) 31,582 36,535 Open at the end of the period - new copper sold in current period Provisional price ($/lb.)(1) 4.45 4.47 Closing forward price ($/lb.)(1) 4.50 4.32 Payable copper tonnes sold 38,192 64,555 Remeasurement of contract receivables ($'000) 4,036 (21,415) Total remeasurement of contract receivables ($'000) 57,429 9,080 (1) Calculated on a weighted average basis The finance costs recognized in the Kamoa Holding joint venture for the six months ended June 30, 2025, can be broken down as follows. Six months ended June 30, 2025 2024 $'000 $'000 Interest on shareholder loans 139,338 229,257 Interest on provisional and advance payment facilities 75,334 47,772 Interest on syndicated loans 22,619 - Interest on bank loans and overdraft facilities 14,748 5,069 Rehabilitation unwinding 3,012 – Lease liability unwinding 3,434 3,605 Interest on equipment financing facilities 3,400 5,324 Interest capitalized as borrowing costs (149,656) (146,168) 112,229 144,859
Page 43
43 Ivanhoe’s exploration and project evaluation expenditure amounted to $18 million for the six months ended June 30, 2025, and $19 million for the same period in 2024. Exploration and project evaluation expenditure for 2025 related mainly to exploration at Ivanhoe’s Western Forelands exploration licences. Finance income amounted to $85 million for the six months ended June 30, 2025, and $125 million for the same period in 2024. Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund past development that amounted to $69 million for the six months ended June 30, 2025, and $114 million for the same period in 2024 and decreased due to the effects of the subscription and set-off agreement entered into by Kamoa Holding and its shareholders in December 2024. The company sold 73,456 tonnes of payable zinc produced by the Kipushi Mine in the first half of 2025, realizing revenue of $174 million at a cost of sales of $182 million. Kipushi’s margin is expected to improve as production increases. The cost of sales for the six months ended June 30, 2025, also included depreciation and amortization of $29 million. Financial position as at June 30, 2025, vs. December 31, 2024 The company’s total assets increased by $1,016 million, from $5,738 million as at December 31, 2024, to $6,754 million as at June 30, 2025. The increase in total assets was mainly attributable to the increase in cash and cash equivalents due to the receipt of proceeds from the Senior Notes, as defined below, in January 2025, which amounted to $730 million net of transaction costs, the increase in the company’s investment in the Kamoa Holding joint venture by $193 million and the increase in property, plant and equipment of $226 million as project development continued at the Platreef Mine. The company’s investment in the Kamoa Holding joint venture increased by $193 million from $3,034 million as at December 31, 2024, to $3,226 million as at June 30, 2025. The company’s investment in the Kamoa Holding joint venture can be broken down as follows: June 30, December 31, 2025 2024 $'000 $'000 Company's share of net assets in joint venture 2,014,624 1,890,974 Loan advanced to joint venture 1,211,749 1,142,742 Total investment in joint venture 3,226,373 3,033,716 The company’s share of the net assets in the Kamoa Holding joint venture can be broken down as follows: June 30, 2025 December 31, 2024 100% 49.5% 100% 49.5% $'000 $'000 $'000 $'000 Assets Property, plant and equipment 6,557,941 3,246,181 6,122,292 3,030,535 Mineral property 753,423 372,944 763,217 377,792 Indirect taxes receivable 796,314 394,175 651,915 322,698 Current inventory 741,592 367,088 564,685 279,519 Long-term loan receivable 403,234 199,601 374,485 185,370 Other receivables 423,777 209,770 371,077 183,683 Trade receivables 323,164 159,966 280,795 138,993 Cash and cash equivalents 246,436 121,986 100,641 49,817 Run of mine stockpile 220,364 109,080 318,688 157,751
Page 44
44 Right-of-use asset 29,761 14,732 51,764 25,623 Deferred tax asset 27,079 13,404 27,594 13,659 Prepaid expenses 14,409 7,132 17,377 8,602 Non-current deposits 1,872 927 1,872 927 Liabilities Shareholder loans (2,448,322) (1,211,919) (2,308,984) (1,142,947) Trade and other payables (688,277) (340,697) (700,803) (346,896) Advance payment facilities (1,014,778) (502,315) (681,345) (337,266) Term loan facilities (675,948) (334,594) (668,508) (330,911) Deferred tax liability (276,622) (136,928) (323,546) (160,155) Overdraft facility (215,672) (106,758) (232,475) (115,075) Rehabilitation provision (151,383) (74,935) (123,668) (61,216) Provisional payment facilities (99,710) (49,356) (78,993) (39,102) Other provisions (64,335) (31,846) (58,279) (28,848) Lease liability (44,337) (21,947) (52,093) (25,786) Income taxes payable (129,922) (64,311) 9,227 4,567 Dividends payable (117,251) (58,039) – – Non-controlling interest (542,863) (268,717) (606,788) (300,360) Net assets of the joint venture 4,069,946 2,014,624 3,820,147 1,890,974 Before commencing commercial production in July 2021, the Kamoa Holding joint venture principally used loans from its shareholders to develop the Kamoa-Kakula Copper Complex through investing in development costs and other property, plant, and equipment. No additional shareholder loans were advanced from 2022 to date, with joint venture cashflow and joint venture-level facilities funding its operations and expansions. Advance payment facilities represent financing arrangements linked to Kamoa-Kakula’s offtake agreements with its customers. Each customer has provided advance payment facilities, which are repaid by offsetting amounts payable in terms of provisional invoices in accordance with the terms of each agreement. Kamoa-Kakula received $800 million in advance payments under these facilities during the six months ended June 30, 2025. Overdraft facilities represent drawn unsecured financing facilities from DRC financial institutions at an attractive cost of capital, utilized to augment cash generated from operations for Kamoa-Kakula’s continued expansion and working capital. Total current overdraft facilities amount to $250 million, with an interest rate of approximately 6.5%.
Page 45
45 The term loan facilities of the Kamoa Holding joint venture can be summarized as follows: Description Repayment terms June 30, December 31, 2025 2024 $'000 $'000 Syndicated term facility Repayable in eight equal quarterly installments starting from March 31, 2026 400,657 403,568 Facility agreement Full repayment on June 25, 2026 200,879 199,911 Equipment financing facilities Installments on each quarterly facility repayment date, with $43 million repayable in the next 12 months 50,858 65,029 Bank of Africa facility agreement Repayable in 18 monthly installments starting June 21, 2025, with final payment due November 2026 23,555 - Total term loan facilities 675,949 668,508 The repayments of the advanced payment facilities of the Kamoa Holding joint venture can be summarized as follows: More than 0-3 months 3-6 months 6-12 months 12-24 months 24 months $'000 $'000 $'000 $'000 $'000 As at June 30, 2025 260,000 160,000 177,143 354,286 63,349 The cash flows of the Kamoa Holding joint venture can be summarized as follows: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Net cash generated from operating activities before change in working capital items 232,222 306,213 787,911 644,601 Change in working capital items 127,930 31,635 (381,301) (72,596) Net cash used in investing activities (265,307) (567,476) (563,769) (1,099,063 ) Net cash generated from financing activities 77,926 379,428 320,674 809,893 Effect of foreign exchange rates on cash (3,926) 4,611 (917) 2,784 Net cash inflow 168,845 154,411 162,598 285,619 Cash and cash equivalents (1) - beginning of the period (138,081) 25,919 (131,834) (105,289) Cash and cash equivalents (1) - end of the period 30,764 180,330 30,764 180,330 (1) Cash and cash equivalents in the above table are shown net of overdraft facilities.
Page 46
46 The Kamoa Holding joint venture’s net increase in property, plant, and equipment from December 31, 2024, to June 30, 2025, amounted to $436 million and can be further broken down as follows: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Kamoa Holding joint venture Expansion capital 192,892 481,628 399,894 929,307 Sustaining capital 81,501 59,218 171,275 129,019 274,393 540,846 571,169 1,058,326 Depreciation capitalized 16,752 13,283 30,465 26,393 Total capital expenditure 291,145 554,129 601,634 1,084,719 Borrowing costs capitalized 75,463 80,542 149,655 146,168 Total additions to property, plant, and equipment for Kamoa Holding 366,608 634,671 751,289 1,230,887 Less depreciation, impairment, disposals, and foreign exchange translation (186,665) (87,700) (315,640) (166,599) Net increase in property, plant, and equipment of Kamoa Holding 179,943 546,971 435,649 1,064,288 Ivanhoe’s cash and cash equivalents increased by $554 million, from $117 million as at December 31, 2024, to $672 million as at June 30, 2025. The company spent $157 million on project development and acquiring other property, plant, and equipment, and $55 million on its operating activities. The net increase in property, plant, and equipment amounted to $226 million, with additions of $163 million to project development and other property, plant, and equipment. Of this total, $114 million pertained to development costs and other acquisitions of property, plant, and equipment at the Platreef Project, while $49 million pertained to acquisitions of property, plant, and equipment at the Kipushi Mine. The main components of the additions to property, plant and equipment – including capitalized development costs – at the Platreef Project and Kipushi Mine for the six months ended June 30, 2025, and for the same period in 2024, are set out in the following tables:
Page 47
47 Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Platreef Project Phase 2 construction 26,554 46,258 48,376 71,030 Phase 1 construction 3,133 4,033 6,186 18,887 Salaries and benefits 9,338 4,852 18,522 9,021 Administrative and other expenditure 2,384 2,789 7,322 4,956 Depreciation 2,655 2,212 5,024 4,144 Social and environmental 882 995 1,908 1,229 Site costs 12,117 1,353 22,564 2,253 Studies and contracting work 2,541 802 3,217 1,623 Total development costs 59,604 63,294 113,119 113,143 Other additions to property, plant, and equipment 903 3,580 935 7,201 Total additions to property, plant, and equipment for Platreef 60,507 66,874 114,054 120,344 Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Kipushi Mine Initial and expansion capital 15,121 77,087 22,589 147,046 Sustaining capital 13,782 – 26,103 – 28,903 77,087 48,692 147,046 Depreciation capitalized – 1,549 – 3,225 Total capital expenditure 28,903 78,636 48,692 150,271 Total additions to property, plant, and equipment 28,903 78,636 48,692 150,271 The company’s total liabilities increased by $824 million to $1,726 million as at June 30, 2025, from $902 million as at December 31, 2024, with the increase mainly due to the issuance $750 million 7.875% Senior Notes due 2030 as well as an increase in borrowings during the period. On January 23, 2025, the company issued debt securities with an aggregate principal of $750 million (Senior Notes) and a maturity date of January 23, 2030. The Senior Notes carry a coupon of 7.875% per annum payable semi-annually in arrears on January 23 and July 23 each year, commencing on July 23, 2025. The Senior Notes are senior unsecured borrowings of the company and are guaranteed by the company’s subsidiaries, Kipushi Holding Limited and Ivanhoe Mines US LLC. The Senior Notes are listed on The International Stock Exchange, Guernsey, and traded on the Global Exchange Market. The gross proceeds from the Senior Notes will be used for general corporate purposes, including capital expenditure associated with the company’s projects, and to pay certain fees and expenses related to the Offering. Interest is payable semi-annually in arrears at a rate of 7.875% per annum on January 23 and July 23 of each year, commencing on July 23, 2025.
Page 48
48 Transaction costs of $20 million associated with the Senior Notes were capitalized against the principal amount, and an amount of $19 million remains unamortized as at June 30, 2025. The effective interest rate of the Senior Notes was deemed to be 8.6467%. Interest of $27 million was incurred for the six months ended June 30, 2025. The company’s borrowings increased by $42 million, mainly due to the receipt of $30 million by Platreef under its Senior Debt facility and $12 million received by Ivanhoe Marketing under its revolving credit facility with Rand Merchant Bank (RMB).
Page 49
49 LIQUIDITY AND CAPITAL RESOURCES The company had $672 million in cash and cash equivalents as at June 30, 2025. At this date, the company had consolidated working capital surplus of approximately $592 million, compared to a working capital surplus of approximately $60 million as at December 31, 2024. The company’s capital expenditure can be summarized as follows: Capital Expenditure H1 2025 Actuals 2025 Guidance 2026 Guidance ($' million) ($' million) ($' million) Kamoa-Kakula Phase 3 and other expansion capital 400 950 – 1,050 Sustaining capital 171 470 – 550 571 1,420 – 1,600 700 – 1,200 Platreef Phase 1 initial capital 25 70 – Phase 2 capital 84 180 – 210 350 – 380 109 250 – 280 350 – 380 Kipushi Initial and expansion capital 23 30 – Sustaining capital 26 40 35 49 70 35 Figures in the above table are presented on a 100% basis. The capital expenditure guidance range for 2026 for Kamoa-Kakula, as issued on February 19, 2025, has been widened from between $680 million and $930 million, to between $700 million and $1,200 million. The company intends to narrow the guidance range in due course as the recovery and ramp-up plan is completed. Construction of Platreef’s Phase 1 concentrator was completed on schedule in Q3 2024 and is currently on care and maintenance until Q4 2025, as Shaft #1 prioritizes the hoisting of waste from the development required to bring forward the start of Phase 2. First production of Phase 1 is expected in Q4 2025, with the Phase 2 expansion accelerated to 2027. Ivanhoe’s exploration budget for 2025 has been set to approximately $75 million, with $50 million of that earmarked for exploration activities focused on the Western Forelands Exploration Project.
Page 50
50 PRO-RATA FINANCIAL RATIOS The following pro-rata financial ratios have been calculated by aggregating the contributions of the company with the contributions from the Kamoa-Kakula joint venture, pro-rata to the company’s effective shareholding in the Kamoa-Kakula joint venture. (in millions of $, except ratios) June 30, December 31, 2025 2024 Pro-rata total debt 1,951.7 1,016.3 Pro-rata cash 773.5 163.5 Pro-rata net debt 1,178.2 852.8 Pro-rata net debt to Adjusted EBITDA (1) 1.83x 1.36x (1) Pro-rata net debt to Adjusted EBITDA ratio is a non-GAAP financial measure. Pro-rata net debt to Adjusted EBITDA ratio is pro-rata net debt divided by Adjusted EBITDA for the twelve months ended at the reporting period, expressed as the number of times Adjusted EBITDA needs to be earned to repay the pro-rata net debt. The company’s pro-rata total debt is summarized as follows: June 30, December 31, 2025 2024 $'millions $'millions Consolidated indebtedness of the company: Senior notes 757.0 – Senior debt facility 93.2 63.4 Advance payment facilities 121.0 120.0 Other borrowings 186.0 175.0 1,157.2 358.4 Pro-rata indebtedness of Kamoa Holding joint venture Term loan facilities 267.7 264.7 Advance payment facilities 401.9 269.8 Provisional payment facilities 39.5 31.3 Overdraft facilities 85.4 92.1 794.5 657.9 Pro-rata total debt 1,951.7 1,016.3 The pro-rata cash and cash equivalents of the company are summarized as follows: June 30, December 31, 2025 2024 $'millions $'millions Consolidated cash and cash equivalents of the Company 671.7 117.3 Pro-rata cash and cash equivalents of Kamoa Holding joint venture 101.8 46.2 Pro-rata cash and cash equivalents 773.5 163.5
Page 51
51 The pro-rata net debt of the company is summarized as follows: June 30, December 31, 2025 2024 $'millions $'millions Pro-rata total debt 1,951.7 1,016.3 Pro-rata cash and cash equivalents 773.5 163.5 Pro-rata net debt 1,178.2 852.8 The Adjusted EBITDA of the company for the twelve months ended June 30, 2025, is summarized as follows: Twelve months ended June 30, 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 $'millions $'million s $'million s $'million s $'million s Profit after taxes 353.7 35.3 122.2 88.0 108.2 Finance income (201.4) (43.6) (41.6) (56.0) (60.2) Current and deferred tax (23.0) (7.2) (4.0) (12.4) 0.6 Finance costs 20.0 4.9 7.8 6.8 0.5 Unrealized foreign exchange loss (gain) 2.9 0.7 0.7 2.8 (1.3) Depreciation 35.7 11.3 11.9 11.5 1.0 Amortization of mineral property 12.9 5.2 2.3 5.4 – EBITDA 200.8 6.6 99.3 46.1 48.8 Share of profit from joint venture net of tax (280.7) (15.7) (107.9) (73.6) (83.5) Company's share of EBITDA from Kamoa-Kakula joint venture (1) 702.7 127.8 231.3 158.9 184.7 Non-cash share-based payments 18.4 4.6 3.7 4.3 5.8 Loss on fair valuation of embedded derivative liability 4.2 – – – 4.2 Adjusted EBITDA 645.4 123.3 226.4 135.7 160.0
Page 52
52 SUMMARY OF DEBT FACILITIES On January 23, 2025, the company issued debt securities with an aggregate principal of $750 million, being the Senior Notes, and a maturity date of January 23, 2030. The Senior Notes carry a coupon of 7.875% per annum payable semi-annually in arrears on January 23 and July 23 each year, commencing on July 23, 2025. The Senior Notes are senior unsecured borrowings of the company and are guaranteed by the company’s subsidiaries, Kipushi Holding Limited and Ivanhoe Mines US LLC. The Senior Notes are listed on The International Stock Exchange, Guernsey, and traded on the Global Exchange Market. The gross proceeds from the Senior Notes will be used for general corporate purposes, including capital expenditure associated with the company’s projects, and to pay certain fees and expenses related to the Offering. Interest is payable semi-annually in arrears at a rate of 7.875% per annum on January 23 and July 23 of each year, commencing on July 23, 2025. Transaction costs of $20.3 million associated with the Senior Notes were capitalized against the principal amount, and an amount of $18.6 million remains unamortized as at June 30, 2025. The effective interest rate of the senior notes was deemed to be 8.6467%. Interest of $27 million was incurred for the six months ended June 30, 2025. On or after January 23, 2027, the company has the right to redeem all or part of the Senior Notes at the following redemption prices, expressed as a percentage of the principal amount, plus any unpaid accrued interest. Redemption price Period of 12 months from January 23, 2027 103.9375% Period of 12 months from January 23, 2028 101.9688% Period of 12 months from January 23, 2029 100.0000% On December 10, 2024, Kipushi entered into a $50 million revolving credit facility agreement with RMB. Under the terms of the agreement, RMB provided a $50 million revolving loan facility to Kipushi to finance costs and expenditures related to the Project. Kipushi drew $26 million from the facility on December 13, 2024. The facility incurs interest at the applicable Term SOFR plus a margin of 4.5% per annum. Interest is repayable on the last day of each interest period (being either 1, 3, or 6 months), with the facility repayable in full in December 2026 (unless repayment is extended in accordance with the terms of the agreement). Repayment may, upon mutual agreement of Kipushi and RMB, be extended by successive 12-month periods. Ivanhoe has provided a corporate guarantee under this loan agreement. On October 25, 2024, Ivanhoe Marketing and RMB entered into a $75 million revolving credit facility agreement. Under the terms of the agreement, RMB provided a $75 million revolving loan facility to Ivanhoe Marketing to finance general corporate purposes and working capital requirements. Ivanhoe Marketing drew $40 million from the facility in 2024 and a further $11.5 million in the second quarter of 2025. The facility incurs interest at the applicable Term SOFR plus a margin of 3.25% per annum. Interest is repayable on the last day of each interest period (being either 1, 3, or 6 months), with the facility repayable in full in October 2025. Repayment may, upon mutual agreement of Ivanhoe Marketing and RMB, be extended by successive 12-month periods. Ivanhoe guarantees all amounts due to RMB under this facility agreement.
Page 53
53 During the second quarter of 2024, Kipushi entered into a $50 million facility agreement with FirstBank DRC SA (FirstBank). Under the terms of the agreement, FirstBank provided a $50 million facility to Kipushi to finance costs related to the development of the project. Kipushi drew down on the full facility on the date of the agreement. The facility incurs interest at 3- month Term SOFR plus a margin of 4.5% per annum. Interest is repayable every three months, with the facility repayable in full in May 2025, but repayment may automatically be extended by a further consecutive 12 months unless either party to the agreement gives written confirmation that there shall be no such automatic extension of the date. On December 22, 2023, Ivanplats entered into a common terms and senior secured facility agreement between, amongst others, Société Générale and Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division) (Nedbank) as lenders; Ivanplats as borrower; Ivanplats Holding S.À.R.L, ITC, and Ivanhoe Mines SA (Pty) Ltd. as guarantors; Ivanhoe Mines Ltd. as sponsor; and Nedbank Limited as global facility agent (as amended and amended and restated from time to time, the Platreef Senior Debt Financing Agreement). Under the Platreef Senior Debt Financing Agreement, the lenders thereunder make available to Ivanplats a senior secured facility in an aggregate principal amount of up to $150 million (the Platreef Senior Debt). The Platreef Senior Debt incurs an initial interest at the applicable Term SOFR (subject to a zero floor) plus 4.80%. The initial rate of interest shall apply until the earlier of the Completion Date (as defined in and subject to the conditions of the Platreef Senior Debt Financing Agreement) and the Target Refinancing Date (July 31, 2026), after which the interest rate shall be Term SOFR + 4.65% per annum from the Completion Date (if the Target Refinancing Date has not occurred) or Term SOFR + 6.50% per annum from the Target Refinancing Date. Ivanplats drew on $70 million of the Platreef Senior Debt on November 6, 2024, and a further $30 million on May 23, 2025. The remaining $50 million is available for drawing upon satisfaction of the relevant conditions precedent. The proceeds of the Platreef Senior Debt may be used to, inter alia, finance project costs related to Phase 1 of the Platreef Project. On August 4, 2023, the company entered into an $18 million loan agreement with Investec Bank Limited, a South African financial institution, in respect of its aircraft. Interest on the loan is incurred at SOFR + a margin of 3.65% per annum and is payable monthly in arrears. The principal amount is repayable monthly in 60 equal installments. The company repaid $1.8 million of the principal amount and $0.5 million in interest during the six months ended June 30, 2025. The company has a mortgage bond outstanding on its offices in London, United Kingdom, of £3.2 million ($4.4 million). The bond is fully repayable on August 28, 2025, secured by the property, and incurs interest at a rate of one month Sterling Overnight Index Average (SONIA) plus 1.90% payable monthly in arrears. Only interest will be payable until maturity. In 2013, the company became a party to a loan payable to ITC Platinum Development Limited, which had a carrying value and contractual value of $40 million as at June 30, 2025. The loan is repayable once the Platreef Project has residual cash flow, which is defined in the loan agreement as gross revenue generated by the Platreef Project, less all operating costs attributable thereto, including all mining development and operating costs. The loan incurs interest of term SOFR applicable to United States Dollars on a 3-month deposit plus 2.26%. Interest is not compounded. The company has an implied commitment in terms of spending on work programs submitted to regulatory bodies to maintain the good standing of exploration and exploitation permits at its mineral properties. The following table sets forth the company’s long-term obligations:
Page 54
54 Contractual obligations as at June 30, 2025 Payments Due By Period Total Less than 1 year 1-3 years 4-5 years After 5 years $’000 $’000 $’000 $’000 $’000 Debt 1,541,346 216,063 308,965 980,006 36,312 Lease commitments 863 417 446 – – Total contractual obligations 1,542,209 216,480 309,411 980,006 36,312 Debt in the above table represents the senior notes, the senior debt facility, the advance payment facilities, the RMB loan facilities, mortgage bond owing to Citibank, the loan payable to ITC Platinum Development Limited, the loan from FirstBank, the aircraft loan as described above.
Page 55
55 NON-GAAP FINANCIAL PERFORMANCE MEASURES Cash cost (C1) per pound is a non-GAAP financial measure. These are disclosed to enable investors to better understand the performance of Kamoa-Kakula and Kipushi in comparison to other copper and zinc producers, respectively, who present results on a similar basis. Cash cost (C1) is prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines, but is not measures recognized under IFRS Accounting Standards. In calculating the C1 cash cost for Kamoa-Kakula, the costs are measured on the same basis as the company's share of profit from the Kamoa Holding joint venture that is contained in the financial statements. C1 cash cost is used by management to evaluate operating performance and includes all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to the final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of finished metal. C1 cash cost and C1 cash cost per pound exclude royalties, production taxes, and non-routine charges as they are not direct production costs. Reconciliation of Kamoa-Kakula’s cost of sales to C1 cash cost, including on a per pound basis: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Cost of sales 640,194 324,428 1,093,457 606,769 General and administrative expenditure 39,230 26,713 73,751 73,740 Logistics, treatment, and refining charges 101,838 119,603 212,228 224,515 Depreciation (141,390) (77,230) (245,009) (136,742) Costs classified as abnormal due to seismic activity (90,064) – (90,064) – General and administrative expenditures of other group entities (4,004) (580) (4,690) (2,121) Royalties and production taxes (71,309) (65,070) (137,553) (121,470) Non-cash adjustments to inventory (18,268) 5,794 42,715 4,397 Power rebate (3,356) (4,487) (7,125) (8,955) Extraordinary taxes (514) (722) (960) (21,857) C1 cash costs 452,357 328,449 936,750 618,276 Cost of sales per pound of payable copper sold ($ per lb.) 2.85 1.53 2.34 1.52 C1 cash costs per pound of payable copper produced ($ per lb.) 1.89 1.52 1.78 1.54 Payable copper produced in concentrate (tonnes) 108,867 98,213 238,598 182,158 Figures in the above table are for the Kamoa-Kakula joint venture on a 100% basis.
Page 56
56 Reconciliation of Kipushi’s cost of sales to C1 cash cost, including on a per-pound basis: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Cost of sales 100,217 – 181,988 – Logistics and treatment charges 18,716 – 22,638 – General and administrative expenditure 386 – 434 – Royalties and production taxes (10,801) – (20,654) – Depreciation and amortization (15,518) – (29,095) – General and administrative expenditures of other group entities (1,477) – (2,321) – C1 cash costs 91,523 – 152,990 – Cost of sales per pound of payable zinc sold ($ per lb.) 1.05 – 1.12 – C1 cash costs per pound of payable zinc sold ($ per lb.) 0.96 – 0.94 – Payable zinc sold in concentrate (tonnes) 43,348 – 73,456 – EBITDA, Adjusted EBITDA, and EBITDA margin, normalized profit after tax, and normalized profit per share EBITDA and Adjusted EBITDA are non-GAAP financial measures. Ivanhoe believes that Kamoa-Kakula’s EBITDA and Kipushi’s EBITDA are valuable indicators of each mine’s respective ability to generate liquidity by producing operating cash flow to fund its working capital needs, service debt obligations, fund capital expenditures, and distribute cash to its shareholders. EBITDA and Adjusted EBITDA are also frequently used by investors and analysts for valuation purposes. Kamoa-Kakula’s EBITDA, Kipushi’s EBITDA, and the EBITDA and Adjusted EBITDA for the company are intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS Accounting Standards and should not be considered in isolation or as a substitute for measures of performance prepared per IFRS Accounting Standards. EBITDA and Adjusted EBITDA exclude the impact of cash cost of financing activities and taxes, and the effects of changes in operating working capital balances and impairments, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS Accounting Standards. Other companies may calculate EBITDA and Adjusted EBITDA differently. The EBITDA margin is an indicator of Kamoa-Kakula's and Kipushi’s respective overall health and denotes their respective profitability, which is calculated by dividing EBITDA by revenue. The EBITDA margin is intended to provide additional information to investors and analysts, does not have any standardized definition under IFRS Accounting Standards, and should not be considered in isolation or as a substitute for measures of performance prepared per IFRS Accounting Standards.
Page 57
57 Reconciliation of profit after tax to Kamoa-Kakula’s EBITDA and Adjusted EBITDA: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Profit after taxes 36,707 236,443 303,127 369,603 Depreciation 146,189 80,302 254,804 142,578 Impairment (1) 59,025 – 68,202 – Current and deferred tax expense 31,083 144,076 181,249 218,707 Finance costs 52,873 71,143 112,229 144,859 Unrealized foreign exchange loss 4,697 15,571 10,406 19,638 Other taxes 514 722 960 21,857 Finance income (5,907) (1,000) (11,459) (5,092) EBITDA 325,181 547,257 919,518 912,150 (1) The impairment recognized for the six months ended June 30, 2025 comprises of $59 million attributable to the seismic activity at the Kakula Mine during the second quarter and $9 million related to the generator fire that occurred in January 2025. Figures in the above table are for the Kamoa-Kakula joint venture on a 100% basis. Reconciliation of loss after tax to Kipushi’s EBITDA: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Segmented loss after taxes (6,131) (2,229) (11,214) (1,141) Depreciation and amortization 15,519 – 29,095 – Finance costs 8,047 – 14,467 – Current and deferred tax expense (7,865) 1,939 (12,165) 424 Finance income (592) (611) (1,204) (1,205) Unrealized foreign exchange loss 317 425 824 1,414 EBITDA 9,295 (476) 19,803 (508)
Page 58
58 Reconciliation of profit after tax to Ivanhoe’s EBITDA and adjusted EBITDA: Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 $'000 $'000 Profit (loss) after taxes 35,325 66,516 157,525 (2,894) Finance income (43,583) (62,873) (85,206) (125,330) Depreciation 11,282 688 23,210 1,446 Amortization of mineral property 5,233 – 7,539 – Current and deferred tax (recovery) expense (7,229) 782 (11,182) (2,377) Finance costs 4,947 32,871 12,785 41,815 Unrealized foreign exchange loss 661 2,257 1,325 8,372 EBITDA 6,636 40,241 105,996 (78,968) Share of profit from joint venture net of tax (15,704) (89,616) (123,652) (134,781) Company's share of EBITDA from Kamoa- Kakula joint venture(1) 127,839 224,113 362,750 368,277 Non-cash share-based payments 4,553 7,459 8,220 14,799 Loss on fair valuation of embedded derivative liability – 20,727 – 159,998 Adjusted EBITDA 123,324 202,924 353,314 329,325 The company's attributable share of adjusted EBITDA from the Kamoa-Kakula joint venture is calculated using the company’s effective shareholding in Kamoa Copper SA (39.6%), Ivanhoe Mines Energy DRC SARL (49.5%), Kamoa Holding Limited (49.5%), Kamoa Services (Pty) Ltd (49.5%), and the Kamoa Centre of Excellence (49.5%). DISCLOSURE OF TECHNICAL INFORMATION Disclosures of a scientific or technical nature at the Kamoa-Kakula Copper Complex, the Platreef Mine and the Kipushi Mine, other than stockpiles, in this press release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines’ Executive Vice President, Projects. Mr. Amos has verified the technical data disclosed in this press release. Disclosures of a scientific or technical nature regarding the stockpiles in this press release have been reviewed and approved by Joshua Chitambala, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Chitambala is not considered independent under NI 43-101 as he is the Resource Manager for Ivanhoe Mines. Mr. Chitambala has verified the other technical data regarding the surface stockpiles disclosed in this press release.
Page 59
59 Disclosures of a scientific or technical nature regarding the Western Forelands Exploration Project in this press release have been reviewed and approved by Tim Williams, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Williams is not considered independent under NI 43-101 as he is the Vice President, Geosciences, at Ivanhoe Mines. Mr. Williams has verified the technical data regarding the Western Forelands Exploration Project disclosed in this press release. Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the Kamoa- Kakula Copper Complex, the Platreef Mine, and the Kipushi Mine, each of which is available on the company’s website and under the company’s SEDAR+ profile at www.sedarplus.ca • Kamoa-Kakula Integrated Development Plan 2023 Technical Report, filed on March 16, 2023, prepared by OreWin Pty Ltd., China Nerin Engineering Co. Ltd., DRA Global, Epoch Resources, Golder Associates Africa, Metso Outotec Oyj, Paterson and Cooke, SRK Consulting Ltd., and The MSA Group. • The Kipushi 2022 Feasibility Study, filed on March 4, 2022, prepared by OreWin Pty Ltd., MSA Group (Pty) Ltd., SRK Consulting (South Africa) (Pty) Ltd, and METC Engineering. • The Platreef Integrated Development Plan 2025, filed on March 31, 2025, prepared by OreWin Pty Ltd., Mine Technical Services, SRK Consulting Inc., DRA Projects (Pty) Ltd, and Golder Associates Africa. These technical reports include relevant information regarding the effective dates and the assumptions, parameters, and methods of the mineral resource estimates on the Platreef Project, the Kipushi Mine, and the Kamoa-Kakula Copper Complex cited in this press release, as well as information regarding data verification, exploration procedures, and other matters relevant to the scientific and technical disclosure contained in this press release in respect of the Platreef Project, Kipushi Mine, and Kamoa-Kakula Copper Complex. Information contact Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on Twitter. Investors Vancouver: Matthew Keevil +1 604 558 1034 London: Tommy Horton +44 7866 913 207 Media Tanya Todd +1 604 331 9834 Website www.ivanhoemines.com Forward-looking statements Certain statements in this news release constitute “forward-looking statements” or “forward- looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such
Page 60
60 statements can be identified using words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance, and results and speak only as of the date of this release. Such statements include, without limitation: (i) statements that Kamoa-Kakula's 500,000- tonne-per-annum on-site, direct-to-blister copper smelter, the largest in Africa, is expected to start up in September and that all concentrates produced by Phase 1, 2, and 3 concentrators are expected to be treated by the on-site smelter; (ii) statements that Kamoa-Kakula’s 60 MW, on-site solar facility with battery storage is expected to be operational in mid-2026 and that once operational, the solar plant can provide up to one-third of Kamoa-Kakula’s power requirements; (iii) statements that pre-commissioning activities at the refurbished Turbine #5 at the Inga II hydroelectric facility are expected to be completed early in the fourth quarter; (iv) statements that the production rate at Kipush in H2 2025 is expected to significantly improve following improved availability of the DMS circuit and the imminent completion of the debottlenecking program; (v) statements that first production from Phase 2 at Platreef is expected in Q4 2027 and that the expansion is expected to produce over 460,000 ounces of platinum, palladium, rhodium, and gold per annum, plus approx. 9,000 tonnes of nickel and 6,000 tonnes of copper; (vi) statements that the Platreef Mine is projected to be the lowest- cost primary platinum-group-metals producer globally, and that 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; (vii) statements that Shaft #3 at Platreef is expected to be “ready to hoist” from Q1 2026 with a capacity of approximately 4 million tonnes per annum; (viii) statements that dewatering and rehabilitation work at the Kamoa-Kakula Copper Complex is underway and is expected to be completed in mid-2026; (ix) statements that at current run rates, surface stockpiles are expected to provide mill feed to the Phase 1 and Phase 2 concentrators until Q1 2026; (x) statements that the stored copper in concentrate at LCS is expected to be treated throughout the remainder of 2025; (xi) statements that it is expected that the Phase 1 and 2 concentrators will continue to process ore at this rate for the remainder of 2025, with a target of approximately 50% of ore feed coming from surface stockpiles and 50% from the western side of the Kakula Mine and that the processing of surface stockpiles is expected to continue until they are depleted in Q1 2026; (xii) statements that for the remainder of 2025, it is expected that the feed grade into the Phase 3 concentrator will average approximately 2.5% copper, as the cut-off grade is lowered to achieve a greater mining rate; (xiii) statements that during the second half of 2025, the combined mining rate from the Kamoa and Kansoko mines will increase, with up to 100,000 tonnes per month of this ore fed into the Phase 1 and 2 concentrators, replacing a portion of the stockpile feed; (xiv) statements that the total capital cost of the Stage One and Stage Two dewatering activities, including the purchase, transport, and installation of the high-capacity, submersible dewatering pumps, is expected to be up to $70 million, including contingency; (xv) statements that development of the new mining area at Kakula is expected to be initially conducted in waste before entering ore from early 2026, with mining of the area expected to commence in Q2 2026; (xvi) statements that the heat-up of Kamoa-Kakula’s state-of-the-art, 500,000-tonne- per-annum direct-to-blister copper smelter is expected to commence in September 2025; (xvii) statements that Kamoa-Kakula’s Project 95 is now expected to be completed in early Q2 2026; (xviii) statements that Kamoa-Kakula plans to expand the on-site solar facilities further over time, targeting a capacity of up to 120 MW and that construction completion is expected in mid-2026; (xix) statements with respect to the revised 2025 cash cost (C1) guidance for Kamoa-Kakula; (xx) statements with respect to the revised 2025 capital expenditure guidance for Kamoa-Kakula; (xxi) statements that zinc production rates at Kipushi are expected to significantly improve in the second half of 2025; (xxii) statements that the debottlenecking program at Kipushi is nearing completion and is expected to increase concentrator processing capacity by 20% from late Q3 2025; (xxiii) statements that first production from the Phase 1 concentrator at Platreef is expected in Q4 2025, ramping
Page 61
61 up to an annualized production of approximately 100,000 ounces of 3PE+Au and that development will immediately commence on the Phase 2 expansion, which is expected to be completed 2 years later in Q4 2027; (xxiv) statements that the concentrator at Platreef will be fed primarily by development ore during the initial stages of ramp-up with stoping (production mining) expected to commence in Q1 2026, following the completion of Shaft #3; (xxv) statements that ss the mining rate at Platreef increases, as shown in Figure 3, the number of mining crews at Platreef is expected to double over the next 18 months; and (xxvi) statements that the company expects the Platreef Mine’s $700 million Phase 2 senior finance facility to close in Q1 2026. Also, all of the results of the 4.1 Mtpa FS, the 10.7 Mtpa PEA, the Kamoa-Kakula 2023 IDP, the Platreef 2022 feasibility study, and the Kipushi 2022 feasibility study constitute forward- looking statements or information and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, concerning this specific forward-looking information concerning the operation and development of the Kamoa-Kakula Copper Complex, Platreef Project and Kipushi Mine, and the exploration of the Western Forelands Exploration Project, the Mokopane Feeder Exploration Project and the Chu-Sarya Basin Exploration JV, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development and exploration; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xvi) changes in project scope or design; (xvii) recoveries, mining rates and grade; (xviii) political factors; (xviii) water inflow into the mine and its potential effect on mining operations; and (xix) the consistency and availability of electric power. This release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans after the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements
Page 62
62 or information, including, however not limited to, the factors discussed above and under the “Risk Factors” heading in the company’s MD&A for the three and six months ended June 30, 2025, in the company’s current annual information form, and elsewhere in this release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release. The company’s actual results could differ materially from those anticipated in these forward- looking statements as a result of the factors outlined in the “Risk Factors” section in the company’s MD&A for the three and six months ended June 30, 2025, in the company’s current annual information and elsewhere in this release. ADDITIONAL INFORMATION Additional information regarding the company, including the company’s Annual Information Form, is available on SEDAR+ at www.sedarplus.ca.