TSX-listed Ivanhoe Mines has reported a record profit of $434-million for 2022, for 323 733 t of copper sold.
This compares with a profit of $45-million reported for 2021.
Likewise, the company recorded a record operating profit of $1.2-billion and earnings before interest, taxes, depreciation and amortisation of $1.3-billion.
Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-Kakula joint venture, in the Democratic Republic of Congo, has generated $1.2-billion in net cash from operating activities, which has funded the Phase 2 and Phase 3 expansion activities at the project.
Phase 1 and Phase 2 at Kamoa-Kakula, combined, now have a processing capacity of 9.2-million tonnes of ore a year. The project produces about 450 000 t/y of copper concentrate, which, together with the Phase 3 expansion, once complete, will take the production capacity to 950 000 t/y of copper concentrate.
Ivanhoe says its Phase 3 expansion, which involves a direct-to-blister copper smelter and refurbishment of a turbine at the Inga II hydroelectric facility, is advancing on schedule and is expected to be completed late in 2024.
At current copper prices, it is expected that cash flow from Kamoa-Kakula’s Phase 1 and Phase 2 operations will be sufficient to fund the 2023 and 2024 expansion capital cost requirements of $2.5-billion.
As of December 31, Ivanhoe has cash and cash equivalents on hand of just under $600-million, and total debt of $739-million.
Ivanhoe continues with an expansive copper exploration programme on the Western Foreland licences that cover about 2 407 km2 adjacent to Kamoa-Kakula.
The 2023 exploration programme has been budgeted at about $19-million and includes up to 70 000 m of drilling.
Ivanhoe plans to release a maiden mineral resource estimate for the Makoko and Kiala high-grade copper discoveries at Western Foreland by mid-year, which will be followed by a preliminary economic assessment.
Meanwhile, Ivanhoe has started with an optimisation study at the Platreef palladium, nickel, platinum, rhodium, copper and gold mine, in South Africa, to potentially accelerate production from the Phase 2 expansion.
The study will consider the implications of converting a 5.1-m-diameter ventilation shaft (Shaft 3), which is under construction, to a production shaft with the capability to hoist.
This while underground development work at Platreef continues to focus on establishing underground infrastructure on the 750 m, 850 m and 950 m levels around Shaft 1, as well as developing towards the first reef and stoping areas on all three levels.
The first concentrate from this project is expected by the third quarter of 2024.