Canadian mining company Ivanhoe Mines has entered a new phase of strong free cash flow generation following the completion of peak capital expenditures at its Kamoa-Kakula copper complex in the Democratic Republic of Congo (DRC).
Founder and co-chairperson Robert Friedland highlighted the company’s transition, citing record production, improved margins, and robust financial results in 2024.
Financial and Production Highlights
- Profit: $193 million ($0.17 per share), with a normalized profit of $386 million ($0.32 per share).
- Adjusted EBITDA: Increased from $604 million in 2023 to $625 million in 2024.
- Kamoa-Kakula Revenue: A record $3.11 billion, with an operating profit of $1.43 billion and an EBITDA of $1.81 billion (58% margin).
- Copper Production: 437,061 tonnes in 2024 (up 11% from 393,551 tonnes in 2023).
- Copper Sales: 396,972 tonnes sold at an average price of $4.09/lb (up from $3.84/lb in 2023).
- 2025 Guidance: Copper production expected to range between 520,000 and 580,000 tonnes, increasing to 600,000 tonnes in 2026.
Kamoa-Kakula Expansion & Smelter Delays
Friedland emphasized the strategic importance of the newly completed 500,000 t/y on-site direct-to-blister copper smelter, which is set to improve margins and lower costs.
However, its ramp-up has been delayed by three months due to power supply issues and is now scheduled for Q2 2025.
Meanwhile, a portion of Kamoa-Kakula’s Phase 3 concentrate output is being toll-treated into blister copper at the Lualaba copper smelter to maximize profitability until the on-site smelter is operational.
Kipushi Zinc Mine & Platreef Developments
- Kipushi Zinc Mine:
- Produced 50,307 tonnes of zinc in its inaugural year, with a record 14,900 tonnes in December.
- 2025 Production Guidance: 180,000 – 240,000 tonnes, increasing to 250,000+ tonnes in 2026 after ramp-up and optimization.
- Platreef Project (South Africa):
- Ivanhoe Mines continues advancing Phase 2 and Phase 3 development plans at the Platreef platinum-group metals project.
Future Growth Plans
- Project 95: Aims to boost copper recoveries to 95% at Kamoa-Kakula’s Phase 1 and 2 concentrators, potentially increasing annualized copper production by 30,000 tonnes by Q1 2026.
- Power & Optimization Initiatives will further enhance efficiency and production growth across its mining operations.
“In 2024, Ivanhoe Mines achieved remarkable milestones, reinforcing our commitment to sustainable development and production growth,” said Friedland.
