Ivanhoe Mines: 2024 Production Results and 2025 Guidance

Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) has recently announced its 2024 production results and provided guidance for 2025. The company's flagship project, the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC), has shown significant progress, with the Phase 3 concentrator nearing steady-state production. However, the company has revised its 2024 production guidance due to intermittent grid power issues and the ramp-up of the Phase 3 concentrator.



In 2024, Kamoa-Kakula produced a record 116,313 tonnes of copper in concentrate during the third quarter, with the Phase 3 concentrator in ramp-up. The Phase 3 concentrator achieved commercial production during the quarter, producing 22,099 tonnes of copper in concentrate at a recovery rate of 79.9%. The company has revised its 2024 production guidance for Kamoa-Kakula to a range of 425,000 to 450,000 tonnes of copper in concentrate, reflecting production lost due to intermittent grid power and the ongoing ramp-up of the Phase 3 concentrator.

The ramp-up of the Phase 3 concentrator is expected to significantly impact the 2025 production guidance. The operations team expects to reach the nameplate recovery rate of 86% during the fourth quarter, thereby achieving steady-state production. Furthermore, the team is also targeting to increase the feed grade to the Phase 3 concentrator up to approximately 3% by Q1 2025, while ore reserves continue to be developed towards the higher-grade zones in the Kamoa 1 and Kamoa 2 underground mines. These improvements in processing throughput and recovery rates, along with the increased feed grade, are expected to significantly boost copper production in 2025.

In conclusion, Ivanhoe Mines' 2024 production results and 2025 guidance reflect the company's progress in ramping up the Phase 3 concentrator at the Kamoa-Kakula Copper Complex. Despite the revision in 2024 production guidance, the company remains well-positioned to deliver significant production growth in 2025. Investors should closely monitor the company's progress and consider the strategic benefits of its long-term growth prospects.