Kamoa-Kakula sold 86,777 tonnes of payable copper during the quarter and recognized record revenue of $689 million, as well as record EBITDA of $452 million

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Ivanhoe Mines recorded Q1 2023 profit of $82 million, net of $31 million non-cash loss on the convertible bond fair valuation

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Kamoa-Kakula produced 93,603 tonnes of copper in Q1 2023, including a record 34,915 tonnes of copper in March, following debottlenecking program completed ahead of schedule

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Kamoa-Kakula’s quarterly cost of sales total $1.25 per lb. of payable copper; C1 cash costs of $1.42 per lb. towards the lower end of guidance

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Kamoa-Kakula’s Phase 3 expansion on track for Q4 2024; boosting copper production to a ten-year average of 620,000 tonnes per annum, at C1 cash cost of $1.22/lb.

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Ivanhoe Mines commences optimization work on installing hoisting capacity in Shaft 3 at the Tier-One Platreef palladium, nickel, platinum, rhodium, copper and gold mine in South Africa

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Ivanhoe Mines agrees off-take terms with Gécamines and Glencore for 100% of Kipushi’s zinc concentrate, together with US$250 million facility

Johannesburg, South Africa - Ivanhoe Mines' (TSX: IVN) (OTCQX: IVPAF) President Marna Cloete and Chief Financial Officer David van Heerden are pleased to present the company's financial results for the three months ended March 31, 2023. Ivanhoe Mines is a leading Canadian mining company that is advancing its four principal mining and exploration projects in Southern Africa: the Phase 3 expansion of the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC) that commenced commercial operations in July 2021; the construction of the Platreef palladium, nickel, platinum, rhodium, copper and gold project in South Africa, scheduled for first production in the third quarter of 2024; the restart of the historic Kipushi zinc-copper-lead-germanium mine in the DRC, also scheduled for first production in the third quarter of 2024; and the exploration for new copper discoveries on Ivanhoe's 2,407-square-kilometre Western Foreland exploration project, which is adjacent to Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS

Ivanhoe Mines recorded a profit of $82 million for Q1 2023, compared to a profit of $22 million for the same period in 2022. The profit in the quarter is net of a $31 million non-cash loss on the fair value adjustment of the embedded derivative financial liability of the convertible bond, resulting predominantly from a 14% increase in the share price from C$10.70 per share to C$12.21 per share at quarter end. The profit includes Ivanhoe Mines' share of profit and finance income from the Kamoa-Kakula joint venture of $130 million for Q1 2023.
Adjusted Q1 2023 EBITDA for the Ivanhoe Mines group of $168 million, compared to $145 million for the same period in 2022, and $162 million for Q4 2022, which includes an attributable share of EBITDA from Kamoa-Kakula.
During Q1 2023, Kamoa-Kakula sold 86,777 tonnes of payable copper and recognized record revenue of $689 million, with an operating profit of $416 million and record quarterly EBITDA of $452 million.
Kamoa-Kakula's cost of sales per pound (lb.) of payable copper sold was $1.25/lb. for Q1 2023 compared with $1.08/lb. and $1.08/lb. in Q4 2022 and Q1 2022, respectively. Cash costs (C1) per pound of payable copper produced in Q1 2023 totalled $1.42/lb., compared to $1.42/lb. and $1.21/lb. in Q4 2022 and Q1 2022, respectively.

Ivanhoe Mines has a strong balance sheet with cash and cash equivalents of $497 million on hand as at March 31, 2023, and expects Kamoa-Kakula's Phase 1 and Phase 2 cash flow to be sufficient to fund the Phase 3 expansion capital cost requirements at current copper prices.
Off-take and financing terms agreed with Gécamines and Glencore to return Ivanhoe's ultra-high-grade Kipushi Mine to production in Q3 2024; off-take term sheet for 100% of Kipushi's zinc concentrate, together with a $250-million facility to finance construction.
OPERATIONAL HIGHLIGHTS

Kamoa-Kakula produced 93,603 tonnes of copper in Q1 2023, including a record 34,915 tonnes of copper in March 2023, following the completion of the debottlenecking program in late February 2023, ahead of schedule and on-budget.

Kamoa-Kakula's Phase 1 and 2 concentrators have continued to perform strongly, achieving a daily mill throughput record of over 29,000 tonnes, and also achieving recoveries in excess of 88% during March and April, significantly higher than the design rate of 86%.
Construction for Platreef's Phase 1 concentrator is advancing well and is on track for first production in Q3 2024. The Shaft 2 headgear concrete structure is complete to a height of approximately 79 metres. Shaft 2's overall height will be approximately 100 metres above ground, including the steel structure housing the main winders.
Ivanhoe initiated an optimization study at Platreef to potentially accelerate production from the Phase 2 expansion. The study will consider the implications of converting the 5.1-metre-diameter ventilation shaft (Shaft 3), which is under construction, to a production shaft with the capability to hoist.
Surface construction activities and underground development of the Big Zinc orebody at Kipushi are advancing ahead of schedule, with first concentrate production expected in Q3 2024.
Ivanhoe continues its expansive copper exploration program on its Western Foreland licences that cover approximately 2,407 square kilometres adjacent to Kamoa-Kakula. Diamond drilling commenced in early January with a single contractor rig, which was increased to three rigs by the end of March, together with an Ivanhoe Land Cruiser mounted diamond drill rig. A total of 4,883 meters of diamond core was drilled during the quarter, which was wet season.
Ivanhoe Mines published its sixth annual Sustainability Report, underscoring the company's ongoing commitment to "mining with a greater purpose" and its pursuit to be a global leader in responsible mining. Please visit www.ivanhoemines.com to view the report.
Watch a Q1 2023 video of operations and construction activities at Kamoa-Kakula: https://vimeo.com/823071306/8b676323fb

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