Ivanhoe shares rise on hydropower boost, Q1 production results

Ivanhoe Mines (TSX: IVN) claims its Kamoa-Kakula copper facility in the Autonomous Republic of the Congo has actually gotten to a “significant transition” adhering to a large boost in imported hydroelectric power in current weeks making it possible for the startup of its brand-new on-site smelter.

According to the Vancouver-headquartered miner, the quantity of imported hydroelectric power at Kamoa raised by 40%– or 20 megawatts (MW)– to 70 MW in mid-March, and is anticipated to raise additionally to 100 MW over current weeks.

Kamoa has actually been attracting 50 MW of locally produced hydroelectricity and one more 50 MW from imports to power the three-phased procedure, which calls for 130 to 140 MW to run. The equilibrium of the necessary power is produced on-site.

The boost in imported hydroelectric power suggested Ivanhoe might currently start the appointing of its direct-to-blister copper smelter. The first heat-up procedure is readied to start following month. The business intends to accomplish initial manufacturing of 99.7% copper anode in July 2025, after that increase to 80% capability by year-end.

The brand-new 500,000-tonne-per-annum plant would certainly “substantially decrease” the business’s C1 money expenses as a result of a greater than 50% decline in transport expenses, Ivanhoe owner Robert Friedland stated in a news release. When increase, the smelter is anticipated to hold around 17,000 tonnes of copper within its circuit.

” We are thrilled that Kamoa-Kakula’s growing discomforts, which brought about power difficulties, lag us following our effective initiatives to protect extra imported hydroelectricity … with even more imported hydroelectric power from the Southern Africa Power Swimming pool on its method soon,” Friedland included.

Q1 manufacturing outcomes

The raised hydropower at Kamoa accompanied document manufacturing from the last 2 weeks of March, at an annualized price of 630,000 tonnes, over the business’s 2025 advice. For the whole quarter, Kamoa’s copper manufacturing came near a document high at 133,120 tonnes, for an annualized manufacturing price of 550,000 tonnes per year.

The efficiency, according to Ivanhoe, was underpinned by campaigns applied previously in the quarter that allowed the Stage 3 concentrator to be constantly fed at greater prices than initially created. The Stage 1 and 2 concentrators likewise outmatched throughout the quarter, in spite of procedures being hindered by upkeep closures in the initial fifty percent of March.

Provided these outcomes, the business has actually kept Kamoa’s yearly manufacturing advice of 520,000 to 580,000 tonnes of copper.

On The Other Hand, the Kipushi zinc mine, likewise in the DRC, created a document 42,736 tonnes of zinc throughout the initial quarter, having actually accomplished ramp-up to nameplate capability in February. For Kipushi, Ivanhoe is likewise keeping its yearly manufacturing advice of 180,000 to 240,000 tonnes of zinc.

Ivanhoe Mines obtained 6.9% to C$ 10.98 each in Toronto on the back of the Q1 manufacturing outcomes. The share increase stands for a comparison to the efficiency of lots of various other large copper miners throughout the marketplace thrashing. By midday ET, its market capitalization stood at C$ 14.9 billion ($ 10.5 billion).