Ivanhoe Mines Ltd.

Reported Q2 revenue was $880 million, including $56 million from sulfuric acid sales and a $33 million positive mark-to-market impact from provisional pricing. Consolidated adjusted EBITDA was $179 million and consolidated profit was $46 million. Kamoa-Kakula produced in excess of 64,000 tonnes of copper in Q2, sold just over 61,000 tonnes of payable copper, and posted a Q2 cash cost of $2.84/lb of payable copper; year-to-date C1 cash cost averaged $2.70/lb, with a $0.42/lb smelter benefit cited. Kipushi produced in excess of 70,000 tonnes of zinc in Q2, recognized $148 million of revenue, and had EBITDA of $51 million at a 35% margin, with cash cost at $0.90/lb of payable zinc. Cash and cash equivalents were $635 million at the end of June. Management tightened 2026 copper production guidance to 290,000-310,000 tonnes and said it expects quarterly revenue to exceed $1 billion soon as production rises. They also said Kamoa-Kakula inventory should fall toward 20,000 tonnes by year-end, and that current sulfuric acid contract pricing is around $840/tonne versus $465/tonne realized in Q2.

Marna Cloete emphasized operational execution, saying the quarter featured strong performance at Kamoa-Kakula and Kipushi, progress on solar power, and continued growth at Western Forelands. She framed the second half as an “outstanding back half of the year” after the Kakula turnaround strategy begins to take hold, while also stressing that the business remains in the world’s richest copper district. Her tone was upbeat but pragmatic, with a clear focus on execution, safety, and project delivery.

David van Heerden said Kamoa-Kakula sold just over 61,000 tonnes of payable copper in Q2, with inventory holding around 40,000 tonnes and expected to fall to roughly 20,000 tonnes by year-end, which should boost cash flow, revenue, and EBITDA. He highlighted the Q2 realized copper price of $5.99/lb, the $880 million revenue figure, and the $2.84/lb Q2 cash cost, noting diesel prices added $0.18/lb and drove 70% of the quarter-on-quarter cost increase. He also pointed to the smelter’s roughly $0.50/lb savings effect including road and export taxes, strong liquidity of $635 million, and confirmed capex guidance remained in line, with $76 million contributed to Kamoa-Kakula and $65 million from the Japanese consortium into Platreef Phase 2 plus $87 million drawn in July under the Platreef financing.

Analysts focused on the gap between production and sales, and management confirmed about 40,000 tonnes of copper inventory at Kamoa-Kakula, with roughly 10,000 tonnes of additional destocking expected to flow through as a mix of concentrate conversion and finished-goods sales. Questions also centered on DRC local ownership requirements; management said it is in active discussions with the government, believes any retroactive application should not apply to pre-2018 conversions, and said Western Forelands is largely post-2018 and therefore not controversial. The call also addressed 2027 production risks at Kamoa-Kakula, where management said dewatering and development timing matter, but they still see enough conservatism in the plan to reach the 2027 guidance range and expect horizontal pumping upgrades to help.