Ivanhoe Mines Provides 2023 Production Results, Sets Bold Targets for 2024
Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) has reported impressive 2023 production results for its Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC), with the production of 393,551 tonnes of copper in concentrate.
This achievement not only falls within the 2023 production guidance range but also represents a substantial 18% year-over-year increase.
The mining company, in collaboration with Kamoa Copper, is demonstrating resilience amid challenges, marked by the successful ramp-up of Kamoa Copper’s debottlenecking program, completed ahead of schedule on February 27th, 2023. The Kamoa-Kakula Phase 1 and 2 concentrators milled approximately 8.5 million tonnes of ore, achieving an average feed grade of 5.2% copper.
Despite intermittent grid instability, particularly in November, where unplanned outages impacted production, the company maintained operational efficiency by drawing ore from surface stockpiles. Kamoa-Kakula’s high- and medium-grade ore surface stockpiles at the end of December totaled over 4.13 million tonnes, ensuring a continuous supply.
A significant milestone was reached on January 1, 2024, with a daily milling record of 31,084 tonnes processed by the Phase 1 and 2 concentrators over 24 hours. This achievement signifies an annual milling rate of 10.4 million tonnes, showcasing the robustness of the operation.
Looking ahead, Ivanhoe Mines sets ambitious 2024 production guidance for Kamoa-Kakula, estimating between 440,000 and 490,000 tonnes of copper in concentrate. The completion of the Phase 3 concentrator, scheduled for Q3 2024, is expected to contribute to reaching these targets.
To address challenges related to intermittent grid instability, Kamoa Copper has collaborated with La Société Nationale d’Electricité (SNEL) to identify and implement long-lasting solutions. An amendment to the financing agreement, totaling up to $450 million, has been signed to fund grid infrastructure upgrades, ensuring stability in the southern DRC’s grid.
Ivanhoe Mines plans to release comprehensive 2024 guidance for C1 cash costs per pound of payable copper and capital expenditure in its year-end financial results on February 26th, 2024. The company is poised to further discuss developments in Kipushi and Platreef, with their expected commissioning in Q2 and Q3 2024, respectively.
The achievement of record copper production in 2023 and the ambitious targets set for 2024 solidify Ivanhoe Mines’ commitment to sustainable growth and positioning Kamoa-Kakula as a key player in the production of environmentally friendly copper.
The mining company remains focused on its three principal projects in Southern Africa, aiming to contribute significantly to the global copper market. Investors can anticipate further insights during the investor conference call scheduled for February 26th, 2024.
