Q2 2026 Ivanhoe Mines Ltd Earnings Call Transcript
Key Points
- Ivanhoe Mines Ltd (IVPAF) delivered strong Q2 2026 production, with Kamoa-Kakula producing over 64,000 tonnes of copper and Kipushi achieving a record 70,000 tonnes of zinc at a low cash cost of $0.90 per pound.
- The company is benefiting from a significant sulfuric acid byproduct credit, with Q3 2026 contract prices of approximately $840 per tonne, more than double the Q2 average of $465 per tonne, which is expected to lower C1 cash costs.
- The 60-megawatt solar power plant with battery storage at Kamoa-Kakula is ramping up, providing baseload power and reducing diesel consumption by 25-30%, mitigating the impact of higher diesel prices.
- Ivanhoe Mines Ltd (IVPAF) maintains a strong liquidity position with $635 million in cash and cash equivalents, and expects Kamoa-Kakula to become self-funding as production and sales increase in the coming quarters.
- The Western Forelands project is advancing well, with an updated mineral resource expected in September 2026 that is anticipated to grow total resources by more than 30% and increase overall grade, supporting future low-capital, fast-execution open-pit development.
- Platreef Phase 2 financing was closed during the quarter, with $87 million drawn in July, and the project remains on track to start milling ore by the end of 2027, adding a new revenue stream.
- Ivanhoe Mines Ltd (IVPAF) reported a tragic fatality at the Kakula underground mine in July 2026, highlighting ongoing safety risks in underground operations.
- C1 cash costs increased quarter-over-quarter to $2.84 per pound in Q2 2026, primarily due to higher diesel prices following the closure of the Strait of Hormuz, which added $0.18 per pound.
- Kipushi faced logistical challenges in Q2 2026, with insufficient truck availability to transport concentrate to port, leading to a buildup of roughly 14,000 tonnes of finished goods inventory, although this has since halved.
- S&P downgraded Ivanhoe Mines Ltd (IVPAF)'s corporate rating to B- during the quarter, citing near-term credit metrics, despite the company's view that this does not fairly reflect its financial position.
- Underground development rates at Kakula have been slower than forecast, and the company is facing dewatering challenges that have limited access to higher-grade ore, impacting near-term production grades and rates.
- The DRC government is seeking to implement a decree requiring 10% local participation in mining companies, which could affect Ivanhoe Mines Ltd (IVPAF)'s ownership structure, although the company is engaging to limit its application to pre-2018 conversions.
Good morning, ladies and gentlemen. Welcome to the Ivanhoe Mines Limited second quarter earnings call. (Operator Instructions) This call is being recorded on Thursday, July 30, 2026.
I would now like to turn the call over to Tommy Horton, Vice President, Investor Relations and Corporate Development. Please go ahead.
Thank you, operator. Hello, everyone. As introduced my name is Tommy Horton, and I am Vice President of Investor Relations and Corporate Development for Ivanhoe Mines. It is my pleasure to welcome you to our second quarter 2026 conference call. This call will be recorded on today, Thursday, July 30, 2026.
On the line today from Ivanhoe Mines, we have Ivanhoe Mines Founder and Co-Chairman, Robert Friedland; President and Chief Executive Officer, Marna Cloete; Chief Operating Officer, Tom Van den Berg; Executive Vice President of Technical Services, Simon Bottoms; and Executive Vice President of Projects, Steve Amos. We close today's
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