Ivanhoe books $193m profit as Kamoa-Kakula hits record output

Ivanhoe Mines has reported a $193m profit for 2024, underpinned by record production at its Kamoa-Kakula copper complex in the Democratic Republic of Congo, even as analysts flagged operational strain elsewhere in the group.

The Vancouver-based miner said Kamoa-Kakula produced 437,061 tonnes of copper in concentrate over the year, generating $3.11bn in revenue. Adjusted earnings before interest, tax, depreciation and amortisation rose to $625m from $604m in 2023.

Fire and forecasts

The results were not without blemish. Canaccord Genuity mining analyst Dalton Baretto noted that a fire on 2 January had knocked out backup power at the operation, delaying the company's production forecast for the new year. Ivanhoe's normalised profit, after adjustments including a $164m fair-value loss on convertible instruments, came to $386m.

Baretto also took aim at Ivanhoe's $1.2bn plan to expand its Platreef platinum-group-metals project in South Africa to an output of 450,000 to 550,000 ounces by late 2027, arguing the targets were aggressive on timeline, capital cost and operating cost alike. "We note that these were more aggressive on timelines, capex and particularly costs," he said, trimming his share-price target to C$24 from C$27.50.

Shares slide

Ivanhoe shares fell 11% to close at C$14.97, near the bottom of a 12-month range that had reached C$21.32, leaving the company with a market capitalisation of C$20.3bn. The reaction reflected broader market weakness on the day as much as company-specific concerns, but it underscored how closely investors are scrutinising a company whose valuation increasingly rests on delivering Kamoa-Kakula's next phase of growth on schedule.

What it means

The record 2024 output cemented Kamoa-Kakula's status as one of the world's largest and fastest-growing copper mines, a joint venture between Ivanhoe, China's Zijin Mining Group and the Congolese state. But the mixed reception to the results, before seismic disruption would hit the mine only months later, was an early sign that the market's patience for missteps at Ivanhoe's flagship project — and its other growth bets — was thin. The company's ability to convert Kamoa-Kakula's scale into consistently delivered profit would remain the central question for the year ahead.

Sources

• Mining.com: Ivanhoe nets $193M profit but floods, quick expansion cloud outlook, 21 Feb 2025

Photo: Malachite, a copper carbonate mineral, from the Democratic Republic of Congo's copperbelt. Kritzolina, Wikimedia Commons, CC BY-SA 4.0.