TORONTO, CANADA ‒ Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) today announced its financial results for the quarter ended March 31, 2020. Ivanhoe Mines is a Canadian mining company advancing its three mining projects in Southern Africa: the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC); the Platreef palladium-platinum-nickel-copper-gold-rhodium discovery in South Africa; and the extensive upgrading of the historic Kipushi zinc-copper-lead-germanium mine, also in the DRC.
The company also is exploring for new copper discoveries on its wholly-owned Western Foreland exploration licences, adjacent to the Kamoa-Kakula mining licence. All figures are in U.S. dollars unless otherwise stated.
- Development of the Kakula Copper Mine, the first of multiple, planned mining areas at the Kamoa-Kakula Project, is making excellent progress. The first underground access drives intersected Kakula’s initial high-grade ore zone (+8% copper) in April. Ivanhoe and its joint-venture partner Zijin Mining are advancing rapidly on construction of the 3.8 million-tonne-per-annum (Mtpa) processing plant and other surface infrastructure. Initial copper concentrate production is scheduled for the third quarter of 2021.
- In parallel with the construction of the Kakula Copper Mine, the independent Kakula definitive feasibility study (DFS) and an updated Integrated Development Plan for the entire Kamoa-Kakula mining complex also remain on schedule for Q3 2020. The Kakula DFS will provide a high level of accuracy for the project economics for Kakula’s initial phase of mine development, as most construction contracts and orders for significant capital items have been placed at fixed prices. The Integrated Development Plan will include details on the planned expansion phases for the entire Kamoa-Kakula mining complex.
- In early March, Ivanhoe in conjunction with its joint-venture partners implemented strict quarantine and lock-down procedures to ensure the well-being of its employees and mitigate the impact of COVID-19 on its operations. The Kamoa-Kakula minesite has been locked down and all key personnel are on site; as a result, mine development at Kamoa-Kakula has continued uninterrupted. Mine development work at the Platreef Project was temporarily suspended in late March in compliance with the country-wide lock down imposed by the South African Government. Operations at Platreef resumed in late April with reduced staffing levels and stringent safety protocols. Mine development operations at Kipushi remain temporarily suspended in order to reduce the risk to the workforce and local communities.
- Also in early March, following the guidelines outlined by the World Health Organization, the company appointed a task team with overall responsibility for COVID-19 response planning. Ivanhoe’s response team is led by Dr. Nicolette Du Plessis, a specialist in Pediatric Infectious Diseases and a Professor at the University of Pretoria, and includes specialist doctors, paramedics, nurses, as well as counsel from several external, world-leading epidemiologists.
- On March 11, 2020, the company announced that it had promoted its Chief Financial Officer, Marna Cloete, to the position of President, in addition to her role as Chief Financial Officer. The company’s new Executive Committee, led by Marna Cloete, President and CFO, includes Dr. Patricia Makhesha, Executive Vice President, Sustainability & Special Projects; Matthieu Bos, Executive Vice President, Africa; Peter Zhou, Executive Vice President, China; and Pierre Joubert, who was recently promoted to Executive Vice President, Technical Services.
- Ivanhoe is in a strong financial position with cash and cash equivalents of $603 million at the end of March 2020 and no significant debt.
- In April, Ivanhoe announced cost-reduction initiatives to generate cash savings of up to $75 million through 2021, including reducing discretionary spending at the company’s projects, lowering general and administrative costs, voluntary salary reduction for senior management, and deferral of certain exploration activities. The savings will be directed towards developing the Kakula Mine to commercial production on schedule and on budget.
- Underground development at the Kakula Copper Mine continues to advance ahead of schedule and more than 14.4 kilometres of underground development now has been completed ─ 4.4 kilometres ahead of plan. The pace of development is expected to continue to accelerate as additional mining crews are mobilized.
- In April, crews at Kakula began mining ore in areas with a grade of greater than 8% copper. This ore is being stockpiled on a dedicated high-grade surface stockpile, which is forecast to contain 105,000 tonnes grading 5.95% copper by the end of May, 2020. Kakula’s medium-grade ore stockpile is forecast to contain an additional 250,000 tonnes at 3.01% copper. The high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper.
- Construction of Kakula’s processing plant is progressing well with more than 9,000 cubic metres of concrete poured. Fabrication of structural steel, processing plant components, and the ball mills is underway. Long-lead-time items for the processing plant have started to arrive on site, and the ball mills are scheduled for arrival in mid-2020.
- Refurbishment of six turbines at the Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure, to supply the Kakula Mine with clean hydropower, is progressing. Four turbines are expected to be operational by December 2020, and the remaining two in Q1 2021. The refurbished plant is projected to deliver approximately 72 megawatts of power to the national grid.
- On February 5, 2020, an updated independently verified Indicated Mineral Resource increased the combined Kamoa-Kakula Project Indicated Mineral Resource to 423 million tonnes grading 4.68% copper, at a 3% cut-off. The combined Kamoa-Kakula Project Indicated Mineral Resource now stands at 1.4 billion tonnes grading 2.7% copper, at a 1% cut-off.
- The initial Indicated Mineral Resource estimate for the Kamoa North Bonanza Zone includes 1.5 million tonnes grading 10.7% copper, at a 5% cut-off. Drilling in the first quarter continued to target additional resources in the vicinity of the ultra-high-grade Bonanza Zone and the Far North Zone. Given the shallow depth, remarkable thickness and massive copper sulphide mineralization discovered within the Kamoa North Bonanza Zone, Kamoa-Kakula’s engineers are evaluating potential opportunities to accelerate the development of this discovery.
- The controlling east-west striking structure, thought to be responsible for the massive copper sulphide mineralization in the Kamoa North Bonanza Zone, is visible as a lineament on airborne magnetic images and can be traced over a distance of up to 20 kilometres. It trends west onto the adjacent Western Foreland exploration licences that are 100%-owned by Ivanhoe Mines. Ivanhoe now controls more than 2,500 square kilometres of highly-prospective land holdings in the vicinity of the Kamoa-Kakula mining licence.
- Drilling also has confirmed the extension of the Kamoa North high-grade copper structure for at least 800 metres in the Kiala Discovery area, part of Ivanhoe’s 100%-owned Western Foreland licences that adjoin the Kamoa-Kakula mining licence to the north.
- At the Platreef mine development project in South Africa, the project’s first shaft (Shaft 1) has been sunk to a depth of more than 975 metres below surface. Completion of the shaft to a final depth of approximately 1,000 metres is planned for Q3 2020.
- Ivanhoe is investigating a phased development production plan for the Platreef Project. The plan would target significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 definitive feasibility study (DFS). Concurrently, Ivanhoe is updating the Platreef Project’s 2017 DFS to take into account development schedule advancement since 2017 when the DFS was completed, updated costs and refreshed metal prices and foreign exchange assumptions.
- At the end of March 2020, Kamoa-Kakula had reached 2.01 million work hours free of a lost-time injury; Platreef had reached 528,416 work hours free of a lost-time injury; and Kipushi had reached 2.27 million work hours free of a lost-time injury.
COVID-19 Response Initiatives
In early April, Ivanhoe provided further details on the rigorous protective measures it has implemented to protect the health and well-being of its employees, contractors and local communities while ensuring business continuity at the Kamoa-Kakula Project.
In response to government-imposed travel restrictions and emergency protocols introduced worldwide, strict quarantine and lock-down procedures have been implemented at all three of the company’s projects ─ Kamoa-Kakula, Platreef and Kipushi ─ to prevent the corona virus from spreading to the minesites. To date, no COVID-19 cases have been discovered at Ivanhoe’s projects.
At Kamoa-Kakula, the minesite has been locked down and all key personnel are on site. The supply of food and critical equipment continues under strict delivery protocols. At present, more than 3,450 employees and contractors are based at the minesite, which ensures operational continuity and minimizes the impact on the development schedule.
Platreef temporarily suspended its shaft-sinking operations in compliance with the country-wide lock down imposed by the South African Government on March 26th. In late April, mine development operations resumed at Platreef with reduced staffing levels and strict COVID-19 preventative procedures. Mine development operations at Kipushi are temporarily suspended to reduce the risk to the workforce and local communities.
Following the guidelines outlined by the World Health Organization, the company appointed a task team from senior management with overall responsibility for COVID-19 response planning. The team is led by Dr. Nicolette Du Plessis, a specialist in Pediatric Infectious Diseases and a Professor at the University of Pretoria, and includes specialist doctors, paramedics, nurses, as well as counsel from several external, world-leading epidemiologists. Dr. Du Plessis is president of the Southern African Society of Pediatric Infectious Diseases and president-elect of the Federation of Infectious Diseases Societies of Southern Africa.
The task team, together with its Kamoa-Kakula Project medical response team and its medical service provider, Medical Support Solutions of the United Kingdom, has access to some of the best advice from medical experts from around the globe and has implemented key procedures across the business to ensure minimal disruption to operations.
In response to the COVID-19 pandemic, Ivanhoe postpones its annual general meeting of shareholders and the date for sending out the company’s executive compensation disclosure
Due to restrictions on public gatherings enacted by both the Federal and Provincial governments in Canada in response to the COVID-19 pandemic and to help protect the health and well-being of its shareholders, colleagues, communities and other stakeholders, Ivanhoe has made the decision to postpone its annual and special meeting (AGM) of shareholders to a date no later than the end of September 2020.
As the COVID-19 situation evolves and advice from government and medical authorities is updated, Ivanhoe will set the new AGM date and file a notice of meeting and record date on SEDAR (www.sedar.com).
Given the postponement of the company’s AGM, Ivanhoe also intends to postpone the date when it will send shareholders the management information circular for the annual general meeting, which includes the company’s executive compensation disclosure. The company is relying on BC Instrument 51-516 ─ Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials ─ published on May 1, 2020, that is providing public companies with temporary blanket relief from certain filing and delivery requirements related to the sending of materials for annual general meetings.
Once a new AGM date is determined, Ivanhoe will provide shareholders with the same disclosure documents they would normally receive ahead of an annual meeting, including the executive compensation disclosure, in accordance with applicable legislation.
Principal projects and review of activities
1. Kamoa-Kakula Project
39.6%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kamoa-Kakula Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the world’s fourth largest copper deposit by international mining consultant Wood Mackenzie. The project is approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi.
Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining in December 2015 for an aggregate consideration of $412 million. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River for $8.32 million - which Crystal River will pay through a non-interest-bearing, 10-year promissory note. Since the conclusion of the Zijin transaction in December 2015, each shareholder has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in Kamoa Holding.
A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012 for no consideration, pursuant to the 2002 DRC mining code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding holds an 80% interest in the project.
Members of Kamoa-Kakula’s development team at Kakula’s growing high-grade ore stockpile.
(L-R) Magloire Kashiba (Production Manager), Jinha Numbi (Surveyor Assistant), Nadege Muzala (Explosive Master), Joel Maweji (Surveyor), Daniel Jila (Data Clerk), Dorcas Tabitha (JMMC Explosive Master), Amisi Mwanana (Safety Officer), Didier Masengo (Senior Mine Geologist), Haram Kazadi (Ventilation observer), Wivine Mutango (Ventilation Observer Assistant), Reagan Ngandu (Surveyor Assistant) and Pontien Kalala (Mine Overseer).
Health and safety at Kamoa-Kakula
At the end of March 2020, the Kamoa-Kakula Project reached 2,014,404 work hours free of a lost-time injury. A fatality occurred on February 7, 2020 when a contractor's employee passed away due to fat embolism syndrome following a broken bone incurred in a workplace accident on January 21, 2020. The Kamoa-Kakula Project continues to strive toward its workplace objective of zero harm to all employees and contractors. Since the fatality in February a number of additional safety interventions have been implemented.
As part of the company’s the COVID-19 response initiatives, the Kamoa-Kakula minesite has been locked down and strict isolation procedures have been implemented in the event of higher-risk personnel, or potential COVID-19 cases. Ten intensive care units, each equipped with a ventilator, and 20 high-care units will be available to treat potential patients, in addition to a quarantine facility for up to 60 potential patients. The project has procured abundant critical protective supplies for its minesite medical professionals, including surgical gloves and N95 face masks.
Definitive Feasibility Study nearing completion for the Kakula Mine
An independent definitive feasibility study (DFS) for the Kakula Mine is underway with an expected completion date of Q3 2020. At the same time, Ivanhoe expects to issue an updated preliminary economic assessment (PEA) for the expanded Kamoa-Kakula combined production scenarios, incorporating Kansoko, Kakula West and Kamoa North mining areas. The updated PEA will include the updated Mineral Resource estimate for Kamoa North which includes the initial Mineral Resource estimate for the Kamoa North Bonanza Zone. The updated resource estimate technical report was filed under the company’s SEDAR profile at www.sedar.com on March 27, 2020.
The forthcoming Kakula DFS will incorporate detailed design, engineering and procurement, which is largely complete. A separate DFS for an on-site smelter is underway in parallel, and will be incorporated into the integrated Kamoa-Kakula PEA.
Additional mining crews added at Kakula to increase pre-production ore stockpiles and position the mine to accelerate the second phase of development
An expansion in initial plant capacity from 3.0 Mtpa to 3.8 Mtpa is planned, which requires increasing the underground mining crews in 2020 from 11 to 14 to ensure sufficient mining operations to feed the expanded plant throughput. This would have the benefit of producing a larger surface stockpile of ore prior to the scheduled commissioning of the processing plant, as well as accelerating the mine development schedule, providing the opportunity to bring forward the commencement of the second phase of development at Kakula. The second 3.8 Mtpa plant module will be primarily fed from the Kakula Mine at a planned full production mining rate of 6 Mtpa. Further study work will determine the amount of tonnes to be sourced from the Kansoko Mine, or elsewhere, to maximize the full milling capacity of 7.6 Mtpa. Any plans to accelerate the second module of Kakula’s processing plant would be subject to securing the necessary project-level financing and an independent definitive feasibility study on increased production mining rates from 6 Mtpa to 7.6 Mtpa.
(L-R): Fabrice Nkomba (Mining Overseer), Franck Twite (Senior Geologist), Tebogo Gilbert Jacobs (General Foreman), and Richard Ilunga (Senior Geologist) in one of Kakula’s access drives that currently grades more than 8% copper.
Basic engineering design for the expansion from 3.8 Mtpa to 7.6 Mtpa is currently underway. The scope of facilities includes underground expansion at Kakula, the commencement of mining operations at Kansoko, a second 3.8 Mtpa concentrator module at Kakula as well as associated surface infrastructure to support the expansion at the various sites. The basic engineering is expected to be complete by mid-2020.
In April, crews at Kakula began mining and stockpiling ore with an average grade greater than 8% copper. At the end of May, 2020, Kakula’s high-grade, pre-production ore stockpile is forecast to contain 105,000 tonnes grading 5.95% copper. Kakula’s medium-grade ore stockpile is forecast to contain an additional 250,000 tonnes at 3.01% copper. The high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper.
Construction of the concrete foundations for the initial 3.8 Mtpa processing plant’s ball mill foundations is nearing completion.
Construction crews dismantling scaffolding used to construct concrete foundations for the processing plant’s rougher flotation cells.
The current estimate of the project’s initial capital costs is approximately $1.3 billion as of January 1, 2019, which assumes commissioning of the first processing plant module in Q3 2021 and includes expanded plant capacity and pre-production ore stockpiles.
The capital costs incurred by the Kamoa-Kakula joint venture in 2019 amounted to $309.1 million, of which $125.2 million was spent on the Kakula declines and mine development. A further capital cost of $80.9 million has been incurred in Q1 2020.
Ivanhoe will fund its share of approximately 40% of the initial capital costs, plus its share of capital associated with the 20% carried interest owned by the Government of the DRC, which will be repaid through future cash flows from the project. Ivanhoe expects that it will continue to have sufficient cash resources or financing options available to cover its share of the initial capital costs.
Kamoa-Kakula Mineral Resources increased again
Ivanhoe announced the completion of an independently-verified, updated Mineral Resource estimate for the Kamoa-Kakula Project on February 5, 2020. The new Mineral Resource estimate is the culmination of an infill drilling program designed to better define higher-grade copper zones within the existing Kamoa Deposit.
At a 1% cut-off, Kamoa’s Indicated Mineral Resources now total 760 million tonnes grading 2.73% copper, containing 45.8 billion pounds of copper. At the same 1% cut-off, Kamoa’s Inferred Mineral Resources now total 235 million tonnes grading 1.70% copper, containing 8.8 billion pounds of copper. At a 3% cut-off, the new Mineral Resource estimate boosts the Kamoa Deposit’s Indicated Mineral Resource tonnages by 15% and contained copper by 15.5%, to a total of 256 million tonnes at a grade of 4.15% copper. At the same 3% cut-off, Kamoa’s Inferred Mineral Resources now total 13 million tonnes at a grade of 3.51% copper.
The entire Kamoa Deposit was updated in the new Mineral Resource estimate. The majority of recent drilling, however, targeted the ultra-high-grade Bonanza Zone at Kamoa North, and an approximated north-south corridor of elevated copper grades in the far north of the mining licence area (the Far North Zone).
The new Kamoa Mineral Resource estimate covers approximately 600 metres of strike length in the deeper western portions of the Bonanza Zone (west of the West Scarp Fault), and 1,500 metres of strike length in the shallower eastern portions of the Bonanza Zone; defined by drill sections spaced 50 metres apart on strike in the central section, and 100 metres apart on strike elsewhere.
At a 1% cut-off, the current, combined Indicated Mineral Resources for the Kamoa-Kakula Project now totals 1.387 billion tonnes grading 2.74% copper, containing 83.7 billion pounds of copper. At the same 1% cut-off, Kamoa-Kakula’s combined Inferred Mineral Resources now total 339 million tonnes grading 1.68% copper, containing 12.5 billion pounds of copper.
At a higher 3% cut-off, the current, combined Indicated Mineral Resources for the Kamoa-Kakula Project now totals 423 million tonnes grading 4.68% copper, containing 43.7 billion pounds of copper. At the same 3% cut-off, Kamoa-Kakula’s combined Inferred Mineral Resources now total 17 million tonnes grading 3.51% copper, containing 1.3 billion pounds of copper.
The new Kamoa Indicated and Inferred Mineral Resource estimate was prepared by George Gilchrist, Ivanhoe Mines’ Vice President, Resources, under the direction of Gordon Seibel, RM SME, of the Wood Group (formerly Amec Foster Wheeler E&C Services Inc.) of Reno, USA, and is reported in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. Mr. Seibel is the Qualified Person for the estimate. The effective date of the estimate is January 30, 2020, and the cut-off date for drill data is January 20, 2020. There has been no change to the Mineral Reserve estimate at Kamoa-Kakula.
More than 14.4 kilometres of underground development now completed as the project tracks towards first production in Q3 2021
A total of 11.8 kilometres of underground development was completed by the end of Q1 2020, which was 3.4 kilometres ahead of plan. A record of 1.7 kilometres advancement was achieved at Kakula in April. As of May 8, more than 14.4 kilometres of underground development had been completed ─ approximately 4.4 kilometres ahead of plan.
Mine access drives 1 and 2 (interconnected, parallel tunnels that will provide access to ore zones) continue to progress well towards the southern portion of the orebody. Development also is well advanced on the eastern perimeter drives and the room-and-pillar mining area.
Development from the southern portal has reached south access drives 1 and 2, with mining crews working to establish the connection of these drives with mine access drives 1 and 2 from the north side of the orebody, which is scheduled to occur in September 2020.
A second owner crew was added in March bringing the total number of underground mining crews to nine. The project will continue to add additional crews over the next 12 months to further accelerate development. One training crew is currently operating at the Kansoko mine.
A sample of Kakula’s predominant type of ore ─ fine-grained, gray-coloured chalcocite. This sample grades 211.9 thousand parts per million copper, or 21.19% (Cu). Chalcocite (Cu2S) is nearly 80% copper by weight.
Flory Wavumba Ilunga (Drill Rig Operator) drilling rock-bolt holes into the ceiling of the new water dam being constructed at Kakula’s room-and-pillar mining area. Anchor bolts will be inserted into the holes as an additional safety measure to reinforce the excavated tunnel.
Engineering, procurement and construction advancing well
Project engineering and procurement activities are advancing well. The current primary construction focus that runs through the project’s critical path is the installation of the underground rock handling system, the processing plant and the electrical high-voltage infrastructure installation.
Construction of the underground rock handling system is almost complete, with certain commissioning activities underway. There have been some commissioning delays associated with the site lockdown due to the COVID-19 pandemic. This has affected delivery of commissioning equipment and the deployment of commissioning engineers. The revised date for the first ore delivered to surface on the conveyor system is June 2020.
The reaming of Ventilation Shaft 2 recently was finished in March 2020, bringing the number of 5.5-metre-diameter ventilation shafts completed at Kakula to three (Ventilation Shafts 1 & 2, and Ventilation Shaft North West). The raise bore machine has been moved to Ventilation Shaft North East to start drilling a pilot hole. Ventilation Shaft 1 was fully commissioned with high-capacity fans installed in 2019, while Ventilation Shaft North West and Ventilation Shaft 2 are expected to be commissioned later this year. Ventilation Shaft North East is scheduled to be commissioned in March 2021.
Civil construction of the process plant is in progress with over 9,000 cubic metres of concrete poured and numerous work areas under construction. Fabrication of the ball mills is underway at CITIC Heavy Industries’ factory in Luoyang, China. The process plant long lead items have started to arrive on site, with the ball mills scheduled to arrive in mid-2020.
Construction of the new 220-kilovolt overhead power line, as well as the new electrical switching substation is underway and the switchgear has been ordered.
Construction of the new road linking Kamoa-Kakula with the Kolwezi airport is complete, as well as the new road connecting the Kamoa camp to the Kakula mine. The contractor has now started construction of the new sand haulage road which will connect the sand pit to the backfill plant.
All accommodation at the Kakula village has been completed and is occupied. Construction of the kitchen, mess area and laundry is well advanced.
Cutting Kakula’s ball mill girth gear at CITIC Heavy Industries’ factory in Luoyang, China.
Machining of the ball mill shell at CITIC Heavy Industries’ factory.
Exploration success leads to discovery of shallow, thick, ultra-high grade Kamoa North Bonanza Zone
Drilling activities in Q1 2020 were focused on further definition of known high grade trends in the typical mineralized horizon (Ki1.1.1) at Kamoa North. No further drilling has been done in the Bonanza Zone.
During Q1 2020, 25 holes totalling 5,195 metres were drilled in Kamoa North. Eighteen diamond drill holes were completed in the north-south high-grade trend with X-Ray Florescence (XRF) testwork suggesting several holes with good intersections of copper mineralization. Five drill holes were completed south of the Bonanza Zone to test the typical mineralized horizon. These holes were drilled below a proposed Kamoa North decline tunnel to target the central high-grade portion of the Bonanza Zone. Visual indications within these areas suggested positive results and will require further studies on viable box-cut locations.
The Induced Polarization (IP) survey planned in the Bonanza Zone has been affected by travel restrictions imposed as a response to the COVID-19 pandemic. A decision to conduct this survey will be reviewed in the future.
Mike Mwamba (Geology Technician) logging drill core from Kamoa North. On February 6, 2020, Ivanhoe announced that the Indicated Mineral Resource for the Kamoa North Bonanza Zone includes 1.5 million tonnes grading 10.7% copper, at a 5% copper cut-off.
Map of Kamoa North showing the location of holes completed during Q1 2020 (black dots) and holes completed before 2020 (gray dots).
Development options at Kamoa North being considered
All geotechnical and hydrogeological drilling to provide support for future mining studies has been completed and a final resource model has been prepared. Metallurgical flotation test work has yielded positive results in line with expected performance.
A number of different mine development scenarios and mining methods are being reviewed and optimized.
Ongoing upgrading work enables Mwadingusha hydropower station to supply clean electricity to the national grid
Ongoing upgrading work at the Mwadingusha hydropower plant in the DRC has significantly progressed with major equipment being delivered to site. The power station was shut down to replace sections of penstocks that were found to be in an advanced stage of corrosion. The turbines will be fully refurbished and modernized with state-of-the-art control and instrumentation. The progressive re-commissioning of the turbines is underway with four turbines expected to be in operation by December 2020 and the two remaining turbines in Q1 2021. The refurbished plant is projected to deliver approximately 72 MW of power to the national grid.
The work at Mwadingusha is being conducted by engineering firm STUCKY of Lausanne, Switzerland, under the direction of Ivanhoe Mines and Zijin Mining, in conjunction with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL SA).
The Kansoko Mine, Kakula Mine and Kamoa camp have been connected to the national hydroelectric power grid since the completion of a 20-kilometre long, 120-kilovolt, single-circuit power line between Kansoko and SNEL SA’s high voltage national grid in September 2016. A 12-kilometres long, 120-kilovolts, dual-circuit power line between Kansoko and Kakula was completed in December 2017. The design of permanent, 11-kilovolt reticulation to the ventilation shafts and mine has started, which includes substations, overhead lines and surface cables.
Aerial view of the Mwadingusha hydropower plant that Ivanhoe and Zijin are upgrading in a private-public partnership venture with the DRC’s state-owned power company, La Société Nationale d’Electricité, to provide long-term, environmentally-friendly electricity for the Kamoa-Kakula Project and the Congolese people.
Assembling one of the alternator cooling systems at the Mwadingusha hydropower plant. The upgrading program is restoring the plant to its installed output capacity of approximately 72 megawatts of clean, sustainable electricity.
Continued focus on enriching communities through sustainable development
The Kamoa-Kakula Sustainable Livelihoods Program is committed to sustainable development in the communities within the project’s footprint. The main objective of the livelihoods program is to enhance food security and living standards of the people who reside within the project area. The program consists primarily of fish farming, poultry production, beekeeping and food crops, including farming of maize (corn), vegetables and bananas. With the increase in development activities at the project, a significant number of employment opportunities have also been made available to residents of the local communities.
The Sustainable Livelihoods Program started in 2010 in an effort to strengthen food security and farming capacity in the host communities near Kamoa-Kakula by establishing an agricultural training garden and support for farmers at the community level. Today, approximately 350 community farmers are benefiting from the Sustainable Livelihoods Program, producing high-quality food for their families and selling the surplus for additional income.
Additional non-farming related activities for Q1 2020 included education and literacy programs, the continuation of a community brick-making program and the supply of fresh water to a number of local communities using solar powered boreholes.
Construction of resettlement houses for the second phase of the relocation program is underway. The survey for the final phase of relocation has been completed and crop compensation will commence shortly, with only five permanent structures being identified. The entire Kakula mine area, including the tailings dam area, will be secured once these relocation phases are complete.
Matemba Mulemba Mamy, a member of the Community Banana Cooperative, picks bananas from a farm near the Kamoa-Kakula Project, part of the Kamoa-Kakula Sustainable Livelihood Program.
2. Platreef Project
64%-owned by Ivanhoe Mines
The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with approximately 150,000 people, project employees and local entrepreneurs. In Q2 2019, Ivanplats reached Level 2 contributor status in its verification assessment on the B-BBEE scorecard. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million.
The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province ─ approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane.
On the Northern Limb, platinum-group metals mineralization is hosted primarily within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe’s Platreef Project, within the Platreef’s southern sector, is comprised of two contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of mining operations and properties.
Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly-mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties, which form part of the company’s mining right.
As part of the company-wide cost-cutting measures announced on April 27, 2020, Ivanhoe’s board of directors allocated a reduced total budget for 2020 of $41.7 million for the Platreef Project, of which $31.4 million remains for balance of the year. The sinking of Platreef’s Shaft 1 will continue and be completed to facilitate a relatively quick transition to production.
Health and safety at Platreef
At the end of Q1 2020, the Platreef Project reached a total of 528,416 lost-time, injury-free hours worked in accordance with South Africa’s Mine Health and Safety Act, and Occupational Health and Safety Act. It has been more than four months since the last lost-time injury occurred at the Platreef Project.
In response to the country-wide lock down imposed by the South African Government due to the COVID-19 pandemic, Platreef temporarily suspended its shaft-sinking operations from March 26, 2020. During the suspension, the project kept a small workforce to keep the operation ready for when development resumed. Since April 21, 2020, following the announcement of amended regulations authorizing South African mines to operate at a workforce capacity of 50%, site activities have steadily increased with shaft sinking having resumed under strict mitigation controls.
All employees undergo intensive screening and testing and a full medical evaluation prior to returning to work, which includes a safety refresher and COVID-19 training. Quarantine facilities have been set up in close proximity to the site should there be positive infection cases.
Private transport has been arranged to collect employees from their homes and temperature screening is conducted prior to transport to work. Social distancing, face masks and sanitizing requirements are additional measures implemented during work-related transport. All employees entering the site are subject to temperature screening and the use of appropriate face masks are mandatory. Various other infection control measures have been implemented at the mine site to mitigate the COVID-19 risk.
Platreef phased development plan and update of DFS
Ivanhoe is investigating a phased development plan for the Platreef Project, targeting significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft. This plan will focus on initially targeting the development of mining zones accessible from Shaft 1 and maximizing the hoisting capacity of this shaft, followed by expansions to the production rate as outlined in the DFS.
Concurrently, Ivanhoe is updating the Platreef Project’s DFS to take into account development schedule advancement since 2017 when the DFS was completed, updated costs and refreshed metal prices and foreign exchange assumptions. This update, together with the study on the phased development plan, is scheduled for completion in Q3 2020.
Roelof van Wyk (Fitter) records details from his daily inspections in the Winder Control Room for Platreef’s Shaft 1.
Shaft 1 now extends to more than 975 metres below surface
Shaft 1 reached the top of the high-grade Flatreef Deposit (T1 mineralized zone) at a depth of 780.2 metres below surface in Q3 2018 and has since been extended to a depth of more than 975 metres below surface. The thickness of the mineralized orebody (T1 and T2 mineralized zones) at Shaft 1 is 29 metres, with grades of platinum-group metals ranging up to 11 grams per tonne (g/t) 3PE (platinum, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper. The 29-metre intersection yielded approximately 3,000 tonnes of ore, estimated to contain more than 400 ounces of platinum-group metals. The ore is stockpiled on surface for further metallurgical sampling.
The 750-, and 850-metre-level station developments have successfully been completed and the 950-metre-level station development is nearing completion. The final shaft bottom will be approximately 1,000 metres below surface and is expected to be reached in Q3 2020. The three development stations will provide initial, underground access to the high-grade orebody. Shaft 1 changeover detailed designs have commenced and will enable Shaft 1 to be configured for permanent rock hoisting.
Adam Cooper (Rock Engineering Manager) conducting an inspection of Shaft 1’s 950-metre-level station in early May, in advance of the resumption of shaft-sinking.
Tumelo (left) and Temba (right) inspect mine headlamps and self-rescue devices for shaft-sinking crews developing Platreef’s Shaft 1.
Underground mining to incorporate highly-productive, mechanized methods
The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. When completed, Shaft 2 is expected to provide primary access to the mining zones; secondary access is expected to be via Shaft 1. During mine production, both shafts also are expected to serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production.
Planned mining methods will use highly-productive, mechanized methods, including long-hole stoping and drift-and-fill mining. Each method will utilize cemented backfill for maximum ore extraction. The ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface.
Platreef’s Shaft 1 is now at a depth of 975.3 metres below surface. The shaft will be sunk to a final depth of approximately 1,000 metres.
Victor Skinner (Winder Technician) assembles a pumping programmable logic controller (PLC) to be installed at Shaft 1’s 950-metre-level station.
Long-term supply of bulk water secured for the Platreef Mine
On May 7, 2018, Ivanhoe announced the signing of a new agreement to receive local, treated water to supply most of the bulk water needed for the first phase of production at Platreef. The Mogalakwena Local Municipality has agreed to supply a minimum of five million litres of treated water a day for 32 years, beginning in 2022, from the town of Mokopane’s new Masodi Treatment Works. Initial supply will be used in Platreef’s ongoing underground mine development and surface infrastructure construction.
Under the terms of the agreement, which is subject to certain suspensive conditions, Ivanplats will provide financial assistance to the municipality for certified costs of up to a maximum of R248 million (approximately $16 million) to complete the Masodi treatment plant. Ivanplats will purchase the treated wastewater at a reduced rate of R5 per thousand litres for the first 10 million litres per day to offset a portion of the initial capital contributed.
Ivanplats received its Integrated Water Use Licence in January 2019, which is valid for 30 years and enables the Platreef Project to make use of water as planned in the 2017 DFS.
Development of human resources and job skills
Consultation regarding the Platreef Project’s second Social and Labour Plan (SLP) is in the final stages. In this second SLP, Ivanplats plans to build on the foundation laid in the first SLP and continue to focus on training and development, local economic development projects and enterprise and supplier development.
3. Kipushi Project
68%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kipushi copper-zinc-germanium-lead mine, in the DRC, is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located on the Central African Copperbelt, approximately 250 kilometres southeast of the Kamoa-Kakula Project and less than one kilometre from the Zambian border. Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the state-owned mining company, Gécamines.
As part of the company’s cost-cutting measures announced on April 27, 2020, Ivanhoe’s board of directors allocated a reduced total budget for 2020 of $28.7 million for the Kipushi Project, of which approximately $20.2 million remains for the rest of the year.
Health, safety and community development
At the end of Q1 2020, the Kipushi Project reached a total of 2,269,815 work hours free of lost-time injuries. It has been more than 16 months since the last lost-time injury occurred at the Kipushi Project.
In response to government-imposed travel restrictions and emergency protocols being introduced worldwide due to the COVID-19 pandemic, Kipushi has temporarily suspended mine development operations in order to reduce the risk to the workforce and local communities. The project is maintaining a reduced workforce to conduct maintenance activities and to maintain pumping operations.
Ivanhoe Mines and its joint-venture partners are committed to bringing clean water solutions to local communities near all of its mining projects. A girl from a community near Kipushi obtains fresh water from one of the new, solar-powered wells constructed by the Kipushi Mine.
The Kipushi Project operates a potable-water station to supply the municipality of Kipushi with water. This includes power supply, disinfectant chemicals, routine maintenance, security, and emergency repair of leaks to the primary reticulation. Other community development projects initiated before being suspended in response to the COVID-19 pandemic, included the Kipushi women’s literacy project, the sewing training centre project and the upgrading of the Mungoti School near the Kipushi Project.
Definitive feasibility study in final stages of completion
The Kipushi Project’s PFS, announced by Ivanhoe Mines on December 13, 2017, anticipated annual production of an average of 381,000 tonnes of zinc concentrate over an 11-year, initial mine life at a total cash cost of approximately $0.48 per pound (lb) of zinc.
Highlights of the PFS, based on a long-term zinc price of $1.10/lb, include:
- After-tax net present value (NPV) at an 8% real discount rate of $683 million.
- After-tax real internal rate of return (IRR) of 35.3%.
- After-tax project payback period of 2.2 years.
- Pre-production capital costs, including contingency, of $337 million.
- Existing surface and underground infrastructure allows for significantly lower capital costs than comparable greenfield development projects.
- Life-of-mine average planned zinc concentrate production of 381,000 dry tonnes per annum, with a concentrate grade of 59% zinc, is expected to rank Kipushi, once in production, among the world’s largest zinc mines.
All figures are on a 100%-project basis unless otherwise stated. Estimated life-of-mine average cash cost of $0.48/lb of zinc is expected to rank Kipushi, once in production, in the bottom quartile of the cash-cost curve for zinc producers internationally.
The Kipushi Project’s definitive feasibility study (DFS) is nearing completion, and some aspects of the design have already been progressed into a detailed engineering phase.
Project development and infrastructure
Although development and rehabilitation activities in Q1 2020 were limited, significant progress has been made in recent years modernizing the Kipushi Mine’s underground infrastructure as part of preparations for the mine to resume commercial production, including upgrading a series of vertical mine shafts to various depths, with associated head frames, as well as underground mine excavations and infrastructure. A series of crosscuts and ventilation infrastructure still is in working condition and have been cleared of old materials and equipment to facilitate modern, bulk-mechanized mining. The underground infrastructure also includes a series of pumps to manage the mine’s water levels, which now are easily maintained at the bottom of the mine.
Tresor Muweji setting up the actuator (the component that turns a control signal into mechanical action) for the new pumping station on Kipushi’s 850-metre-level.
Shaft 5 is eight metres in diameter and 1,240 metres deep and has been upgraded and re-commissioned. The main personnel and material winder has been upgraded and modernized to meet international industry standards and safety criteria. The Shaft 5 rock-hoisting winder also is fully operational with new rock skips, new head- and tail-ropes, and attachments installed. The two newly-manufactured rock conveyances (skips) and the supporting frames (bridles) have been installed in the shaft to facilitate the hoisting of rock from the main ore and waste storage silos feeding rock on the 1,200-metre level.
The main haulage way on the 1,150-metre level, between the Big Zinc access decline and Shaft 5 rock load-out facilities, has been resurfaced with concrete so the mine now can use modern, trackless, mobile machinery. A new truck-tipping bin, which feeds into the large-capacity rock crusher located directly below, has been installed on this level. The old winder at P2 Shaft has been removed and construction of the new foundation, along with assembly and installation of the new modern winder, has been completed and fully commissioned after passing safety inspection and testing procedures.
Ngoi Kisula Jr., Instrumentation Engineer (left), and Sammy Wandalika, Electrical Assistant in training (right), at Kipushi’s 850-metre-level motor control centre that has a fibre optics linkage to the control room on surface.
4.Western Foreland Exploration Project
100%-owned by Ivanhoe Mines
Democratic Republic of Congo
Ivanhoe’s DRC exploration group is targeting Kamoa-Kakula-style copper mineralization through a regional drilling program on its 100%-owned Western Foreland exploration licences, located to the north, south and west of the Kamoa-Kakula Project. Exploration activities on the Western Foreland's exploration project in DRC will continue with a 2020 budget of $8 million, of which approximately $6 million remains for the rest of the year.
During Q1 2020, the drilling program was focused within the Makoko area targeting the extension of mineralization to the east, west and south-west. Drilling was limited due to excessive rains and limited access to drill targets.
Exploration drilling at Makoko
Drilling continued within the Makoko area, located west of the Kakula mining licence. In Q1 2020, six holes were drilled for a total of 2,103 metres at Makoko. Four shallow holes (DMKK108-109-110-112) have been drilled with the Land Cruiser rigs for stratigraphic interpretation. The main objective of the drilling is to test the possible extension of the near-surface mineralization to the west of Makoko.
Two deeper holes (DMKK111 and DMKK113) were drilled by a contractor to target the extension of mineralization east and south-west of the Makoko discovery.
Drill-hole locations and geology map within the Makoko discovery area.
Geophysics to assist with target generation
A ground-gravity survey is ongoing in eastern part of Makoko to assist with target generation. Petrophysical activities were conducted during Q1 2020. The goal of this work is to understand the magnetic and density characteristics of the different lithologies and stratigraphy within the broader exploration area.
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period and did not declare or pay any dividend or distribution in any financial reporting period.
DISCUSSION OF RESULTS OF OPERATIONS
Review of the three months ended March 31, 2020 vs. March 31, 2019
The company recorded a total comprehensive loss of $76.6 million for Q1 2020 compared to a profit of $3.4 million for the same period in 2019. The comprehensive loss for Q1 2020 included an exchange loss on translation of foreign operations of $62.5 million, resulting from the weakening of the South African Rand by 28% from December 31, 2019, to March 31, 2020, compared to an exchange loss on translation of foreign operations recognized in Q1 2019 of $0.5 million.
Finance income for Q1 2020, amounted to $20.8 million, and was $4.9 million more than for the same period in 2019 ($15.9 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $16.3 million for Q1 2020, and $12.0 million for the same period in 2019, and increased as the accumulated loan balance increased. Interest received on cash and cash equivalents decreased due to US interest rate cuts by the Federal Reserve, even though the company had a higher cash balance during Q1 2020.
Exploration and project expenditure amounted to $12.0 million in Q1 2020 and $1.4 million for the same period in 2019. While all the exploration and project expenditure incurred in Q1 2019 related to exploration at Ivanhoe’s 100%-owned Western Foreland exploration licences, Q1 2020 also included $10.0 million spent at the Kipushi Project which was on reduced activities and incurred limited costs of a capital nature in the quarter. The main classes of expenditure at the Kipushi Project in Q1 2020 and Q1 2019 are set out in the following table:
The company’s share of losses from the Kamoa Holding joint venture increased from $5.9 million in Q1 2019 to $6.7 million in Q1 2020. The following table summarizes the company’s share of the profits and losses of Kamoa Holding for the three months ended March 31, 2020, and for the same period in 2019:
The finance costs in the Kamoa Holding joint venture relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
Financial position as at March 31, 2020 vs. December 31, 2019
The company’s total assets decreased by $79.0 million, from $2,444.7 million as at December 31, 2019, to $2,365.7 million as at March 31, 2020. The company utilized $18.4 million of its cash resources in its operations and received interest of $2.9 million during Q1 2020.
Property, plant and equipment decreased by $50.1 million, from $421.1 million as at December 31, 2019, to $371.0 million as at March 31, 2020. The decrease resulted from foreign exchange translation of $59.3 million due to the weakening of the South African Rand by 28% from December 31, 2019, to March 31, 2020. A total of $10.8 million was spent on project development and to acquire other property, plant and equipment, $10.4 million of which pertained to development costs and other acquisitions of property, plant and equipment at the Platreef Project.
The main components of the additions to property, plant and equipment - including capitalized development costs - at the Platreef Project for the three months ended March 31, 2020, and for the same period in 2019, are set out in the following table:
Costs incurred at the Platreef Project are deemed necessary to bring the project to commercial production and are therefore capitalized as property, plant and equipment.
The company’s investment in the Kamoa Holding joint venture increased by $72.5 million from $912.6 million as at December 31, 2019, to $985.1 million as at March 31, 2020, with each of the current shareholders funding the operations equivalent to their proportionate shareholding interest. The company’s portion of the Kamoa Holding joint venture cash calls amounted to $62.9 million during the three months ending March 31, 2020, while the company’s share of losses from the joint venture amounted to $6.7 million.
The company’s investment in the Kamoa Holding joint venture can be broken down as follows:
The Kamoa Holding joint venture principally uses loans advanced to it by its shareholders to advance the Kamoa-Kakula Project through investing in development costs and other property, plant and equipment, as well as continuing with exploration. This can be evidenced by the movement in the company’s share of net assets in the Kamoa Holding joint venture which can be broken down as follows:
The Kamoa Holding joint venture’s net increase in property, plant and equipment from December 31, 2019, to March 31, 2020, amounted to $90.6 million and can be further broken down as follows:
The company’s total liabilities decreased by $6.3 million to $75.6 million as at March 31, 2020, from $81.9 million as at December 31, 2019, due to a $6.0 million decrease in trade and other payables.
LIQUIDITY AND CAPITAL RESOURCES
The company had $603.4 million in cash and cash equivalents as at March 31, 2020. At this date, the company had consolidated working capital of approximately $592.0 million, compared to $688.5 million at December 31, 2019.
Since December 8, 2015, each shareholder in Kamoa Holding has been required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
The Platreef Project’s current expenditure is being funded solely by Ivanhoe, through an interest bearing loan to Ivanplats, as the Japanese consortium has elected not to contribute to current expenditures.
The company will reduce its global office footprint and its corporate and senior management headcount, in addition to implementing several other company-wide, cash-saving measures. Ivanhoe’s head office will remain in Sandton (South Africa) and be supported by satellite offices in Beijing (China) and London (United Kingdom). The company has budgeted to spend $17.8 million on corporate overheads for the remainder of 2020.
Ivanhoe’s board of directors allocated a reduced 2020 budget of $41.7 million for the Platreef Project, of which $31.4 million is allocated for the remainder of 2020, where the sinking of Platreef’s Shaft 1 will continue. The company also allocated a reduced 2020 budget of $28.7 million for the Kipushi Project, of which $20.2 million is allocated for the remainder of 2020. Exploration activities on the Western Foreland's exploration project in DRC will continue with a 2020 budget of $8.0 million, of which $6.0 million is allocated for the remainder of 2020. At the Kamoa-Kakula Project, the priority remains the continuation of mine development work at Kakula where initial copper concentrate production is scheduled for the third quarter of 2021. The company has budgeted $337 million for its proportionate funding of the Kamoa-Kakula Project for the remainder of 2020.
As Ivanhoe continues to advance its projects, the company’s management has reviewed and assessed numerous alternatives to finance its share of construction costs for the Kakula Copper Mine and to advance exploration and development initiatives at its other projects in Southern Africa. These alternatives include, but are not limited to, existing liquidity sources, including cash, receivables and investments, selling assets, project financing, streaming or royalty transactions, equipment and debt financing. While Ivanhoe expects that it will continue to have sufficient cash resources or project-related financing options available to cover its share of the initial capital costs at the Kakula Mine, the company will continue to seek out and review opportunities presented to Ivanhoe, having regard to the best interests of Ivanhoe as well as to Ivanhoe’s operations and financial position, industry conditions and geopolitical considerations.
This news release should be read in conjunction with Ivanhoe Mines’ audited 2019 Financial Statements and Management’s Discussion and Analysis report available at www.ivanhoemines.com and at www.sedar.com.
Disclosures of a scientific or technical nature regarding the revised capital expenditure and development scenarios at the Kamoa-Kakula Project in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is the Head of the Kamoa Project. Mr. Amos has verified the technical data disclosed in this news release.
Other disclosures of a scientific or technical nature in this news release have been reviewed and approved by Stephen Torr, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is the Vice President, Project Geology and Evaluation. Mr. Torr has verified the other technical data disclosed in this news release.
Ivanhoe has prepared a current, independent, NI 43-101-compliant technical report for each of the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project, which are available under the company’s SEDAR profile at www.sedar.com:
- The Kamoa-Kakula 2020 Resource Update dated March 25, 2020, prepared by OreWin Pty Ltd., Wood plc, DRA Global, SRK Consulting (South Africa) (Pty) Ltd and Stantec Consulting International LLC, covering the Company’s Kamoa-Kakula Project;
- The Platreef 2017 Feasibility Study Technical Report dated September 4, 2017, prepared by DRA Global, OreWin Pty. Ltd., Amec Foster Wheeler, Stantec Consulting, Murray & Roberts Cementation, SRK Consulting, Golder Associates, and Digby Wells Environmental, covering the company’s Platreef Project; and
- The Kipushi 2019 Mineral Resource Update dated March 28, 2019, prepared by OreWin Pty Ltd., MSA Group (Pty) Ltd., SRK Consulting (South Africa) (Pty) Ltd and MDM (Technical) Africa Pty Ltd. (a division of Wood PLC), covering the company’s Kipushi Project.
These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release in respect of the Platreef Project, Kipushi Project and Kamoa-Kakula Project. Additional information regarding the company, including the company’s Annual Information Form, is available on SEDAR at www.sedar.com.
Bill Trenaman +1.604.331.9834
Matthew Keevil +1.604. 558.1034
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of the company’s Q1 2020 MD&A.
Such statements include without limitation, the timing and results of: (i) statements regarding first copper concentrate production at the Kakula Mine in Q3 2021; (ii) statements regarding the pace of underground development at the Kakula Mine is expected to continue to accelerate as additional mining crews are mobilized; (iii) statements regarding Kakula’s high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper; (iv) statements regarding the expectation that Kakula’s ball mills are scheduled for arrival in mid-2020; (v) statements regarding refurbishment of six turbines at the Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure is progressing and that four turbines are expected to be operational by December 2020, the remaining two in Q1 2021, and the refurbished plant is projected to deliver approximately 72 megawatts of power to the national grid; (vi) statements regarding the Platreef Project’s first shaft (Shaft 1) is scheduled to be completed to a final depth of approximately 1,000 metres in Q3 2020; (vii) statements regarding a phased development production plan for the Platreef Project that targets significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 definitive feasibility study; (viii) statements regarding the planned expansion in initial plant capacity at Kakula from 3.0 Mtpa to 3.8 Mtpa and the planned increase in the underground mining crews in 2020 from 11 to 14 to ensure sufficient mining operations to feed the expanded plant throughput; (ix) statements regarding the updated estimate of Kakula’s initial capital costs is approximately $1.3 billion as of January 1, 2019, which assumes commissioning of the processing plant in Q3 2021 and includes expanded plant capacity and pre-production ore stockpiles; (x) statements regarding the planned mining methods at Platreef will use highly productive, mechanized methods, including long-hole stoping and drift-and-fill mining, and that each method will utilize cemented backfill for maximum ore extraction; (xi) statements regarding an independent DFS for the Kakula Mine is underway with an expected completion date of Q3 2020, and at the same time, Ivanhoe expects to issue an updated preliminary economic assessment for the expanded Kamoa-Kakula combined production scenario that will include an updated Mineral Resource estimate for Kamoa North, including the initial Mineral Resource estimate for the Kamoa North Bonanza Zone; (xii) statements regarding the forthcoming Kakula DFS will incorporate detailed design, engineering and procurement, with the plans to increase the initial processing plant ore capacity by approximately 26% from 3.0 Mtpa to 3.8 Mtpa; (xiii) statements regarding Ivanhoe’s expectation that it will continue to have sufficient cash resources or project-related financing options available to cover its share of the initial capital costs; (ixv) statements regarding timing and duration of reduced activities at the Platreef and Kipushi projects; (xv) statements regarding the company targeting company-wide cash savings of up to $75 million to strengthen the current treasury; and (xvi) statements regarding the expected expenditure for the remainder of 2020 of $31.4 million on further development at the Platreef Project; $20.2 million at the Kipushi Project; $6 million on regional exploration in the DRC; and $17.8 million on corporate overheads – as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $337 million for the remainder of 2020.
As well, all of the results of the pre-feasibility study for the Kakula copper mine and the updated and expanded Kamoa-Kakula Project preliminary economic assessment, the feasibility study of the Platreef Project and the pre-feasibility study of the Kipushi Project, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, Platreef and Kipushi projects, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xiv) changes in project scope or design, and (xv) political factors.
This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgments. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under “Risk Factors”, and elsewhere in the company’s MD&A for the three months ended March 31, 2020, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the company’s MD&A for the three months ended March 31, 2020.
加拿大多伦多 — 艾芬豪矿业 (TSX: IVN; OTCQX: IVPAF) 今天公布其截至 2020年3月31日止的季度财务业绩。艾芬豪矿业是一家加拿大的矿业公司，目前正开发其位于非洲南部的三大矿山项目﹕位于刚果民主共和国(以下简称“刚果”) 卡莫阿-卡库拉(Kamoa-Kakula) 铜矿、位于南非的普拉特瑞夫(Platreef) 钯-铂-镍-铜-金-铑矿，以及同样位于刚果、历史上著名的基普什(Kipushi) 锌-铜-铅-锗矿山的全面复产工程。
- 作为卡莫阿-卡库拉项目多个计划开采范围中的首个开采区，卡库拉铜矿的开发进度表现优异。第一条直通卡库拉高品位矿化带 (铜品位 8% 以上) 的地下运输通道已经于4 月贯通。艾芬豪及其合资伙伴紫金矿业正在快速推进年处理能力 380 万吨的选矿厂和其他地表基础设施工程，并计划于 2021 年第三季度生产首批铜精矿。
- 同步于卡库拉铜矿的建设推进，卡库拉的独立最终可行性研究(DFS) 和卡莫阿-卡库拉矿群的综合开发计划更新版正在编撰当中，并预计将按计划于2020年第三季度完成。由于大多数建设合同和重大资本项目的订单价格已定，卡库拉的独立最终可行性研究将为卡库拉矿山的首期项目开发提供非常准确的的经济数据。综合开发计划将包括卡莫阿-卡库拉矿群后续扩产的详细计划。
- 与此同时，艾芬豪按照世界卫生组织提倡的指导方针，任命了一个专项任务组总体负责COVID-19的应对方案。该任务组由儿科传染病专家兼南非比勒陀利亚大学教授Nicolette Du Plessis医生领衔，成员包括多名专科医生、医护人员、护士以及数名世界一流的流行病学顾问。
- 2020年3月11日，艾芬豪宣布首席财务官玛娜·科洛特 (Marna Cloete) 晋升为总裁，同时兼任首席财务官。公司的新执行委员会由总裁兼首席财务官玛娜·科洛特带领，成员包括可持续发展与特殊项目执行副总裁帕翠莎·马凯莎(Patricia Makhesha)博士、非洲业务执行副总裁马修·波斯 (Matthieu Bos)、中国业务执行副总裁周超(Peter Zhou) 以及最近晋升为技术服务执行副总裁的皮埃尔·乔伯特 (Pierre Joubert)。
- 卡库拉选矿厂的施工进展理想，并已灌入9,000立方米以上的混凝土。钢结构、选矿厂组件以及球磨机的铸造正在进行。选矿厂的长周期设备已陆续抵达现场，球磨机预计于 2020年年中抵达。
- Mwadingusha水电站的 6 台涡轮机翻新及相关的 220 千瓦基础设施工程进展顺利，后续将向卡库拉矿山供应清洁的水电。其中4台涡轮机预计于2020年12月投入服务，余下2台将于2021年一季度投入使用。发电站修复后预计将以约 72 兆瓦的功率向刚果国家电网输送电力。
- 艾芬豪于2020年2月5日发布了经独立验证的更新版控制级（Indicated）矿产资源报告，以3% 边界品位计算，该报告把卡莫阿-卡库拉项目的加总控制级矿产资源增加至4.23 亿吨品位4.68%铜矿石。以 1% 边界品位计算，卡莫阿-卡库拉项目的加总控制级矿产资源目前达到了 14 亿吨品位2.7%铜矿石。
- 卡莫阿北部富矿区初步估算的控制级矿产资源包括了 150 万吨品位高达10.7%的铜矿石 (以 5% 边界品位计算)。今年一季度，艾芬豪在超高品位富矿区和远北区的邻近区域继续钻孔，旨在发现更多矿产资源。鉴于在卡莫阿北部富矿区内发现了浅层、厚大的块状硫化铜矿体，卡莫阿-卡库拉的工程师正在评估优先开发该区域的可能性。
- 沿东西走向的构造控制了卡莫阿北部富矿区的块状硫化铜矿体，从航空磁力图像可见该构造的轮廓，其长度可达20 公里。构造向西延伸至艾芬豪矿业全资拥有的西部前沿勘探项目。目前，艾芬豪控制着卡莫阿-卡库拉开采许可范围周边极具勘查前景的2,500 平方公里土地。
- 钻孔工程还确认了卡莫阿北部高品位铜结构已延伸至 Kiala 勘探区内至少 800 米。 Kiala 勘探区是艾芬豪全资拥有的西部前沿勘探许可范围的一部分，毗邻卡莫阿-卡库拉开采许可范围北部。
- 南非普拉特瑞夫矿山开发项目的第一个矿井（一号矿井）已掘进地表以下逾 975 米深。预计将于 2020 年第三季度完成最终深度近1,000米的矿井建设。
- 艾芬豪目前正为普拉特瑞夫项目研究分期开发生产方案，以大幅减低初期资本为目标，利用一号矿井作为矿场的首采井以加速投产，然后再扩产至2017年最终可行性研究 (DFS) 报告的设计生产规模。同时，艾芬豪正在更新普拉特瑞夫项目的最终可行性研究报告，涵盖2017年最终可行性研究报告完成以来的开发进展、成本更新以及金属价格和外汇假设调整。
- 截至2020年3月底，卡莫阿-卡库拉已连续201 万个工时没有发生失时工伤，普拉特瑞夫已连续528,416 个工时没有发生失时工伤，而基普什已连续227万个工时没有发生失时工伤。
为响应世界各地政府实施的旅行限制和紧急应对措施，公司旗下的三个矿山项目（卡莫阿-卡库拉、普拉特瑞夫和基普什）都实施了严格的检疫和封锁隔离流程，以防止病毒在矿区蔓延。至今为止，艾芬豪旗下各项目尚未出现任何 COVID-19 病例。
根据南非政府于 3 月 26 日实施的全国封锁令，普拉特瑞夫暂停了凿井作业，直到 4 月底在矿山精简人员并制定严格的COVID-19防控流程的情况下重启建设。基普什暂停开发工作，以减少对员工和当地社区居民的疫病风险。
按照世界卫生组织的指导方针，公司高管已任命了一个专项任务组，由其总体负责COVID-19应对方案。该任务组由儿科传染病专家兼比勒陀利亚大学教授Nicolette Du Plessis医生领衔，成员包括多名专科医生、医护人员、护士以及数名世界一流的流行病学家顾问。Du Plessis医生是南部非洲儿科传染病学会会长，还是南部非洲传染病学会联合会的候任会长。
该专项任务组携手卡莫阿-卡库拉项目的医疗服务团队以及来自英国的医疗服务提供商Medical Support Solutions，采纳了全球医疗专家的最佳建议，对整个公司实施了关键性的疫病应对流程，以确保最大程度地减少疫情对公司运营的冲击。
随着COVID-19疫情的变化以及政府和医疗机构的最新建议，艾芬豪将重新安排年度股东大会的时间，并将在SEDAR (www.sedar.com )上提交会议通知和记录日期。
鉴于年度股东大会将延期举行，艾芬豪计划推迟向股东发送管理层信息通函，其中包括公司高管薪酬的披露。该行动的依据为2020年5月1日公布的BC Instrument 51-516条例﹕暂时豁免向证券持有人发送材料的某些规定 — 该条例暂时免除了上市公司提交和交付关于年度股东大会发送材料的义务。
艾芬豪矿业持有 39.6% 权益
卡莫阿-卡库拉项目（艾芬豪矿业和紫金矿业的合资企业）被国际矿业咨询公司伍德曼肯兹（Wood Mackenzie） 评为全球第 4 大铜矿。该项目位于科卢韦齐(Kolwezi) 镇以西约 25 公里处，在卢本巴希 (Lubumbashi) 以西约 270 公里处。
2015年12月，艾芬豪以总股价 4.12 亿美元向紫金矿业出售卡莫阿控股有限公司 (以下简称“卡莫阿控股”) 49.5% 的权益。另外，艾芬豪以 832 万美元向私营公司晶河全球出售卡莫阿控股 1% 的权益，晶河全球将以十年期无息本票支付。与紫金的交易在2015年12月完成后，每位股东必须按其持有卡莫阿控股的股权比例支付卡莫阿-卡库拉项目的支出。
根据 2002 年刚果矿业法，卡莫阿-卡库拉项目的5%不可稀释权益已于2012年9月11日无条件让予刚果政府。根据2016年11月与刚果政府签订的协议，卡莫阿-卡库拉项目的额外15% 权益已转予刚果政府，艾芬豪与紫金矿业目前各自间接持有卡莫阿-卡库拉项目39.6% 的权益，晶河全球间接持有0.8% 权益，而刚果政府则直接持有20% 权益。卡莫阿控股直接持有项目 80% 权益。
从左到右：Magloire Kashiba (生产经理)、Jinha Numbi (测量助理)、Nadege Muzala (爆破工程人员)、Joel Maweji (测量师)、Daniel Jila (数据文员)、Dorcas Tabitha (金诚信刚果公司爆破工程人员)、 Amisi Mwanana (职安人员)、Didier Masengo (高级矿山地质学家)、Haram Kazadi (通风系统监察员) 、Wivine Mutango (通风系统监察助理) 、Reagan Ngandu (测量助理) 和Pontien Kalala (矿山监理)。
截至 2020 年3月底，卡莫阿-卡库拉项目录得合共 2,014,404个零失时工伤工时。 2020年1月21日，公司承包商的一位员工发生工伤事故，由于骨折引起脂肪栓塞综合症，继而于2020年2月7日去世。卡莫阿-卡库拉项目将继续致力为所有员工和承包商提供零伤害的工作环境，并于2月的致命工伤事故后增加了多项安全措施。
作为COVID-19应对方案的一部分，卡莫阿-卡库拉矿区已被封锁并实施了严格的隔离流程，以应对高危人员或潜在的 COVID-19 病例。矿山配备了 10 个重症监护室（每个病房都配有呼吸机）和 20 个特护治疗室以治疗潜在患者，此外还设置了一处最多可容纳 60 名潜在感染者的隔离设施。矿山已采购了充足的关键防护用品以供矿区医疗团队使用，包括外科手套和 N95 口罩等。
卡库拉矿山的独立最终可行性研究 (DFS) 正在进行中，预计将于 2020 年第三季度完成。同时，艾芬豪预计将发布卡莫阿-卡库拉综合扩产方案的初步经济评估更新版，涵盖Kansoko、卡库拉西部和卡莫阿北部的开采范围。初步经济评估更新版将包括卡莫阿北部的最新矿产资源估算（包括卡莫阿北部富矿区的初步矿产资源估算）。资源估算技术报告更新版已于2020年3月27日上载SEDAR 网站上的艾芬豪公司页面，网址为www.sedar.com 。
即将发布的卡库拉最终可行性研究 (DFS) 将包括设计、工程和采购（均已基本完成）的详细信息。同时，公司正为矿山现场的冶炼厂进行单独的最终可行性研究 (DFS)，该报告将会纳入卡莫阿-卡库拉综合初步经济评估报告中。
卡库拉矿山计划将初始选厂产能从年处理300 万吨提升至380 万吨，这需要在2020 年将地下采矿人员的人数从11 人增加至14 人，以确保完成对应的采矿作业，为扩产后的选矿厂供给足量的矿石。这也将帮助选矿厂在投产之前配备更大规模的地表矿堆，从而加快矿山建设进度，并为提早开启卡库拉第二序列的开发奠定了基础。未来第二序列新增的380万吨选矿产能将主要由扩产至600万吨年开采量的卡库拉矿区供给矿石。矿山正在进一步的研究工作，确定是否从Kansoko矿区或其它区域提供剩余所需矿石，以充分释放第二序列将达到的760 万吨矿石加工能力。任何旨在加速第二序列选矿厂建设的计划，都必须以取得必要的项目融资作为前提，同时还需完成将设计产能从600万吨/年提升到760万吨/年的独立可行性研究报告后方可实施。
从左到右：Fabrice Nkomba (采矿监督员)、Franck Twite (高级地质学家)、Tebogo Gilbert Jacobs (总工长)及Richard Ilunga (高级地质学家) 在卡库拉其中一条运输通道内，目前该区域铜品位达8% 以上。
年处理量 380 万吨初期选矿厂球磨机的混凝土地基即将完工。
截至2019年1月1日，假设第一座选矿厂于2021 年第三季度进行试生产，并包括了选矿厂扩产以及预生产矿石堆场的成本，项目的初期资本开支的最新估算约13 亿美元。
卡莫阿-卡库拉合资企业在 2019 年产生的资本开支达到 3.091 亿美元， 其中 1.252 亿美元花费在卡库拉斜坡道和矿山开发。2020年一季度产生了额外8,090万美元的资本开支。
艾芬豪将提供初期资本开支约 40% 的资金，并且按比例承担刚果政府持有的20%股本对应的出资份额，后者将由项目未来的现金流予以偿付。艾芬豪预计将继续保有充足的现金储备或可用的资金来源，以涵盖其应承担的初期资本开支份额。
艾芬豪宣布于 2020年2月5日 完成了经独立核实的卡莫阿-卡库拉项目矿产资源估算更新版。新的矿产资源估算报告是加密钻孔工程的成果，该工程旨在更好地界定现有的卡莫阿矿床内的高品位铜矿带。
以 1% 边界品位计算，卡莫阿的控制级矿产资源矿石总量目前达 7.6 亿吨，铜品位 2.73%，含有 458 亿磅铜。以同样的 1% 边界品位计算，卡莫阿的推断级矿产资源矿石总量目前达 2.35 亿吨，铜品位 1.70%，含有 88 亿磅铜。以3% 边界品位计算，新的矿产资源估算把卡莫阿矿床的控制级矿产资源矿石总量提升了15%，所含的铜总量提升了15.5%，达2.56 亿吨铜矿石，铜品位4.15%。以同样的 3% 边界品位计算，卡莫阿的推断级矿产资源矿石总量目前达 1,300 万吨铜矿石，铜品位 3.51%。
整个卡莫阿矿床已在最新的矿产资源估算报告中进行了更新。但是，最近的钻孔主要针对卡莫阿北部的超高品位富矿区，以及开采许可范围远北部 (远北区) 大致呈南北走向的高品位铜矿带。
新的卡莫阿矿产资源估算涵盖富矿区的西部较深区域 (西部断层崖的西侧)约 600 米走向长度以及富矿区的东部较浅区域约 1,500 米走向长度。中间区域的走向长度每 50 米设一钻孔区，其它区域的走向长度每 100 米设一钻孔区。
以 1% 边界品位计算，卡莫阿-卡库拉项目的控制级矿产资源矿石总量目前达 13.87 亿吨，铜品位 2.74%，含有 837 亿磅铜。以同样的 1% 边界品位计算，卡莫阿-卡库拉的推断级矿产资源矿石总量目前达 3.39 亿吨，铜品位 1.68%，含有 125 亿磅铜。
以较高的3% 边界品位计算，卡莫阿-卡库拉项目的控制级矿产资源矿石总量目前达 4.23 亿吨，铜品位 4.68%，含有 437 亿磅铜。以同样的3% 边界品位计算，卡莫阿-卡库拉的推断级矿产资源矿石总量目前达 1,700 万吨，铜品位 3.51%，含有 13 亿磅铜。
卡莫阿新的控制级和推断级矿产资源估算报告由艾芬豪矿业的矿产资源副总裁George Gilchrist 按照美国里诺市Wood Group（前身为Amec Foster Wheeler E&C Services Inc.）的Gordon Seibel 指导，并按照2014年CIM 矿产资源和矿产储量定义标准而编撰。 Seibel 先生是采矿、冶金和勘探学会 (SME) 的注册会员，是此次估算报告的合资格人士。估算报告自 2020年1月30日起生效，钻孔数据截至 2020年1月20日为止。卡莫阿-卡库拉的矿产储量估算未发生任何变化。
项目按照 2021 年第三季度投产的时间规划推进建设，目前已完成超过14.4公里的地下开发工程
卡库拉主要矿石类型的样本 — 细颗粒的灰色辉铜矿，铜品位为21.19万ppm或21.19%。以重量计算，辉铜矿(硫化铜)的铜含量接近80%。
钻机操控员Flory Wavumba Ilunga在卡库拉房柱式开采区内建造的新水坝顶部钻凿岩柱钻孔。锚柱将插入钻孔中，作为稳固巷道的额外安全措施。
二号通风井的铰孔已经与2020年3月完工。卡库拉已经完工的直径5.5米的通风井增加到3个（1号和2号通风井、西北通风井)。且反井钻机已移动至东北通风井开始钻定位孔。一号通风井已安装高功率风扇，且已于 2019 年进行了全面调试，而西北部的通风井和二号矿井预计在今年晚些时候启动调试。东北通风井预计在2021年3月进行调试。
2020 年一季度，卡莫阿北部完成了25个钻孔共计 5,195米。南北高品位走向完成了18个钻石钻孔，X 射线荧光 (XRF) 检测显示其中几个钻孔具有良好的铜矿化见矿厚度。富矿区以南完成了5个钻孔，以探查典型的矿化层。这些钻孔在卡莫阿北部的建议斜波隧道位置的下方钻出，是要针对高品位的中央富矿区。这些区域的可视矿化迹象显示积极，随后将进一步研究箱形挖槽的可行位置。
原定在富矿区进行的诱导极化 (IP) 检测，因COVID-19疫情所实施的旅行限制暂缓进行。公司将日后再考虑是否进行这项检测。
地质技术员Mike Mwamba正为卡莫阿北部取得的钻孔岩芯进行记录。艾芬豪于2020年2月6日公布，卡莫阿北部富矿区的控制级矿产资源包含了 150 万吨 10.7% 品位的铜矿石 (以 5% 铜边界品位计算)。
卡莫阿北部地图，显示 2020年一季度 (黑点) 和2020年之前 (灰点) 完成的钻孔位置。
随着主要设备陆续抵达现场，刚果 Mwadingusha 水电站的修缮工程取得了显着的进展。发电站曾短暂关闭以更换腐蚀情况严重的压力管道部分。涡轮机将进行全面翻新和现代化改造，且配备最先进的控制系统和仪器。涡轮机正在逐步重新调试，预计其中4台将于 2020 年12月投入服务，余下的2台预计在2021年一季度使用。翻新后的发电站预计将会以72 兆瓦的功率向国家电网提供电力。
Mwadingusha水电站工程由瑞士洛桑的工程公司 STUCKY在艾芬豪矿业和紫金矿业的指导下，与刚果国有电力公司 La Société Nationale d’Electricité (以下简称“SNEL”) 合作进行。
一条由Kansoko至SNEL高压国家电网的20公里长的120千伏单回路供电线路已于2016年9月兴建完成，连接 Kansoko 矿区、卡库拉矿区和卡莫阿营地至国家水电网。一条由Kansoko 至卡库拉的 12 公里长的 120 千伏双回路供电线路已于2017年12月铺设完成。目前已开始设计通风井和矿山的 11 千伏永久电力网络，包括变电站、架空线路和地表电缆。
工人正在组装Mwadingusha水电站其中一台交流发电冷却系统。修缮工程旨在把水电站恢复至它的装机能力 — 约 72 兆瓦的清洁、可持续的发电量。
“可持续民生计划”始于 2010 年，旨在通过建立农业培训园以及在社区层面为农民提供支持，提升卡莫阿-卡库拉项目附近的当地社区的食品安全性和农作物产能。如今，约有 350 位社区农民正受益于“可持续民生计划”，为家人生产着优质食品并出售多余的食品以获得额外收入。
第二阶段搬迁计划的安置房屋建设正在施工中。最后阶段搬迁计划的调查工作已经完成，且发现只有五座永久性建筑物，并将在短期内开始农作物补偿。全部搬迁计划实施完成后，将支持整个卡库拉矿区 (包括尾矿坝) 的建设需要。
社区香蕉合作社成员Matemba Mulemba Mamy在卡莫阿-卡库拉项目附近的一个农场采摘香蕉。该农场是“卡莫阿-卡库拉可持续民生计划”的一部分。
普拉特瑞夫项目由 Ivanplats (Pty) Ltd.（简称 Ivanplats）持有，该公司的 64% 权益属于艾芬豪矿业。普拉特瑞夫项目的 26% 权益由 Ivanplats 的《全面提高黑人经济实力法案》(B-BBEE) 的南非受益人持有。这些受益人包括 20 个当地社区，共 150,000 位居民、项目雇员和当地企业主。 2019 年第二季度，Ivanplats 在 B-BBEE 得分卡上的核实评估中达到 2 级贡献者身份。由伊藤忠商事株式会社、日本石油天然气和金属国家公司和日本天然气公司组成的日本财团通过 2 轮投资 (共 2.9 亿美元) 获取 Ivanplats 的 10% 权益。
普拉特瑞夫矿化带为延伸30多公里的连续矿化，铂族金属矿化主要发生在该矿化带的北部。艾芬豪的普拉特瑞夫项目位于普拉特瑞夫南部，由Turfspruit及Macalacaskop两个相连的矿权组成。位于最北部的 Turfspruit 矿区，邻近且其走向属于英美铂金（Anglo Platinum）的 Mogalakwena 矿群。
自2007 年，艾芬豪重点实施勘探和开发活动，以界定和扩展普拉特瑞夫原本矿体的下部延伸范围， 目前已命名为 Flatreef 矿体，且适合高度机械化的地下开采。整个 Flatreef 矿化范围位于 Turfspruit 和 Macalacaskop 矿权范围内，属于公司开采许可的一部分。
截至2020年一季度末，根据南非《矿山健康与安全法》(Mine Health and Safety Act) 及《职业健康与安全法》(Occupational Health and Safety Act)，普拉特瑞夫项目达到合共528,416个零失时工伤小时，距离项目上次录得的失时工伤个案发生已超过4个月。
装配工Roelof van Wyk在普拉特瑞夫一号矿井的提升机控制室记录他日常检查的细节。
一号矿井现在延伸到了地表以下逾 975 米的深度
一号矿井于 2018 年第三季度已成功达到位于地表以下 780.2 米深度的高品位 Flatreef 矿床 (T1 矿化带) 的顶部，现已延伸到了地表以下逾 975 米的深度。一号矿井的矿体（T1 和 T2 矿化带）厚度为 29 米，铂族金属（铂、钯和铑）及黄金的综合品位高达 11 克/吨，并含有大量的镍和铜。29 米的钻孔见矿产生了约 3,000 吨矿石，其中估计含有超过 400 盎司的铂族金属。矿石已送往地表堆场以供进一步冶金取样。
750 米水平和 850 米水平的工作站都已完工，950 米水平工作站也即将完工。最终矿井底部深度已修改为地表以下约 1,000 米，预计将于 2020 年第三季度掘进至最终深度。这三个工作站将会提供前往高品位矿体的初步地下通道。一号矿井变更的详细设计已开始，将使一号矿井配置为可永久进行矿石提升。
目前，普拉特瑞夫采矿计划中的开采范围位于地表以下约 700 米至 1,200 米的深度。二号矿井完工后将会用作通往开采范围的主要通道；而一号矿井将会用作次要通道。矿场生产期间，一号和二号矿井将会用作通风入口。规划的另外三个通排风天井将用于实现稳定产量。
计划开采方法将会采用高效率的机械方法，包括深孔采矿法 (long-hole stoping) 及分层充填开采法 (drift-and-fill)。两种方法都会采用水泥回填以提取最多的矿石。矿石将会从矿场通过一系列的内部矿石运送点输送到二号矿井的底部，然后进行破碎及提升至地表。
目前，普拉特瑞夫一号矿井已掘进至地表以下 975.3 米深，并将掘进约 1,000 米的最终深度。
提升机技术员Victor Skinner正在组装一个水泵的可编程逻辑控制器 (PLC)，将会安装在一号矿井950米水平工作站。
2018年5月7日，艾芬豪宣布已签订新的协议，可使用当地经处理的散装水用于普拉特瑞夫项目第一阶段的生产。Mogalakwena 当地政府同意，从 2022 年开始，在 32 年的时间里，从莫科帕内新建的 Masodi 污水处理厂每天至少供应 500 万公升净化水。初步供应将会用于普拉特瑞夫目前正在进行的地下矿场开发和地表基础设施工程。
根据签订的协议条款（该协议受某些暂缓条件所约束），Ivanplats 将向市政府提供经济援助，以最多2.48 亿南非兰特（约 1,600 万美元）的经认证的费用完成 Masodi 处理厂工程。Ivanplats 将会以较低的价格每一千公升 5 南非兰特（每天头1,000万公升）购买经处理的水，从而抵消部分前期投资。
Ivanplats 于 2019 年 1 月取得综合用水许可证，有效期为30年，使普拉特瑞夫项目能够按照 2017 年最终可行性研究报告的计划利用水资源。
普拉特瑞夫项目的第二个社会和劳动计划 (SLP) 的咨询工作已进入最后阶段。在第二个SLP中，Ivanplats计划以第一个SLP为基础，继续专注于培训和开发、当地经济发展项目以及企业和供应商的发展。
位于刚果的基普什铜-锌-锗-铅矿山，邻近基普什镇，距离卢本巴希西南面约30公里。基普什矿山位于中非铜矿带，位于卡莫阿-卡库拉项目东南面约 250 公里，距离赞比亚边境不足一公里。2011年11月，艾芬豪收购了基普什项目 68% 的权益；其余 32% 权益由刚果国有矿业公司 Gécamines 所拥有。
截至 2020年一季度末，基普什项目累积了合共 2,269,815个零失时工伤小时，距离项目上次录得的失时工伤个案发生已超过16个月。
艾芬豪矿业于 2017年12月13日 公布的基普什项目预可行性研究估计，初步 11 年开采年限期间，平均年生产率达 38.1 万吨锌精矿，现金成本总值约每磅锌 0.48美元。
预可行性研究的重点（以长期锌价格每磅 1.10 元计算）包括﹕
- 税后净现值为 6.83 亿美元，实际贴现率为 8%。
- 税后实际内部收益率为 35.3%。
- 税后项目回报期为 2.2 年。
- 包括预备费用在内的生产前资本开支为 3.37 亿美元。
- 开采年限期间，平均年产锌精矿 38.1 万干吨，锌精矿品位 59%。一旦投产，预计基普什将会成为全世界规模最大的锌矿之一。
除非另有指明，否则所有数字均以 100% 项目为基础进行报告。开采年限期间，估计每磅锌的平均现金成本为 0.48美元；一旦投产，预计基普什将会成为世界现金成本最低（成本曲线位于四分位图底部）的锌生产商之一。
五号矿井的直径8米、深 1,240 米，现已进行升级和重新试调。主要的人员和材料提升机已升级和现代化改造，以满足全球行业标准和安全标准。五号矿井的岩石提升机目前已全面投入服务，并已安装新的岩石矿兜、新的头尾绳以及附件。矿井已安装两个新制造的岩石运输工具（矿兜）和支撑框架（控制电缆），以方便从主矿提升岩石以及在 1,200 米水平将岩石送入废料储存仓。
大锌斜坡通道与五号矿井出岩设施之间的 1,150 米水平主要运输通道已经重新铺设混凝土，矿山现在可以使用现代化无轨的移动机械进行开采。新的卡车卸料箱（用于把矿石送入正下方的大容量碎石机）已在这个深度进行了安装。二号矿井的旧提升机已移除。新地基的建设以及新现代化提升机的组装与安装都已完成，并在通过安全检验和测试程序后完全试行。
仪表工程师Ngoi Kisula Jr.（左）和电气助理学员Sammy Wandalika（右）在基普什850米深处的电机控制中心，该中心的光纤连接地表的控制室。
4.西部前沿(Western Foreland) 勘探项目
公司在位于卡库拉开采许可范围西部的Makoko 矿区继续钻孔。2020 年一季度，在 Makoko完成了 6个钻孔共计 2,103米。Land Cruiser 钻机完成了4个浅孔 (DMKK108-109-110-112) 作为地层诠释，主要是为了测试接近地表的矿化体向Makoko西部延伸的可能性。
公司于2020年一季度录得 7,660万美元的综合亏损，2019年同期则录得340万美元的收益。2020年一季度的综合亏损，主要是由于把国外经营收入进行折算时由于南非兰特从2019年12月31日至2020年3月31日下跌28%而导致外汇损失6,250万美元，而2019 年一季度由于国外经营收入折算而导致外汇损失50万美元。
2020年一季度的财务收入达2,080万美元，与 2019年同期（1,590万美元）相比高出 490 万美元。财务收入已计入2020年一季度向 卡莫阿控股 合资企业提供贷款以运营所得的利息收入1,630万美元以及2019年同期所得的利息收入1,200万美元，随着累计贷款余额增加。尽管公司在2020年一季度拥有更高的现金余额，但由于美联储减息，导致现金和现金等价物所得利息下跌。
2020年一季度的勘探及项目开支达到了 1,200万美元，2019年同期达到了140万美元。 2019年一季度的勘探及项目开支全数用于艾芬豪全资拥有的西部前沿勘探许可范围的勘探活动；2020年一季度还包括用于基普什项目的1,000万美元开支，在该季度产生了有限的资本开支。下表列出了2020年一季度和2019年一季度基普什项目的主要开支类别﹕
截至 2020年3月31日的财务状况对比截至 2019年12月31日的财务状况
卡莫阿控股合资企业的不动产、厂房和设备从 2019年12月31日净增长至 2020年3月31日，达到9,060万美元，可进一步分解如下：
截至2020年3月31日，公司的总负债为7,560万美元，相比截至 2019年12月31日的8,190 万美元减少了630万美元，主要由于贸易及其他应付款项减少600万美元所致。
截至2020年3月31日，公司拥有6.034亿美元的现金和现金等价物。截至该日，公司的综合运营资金约为5.92亿美元，而截至 2019年12月31日则为 6.885亿美元。
自 2015年12月8日 起，每位股东必须按其持有卡莫阿控股的股权比例向卡莫阿控股 注资。公司代表晶河全球继续提供资金，以换取以艾芬豪为受益人的期票的增加。
目前，普拉特瑞夫项目的开支由艾芬豪独自供资（通过向 Ivanplats 提供计息贷款），因为日本财团已决定不为当前的开支供资。
艾芬豪董事会已将普拉特瑞夫项目2020年的预算调低至4170万美元，年内剩余3,140万美元预算额度，而普拉特瑞夫一号矿井将会继续进行凿井作业。另外，公司的基普什项目也减少了开发活动，2020年的预算调低至2870万美元，年内剩余额度 2,020万美元。位于刚果的西部前沿勘探项目将会继续进行勘探活动，2020年的预算为800万美元，年内剩余额度600万美元。卡莫阿-卡库拉项目将会继续重点开发卡库拉矿山，并计划于2021年第三季度生产首批铜精矿。公司按比例为卡莫阿-卡库拉项目制定2020 年剩余时间的预算为 3.37亿美元。
本新闻稿中关于卡莫阿-卡库拉项目的资本支出和开发方案修订版的科学或技术性披露已经由Steve Amos 审查和批准，他凭借其教育、经验和专业协会会籍被认为是NI 43-101 条款下的合资格人士。由于Amos先生是卡莫阿项目的负责人，因此他在 NI 43-101 下并不被认为是独立的。Amos 先生已核实本新闻稿所披露的技术数据。
本新闻稿中的其它科学或技术性披露已经过 Stephen Torr 的审查和批准，他凭借其教育、经验和专业协会会籍被认为是 NI 43-101 条款下的合资格人士。由于 Torr 先生是项目地质和评估副总裁，因此他在 NI 43-101 下并不被认为是独立的。Torr 先生已核实本新闻稿所披露的其它技术数据。
艾芬豪已经为普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目分别编制了一份符合NI 43-101 标准的最新独立技术报告，这些报告可在SEDAR 网站上的艾芬豪页面获得，网址为www.sedar.com：
- 2020年3月25日发布的2020年卡莫阿-卡库拉资源更新，由OreWin Pty Ltd.、Wood PLC、DRA Global、SRK Consulting (South Africa) (Pty) Ltd 和Stantec Consulting International LLC编制，涵盖公司的卡莫阿-卡库拉项目；
- 于2017年9月4日发布的2017 年普拉特瑞夫可行性研究技术报告，由DRA Global、OreWin PtyLtd.、Amec Foster Wheeler、Stantec Consulting、Murray & Roberts Cementation、SRK Consulting、Golder Associates 和Digby Wells Environmental编制，涵盖公司的普拉特瑞夫项目；以及
- 2019年3月28日发布的2019 年基普什矿产资源更新，由OreWin Pty Ltd.、MSA Group (Pty) Ltd.、SRK Consulting (South Africa) (Pty) Ltd. 和MDM (Technical) Africa Pty Ltd .（Wood PLC 的一个部门）编制，涵盖了公司的基普什项目。
这些技术报告包括本新闻稿中引用的普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目的矿产资源估算的生效日期、假设、参数和方法等信息，以及本新闻稿中关于普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目的科学和技术披露的数据验证、勘探程序和其他事项的信息。更多有关公司的信息（包括公司的年度信息表），可在 SEDAR 网站（www.sedar.com）获得。
Bill Trenaman +1.604.331.9834
Matthew Keevil +1.604. 558.1034
本新闻稿载有的某些陈述可能构成适用于证券法所定义的“前瞻性陈述”或“前瞻性信息”。该等陈述及信息涉及已知和未知的风险、不明朗因素和其他因素，可能导致本公司的实际业绩、表现或成就、其项目或行业的业绩，与前瞻性陈述或信息所表达或暗示的任何未来业绩、表现或成就产生重大差异。该等陈述及信息可通过文中使用“可能”、“将会”、“会”、“将要”、“打算”、“预期”、“相信”、“计划”、“预计”、“估计”、 “安排”、“预测”、“预言”及其他类似用语，或者声明“可能”、“会”、“将会”、“可能会”或“将要”采取、发生或实现某些行动、事件或结果进行识别。这些陈述仅反映本公司于截至 2020年一季度的《管理层讨论与分析》(MD&A) 之日对于未来事件、表现和业绩的当前预测。
该等陈述包括但不限于下列事项的时间点和结果：(i) 关于卡库拉矿山在2021年第三季度生产首批铜精矿的陈述；(ii) 卡库拉矿的地下开发速度预计将随着采矿人员的增加而继续加快；(iii)关于今后几个月卡库拉将集中开采5%以上品位的铜矿，从而高品位矿堆预计将大量增加的陈述；(iv) 关于预计卡库拉项目的球磨机将于2020年中期到达的陈述；(v) 关于Mwadingusha水电站的 6 台涡轮机翻新及相关的 220 千瓦基础设施工程进展顺利，其中4台涡轮机预计于2020年12月投入服务，余下2台将于2021年一季度投入使用，发电站修复后预计将以约 72 兆瓦的功率向刚果国家电网输送电力的陈述；(vi) 关于普拉特瑞夫项目的首个竖井(一号竖井)预计在2020年第三季度建成，最终深度约1000米的陈述；(vii) 关于普拉特瑞夫项目分阶段开发生产计划，旨在显著降低初始资本投入，以一号井作为首采井来加快初始生产，然后将产能逐步扩大到2017年最终可行性研究设计产能的陈述；(viii) 关于计划将卡库拉的初始选厂产能从300万吨/年扩大到380万吨/年，并计划在2020年将地下采矿人员从11人增加到14人，以确保足够的采矿作业匹配选厂产能扩张的陈述；(ix) 关于卡库拉矿山的独立最终可行性研究正在进行中，预计将于2020 年第三季度完成，同时艾芬豪预计将发布卡莫阿-卡库拉综合扩产方案的初步经济评估更新版，将包括卡莫阿北部的最新矿产资源估算（包括卡莫阿北部富矿区的初步矿产资源估算）的陈述；(x) 关于即将发布的卡库拉最终可行性研究将包括设计、工程和采购的详细信息，计划将初期选矿厂矿石产能从年产300 万吨提升约26%至年产380 万吨的陈述；(xi) 关于以2019年2月预可行性研究的结果为基础，卡库拉在首五年运营期间的平均原矿品位预计为6.8%，在25年开采年限期间平均铜品位5.5%，而初期选矿厂矿石产能的提升预计将会改善现金流量，可用于加速随后扩产的陈述；(xii) 关于艾芬豪预计将继续有充足的现金资源或项目相关的可用融资方式以涵盖其初期资本开支份额的陈述；(xiii) 关于刚果的Mwadingusha水电站的涡轮机正在逐步重新调试，进行全面翻新和现代化改造，且配备最先进的控制和仪器，预计于2020 年第三季度完成，以及翻新后的发电厂预计将会向国家电网提供约72 兆瓦电能的陈述；(xiv) 关于公司的COVID-19应对计划(包括审查采购订单及其供应链，尽量减少对项目的影响) 的陈述；以及 (xv) 关于2020年剩余时间预计花费3,140万美元进一步开发普拉特瑞夫项目、2,020万美元用于基普什项目、600万美元用于刚果的区域性勘探活动、1,780万美元用于公司经常性开支，以及按比例为卡莫阿-卡库拉项目制定2020 年剩余时间的预算为 3.37亿美元的陈述。
此外，卡库拉铜矿预可行性研究的所有结果以及更新和扩展的卡莫阿-卡库拉项目初步经济评估、普拉特瑞夫项目的可行性研究和基普什项目的预可行性研究，构成了前瞻性陈述或信息，并包括内部收益率、净现值，未来产量、现金成本估算、建议开采计划和方法、开采年限估计、现金流量预测、金属回收率、资本和运营成本估算，以及项目分阶段开发的规模和时间表。另外，对于与卡莫阿-卡库拉、普拉特瑞夫和基普什项目的开发有关的特定前瞻性信息，公司是基于某些不确定因素而作出假设和分析。不确定因素包括：(i) 基础设施的充足性；(ii) 地质特征；(iii) 矿化的冶金特征；(iv) 发展充足加工产能的能力；(v) 铜、镍、锌、铂、钯、铑和金的价格；(vi) 完成开发所需的设备和设施的可用性；(vii) 消耗品和采矿及选矿设备的费用；(viii) 不可预见的技术和工程问题；(ix) 事故或破坏或恐怖主义行为；(x) 货币波动；(xi) 法例修订；(xii) 合资伙伴对协议条款的遵守情况；(xiii) 熟练劳工的人手和生产率；(xiv) 各政府机构对矿业的监管；(xv) 筹集足够资金以发展该等项目的能力；(xiv) 项目范围或设计更变；以及(xv) 政治因素。
本新闻稿亦载有矿产资源和矿产储量估算的参考信息。矿产资源的估算具有内在的不确定性，并涉及对许多相关因素的主观判断。矿产储量的估算提供了更多的确定性，但仍然涉及类似的主观判断。矿产资源并非矿产储量，并不显示其具有经济潜力。任何该等估算的准确性是可用数据的数量和质量的函数，并根据工程和地质诠释的假设和判断(包括估计公司项目的未来产量、预计开采所得的矿石量和品位，以及估计将会实现的回收率) 而作出，可能被证明是不可靠的，在一定程度上取决于钻孔结果和统计推论的分析，而最终可能证明是不准确的。矿产资源或矿产储量估算可能需要根据以下因素重新估算：(i) 铜、镍、锌、铂族元素(PGE)、黄金或其他矿物价格的波动；(ii) 钻孔工程的结果；(iii)冶金测试和其他研究；(iv) 建议开采作业，包括贫化；(v) 在矿山计划的任何估算及/或变更日期之后作出的矿山计划评估；(vi) 未能取得所需准许、批准和许可证的可能性；以及(vii) 法律或法规的修订。