TORONTO, CANADA ‒ Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) today announced its financial results for the three and nine months ended September 30, 2021. This quarter marks the first quarter of commercial production at the company’s Kamoa-Kakula Copper joint-venture in the Democratic Republic of Congo (DRC).
Ivanhoe Mines also is advancing development of the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa, which is scheduled to begin production in 2024, and is upgrading the historic Kipushi zinc-copper-lead-germanium mine, also in the DRC, for a resumption of production. Ivanhoe also is exploring for new copper discoveries on its Western Foreland exploration licences in the DRC, near the Kamoa-Kakula Project. All figures are in U.S. dollars unless otherwise stated.
Watch a new video highlighting Kamoa-Kakula’s Q3 operational and financial achievements:https://vimeo.com/645848726/9d4de9d7d6
- The Kamoa-Kakula Project began producing copper in May 2021 and achieved commercial production on July 1, 2021. Production for the third quarter was 41,545 tonnes of copper in concentrate, with year-to-date production of more than 77,500 tonnes as of November 15, 2021.
- The initial 2021 production guidance range for copper in concentrate of 80,000 to 95,000 tonnes was raised to 92,500 to 100,000 tonnes, reflecting the successful completion of ramp-up of the Kakula Phase 1 concentrator.
- During its first quarter of commercial production, the Kamoa-Kakula joint venture sold 41,490 tonnes of payable copper and recognized revenue of $342.6 million, with an operating profit of $209.7 million and an EBITDA of $233.2 million.
- Kamoa-Kakula’s cost of sales per pound (lb) of payable copper sold was $1.08/lb, while cash costs (C1) per pound of payable copper totaled $1.37/lb. Costs for the quarter reflect the measured ramp-up of production at Kamoa-Kakula to steady-state, and are expected to trend downward as the Phase 2 concentrator plant is commissioned and the mine’s fixed operating costs are spread over increased copper production.
- Kamoa-Kakula’s Phase 2 construction is progressing well toward a Q2 2022 start-up, which will see a doubling of the mine’s nameplate milling throughput to 7.6 million tonnes per annum (Mtpa). Phases 1 and 2 combined are forecast to produce approximately 400,000 tonnes of copper per year.
- Ivanhoe Mines recorded a profit of $85.4 million for Q3 2021, compared to a loss of $5.3 million for the same period in 2020. The company’s share of profit from the Kamoa-Kakula joint venture and the finance income therefrom were the principal contributors to the profit recorded in the current quarter.
- The company has a strong balance sheet with cash and cash equivalents of $579.7 million on hand as at September 30, 2021, and expects that the majority of Kamoa-Kakula’s expansion capital expenditures on Phase 2 and Phase 3 will be funded from copper sales and facilities in place at Kamoa. Based on current market conditions, it is anticipated that shareholder loan repayments from Kamoa-Kakula will commence in 2022.
- During Q3, Ivanhoe continued its 2021 copper exploration program on its Western Foreland licences that cover approximately 2,550 square kilometres in close proximity to Kamoa-Kakula. Work in Q3 primarily was focused on completing the project’s infrastructure program (all-weather road building and bridge construction) needed to allow Ivanhoe’s drilling crews to access the highly-prospective exploration licences located to the south and west of the Kamoa and Kakula orebodies. Geophysical surveys (airborne, electromagnetic (EM), and gravity) were advanced during the quarter and are either complete or are nearing completion. Drilling during the quarter was focused on extending the copper discoveries at Makoko and Kiala.
- Platreef’s updated feasibility study for the phased development plan is progressing well toward completion in early 2022. All design and engineering work has been completed with the cost estimates well advanced. The Shaft 1 changeover is progressing well in preparation for permanent rock hoisting in early 2022. Construction activities on the Shaft 2 headframe also are advancing.
- Financing arrangements for Platreef’s first phase of development are nearing completion, which include a $300-million gold, palladium and platinum streaming facility, and a senior project debt facility of up to $120 million.
- The review of Kipushi’s development and financing plan with joint-venture partner and state-owned mining company, Gécamines, is progressing well as Ivanhoe looks to resume development activities. Discussions with potential financing sources are in progress.
- At the end of Q3 2021, Kamoa-Kakula had reached 3.00 million work hours free of a lost-time injury, Kipushi had reached 3.66 million work hours free of a lost-time injury, and Platreef had reached 310,000 work hours free of a lost-time injury. In addition, the construction team at Kamoa-Kakula achieved 4.00 million hours worked without a lost-time injury in October 2021, a milestone that underscores the strict safety culture of the Kamoa Copper construction team.
- On November 12, 2021, Ivanhoe promoted David van Heerden to the role of Chief Financial Officer. David has been with Ivanhoe since 2011 in progressively senior finance roles, most recently Vice President, Finance, Treasury and Tax.
Robert Friedland, Ivanhoe Mines’ Founder and Executive Co-Chair, remarked: “Today, after a more than 25-year-long odyssey… and having overcome a myriad of challenges worthy of Homer… that the critics claimed were impossible to hurdle… we are very pleased to report our first full quarter of commercial production and our inaugural operating profit. This achievement was made possible through the tireless efforts of thousands of people over more than two decades. These include our dedicated employees, our patient and loyal shareholders, our joint-venture partners, the Government of the Democratic Republic of Congo, and of course, the people who live in the vicinity of, and work at, this magnificent copper complex.
“We are immensely proud to say that Kamoa-Kakula – comprising the first world-scale, greenfield copper discoveries in the Democratic Republic of Congo since the country gained independence in 1960… is well on its way to joining the ranks of the world’s largest and greenest copper producers, with the highest copper grades by a wide margin.
“There is profound potential to discover additional tier-one copper deposits in the Western Foreland basin, as our team of talented geologists and geoscientists search for the next high-grade discovery, armed with our proprietary exploration knowledge gained from 20 years of experience in the Western Foreland copper basin.
“Turning an operating profit in just the first quarter of commercial production at Kamoa-Kakula highlights the ability of the mine to deliver as promised, and to self-fund its expansion to produce up to 800,000 tonnes of copper yearly, as demonstrated in previous independent studies. Kamoa-Kakula will rapidly repay its construction costs and pay dividends to its shareholders, including our most important partner, the Government of the Democratic Republic of Congo.
“However, the biggest dividend from Kamoa-Kakula that will benefit everyone on Planet Earth is invisible to the naked eye… it is the global warming gas that will never make it into the atmosphere as the copper mined at Kamoa-Kakula makes its way into tomorrow’s electric vehicles, energy storage systems and batteries, and renewable power generation. That vision of a greener and more sustainable world is one we share with all our stakeholders.
“The bright lights of Kamoa-Kakula have blinded the investment world to our Platreef Project, which is among this planet's largest precious and electric metals deposits with enormous quantities of palladium, rhodium, platinum, nickel and copper; and more ounces of gold than many leading gold mines. For a long time, the development of Platreef has been a destiny waiting to be fulfilled. However, Platreef’s time to shine now is upon us.
“The initial scope of the phased development plan is to fast-track Platreef into production in 2024, starting with an initial 700,000-tonne-per-annum underground mine. The plan is designed to establish an operating platform to support potential future expansions up to 12 million tonnes of ore per year. This would position Platreef among the largest nickel and platinum-group-metals producing mines in the world, producing in excess of 24,000 tonnes of nickel and 1.1 million ounces of palladium, rhodium, platinum, and gold per year, and help feed the demand for these critical minerals that the world needs as it transitions to a low carbon economy.”
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. The Kamoa-Kakula Project began producing copper in May 2021 and achieved commercial production on July 1, 2021.
Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining and a 1% share interest in Kamoa Holding to privately-owned Crystal River in December 2015. Kamoa Holding holds an 80% interest in the project. Since the conclusion of the Zijin transaction, 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.
Ivanhoe and Zijin Mining 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-Kakula Q3 2021 summary of operating and financial data
9,858 tonnes of copper in concentrate were produced in Q2 2021, bringing the year-to-date total tonnes produced as of September 30, 2021 to 51,403.
C1 cash costs are prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines, but are not measures recognized under IFRS. In calculating the C1 cash cost, the costs are measured on the same basis as the company's share of profit from the Kamoa Holding joint venture that is contained in the financial statements. C1 cash costs are used by management to evaluate operating performance and include all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered finished metal. C1 cash costs exclude royalties and production taxes and non-routine charges as they are not direct production costs.
C1 cash cost per pound of payable copper produced can be further broken down as follows:
All figures in the above tables are on a 100%-project basis. Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms. This news release includes earnings before interest, tax, depreciation and amortization (EBITDA), and "Cash costs (C1) per pound" which are non-GAAP financial performance measures. For a detailed description of each of the non-GAAP financial performance measures used in this news release, and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the Non-GAAP Financial Performance Measures section of this news release.
Kamoa-Kakula’s Phase 1 (left) and Phase 2 concentrator plants. The Phase 1 plant began operations in May 2021 and the Phase 2 plant is on track to begin operations in Q2 2022.
Nathalie Mulel, Kamoa Copper’s Senior Officer, Customs, with Kamoa Copper blister copper ingots, containing approximately 99% copper, produced at the Lualaba Copper Smelter near Kolwezi, DRC.
Health and safety at Kamoa-Kakula
At the end of September 2021, the Kamoa-Kakula Project reached 3,002,776 work hours free of a lost-time injury. Three lost-time injuries occurred early in Q3 2021. The project continues to strive toward its workplace objective of zero harm to all employees and contractors.
Kamoa-Kakula has successfully focused on prevention, preparation, and mitigation in managing the risks associated with COVID-19. Large-scale testing, combined with focused preventative measures, ensured that positive cases were quickly identified, isolated, and treated, with cross contamination kept to a minimum. Maintaining this high standard of risk management remains a daily focus, to prevent future cases. During the first nine months of 2021, the Kamoa-Kakula Project conducted 6,083 COVID-19 tests, with 477 patients testing positive for COVID-19.
With the support of the Democratic Republic of Congo government, UNICEF and other stakeholders, Kamoa Copper SA completed its first round of COVID-19 vaccinations in June 2021. In conjunction with the DRC government’s extended program of vaccinations, the second round of COVID-19 vaccinations at Kamoa-Kakula commenced in mid-August.
The Kamoa COVID-19 hospital continues to treat patients when required, as construction progresses well for the expansion and upgrade of the primary healthcare wing. Kamoa-Kakula’s highly experienced doctors and nurses apply the latest medical treatments, supported by a world-leading emergency response and paramedic team.
As the pandemic evolves, the medical team at the Kamoa hospital continues to review and update risk-mitigation protocols, while ensuring that new medical advances are investigated and applied to protect the health and safety of employees and community members.
Copper concentrate production from the initial 3.8-Mtpa Kakula concentrator plant commenced in May 2021; commercial production achieved on July 1, 2021
First ore was introduced into the ball mills on May 20, 2021, and the first saleable concentrate was filtered on May 25, 2021, marking the start of concentrate production of the project’s first phase, 3.8-Mtpa concentrator plant and associated facilities.
The Kamoa-Kakula Project was deemed to have reached commercial production on July 1, 2021, after achieving a milling rate exceeding 80% of design capacity and recoveries close to 70% for a continuous, seven-day period. Revenue recognition, as well as depreciation of Kamoa-Kakula’s first phase, 3.8-Mtpa concentrator plant and milling operation, commenced on this date.
Copper recoveries progressively increased from an average of approximately 81% in July 2021 to approximately 85% in September 2021. The Phase 1, steady-state-design copper recovery is approximately 86%, depending on ore feed grade.
41,545 tonnes of copper in concentrate were produced in Q3 2021 for a total of 51,403 tonnes year-to-date as of September 30, 2021, for delivery to either the Lualaba Copper Smelter near Kolwezi, or to international markets. This is an additional 4,653 tonnes to the 46,750 tonnes reported for the year-to-date to September 20, 2021, in Ivanhoe’s September 30, 2021 news release.
Loading high-grade copper concentrate at the Kamoa-Kakula concentrate storage warehouse for transport to the nearby Lualaba Copper Smelter for processing into blister copper ingots, containing approximately 99% copper.
Producing Kamoa Copper blister copper ingots at the Lualaba Copper Smelter near Kolwezi, DRC.
Copper production guidance for 2021
Overall construction of the Kamoa-Kakula Project’s first phase, 3.8-Mtpa concentrator plant and associated facilities is complete. First ore was introduced into the ball mills on May 20, 2021, and first saleable concentrate was filtered on May 25, 2021, marking the start of concentrate production.
As at November 15, 2021, contained copper in concentrate produced by the Kamoa-Kakula Project amounted to more than 77,500 tonnes. Ivanhoe’s production guidance for contained copper in concentrate at Kamoa-Kakula in 2021 has been raised to 92,500 to 100,000 tonnes. The figures are on a 100%-project basis and metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.
Cost of sales per pound of payable copper sold and C1 cash costs per pound of payable copper produced for Q4 2021 are not expected to be materially different to actual expenditure for Q3 2021.
Copper production, cost of sales and cash cost guidance for 2022, including the start of Phase 2 operations, will be provided in January 2022.
Commissioning of the initial 3.8-Mtpa Kakula concentrator plant and C5 performance tests complete
Commissioning of the first phase, 3.8-Mtpa concentrator now has been completed, with the final commissioning performance tests which consisted of a 72- hour continuous run successfully carried out in early September. The plant now has been handed over to operations. During commissioning, the concentrate filter was identified as a potential bottleneck, and a second filter recently has been installed and commissioned. The second filter will allow Kamoa-Kakula to take advantage of ultra-high-grade copper ore and milling throughputs in excess of design. A third filter will be installed as part of the Phase 2 expansion.
Hot commissioning of the backfill plant is nearing completion with one underground stope already filled with paste backfill. All areas of the backfill plant now are C4 (hot commissioning) complete with just the C5 (performance tests) outstanding.
The backfill plant is being used to mix tailings from the processing plant with cement to produce paste backfill. The backfill is being pumped back into the mine and used to help support mined-out areas. Approximately one-half of the mine’s tailings will be sent back underground as paste backfill, significantly reducing the surface tailings storage.
Construction of Kamoa-Kakula’s Phase 2 expansion now more than 60% complete; Phase 3 studies are progressing
Construction of the second 3.8-Mtpa concentrator plant is progressing well toward a Q2 2022 start-up with the current focus on the erection and installation of structural steel, platework and piping. A number of items of mechanical equipment are being installed including the crusher, ball mills, flotation cells and the tailings thickener.
Engineering and procurement activities essentially are complete, with fabrication and delivery to site well advanced and more than 92% complete. The only outstanding items being fabricated are electrical equipment. Fabrication of all structural steel, platework and piping from China has been completed, with the bulk of the material delivered to site. The bulk of the mechanical equipment also has been delivered to site.
Newly-installed Phase 2 flotation cells, with the Phase 1 flotation cells in the background.
Boilermaker Zetty Musangu Sampind assembling racks to hold electrical cables in the Phase 2 concentrator plant.
Construction is nearing completion on the Phase 2 high pressure grinding rolls (HPGR) tower and the feed and product conveyors (on the left), adjacent to the Phase 1 HPGR tower and conveyors.
Construction of the Phase 2 concentrate storage building is advancing rapidly.
Ivanhoe and its partner Zijin are exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion, with initial project scoping nearing completion and study work advancing.
The scope of Kamoa-Kakula’s Phase 3 expansion includes a third concentrator plant to be located adjacent to the Kansoko Mine (at the Kansoko Sud orebody), approximately 10 kilometres north of the Kakula Mine. The Phase 3 concentrator is being designed to have a larger nameplate milling capacity than the 3.8-Mtpa nameplate milling capacity of the Phase 1 and 2 concentrators.
The planned Phase 3 concentrator is expected to be fed from a combination of the established mine at Kansoko Sud, together with the opening of the Kansoko Central orebody and the first of the Kamoa North mining areas.
In addition, the studies will take into consideration the plans to upgrade turbine 5 at the Inga II hydropower complex to provide 162 megawatts of renewable hydropower, as well as the construction of a direct-to-blister smelter.
Study work on all aspects of the Phase 3 expansion is underway, with expected completion during 2022, after which Kamoa Copper will advance into a more detailed phase of design and engineering work. In parallel, a location for a new box cut, which will provide access to the Kansoko Central orebody and the first of the Kamoa North mining areas, has been identified and geotechnical drilling is underway to confirm the suitability of the location. Kamoa Copper is expected to break ground on the box cut early in 2022.
Geotechnical drilling to confirm the suitability of the planned location for a new box cut that will provide initial access to the Kansoko Central orebody and the first of the Kamoa North mining areas.
New ore haul trucks, each with a 63-tonne payload, and scooptrams supplied by Sandvik of Stockholm, Sweden. The new fleet of mining equipment will be used to ramp up mining operations in advance of the start of the Phase 2 concentrator plant.
One of the new Sandvik ore haul trucks heading down the northern decline at the Kakula Mine.
Kamoa smelter basic engineering to commence shortly
Kamoa Copper is planning to construct a direct-to-blister flash smelter adjacent to the Phase 1 and Phase 2 concentrator plants. The smelter is designed to use technology supplied by Outotec Oyj of Helsinki, Finland, and has been sized to process the bulk of the copper concentrate forecast to be produced by the Phase 1, Phase 2 and Phase 3 concentrator plants, with a production capacity of 500,000 tonnes per annum of blister copper.
A request for tender for the smelter engineering, procurement and construction manager (EPCM) services and basic engineering services has been issued to the market and bids from prospective engineering companies have been received. Kamoa Copper is in the final stages of adjudication and an award is expected shortly.
The next stages in the project development will be the completion of basic engineering and the ordering of the long-lead items of equipment.
Ore stockpiles now hold approximately 3.73 million tonnes grading 4.72% copper, containing more than 175,000 tonnes of copper
Kamoa-Kakula’s total high- and medium-grade ore surface stockpiles totalled approximately 3.66 million tonnes at an estimated grade of 4.73% copper as of the end of September 2021.
395,000 tonnes of ore grading 5.73% copper were mined in October 2021 and comprised 360,000 tonnes grading 5.91% copper from the Kakula Mine, including 174,000 tonnes grading 6.91% copper from the mine’s high-grade centre, and 35,000 tonnes grading 3.84% copper from the Kansoko Mine. The project’s total high- and medium-grade ore surface stockpiles now contain approximately 3.73 million tonnes at an estimated grade of 4.72% copper as of the end of October 2021.
During October, a north-south, water-bearing structure was intersected at the Kakula Mine’s northern perimeter drift. This new structure produced considerable water inflow that caused some localized flooding in the nearby surrounding workings in early October. Since then, the water inflow has decreased by more than 50% and has been controlled by the mining team, with the flooded areas largely dewatered and no impact on overall production from underground. Hydrological studies are ongoing with industry experts, which will be used for planning in advance of mining operations. Kakula has significant excess installed pumping capacity, with further expansions planned in 2022.
Electrician Junior Mwepu entering the Kakula North lamp room via a fingerprint scanner. As part of the mine’s ongoing safety initiatives, new card readers and fingerprint scanners have been installed at entry points to the mine.
Huang Ya Wen (left) and Estime Kasongo installing rollers for the Phase 2 high-pressure-grinding-rolls (HPGR) stockpile conveyor system.
Kamoa-Kakula delivering Phase 1 blister copper and copper concentrate under off-take agreements
Kamoa Copper’s off-take agreements are with CITIC Metal (HK) Limited (CITIC Metal) and Gold Mountains (H.K.) International Mining Company Limited, a subsidiary of Zijin, for 50% each of the copper products from Kamoa-Kakula’s Phase 1 production. The off-take agreements are evergreen for the production volumes from Phase 1, including copper concentrate and blister copper resulting from processing of copper concentrates at the nearby Lualaba Copper Smelter.
CITIC Metal and Zijin are purchasing the copper concentrate at the Kakula Mine and the blister copper at the Lualaba Copper Smelter on a free-carrier basis, meaning the buyers are responsible for arranging freight and shipment to the final destination, initially via the port of Durban, South Africa.
Kamoa Copper delivered its first bulk copper concentrates to the Lualaba Copper Smelter on June 1, 2021. The smelter is expected to treat up to 150,000 wet metric tonnes of copper concentrates from Kamoa-Kakula annually. Kamoa-Kakula began exporting its copper concentrate internationally in July 2021. The first truckloads of copper concentrate destined for smelters outside of the DRC departed from the mine site on July 17, 2021.
Kamoa Copper’s concentrate transportation logistics team inside the concentrate storage warehouse.
Mwadingusha hydropower plant fully operational and providing 78 megawatts of clean electricity for Kamoa-Kakula’s phases 1 and 2; focus now shifted to upgrading turbine 5 at the Inga II hydropower plant to provide power for Kamoa-Kakula expansions
All six new turbines at the Mwadingusha hydropower plant were synchronized to the national electrical grid in August 2021, with each generating unit producing approximately 13 megawatts (MW) of power, for a combined output of approximately 78 MW.
In August 2021, Kamoa-Kakula’s energy company signed an extension of the existing financing agreement with La Société Nationale d’Electricité (SNEL) to upgrade turbine 5 at the Inga II hydropower complex. Since June 2021, rehabilitation scoping works and technical visits have been conducted by Stucky Ltd. of Renens, Switzerland, and Voith Hydro of Heidenheim, Germany, a leading engineering group. Voith Hydro, the contractor for the turbine 5 upgrade, has successfully rehabilitated two turbine generators at the adjoining Inga I hydropower plant, a project that was financed by the World Bank.
Early works related to the removal of sand in the draft tube of turbine 5 is in progress. Completion of this work will allow the engineering teams from Voith Hydro, Stucky and SNEL to complete the scoping work.
Turbine 5 is expected to produce 162 MW of renewable hydropower, providing the Kamoa-Kakula Copper Complex and the planned, associated smelter with abundant, sustainable electricity for future expansions.
The Inga II hydropower facility on the Congo River. The penstock for turbine 5 is circled in red.
Engineers from Kamoa Copper, SNEL, Stucky and Voith Hydro at turbine 5.
Kamoa-Kakula aiming to be first net-zero carbon emitter among top-tier copper mines by electrifying mining fleet with state-of-the-art equipment powered by electric batteries or hydrogen fuel cells
On May 5, 2021, Ivanhoe Mines announced its pledge to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at the industry-leading Kamoa-Kakula Copper Mine.
In support of the Paris Agreement on climate change, and in the spirit of the commitments at the April 2021 Leaders Summit on Climate by the Chinese and American governments to sharply cut emissions, Ivanhoe Mines has committed to working with its joint-venture partners and leading underground mining equipment manufacturers to ensure that Kamoa-Kakula becomes the first net-zero operational carbon emitter among the world’s top-tier copper producers.
Since the Kamoa-Kakula mines and concentrator plants already are powered by clean, renewable hydro-generated electricity, the focus of the company’s net-zero commitment will be on electrifying the project’s mining fleet with new, state-of-the-art equipment powered by electric batteries or hydrogen fuel cells.
Kamoa-Kakula is working closely with its mining equipment suppliers to decrease the use of fossil fuels in its mining fleet, and evaluate the viability, safety and performance of new electric, hydrogen and hybrid technologies. The mine plans to introduce them into its mining fleet as soon as they become commercially available.
Enriching communities through sustainable development
Ivanhoe Mines founded the Sustainable Livelihoods Program in 2010 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 900 community farmers are benefiting from the Sustainable Livelihoods Program, producing high-quality food for their families and selling the surplus for additional income. The Sustainable Livelihoods Program, which commenced with maize and vegetable production, now includes fruit, aquaculture, poultry and honey.
The construction of 100 new fishponds is complete, bringing the total number of fishponds to 138. The project will significantly contribute toward local entrepreneurship and enhanced regional food security. A group of community participants took part in, and graduated as facilitators for, an adult literacy training program.
Additional non-farming-related activities continued during Q3 2021 and include education programs, enterprise and supplier development programs, and the supply of fresh water to a number of local communities using solar-powered boreholes. 27 of a planned 35 boreholes were drilled so far in communities using local contractors, providing approximately ten thousand community members with easy access to clean water. Construction, landscaping and equipping of the Kaponda Primary School is progressing well. Local community enterprise programs continued including brick-making, sewing, landscaping and gardening.
Construction of resettlement houses for the relocation program is continuing as planned. To date, 129 homes have been relocated, with five households remaining. The remaining families are scheduled for relocation upon completion of the construction of their new homes. Construction of the community church at Kaponda is 95% complete. The livelihood restoration program focused on the distribution of 758 chickens for all project-affected-people, with special consideration for vulnerable households.
Jean Munika, a Sustainable Livelihoods worker, with a few of the 3,200 orange tree seedlings for planting at homes in local communities and at a new, community-owned six-hectare orange orchard.
Paul Kabengele, Superintendent Community Projects (left), and Fabrice Mazeze, Sustainable Livelihoods Agronomist, inspecting a new crop of oranges at Kamoa Copper’s demonstration garden.
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. Ivanplats reached Level 4 contributor status in its most recent 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 primarily hosted 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 that form part of the company’s mining right.
Health and safety at Platreef
At the end of September 2021, the Platreef Project reached a total of 310,440 lost-time, injury-free hours worked.
COVID-19 protocols are continuously reviewed and optimized; as a result, the company implemented several measures to prevent and mitigate the escalation of infections. Those measures included the mass testing of employees and visitors, provision of transport to employees and a vaccination rollout. By the end of September 2021, a total of 4,649 COVID-19 tests had been conducted. In support of the National Department of Health’s national vaccine rollout strategy, Ivanplats launched an on-site COVID-19 vaccination campaign that has administered 396 vaccine doses to date. Approximately 75% of the Platreef Project’s employees and contractors working on site have at minimum received their first dose of the vaccine.
Phased development plan and feasibility study nearing completion
Platreef’s updated feasibility study for the phased development plan is progressing well toward completion in early 2022. All design and engineering work has been completed with cost estimates well advanced.
The initial scope of the phased development plan is to fast-track Platreef into production in 2024, starting with an initial 700,000-tonne-per-annum (700-ktpa) underground mine using the existing Shaft 1 and a new on-site concentrator with a capacity of up to 770 ktpa. This phased development plan will be targeting high-grade mining areas near the shaft, requiring significantly lower initial capital costs.
While development and initial production is achieved using Shaft 1, the sinking of Shaft 2 continues in parallel, and once the shaft is available the processing capacity is expected to be expanded with the construction of two additional 2.2-Mtpa concentrator modules. At this point, total mine production would be increased to the envisaged steady-state production of 5.2 Mtpa.
Project-level financing arrangements of up to $420 million to advance Platreef’s development nearing completion
In February 2021, Ivanplats signed a non-binding term sheet with Orion Mine Finance, a leading international provider of production-linked stream financing to base and precious metals mining companies, for a $300 million gold, palladium and platinum streaming facility. The stream financing is nearing completion and remains subject to execution of definitive documentation. The streaming facility is planned to be drawn down in two separate tranches, as needed for the development of the initial 700-ktpa underground mine and required infrastructure.
Ivanplats also appointed two prominent, international commercial banks – Societe Generale and Nedbank – as mandated lead arrangers for a senior project debt facility of up to $120 million. The senior project debt facility is scheduled to be utilized only after the streaming facility is fully drawn. Definitive terms and conditions of the debt facility are subject to the completion of the feasibility study for Platreef’s phased development plan, completion of due diligence and structuring, as well as negotiation and execution of definitive documentation. Terms and conditions of the debt facility will be made available when finalized.
Shaft 1 changeover to a production shaft progressing well
The construction of the 996-metre-level station at the bottom of Shaft 1 was completed in July 2020. Shaft 1 initially will be used to access the orebody and is approximately 350 metres away from a high-grade area of Flatreef that is planned for bulk, mechanized mining. The three development stations that will provide initial, underground access to the high-grade orebody also have been completed on the 750-, 850-, and 950-metre levels.
Construction of the auxiliary winder foundations has been completed, and the auxiliary winder installed and commissioned. The headgear, both winders, equipping stage, conveyances and control systems comply with the highest current industry safety standards, with proven and tested safety and redundancy systems in place.
The changeover construction at Shaft 1 is progressing to plan and is on schedule for commencement of rock hoisting early in 2022. All equipment for the shaft changeover has been procured and is on site. The changeover work within the shaft is being done by Platreef’s experienced owners’ team.
The winder that was used to successfully sink Shaft 1 has been converted to function as the main equipping conveyance during the shaft changeover, and will serve as the permanent rock, personnel and material winder following the shaft-equipping phase. The shaft will be equipped with two 12.5-tonne skips (with hoisting capacity of 825,000 tonnes per year) and an interchangeable personnel and materials conveyance to accommodate the movement of personnel and materials during the initial phase of mining.
Rope guides will be used for the main rock, personnel and materials conveyances, while steel sets and guides will be used for the auxiliary winder conveyance. The stage and winder ropes used during the sinking phase have been removed, and the new equipping stage, permanent guide-ropes and permanent hoisting ropes have been installed. The auxiliary winder has been installed and commissioned to assist during the shaft and station equipping phase, and to function as a personnel winder during the main rock hoisting cycle. Shaft equipping is progressing well with the permanent service pipes, guides, electrical cables and other control cables successfully installed down to the 950-metre-level.
Newly designed rock chutes will connect the conveyors feeding the concentrator plant and the waste rock area; from there the waste rock will be crushed and used as cemented backfill underground, as well as for protection berms to contain storm water and reduce noise emissions.
Shaft equipping commenced in May 2021 and remains on track to be completed in early 2022. Following the completion of the changeover work in the shaft, underground stations, and establishment of the ore and waste passes, lateral underground mine development will commence toward high-grade ore zones.
Key underground development orders placed
The waste conveyor, which will feed from Shaft 1, is progressing to plan with all mechanical and electrical orders well advanced. Delivery of the radial stacker is planned for February 2022 and the complete waste conveyor load-out system is expected to be fully operational by early 2022. Additionally, Ivanplats placed an initial order with Epiroc of Stockholm, Sweden, for its primary mining fleet consisting of emissions-free, battery electric jumbo face drill rigs and load haul dump (LHD) vehicles, due for delivery in early 2022.
Manufacturing and assembly of a battery-electric, mechanized mining drill rig at the Epiroc facilities in Örebro, Sweden (a Boomer M2C drill rig) that will be used for Phase 1 underground development at the Platreef Mine. Delivery to site is expected early in 2022.
Shaft 2 headgear construction from hitch to collar well underway
Early-works surface construction for Shaft 2 began in 2017, including the excavation of a surface box-cut to a depth of approximately 29 metres below surface and construction of the concrete hitch for the 103-metre-tall concrete headgear (headframe), which will house the shaft’s permanent hoisting facilities and support the shaft collar. The Shaft 2 headframe construction, from the hitch to the collar level, is progressing well with the third and fourth headgear lifts well advanced. 10 civil lifts are to be constructed, including a ventilation plenum and personnel access tunnel, with targeted completion in May 2022.
Platreef’s Shaft 2 construction, raising the headframe from the hitch to the collar (at surface).The headframe for Shaft 1 is in the background.
Platreef’s Shaft 2 will have a finished and concrete-lined internal diameter of 10 metres and be sunk to a planned, final depth of 1,104 metres below surface.
Long-term supply of bulk water for the Platreef Mine
In May 2018, Ivanhoe announced the signing of an 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 agreed to supply a minimum of five million litres of treated water a day for 32 years from the town of Mokopane’s new Masodi Treatment Works. Ivanplats has agreed to work with the municipality to complete the treatment facility in time to 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 $17 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.
During June 2021, and in addition to the Masodi treatment plant, Ivanplats also signed an undertaking to participate with the Lebalelo Water User Association for an additional 10 million litres per day from the Olifants River Water Resources Development Project. The initial agreement is to participate in a feasibility study for this venture with the prospect of securing an additional long-term water supply for the Platreef Project.
Development of human resources and job skills
The Platreef Project’s second Social and Labour Plan (SLP) now has been approved. Through the implementation of this second SLP, Ivanplats plans to build on the first SLP and continue with its training and development suite, which includes 15 new mentors, internal skills training for 78 staff members, a legends program to prepare retiring employees with new/other skills, community adult education training for host community members, core technical skills training for at least 100 community members, portable skills training, and more. The Platreef Project continues to support several educational programs and the provision of free Wi-Fi in host communities.
Equipping of the mine’s permanent training academy currently is underway, with the official launch being planned for 2022. Classrooms and offices at the training academy have been installed and the training and e-learning program has been instituted. A cadetship program, providing learnership opportunities to 49 local students was launched, offering a national certificate in health and safety, as well as mining competencies, such as utility vehicle operations, from the Murray & Roberts Training Academy. The cadetship program seeks to enhance gender diversity, with 54% of the students being female.
Local economic development projects will contribute to community water-source development through the Mogalakwena Municipality boreholes program. Other projects, which will be conducted in partnership with other parties, include the refurbishment and equipping of a health clinic in Tshamahansi Village.
The enterprise and supplier development commitments comprise of expanding the existing kiosk and laundry facilities and adding expanded change house facilities to be managed by a community partner in the future. A five-year integrated business accelerator and funding project assists community members to obtain help with development and supplier readiness.
Female cadets from local communities selected by Platreef for a six-month training program at the Murray & Roberts Training Academy in Carletonville, South Africa, to learn the skills to operate mechanized, underground mining equipment. The unique characteristics of the Platreef orebody offer a new generation of skilled South African workers the opportunity to work in a highly-mechanized and safe environment.
3. Kipushi Project
68%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kipushi copper-zinc-germanium-silver-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.
Health and safety at Kipushi
At the end of September 2021, the Kipushi Project reached a total of 3,663,876 work hours free of lost-time injuries. It has been more than two and a half years since the last lost-time injury occurred at the project.
Since temporarily suspending mine development operations due to the COVID-19 pandemic, the project maintained a reduced workforce to safely and cost-effectively maintain infrastructure and pumping systems and to execute planned projects.
The Kipushi Project has built a new potable water station to provide a free daily supply of water to the municipality of Kipushi. This daily supply to the Kipushi municipality community members includes power supply, disinfectant chemicals, routine maintenance, security and emergency repair of leaks to the primary reticulation to the benefit of an estimated 100,000 people, excluding those from rural areas. Approximately 1,000 cubic metres of potable water is pumped hourly and continuously to consumers on a daily basis.
50 boreholes of potable water are planned to be drilled around the Kipushi district over five years to reach areas not served by the current distribution reticulation. To date, 12 solar-powered potable water wells have been drilled and currently are operating throughout the district.
The Kipushi Project continues to support educational initiatives through renovations at the Mungoti School, and the granting of bursaries and scholarships to students from Kipushi. Over the past year, approximately 100 students have been supported through the bursary program. The sewing training centre project established by the Kipushi Project continued producing cloth face masks, donating approximately 2,000 masks a month to host communities. The Kipushi Project also is broadcasting daily COVID-19 awareness messages on a local community radio station, as well as through a motorized caravan.
The Sustainable Livelihoods Program, which commenced in 2020 with a poultry farming initiative established for the benefit of a consortium of local women, is progressing well with more than 500 chickens having been brought to market. This program is planned for expansion around the Kipushi district.
Kipushi’s definitive feasibility study in final stages of completion
A definitive feasibility study (DFS) for the Kipushi Project is substantially complete, which builds on the results of the pre-feasibility study (PFS) announced by Ivanhoe Mines in 2017. The development of Kipushi is based on a two-year construction timeline, which utilizes the significant existing surface and underground infrastructure already in place to allow for significantly lower capital costs than comparable greenfield development projects.
The feasibility study envisages the recommencement of underground mining operations, together with the construction of a concentrator facility on surface with annual processing capacity of 800,000 tonnes.
The draft DFS, together with the development and financing plan for Kipushi, are being reviewed by Ivanhoe Mines and its partner Gécamines. It is anticipated that these discussions will be concluded with the finalization of the feasibility study and the agreement on the development and financing plan in the near future.
Project development and infrastructure
Although development and rehabilitation activities in 2021 to date, as well as for 2020, were limited, significant progress has been made in recent years to modernize 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 headframes, 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, mechanized mining. The underground infrastructure also includes a series of high-capacity pumps to manage the mine’s water levels, which now are easily maintained at the bottom of the mine.
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.
Since temporarily suspending mine development operations, priority engineering tasks still continue, including new winder installations as a second means of egress on the cascade side, and repairs, as well as replacement of main critical pump columns in Shaft 5 to ensure reliable and continued pumping of water from the mine.
Kipushi’s newly-installed Shaft 15 winder. With the price of zinc recently surging to its highest price since 2007, recently hitting 14-year highs, Ivanhoe is working hard with its partner, Gécamines, to finalize the project’s feasibility study and advance a new era of production at Kipushi.
Electrician Olivier inspecting a new control panel for Kipushi’s Shaft 15 winder.
4. Western Foreland Exploration Project
100%-owned and 90%-owned by Ivanhoe Mines
Democratic Republic of Congo
Ivanhoe’s DRC exploration group is targeting Kamoa-Kakula-style copper mineralization through a regional exploration and drilling program on its Western Foreland exploration licences, located to the north, south and west of the Kamoa-Kakula Project. Ivanhoe’s Western Foreland Exploration Project consists of 17 licences that cover a combined area of approximately 2,550 square kilometres.
Exploration models that successfully led to the discoveries of Kakula, Kakula West, and the Kamoa North Bonanza Zone on the Kamoa-Kakula joint-venture mining licence are being applied to the extensive Western Foreland land package by the same team of exploration geologists responsible for the previous discoveries.
Exploration activities at the Western Foreland area continued during Q3 2021, with diamond drilling to the east and west of the Makoko area as well as in the Kiala and Lufupa areas, north of the Kamoa mining licences. 35 diamond holes were completed totalling 9,699 metres.
2,836 metres of diamond drilling were completed over the Kiala and Lufupa areas. Drilling at Makoko focused on Makoko East, and 19 holes totalling 4,502 metres were completed.
A new Land Cruiser-mounted aircore drill rig was commissioned during the quarter and commenced a drilling program at Kakula and over the Bonanza Zone, two areas of known high-grade copper mineralization. The aim was to test for any geochemical dispersion patterns in the saprolite above known mineralization at depth. Aircore drilling is a key part of the Western Foreland exploration strategy for areas of significant sand cover, to obtain a deep saprolite sample. These fences form part of the orientation program for this exploration method. 24 holes of aircore drilling totalling 734 metres were completed.
Surface soil and stream-sediment sampling focused on some permits. In total, 73 streams, two pits and 719 soil samples were collected in the quarter, along with termite samples. Given the large volume of soil, stream-sediment and drill-core samples submitted for assaying, results are pending.
Construction of the 60-kilometre access spine road across the western permits is nearing completion of clearing and laterite compaction, with 58 kilometres having been cleared to date, of which 46 kilometres have been covered with laterite. An additional 9.4 kilometres of spine road have been added to the program to provide access to the full extent of the southwest foreland.
Geophysical airborne surveys such as magnetics, gravity and electromagnetics recommenced in Q3 2021. This new geophysical data will enhance the target delineation program for drill testing and soil sampling, as well as provide a better understanding of the structural domains of the area. The geophysical surveys are planned to be completed by the end of the year with additional aircraft being added to speed up the surveys.
Ongoing construction of the Western Foreland’s 69.4-kilometre access spine road across the western permits is nearing completion.
Drill crews testing for high-grade copper mineralization along trend to the west of the Makoko discovery area.
David van Heerden promoted to Chief Financial Officer
On November 12, 2021, Ivanhoe promoted David van Heerden to the role of Chief Financial Officer (CFO). Mr. van Heerden has been with Ivanhoe since 2011 in progressively senior finance roles, most recently Vice President, Finance, Treasury and Tax. Prior to joining Ivanhoe Mines, he was in the assurance division of Ernst & Young Inc. in Johannesburg, South Africa, with a focus on mining and construction clients. David is a registered Chartered Accountant.
Mr. van Heerden’s appointment allows Marna Cloete to focus solely on her role as Ivanhoe’s President. Ms. Cloete held the dual roles of President and CFO since her appointment as company president in March 2020.
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. All revenue from commercial production at the Kamoa-Kakula Project is recognized within the Kamoa Holding joint venture. Ivanhoe 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 September 30, 2021 vs. September 30, 2020
The company recorded total comprehensive income of $66.2 million for Q3 2021 compared to a loss of $1.0 million for the same period in 2020.
The Kamoa-Kakula Project commenced commercial production on July 1, 2021, and sold 41,490 tonnes of payable copper in Q3 2021 realizing revenue of $342.6 million for the Kamoa Holding joint venture. The company recognized income in aggregate of $65.6 million from the joint venture in Q3 2021, which can be summarized as follows:
The company’s share of profit from the Kamoa Holding joint venture was $41.4 million in Q3 2021 compared to a loss of $7.3 million in Q3 2020. The following table summarizes the company’s share of (profit) loss of the joint venture for the three months ended September 30, 2021, and for the same period in 2020:
Of the $52.0 million finance costs recognized in the Kamoa Holding joint venture for Q3 2021, $45.0 million (Q3 2020: $20.4 million) relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. Of the remaining finance costs, $5.5 million relates to the $300 million advance payment facility and provisional payment facility available under Kamoa’s offtake agreements and $1.5 million relates to the equipment financing facilities.
As explained in the accounting for the convertible notes section below, the company recognized a gain on fair valuation of the embedded derivative financial liability of $54.9 million for Q3 2021. Finance cost increased from $0.1 million for Q3 2020 to $10.5 million for the same period in 2021, $10.2 million of which related to the interest on the convertible notes at the effective interest rate.
Finance income for Q3 2021 amounted to $26.4 million and was $6.2 million more than for the same period in 2020 ($20.2 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $24.2 million for Q3 2021, and $18.0 million for the same period in 2020, and increased as the accumulated loan balance increased.
Exploration and project evaluation expenditure amounted to $15.7 million in Q3 2021 and $10.0 million for the same period in 2020. Exploration and project evaluation expenditure related to exploration at Ivanhoe’s Western Foreland exploration licences and amounts spent at the Kipushi Project which was on reduced activities and incurred limited cost of a capital nature during these periods. The main classes of expenditure at the Kipushi Project in Q3 2021 and Q3 2020 are set out in the following table:
Review of the nine months ended September 30, 2021 vs. September 30, 2020
The company recorded a total comprehensive loss of $13.3 million for the nine months ended September 30, 2021, compared to a loss of $77.3 million for the same period in 2020.
The comprehensive loss for the nine months ended September 30, 2020, included an exchange loss on translation of foreign operations of $49.6 million, resulting from the weakening of the South African Rand by 22% from December 31, 2019, to September 30, 2020, compared to an exchange loss on translation of foreign operations recognized for the same period in 2021 of $10.4 million.
Finance income for the nine months ended September 30, 2021, amounted to $74.3 million, and was $14.6 million more than for the same period in 2020 ($59.7 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $68.4 million for the nine months ended September 30, 2021, and $50.6 million for the same period in 2020, interest 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.
The company’s share of profit from the Kamoa Holding joint venture was $27.4 million for the nine months ended September 30, 2021, compared to a share of losses of $20.6 million for the same period in 2020. The following table summarizes the company’s share of the (profits) losses of Kamoa Holding for the nine months ended September 30, 2021, and for the same period in 2020:
Of the $95.0 million finance costs recognized in the Kamoa Holding joint venture for Q3 2021, $88.0 million (Q3 2020: $58.6 million) relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. Of the remaining finance costs, $5.5 million relates to the $300 million advance payment facility and provisional payment facility available under Kamoa’s offtake agreements. $1.5 million relates to the equipment financing facilities.
Exploration and project evaluation expenditure amounted to $36.4 million for the nine months ended September 30, 2021, and $31.0 million for the same period in 2020. Exploration and project evaluation expenditure related to exploration at Ivanhoe’s Western Foreland exploration licences and amounts spent at the Kipushi Project which was on reduced activities and incurred limited cost of a capital nature in the periods.
The main classes of expenditure at the Kipushi Project for the nine months ended September 30, 2021 and for the same period in 2020 are set out in the following table:
As explained in the accounting for the convertible notes section below, the company recognized a loss on fair valuation of the embedded derivative financial liability of $5.2 million for the nine months ended September 30, 2021.
Financial positionas atSeptember 30, 2021 vs. December31, 2020
The company’s total assets increased by $591.9 million, from $2,417.1 million as at December 31, 2020, to $3,009.0 million as at September 30, 2021. The main reason for the increase in total assets was the receipt of the net proceeds from the convertible senior notes that closed on March 17, 2021. The net proceeds from the sale of the convertible notes, after deducting the expenses of the offering that related to the host liability of $10.5 million, was $564.5 million.
Cash and cash equivalents increased by $316.9 million, from $262.8 million as at December 31, 2020, to $579.7 million as at September 30, 2021 due to the receipt of the convertible note proceeds. The company utilized $59.7 million of its cash resources in its operations and advanced loans of $152.7 million to the Kamoa Holding joint venture during the nine months ended September 30, 2021.
The company’s total liabilities increased by $590.8 million to $671.4 million as at September 30, 2021, from $80.6 million as at December 31, 2020, with the increase mainly due to the private placement offering of $575.0 million of 2.50% convertible senior notes described below.
The net increase of property, plant and equipment amounted to $18.5 million, with additions of $34.0 million to project development and other property, plant and equipment. Of this total, $32.7 million 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 nine months ended September 30, 2021, and for the same period in 2020, 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 $248.4 million from $1,289.5 million as at December 31, 2020, to $1,537.9 million as at September 30, 2021, with each of the current shareholders funding the project development equivalent to their proportionate shareholding interest. The company’s portion of the Kamoa Holding joint venture cash calls amounted to $152.7 million during the nine months ended September 30, 2021, while the company’s share of profit from the joint venture amounted to $27.4 million.
The company’s investment in the Kamoa Holding joint venture can be broken down as follows:
Prior to commencing commercial production in July 2021, the Kamoa Holding joint venture principally used loans advanced to it by its shareholders to advance the Kamoa-Kakula Project through investing in development costs and other property, plant and equipment. 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:
Going forward, all Phase 1 operating costs and the majority of Phase 2 and Phase 3 capital expenditures are expected to be funded from copper sales and facilities in place at Kamoa. Cash generated in excess of operational and expansion requirements is expected to be utilized to commence shareholder loan repayments. Based on current market conditions, it is anticipated that shareholder loan repayments from Kamoa-Kakula will commence in 2022.
The Kamoa Holding joint venture completed the draw-down of EUR 45 million (approximately $56 million) of the equipment financing and $9 million of the down-payment facilities in late December 2020 and EUR 61.7 million (approximately $75.2 million) of the equipment financing during the nine months ended September 30, 2021. The equipment finance is secured only by the equipment that is being financed and has an effective interest rate of 8.96%. The down-payment facility is unsecured and has an effective interest rate of 11.58%.
Furthermore, Kamoa Copper elected to draw the $300 million advance payment facility available under its offtake agreements in June 2021. The facility bears interest at a rate of 8% and is offset against provisional payments due to Kamoa Copper from product deliveries.
The Kamoa Holding joint venture’s net increase in property, plant and equipment from December 31, 2020, to September 30, 2021, amounted to $526.5 million and can be further broken down as follows:
Accounting for the convertible notes closed in March 2021
The company closed a private placement offering of $575.0 million of 2.50% convertible senior notes maturing in 2026 on March 17, 2021. Upon conversion, the convertible notes may be settled, at the company’s election, in cash, common shares or a combination thereof. Due to this election right, the convertible notes have an embedded derivative liability that is measured at fair value with changes in value being recorded in profit or loss, as well as the host loan that is accounted for at amortized cost.
The convertible senior notes are senior unsecured obligations of the company which will accrue interest payable semi-annually in arrears at a rate of 2.50% per annum and will mature on April 15, 2026, unless earlier repurchased, redeemed or converted. The initial conversion rate of the notes is 134.5682 Class A common shares of the company per $1,000 principal amount of notes, or an initial conversion price of approximately $7.43 (equivalent to approximately C$9.31) per common share.
Holders of the notes may convert the notes, at their option, in integral multiples of $1,000 principal amount, or in excess thereof, at any time until the close of business on the business day immediately preceding October 15, 2025, but only under the following circumstances:
- during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the company’s Class A common shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; or
- during the five consecutive business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the company’s Class A common shares and the conversion rate on each such trading day; or
- if the company calls any or all of the notes for redemption in certain circumstances or upon the occurrence of certain corporate events.
On or after October 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing conditions.
The convertible notes will not be redeemable at the company’s option prior to April 22, 2024, except upon the occurrence of certain tax law changes. On or after April 22, 2024 and on or prior to the 41st scheduled trading day immediately preceding the maturity date, the notes will be redeemable at the company’s option if the last reported sale price of the company’s common shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides notice of redemption at a redemption price equal to 100% of the principal amount of the convertible notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
Due to the fact that upon conversion, the notes may be settled, at the company’s election, in cash, common shares or a combination thereof, the conversion feature is a derivative financial liability. The effect of this is that the host liability will be accounted for at amortized cost, with an embedded derivative liability being measured at fair value with changes in value being recorded in profit or loss.
The effective interest rate of the host liability was deemed to be 9.39% and the interest recognized on the convertible notes amounted to $10.2 million in Q3 2021 and $21.5 million for the nine months ended September 30, 2021. The carrying value of the host liability was $435.5 million as at September 30, 2021.
The derivative liability had a fair value of $150.5 million on closure of the convertible notes offering, which decreased to $124.9 million as at March 31, 2021, increased to $210.6 million as at June 30, 2021, and decreased to $155.7 million as at September 30, 2021, resulting in a gain on fair valuation of financial liability of $25.6 million for Q1 2021, a loss on fair valuation of financial liability of $85.7 million for Q2 2021 and a gain on fair valuation of financial liability of $54.9 million for Q3 2021. The change in the fair value of the embedded derivative liability is largely due to the changes in the closing share price of the company’s common shares at the different reporting dates.
The following key inputs and assumptions were used in determining the fair value of the embedded derivative liability:
Transaction costs on the convertible notes offering relating to the derivative liability amounted to $3.7 million and was expensed and included in the profit and loss for Q1 2021.
LIQUIDITY AND CAPITAL RESOURCES
The company had $579.7 million in cash and cash equivalents as at September 30, 2021. At this date, the company had consolidated working capital of approximately $623.8 million, compared to $308.0 million as at December 31, 2020.
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’s main objectives for the remainder of 2021 at the Platreef Project is the detailed engineering and updated feasibility study for the phased development plan, progression of the Shaft 1 changeover and the construction of the Shaft 2 headframe to the collar. At Kipushi, cost-saving measures will continue until the finalization of the feasibility study and the development and financing plan are agreed. With first production achieved at the Kamoa-Kakula Project, construction of the Phase 2 concentrator expansion and associated infrastructure continues.
The company has forecast to spend $32.6 million on further development at the Platreef Project; $9 million at the Kipushi Project; $9 million on Western Foreland exploration projects; and $10 million on corporate overheads for the remainder of 2021.
The Kamoa Holding joint venture had cash and cash equivalents on hand of $254.9 million as at September 30, 2021. Going forward, all Phase 1 operating costs and the majority of Phase 2 and Phase 3 capital expenditures are expected to be funded from copper sales and facilities in place at Kamoa.
On March 17, 2021, the company closed a private placement offering of $575 million of 2.50% convertible senior notes maturing in 2026. The convertible senior notes are senior unsecured obligations of the company which will accrue interest payable semi-annually in arrears at a rate of 2.50% per annum and will mature on April 15, 2026, unless earlier repurchased, redeemed or converted. The notes will be convertible at the option of holders, prior to the close of business on the business day immediately preceding October 15, 2025, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled, at the company’s election, in cash, common shares or a combination thereof. The carrying value of the host liability was $435.5 million and the fair value of the embedded derivative liability was $155.7 million as at September 30, 2021.
The company has a mortgage bond outstanding on its offices in London, United Kingdom, of £3.2 million ($4.4 million). The bond is fully repayable on August 28, 2025, secured by the property and incurs interest at a rate of GBP 1 month LIBOR plus 1.9% payable monthly in arrears. Only interest will be payable until maturity.
In 2013, the company became party to a loan payable to ITC Platinum Development Limited, which had a carrying value of $33.4 million as at September 30, 2021, and a contractual amount due of $35.0 million. The loan is repayable once the Platreef Project has residual cashflow, which is defined in the loan agreement as gross revenue generated by the Platreef Project, less all operating costs attributable thereto, including all mining development and operating costs. The loan attracts interest of USD 3 month LIBOR plus 2% calculated monthly in arrears. Interest is not compounded. The difference of $1.6 million between the contractual amount due and the carrying value of the loan is the benefit derived from the low-interest loan.
The company has an implied commitment in terms of spending on work programs submitted to regulatory bodies to maintain the good standing of exploration and exploitation permits at its mineral properties. The following table sets forth the company’s long-term obligations:
Debt in the above table represents the mortgage bond owing to Citibank and loan payable to ITC Platinum Development Limited, as described above.
The company is required to fund its Kamoa Holding joint venture in an amount equivalent to its proportionate shareholding interest.
This news release should be read in conjunction with Ivanhoe Mines’ Q3 2021 Financial Statements and Management’s Discussion and Analysis report available at www.ivanhoemines.com and at www.sedar.com.
Non-GAAP Financial Performance Measures
Kamoa-Kakula’s C1 cash costs and C1 cash costs per pound
C1 cash costs and C1 cash costs per pound are non-GAAP financial measures. These are disclosed to enable investors to better understand the performance of the Kamoa-Kakula Project in comparison to other copper producers who present results on a similar basis. C1 cash costs are prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines but are not measures recognized under IFRS. In calculating the C1 cash cost, the costs are measured on the same basis as the company's share of profit from the Kamoa Holding joint venture that is contained in the financial statements. C1 cash costs are used by management to evaluate operating performance and include all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of finished metal. C1 cash costs and C1 cash costs per pound, exclude royalties and production taxes and non-routine charges as they are not direct production costs.
Reconciliation of Kamoa-Kakula’s cost of sales to C1 cash costs, including on a per pound basis:
All figures above are on a 100% basis.
EBITDA is a non-GAAP financial measure, which excludes income tax, finance costs, finance income and depreciation from net profit.
Ivanhoe believes that Kamoa-Kakula’s EBITDA is a valuable indicator of the Kamoa-Kakula Project’s ability to generate liquidity by producing operating cash flow to fund its working capital needs, service debt obligations, fund capital expenditures and distribute cash to its shareholders. EBITDA is also frequently used by investors and analysts for valuation purposes. EBITDA is intended to provide additional information to investors and analysts and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently.
Reconciliation of profit and loss to EBITDA:
All figures above are for the Kamoa Holding joint venture on a 100% basis.
Qualified Persons and NI 43-101 Technical Reports
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 regarding the Kakula and Kansoko stockpiles in this news release have been reviewed and approved by George Gilchrist, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Gilchrist is not considered independent under NI 43-101 as he is the Vice President, Resources of Ivanhoe Mines. Mr. Gilchrist has verified the other 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, Geosciences. 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 Integrated Development Plan 2020 dated October 13, 2020, prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA Global, Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D Centre Ltd., Outotec Oyj, Paterson and Cooke, Stantec Consulting International LLC, SRK Consulting Inc., and Wood plc., covering the company’s Kamoa-Kakula Project;
- The Platreef Integrated Development Plan 2020 dated December 6, 2020, prepared by OreWin Pty Ltd., Wood plc (formerly Amec Foster Wheeler), SRK Consulting Inc., Stantec Consulting International LLC, DRA Global, and Golder Associates Africa, 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.
Bill Trenaman +1.604.331.9834
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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 MD&A for the three and nine months ended September 30, 2021.
Such statements include without limitation, the timing and results of: (i) statements regarding Kamoa-Kakula’s costs expected to trend downward as the Phase 2 concentrator plant is commissioned and the mine’s fixed operating costs are spread over increased copper production; (ii) statements regarding Kamoa-Kakula’s phases 1 and 2 combined being forecasted to produce approximately 400,000 tonnes of copper per year; (iii) statements regarding the expectation that the majority of Kamoa-Kakula’s expansion capital expenditures on Phase 2 and Phase 3 will be funded from copper sales and facilities in place at Kamoa; (iv) statements regarding approximately one-half of the Kakula mine’s tailings will be sent back underground as paste back, significantly reducing the surface tailings storage; (v) statements regarding construction of the second 3.8-Mtpa concentrator plant is progressing well toward a Q2 2022 start-up; (vi) statements regarding Ivanhoe and its partner Zijin exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion; (vii) Statements regarding the scope, timing, location and size of Kamoa-Kakula’s Phase 3 expansion; (viii) statements regarding the planned Phase 3 concentrator at Kansoko mine being expected to be fed from a combination of the established mine at Kansoko Sud, together with opening the Kansoko Central orebody and the first of the Kamoa North mining areas; (ix) statements regarding scope and timing of the study work of the Kamoa-Kakula Phase 3 expansion; (x) statements regarding the construction, design, location and size of a direct-to-blister flash smelter for the Kamoa-Kakula Project; (xi) statements regarding the Lualaba Copper Smelter being expected to treat up to 150,000 wet metric tonnes of copper concentrates from Kamoa-Kakula annually; (xii) statements regarding the agreement reached to upgrade a major turbine at the Inga II hydropower facility including that the upgraded turbine is expected to produce 162 megawatts (MW) of clean, renewable hydropower, providing the Kamoa-Kakula Copper Mine with sufficient, sustainable electricity for future expansions, including its own copper smelter; (xiii) statements regarding Kamoa-Kakula aiming to become the first net-zero carbon emitter among the top-tier copper mines by electrifying its mining fleet with state-of-the-art equipment powered by electric batteries or hydrogen fuel cells and that the mine plans to introduce them into its mining fleet as soon as they become commercially available; (xiv) statements regarding production guidance of between 92,500 and 100,000 tonnes of contained copper in concentrate for 2021 from the Kamoa-Kakula Project; (xv) statements regarding cost of sales per pound of payable copper sold and C1 cash costs per pound of payable copper produced for Q4 2021 not being expected to be materially different to actual expenditure for Q3 2021; (xvi) statements regarding Platreef’s updated feasibility study for the phased development plan progressing well toward completion in early 2022; (xvii) statements regarding the initial scope of the phased development plan for Platreef being fast-tracked into production in 2024, starting with an initial 700-ktpa underground mine using the existing Shaft 1 and a new on-site concentrator with a capacity of up to 770 ktpa; (xiii) statements regarding once Platreef’s Shaft 2 is available the processing capacity is expected to be expanded with the construction of two additional 2.2 Mtpa concentrator modules and that at this point, total mine production would be increased to the envisaged steady-state production of 5.2 Mtpa; (xix) statements regarding Platreef’s stream financing nearing completion and that the streaming facility is planned to be drawn down in two separate tranches, as needed for the development of the initial 700-ktpa underground mine and required infrastructure; (xx) statements regarding the Platreef Shaft 1 being equipped with two 12.5-tonne skips (with hoisting capacity of 825,000 tonnes per year) and an interchangeable personnel and materials conveyance during the initial phase of mining; (xxi) statements regarding the delivery of the radial stacker at the Platreef project being planned for February 2022 and the complete waste conveyor loadout system being expected to be fully operational by early 2022; (xxii) statements regarding Ivanplats orders for primary mining fleet being due for delivery in early 2022; (xxiii) statements regarding a total of 10 civil lifts are to be constructed at the Platreef project, including a ventilation plenum and personnel access tunnel, with a targeted completion in May 2022; (xxiv) statements regarding Ivanplats providing financial assistance to the municipality for certified costs of up to a maximum of R248 million (approximately $17 million) to complete the Masodi treatment plant and that 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; (xxv) statements regarding equipping of the mine’s permanent training academy being underway, with the official launch being planned for 2022; (xxvi) statements regarding the phased development plan at the Platreef Project is designed to establish an operating platform to support potential future expansions up to 12 million tonnes of ore per year, which would position Platreef among the largest nickel and platinum-group-metals producing mines in the world, producing in excess of 24,000 tonnes of nickel and 1.1 million ounces of palladium, rhodium, platinum, and gold per year; (xvii) statements regarding the draft DFS, together with the development and financing plan for Kipushi, are being reviewed by Ivanhoe Mines and its partner Gécamines and that it is anticipated that these discussions will be concluded with the finalization of the feasibility study and the agreement on the development and financing plan in the near future; and (xviii) statements regarding the main objectives for the remainder of 2021 and the remaining 2021 budget.
As well, all of the results of the feasibility study for the Kakula copper mine, the Kakula-Kansoko 2020 pre-feasibility study and the updated and expanded Kamoa-Kakula Project preliminary economic assessment, the feasibility study of the Platreef Project, the Platreef 2020 preliminary economic assessment 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 operation and 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; (xvi) changes in project scope or design; (xvii) recoveries, mining rates and grade; (xviii) political factors; (xviii) water inflow into the mine and its potential effect on mining operations, and (xix) the consistency and availability of electric power.
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 and nine months ended September 30, 2021, 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.
加拿大多伦多 — 艾芬豪矿业 (TSX: IVN; OTCQX: IVPAF) 今天公布其截至 2021 年9 月 30 日止三个月及九个月的财务业绩。本季度是公司位于刚果民主共和国 (以下简称“刚果(金)”) 的卡莫阿-卡库拉 (Kamoa-Kakula) 铜矿合资项目的首季度商业化生产。
艾芬豪矿业正推进旗下位于南非的普拉特瑞夫 (Platreef) 钯-铑-铂-镍-铜-金矿，计划于2024年投产；同时推进位于刚果(金)、久负盛名的基普什 (Kipushi) 锌-铜-铅-锗矿的升级复产工程。艾芬豪正在刚果(金)毗邻卡莫阿-卡库拉项目的西部前沿 (Western Foreland) 探矿权内寻找新的铜矿资源。除非另有说明，所有数字均以美元为单位。
- 卡莫阿-卡库拉每磅铜的销售成本为1.08美元/磅，而每磅铜的现金成本 (C1) 则为1.37美元/磅。本季度的成本反映了卡莫阿-卡库拉的产量爬坡已达到稳产作业。随着II期选厂即将投产，矿山的固定运营支出将按铜产量增长而分摊，预计成本将会下降。
- 卡莫阿-卡库拉II期建设进展顺利，将于2022年第二季度实现投产，将提升产能至年处理矿石760万吨。I 期和 II 期投产后每年将累计生产高达40万吨铜。
- 2021 年第三季度，艾芬豪矿业录得利润8,540万美元，2020 年同期则录得亏损 530 万美元。本季度的利润主要来自公司应占卡莫阿-卡库拉合资企业的收益份额以及财务收入。
- 艾芬豪及其合作伙伴、刚果(金)国有矿业公司杰卡明 (Gécamines)正在审阅基普什矿山的开发融资方案且进展顺利，为复产作好准备，并正就潜在融资方案进行讨论。
- 2021年11月12日，David van Heerden晋升为艾芬豪首席财务官。David自2011年加入艾芬豪以来一直担任高级财务管理角色，之前为艾芬豪的财务、资产和税务副总裁。
艾芬豪矿业创始人兼执行联席董事长罗伯特·弗里兰德 (Robert Friedland) 表示﹕“经过25年漫长的奋进旅程，克服了万千困难，如同荷马史诗般披荆斩棘，今天我们欣然宣布项目第一个完整季度的商业化生产并首次录得营业利润，这些成就源自两代数千人的不懈努力；包括我们勤勉尽责的员工、忠实的股东、合作伙伴和刚果金政府，当然还包括在这座超级矿山周边生活和工作的人们长期以来的鼎力支持。”
1. 卡莫阿-卡库拉项目 艾芬豪矿业持有 39.6% 权益
卡莫阿-卡库拉项目是艾芬豪矿业与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 大铜矿床。该项目位于科卢韦齐 (Kolwezi)以西约 25 公里，卢本巴希 (Lubumbashi) 以西约 270 公里处。卡莫阿-卡库拉项目于2021年5月启动铜生产，并于2021年7月1日正式实现商业化生产。
2015年12月，艾芬豪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，并向私营企业晶河全球出售卡莫阿控股 1% 的权益。卡莫阿控股持有项目 80% 权益。与紫金矿业的交易完成后，每位股东必须按其持有卡莫阿控股的股权比例承担对卡莫阿-卡库拉项目的出资。
艾芬豪与紫金矿业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(金)政府则直接持有20% 权益。
C1 现金成本的计算基准与伍德曼肯兹成本指南制定的行业标准定义一致，但并非国际财务报告准则 (IFRS) 认可的方式。在计算 C1 现金成本时，成本的计量基准与财务报表中所述的公司应占卡莫阿控股合资企业的收益份额相同。管理层以C1 现金成本评估经营业绩，其中包括所有直接开采、选矿以及一般行政开支。冶炼费和销售至最终港口的运费扣减被列作销售收入的一部分，将计入C1现金成本，以得出交付成品金属的粗略成本。权益金、产品税和非经常性费用并非直接生产成本，因此不会计入C1现金成本。
上述数字均以100%项目权益统计。报告的精矿含铜金属量未考虑冶炼协议中的损失或扣减。本新闻稿所述的EBITDA (未计利息、税项、折旧和摊销前的利润) 及每磅现金成本 (C1) 为非公认会计准则 (non-GAAP) 的财务指标。关于本新闻稿中引用的非公认会计准则财务指标的详细说明以及与 IFRS 最能直接作比较指标的详细对账，请参阅本新闻稿中 “非公认会计准则财务指标” 的部分。
卡莫阿-卡库拉 I期 (左) 和 II期选厂。I期选厂已于2021年5月启动生产，II期选厂将按计划于2022年第二季度投产。
卡莫阿-卡库拉矿山成功以防疫、防控及降低风险为重点，应对COVID-19疫情。项目进行大规模的检测，加上重点实施防疫措施，确保能够及早发现确诊个案并即时进行隔离和治疗，以降低交叉感染的风险。项目将继续保持高水平的日常风险管理，以防止日后出现确诊个案。2021 年前九个月，卡莫阿-卡库拉项目共进行了 6,083次 COVID-19 检测，其中 477名检测结果呈阳性。
在刚果(金)政府、联合国儿童基金会和其他利益相关方的支持下，卡莫阿铜业已于2021年6月完成第一轮COVID-19 新冠疫苗接种。根据刚果(金)政府的疫苗接种计划，卡莫阿-卡库拉的第二轮COVID-19新冠疫苗接种已于8 月中开始。
2021年第三季度共生产精矿含铜金属41,545吨。截至2021年9月30日，本年度总共生产精矿含铜金属达51,403吨，运至位于科卢韦齐近郊的卢阿拉巴铜冶炼厂或出口到国际市场，相比艾芬豪 2021 年 9 月 30 日发布的新闻稿中所述截至2021年9月20日止共生产的46,750吨多出4,653吨。
预计 2021 年第四季度每磅应付铜的销售成本和生产每磅应付铜的 C1 现金成本，与 2021 年第三季度的实际开支不会出现重大差异。
2022 年 (包括II期运营初期) 的铜产量、销售成本和现金成本指导，将于 2022 年 1 月发布。
I期380万吨/年选厂的试车工作已经结束，并且在9月初已完成了72小时连续运行的最终性能保证测试，选厂目前已正式运行。试车期间，精矿压滤机被视为潜在的瓶颈问题，新安装的第二台压滤机现已投产，将使卡莫阿-卡库拉可充分利用超高品位矿石和超越设计产能的矿石处理量优势。第三台压滤机将安装到 II 期选厂中。
锅炉工 Zetty Musangu Sampind 在II期选厂组装电缆桥架。
卡莫阿-卡库拉 III 期扩建的工程范围包括第三座选厂，将建设在卡索科矿山 (卡索科南部矿体) 附近，距离卡库拉矿山以北约10公里处。III 期选厂的设计产能，将会超过 I 期和 II 期选厂的380万吨/年。
预计规划中的 III 期选厂将处理来自卡索科南部开采的矿石以及即将开拓的卡索科中部矿体和卡莫阿北区首个采区提供的矿石。
卡莫阿铜业已为冶炼厂的设计采购与施工管理 (EPCM) 服务和基础工程设计进行招标，并已收到各家工程公司的标书。卡莫阿铜业正在进行最后阶段的评标，即将完成招标。
2021年10月份采出39.5万吨矿石，铜品位 5.73%，包括在卡库拉矿山采出的36万吨矿石，铜品位5.91% (其中包括在卡库拉矿床高品位中心采出17.4万吨矿石，铜品位高达6.91%) 以及在卡索科矿山采出的3.5万吨矿石，铜品位3.84%。2021年10月底，项目地表堆存了约373万吨高品位和中品位矿石，平均铜品位4.72%。
电工Junior Mwepu 通过指纹扫描器进入卡库拉北区的矿灯房。矿山致力于推行安全举措，在各个入口安装了新的读卡器和指纹扫描器。
黄亚文(左) 和 Estime Kasongo 在II期高压辊磨机矿仓安装输送系统的滚轮。
卡莫阿铜业与中信金属香港有限公司 (以下简称"中信金属") 和金山(香港)国际矿业有限公司 (紫金矿业的子公司) 就卡莫阿-卡库拉I期生产的铜产品签署各50%产量的包销协议。包销协议为常青协议，涵盖 I 期矿山服务年限内的所有产品，包括铜精矿以及在邻近的卢阿拉巴铜冶炼厂加工生产的粗铜。
卡莫阿-卡库拉的能源公司于2021年8月与刚果(金)国有电力公司SNEL扩展现有的融资协议，在英加二期水电站进行5号涡轮机组的升级工程。瑞士洛桑的Stucky公司和行业领先的工程集团德国海登海姆的福伊特水电 (Voith Hydro) 从2021年6月起负责研究确定项目的修缮范围并开展技术性考察。5号涡轮机组升级的承包商福伊特水电曾成功地修复了英加一期水电站的两台涡轮发电机，该项目由世界银行提供资金。
“可持续民生计划”员工Jean Munika手持橙树的幼苗，计划将提供 3,200 株橙树幼苗，派发给当地社区家庭，以及于占地 6 公顷的新建社区橙园进行种植。
社区项目主管Paul Kabengele (左) 和可持续民生农学家Fabrice Mazeze在卡莫阿铜业的农业培训园检视新的橙品种。
普拉特瑞夫项目由 Ivanplats (Pty) Ltd. (以下简称 "Ivanplats") 持有，艾芬豪矿业持有Ivanplats公司64%的股权。由《全面提高黑人经济实力法案》(B-BBEE) 的南非受益人持有项目26%的股权，这些受益人包括 20 个当地社区，约150,000 位居民、项目雇员和当地企业主。Ivanplats 在最近 B-BBEE 评分核实评估中达到 4 级贡献者标准。另外，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) 持有 Ivanplats 10% 的股权。
在北翼，铂族金属矿化主要赋存在Platreef层位，走向延伸30多公里。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。最北部的 Turfspruit 矿权，邻近且位于英美铂金 (Anglo Platinum) Mogalakwena 矿山的走向延伸上。
自2007 年以来，艾芬豪重点推进勘查和开发活动，以圈定普拉特瑞夫矿体的深部延伸，目前已命名为 Flatreef 矿床，适合高度机械化的地下开采。整个Flatreef 矿区位于 Turfspruit 和 Macalacaskop 采矿权范围内。
普拉特瑞夫项目继续审核和优化其COVID-19疫情防控方案，实行各项措施以控制并降低传播风险，包括对员工和访客进行大规模检测、为员工提供交通接送以及推行疫苗接种计划。截至2021年9月底，普拉特瑞夫项目共进行了4,649次COVID-19 检测。为配合国家卫生部推行的全国疫苗接种计划，Ivanplats 在矿山现场为员工接种COVID-19 疫苗，至今已完成396剂疫苗接种。普拉特瑞夫项目约 75% 的现场员工和承包商已接种了至少一剂疫苗。
普拉特瑞夫分期开发方案的可行性研究更新版进展顺利，将于 2022 年初完成。所有设计和工程设计已经完成，目前正进行成本估算且进度理想。
此外，Ivanplats已委托两家国际知名的商业银行 — 法国兴业银行和莱利银行担任受托牵头安排行，负责1.2亿美元的项目级高级债务融资。项目级的高级债务融资，仅在金属流融资全额提取后才能使用。债务融资的最终条款和条件，将取决于普拉特瑞夫分期开发方案的可行性研究完成、尽职调查和交易架构达成，以及最终文件的谈判和执行。债务融资的条款和条件，将在上述各项敲定后进行最终定夺。
1号竖井底部的996米中段工作站已于2020年7月顺利完工。1号竖井初步将用作进场通道，距离Flatreef高品位矿体约350米，计划开展大规模机械化开采。分别位于750 米、850 米和950米中段的三个工作站都已经完工，采掘班组可以通过初步地下通道前往高品位矿区。
在1号竖井成功进行凿井工程的卷扬机将被改造装配，在竖井转换工程期间用于运送主要设备，以及在竖井进行装配期间用于永久提升矿石、运送工作人员和物料。竖井将配备两个12.5吨的箕斗 (提升能力达82.5万吨/年) 以及可转换的罐笼，以配合在首采阶段运送工作人员和物料进出竖井。
1号竖井的废石输送系统正按计划推进，所有机械和电气订单的进度顺利。径向堆料输送机将于 2022 年 2 月交付，预计废石输送系统将于2022年初全面运行。此外，Ivanplats初步已为其主要采矿设备向瑞典斯德哥尔摩的 Epiroc公司下订单，包括零排放的电动巨型钻机和铲运机，将于 2022 年初交付。
项目订购的机械化电动钻机 (Boomer M2C钻机) 在瑞典厄勒布鲁的Epiroc厂房生产和组装，将用于普拉特瑞夫矿山的I期地下开拓工程，预计于 2022 年初运抵现场。
2号竖井的早期地表工程已于2017年展开，包括地表以下约 29 米深的开口以及建造103 米高的混凝土井架的地基。该井架将设有竖井的永久提升设施并将用于支撑井口。2号竖井井架 (从地基至井口) 的建设工程进度理想，第三和第四部井架升降机的施工进展顺利。计划建设共十部升降机，包括通风和工作人员通道，并计划于2022年5月完工。
普拉特瑞夫2号竖井的内径10 米，设计深度 1,104 米。
2018年5月，艾芬豪公布签订新的协议，将获得当地净化后的水源供应，以满足普拉特瑞夫I期生产所需的大部分散装水。 Mogalakwena当地政府同意，于32年间由莫科帕内新的 Masodi 废水处理厂每天供应不少于500万公升经处理的水源。 Ivanplats同意与市政府合作，尽快完成处理厂的建设，为普拉特瑞夫施工中的地下矿山开发和地表基础设施建设供应水源。
根据协议条款 (该协议受某些暂缓条件约束)，Ivanplats将向市政府提供经济援助，以高达2.48亿南非兰特 (约1,700万美元) 的认证费完成Masodi处理厂的工程。Ivanplats将以每1,000公升5南非兰特的较低价格 (每天首1,000万公升) 购买处理后的水，作为抵消部分的初步资本开支。
除了 Masodi处理厂的协议外，Ivanplats 于2021 年 6 月与勒巴莱洛用水户协会 (Lebalelo Water User Association) 达成协议，由奥勒芬兹河水资源开发项目 (Olifants River Water Resources Development Project) 每天供应额外1,000万公升的水源。初部协议是参与该合资项目的可行性研究，可望最终为普拉特瑞夫项目取得额外的长期水源供应。
普拉特瑞夫项目的第二个社会和劳动计划 (SLP) 已获得批准。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计划，其中包括﹕增加15名新培训师、向78名员工提供内部技术培训、延续向即将退休的员工提供新/其他技术的培训计划、为项目社区成员提供社区成人教育，以及向最少100名社区成员提供核心技术培训以及常用技能等。普拉特瑞夫项目继续支持多个教育计划，以及在运营社区提供免费无线上网。
矿山的常设培训学院目前正在添置设备，计划于2022年正式开幕。培训学院的教室和办公室已完工，并已制定培训和电子学习计划。Murray & Roberts培训学院的学员计划，为49名当地学员提供学习机会，包括职业安全以及采矿技能 (例如操作工程车) 的国家认可证书课程。学员计划旨在促进性别多样化，其中54%的学员都是女性。
普拉特瑞夫项目挑选当地社区的女学员在南非卡尔顿维尔的 Murray & Roberts 培训学院接受为期六个月的培训，学习操作机械化地下采矿设备。普拉特瑞夫独特的矿体特征为新一代熟练的南非矿工提供机会，使他们能够在高度机械化和安全的环境中工作。
位于刚果(金)的基普什铜-锌-锗-银-铅矿，邻近基普什镇，距离卢本巴希西南约30公里。基普什地处中非铜矿带，位于卡莫阿-卡库拉项目东南约 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(金)国有矿业公司杰卡明持有。
基普什项目建设了新的饮用水供应站为基普什市免费供水。基普什市社区成员从免费饮用水得到的日常支持涉及电力、化学消毒剂、日常维护、保安和紧急修复主要管网的泄漏，受惠人数多达十万人 (未计郊区的居民)。日常每小时连续泵送约 1,000 立方米的饮用水供给使用者。
5号竖井的直径为8米、深 1,240 米，现已进行升级和重新试车。主要的工作人员和物料进出场的卷扬机已完成升级改造，以满足全球行业标准和安全标准。5号竖井的提升岩石卷扬机已全面运行，并已安装新的箕斗、钢索以及相关配件。竖井已安装两个新制造的岩石运输工具(箕斗)和支撑框架(控制电缆)，以方便从1,200 米中段的主矿石仓和废石仓提升岩石。
尽管矿山开发作业受到阻碍，主要的工程仍继续开展，包括安装新的卷扬机作为第二出口，以及维修和更换 5 号竖井的主要水泵站，以确保持续稳定地泵送井下水。
本季度期间，项目添置了一台新的Land Cruiser 空气钻钻机，并已在卡库拉和富矿带两个高品位铜矿化区域开展钻探工作，目的是研究深部矿化上方的腐岩内的地球化学异常分布模式。空气钻钻探是西部前沿勘探策略的关键部分，用于被大量砂土覆盖的区域，以采取深层腐岩的样本。这些勘探线将用于界定勘探计划的方向。目前已完成了24个空气钻钻孔、共734米。
David van Heerden 晋升为首席财务官
2021 年 11 月 12 日，艾芬豪提拔 David van Heerden 提为首席财务官 (CFO)。David 先生自 2011 年以来一直在艾芬豪担任高级财务职务，最近担任财务、资产和税务副总裁。在加入艾芬豪矿业之前，他在南非约翰内斯堡的安永会计师事务所 (Ernst & Young Inc.) 的保险部门工作，专注于采矿和建筑客户。 David 是一名注册特许会计师。
David 先生的任命使 Marna Cloete 能够专注于她作为艾芬豪总裁的角色。Marna女士自2020年3月被任命为总裁以来，一直担任总裁和首席财务官的双重角色，
截至2021年9月30日止三个月 (对比 2020年9月30日) 的回顾
如下列可转债部分所述，公司在2021年第三季度嵌入式衍生金融负债的公允价值录得5,490万美元的收益。财务成本从 2020 年第三季度的 10 万美元增加到 2021 年同期的 1,050 万美元，其中1,020万美元与可转债的利息 (按实际利率计算) 有关。
2021年第三季度的财务收入达2,640万美元，与2020年同期 (2,020万美元) 相比高出620万美元。财务收入中包括向卡莫阿控股合资企业提供的贷款利息，2021年第三季度的利息收入2,420万美元，2020年同期所得的利息收入为1,800万美元，随着累计贷款余额增加。
截至2021年9月30日止九个月的财务收入达7,430万美元，与 2020年同期 (5,970万美元) 相比高出1,460万美元。财务收入已计入截至2021年9月30日止九个月向卡莫阿控股合资企业提供贷款以运营所得的利息收入6,840万美元以及2020年同期所得的利息收入5,060万美元，随着累计贷款余额增加。由于美联储减息，导致现金和现金等价物所得利息下跌。
截至 2021年9月30日的财务状况对比截至 2020年12月31日的财务状况
截至2021年9月30日，公司的总资产为30.09亿美元，相比截至2020年12月31日的24.171亿美元增长了5.919亿美元。总资产的增长主要由于2021年3月17日完成发行高级可转债所得的净收入所致。出售可转债所得的收入 (扣除与主负债相关的发行成本1,050万美元) 为5.645亿美元。
于2020年12月底，卡莫阿控股合资企业已从设备融资获得4,500万欧元 (约5,600万美元) 以及从首付款贷款中提取900万美元，并于截至2021年9月30日止九個月內从设备融资获得6,170万欧元 (约7,520万美元)。设备融资仅以设备作为抵押，实际利率为8.96%。首付款贷款则无抵押，实际利率为11.58%。
卡莫阿控股合资企业的不动产、厂房和设备从 2020年12月31日净增长至 2021年9月30日，达到5.265亿美元，可进一步分解如下：
高级可转债为本公司的高级无抵押债务，息票率2.50%，每半年付息一次。除非提前回购、赎回或转换，债券将于2026年4月15日到期。债券的初步转换率为每份面值1,000美元的债券可转换为134.5682股公司A类普通股，或相当于每普通股约7.43美元 (约9.31加元) 的初步转换价。
- 在截至2021年6月30日止季度之后的任何季度期间 (以及仅在该季度期间)，如果本公司在30个连续交易日 (包括上一季度的最后一个交易日) 期间至少20个交易日 (不论是否连续) 的A类普通股收盘价格高于或相等于当时每个适用交易日转换价格的130%；或
- 在任何10个连续交易日后的5个工作日期间 ("测量周期")，测量周期内每个交易日的每份面值1,000 美元的债券交易价格低于本公司A类普通股的收盘价格与这些交易日的转换率乘积的98%；或
本公司不得在2024年4月22日之前赎回债券 (除非某些税法有所修订)。2024年4月22日或之后，以及在到期日前第41个交易日或之前，如果在本公司提供赎回通知前的任何30个连续交易日 (包括该期间的最后一个交易日) 期间至少20个交易日 (不论是否连续) 的普通股收盘价格高于或相等于当时转换价格的130%，则本公司可以赎回债券。债券的赎回价格为债券面值的100%，加上应计未付利息 (但不包括赎回日)。
主负债的实际利率为9.39%，在2021年第三季度可转债认列的利息为 1,020 万美元，截至2021年9月30日止九个月则为2,150万美元。截至2021年9月30日，主负债的账面值为4.355亿美元。
截至2021年9月30日，公司拥有5.797 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6.238亿美元，而截至 2020年12月31日则为3.08亿美元。
目前，普拉特瑞夫项目的开支由艾芬豪单方出资 (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出资。
在 2021 年剩余时间，公司对普拉特瑞夫项目的主要目标是完成分期开发方案的详细工程设计和更新可行性研究、继续转换1号竖井为生产井以及建设2号竖井的井口、井架。基普什项目将继续实施现金节流措施，直至可行性研究完成以及开发和融资方案达成协议。卡莫阿-卡库拉项目已启动首批铜精矿生产，并将继续进行II期选厂扩建和相关基础设施的施工。
公司预算在2021年剩余时间花费3,260 万美元用于进一步开发普拉特瑞夫项目、900 万美元用于基普什项目、900万美元用于西部前沿勘探项目，以及1,000万美元用于公司经常性开支。
截至 2021 年 9 月 30 日，卡莫阿控股合资企业持有现金和现金等价物2.549 亿美元。展望未来，项目I期的所有运营支出以及II期和III期的大部分资本支出将会从铜销售和卡莫阿现有的信贷出资。
公司在其英国伦敦办公室有一笔价值320万英镑 (440万美元) 的抵押债券未偿付，需于2025年8月28日全额偿还，此抵押债券以物业资产担保，按1个月期英镑LIBOR加1.9 %的利率每月支付利息。利息仅在到期日支付。
2013年，艾芬豪获ITC Platinum Development Limited提供合约金额3,500万美元的应付贷款。截至2021年9月30日，该公司的账面值为3,340万美元。艾芬豪必须在普拉特瑞夫项目出现剩余现金流后，即时偿还该项贷款。根据贷款协议，剩余现金流定义为普拉特瑞夫项目产生的总收入，扣除所有相关运营成本 (包括所有采矿建设和运营成本)。逾期债款需按3个月期美元LIBOR加2%的利率每月支付利息。利息不进行复利计息。应付合约金额与贷款账面值相差160万美元，主要由于低息贷款所致。
如上所述，上表列出的债务代表应向花旗银行支付的抵押债券以及应付ITC Platinum Development Limited的贷款。
C1现金成本及每磅C1现金成本为非公认会计准则的财务指标。这些披露使投资者更清楚了解卡莫阿-卡库拉项目的表现，与其他铜生产商按照类似指标公布的业绩作比较。C1 现金成本的计算基准与伍德曼肯兹成本指南制定的行业标准定义一致，但并非IFRS 认可的计量。在计算 C1 现金成本时，成本的计量基准与财务报表中所述的公司应占卡莫阿控股合资企业的收益份额相同。管理层以C1 现金成本评估经营业绩，其中包括所有直接开采、选矿以及一般行政开支。冶炼费和销售至最终港口的运费扣减被列作销售收入的一部分，将计入C1现金成本，以得出交付成品金属的粗略成本。权益金、生产税和非经常性费用并非直接生产成本，因此不会计入C1现金成本。
艾芬豪认为，卡莫阿-卡库拉的 EBITDA 是衡量卡莫阿-卡库拉项目是否有能力产生流动性的重要指标，通过产生运营现金流为其营运所需提供资金、偿还债务、为资本开支供资，以及向股东派发现金股利。投资者和分析师也经常使用 EBITDA进行估值。EBITDA 旨在向投资者和分析师提供额外信息，但并非由 IFRS 标准定义的，故不应被独立评估或取代按照IFRS制订的表现指标。EBITDA 撇除融资活动的现金成本和税项的影响以及运营资金余额变动的影响，因此并不代表IFRS所定义的营业利润或经营产生的现金流。公司计算 EBITDA 的方法可能与其他公司有所不同。
合资格人及符合NI 43-101 标准的技术报告
本新闻稿中关于卡莫阿-卡库拉项目资本开支和开发方案修订版的科学或技术性披露已经由史蒂夫·阿莫斯 (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 标准下的合资格人。由于阿莫斯先生是卡莫阿项目的负责人，因此他并不符合NI 43-101 对独立人士的界定。阿莫斯先生已核实本新闻稿所披露的技术数据。
本新闻稿中关于卡库拉和卡索科矿堆的其它科学或技术性披露已经由乔治·吉尔克里斯特 (George Gilchrist) 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。由于吉尔克里斯特先生是艾芬豪矿业资源部副总裁，因此他并不符合NI 43-101 对独立人士的界定。吉尔克里斯特先生已核实本新闻稿所披露的其它技术数据。
本新闻稿中的其它科学或技术性披露已经由斯蒂芬·托尔 (Stephen Torr) 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。由于托尔先生是地球科学副总裁，因此他并不符合NI 43-101 对独立人士的界定。托尔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10月13日发布的2020年卡莫阿-卡库拉综合开发方案，由OreWin Pty Ltd.、中国瑞林工程技术有限公司、DRA Global、Epoch Resources、Golder Associates Africa、KGHM Cuprum R&D Centre Ltd.、Outotec Oyj、Paterson and Cooke、Stantec Consulting International LLC、SRK Consulting Inc.以及Wood plc编制，涵盖公司的卡莫阿-卡库拉项目；
- 2020年12月6日发布的2020 年普拉特瑞夫综合开发方案，由OreWin Pty Ltd.、Wood plc (前为Amec Foster Wheeler)、SRK Consulting Inc.、Stantec Consulting International LLC 、DRA Global以及Golder Associates Africa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。
投资者：比尔·特伦曼 (Bill Trenaman)，电话：+1.604.331.9834 /
媒体：马修·基维尔 (Matthew Keevil)，电话：+1.604.558.1034
该等陈述包括但不限于下列事项的时间点和结果﹕ (i) 关于随着卡莫阿-卡库拉II期选厂即将投产，矿山的固定运营支出将按铜产量增长而分摊，预计成本将会下降的陈述；(ii) 关于卡莫阿-卡库拉 I 期和 II 期投产后每年将累计生产高达40万吨铜的陈述；(iii) 关于预计卡莫阿-卡库拉II期和III期扩建的大部分资本支出将会从铜销售和卡莫阿现有的信贷出资的陈述；(iv) 关于卡库拉矿山约一半的尾矿将用于井下回填，大大减少地表尾矿量的陈述；(v) 关于II期380万吨/年选厂的建设进展顺利，将于2022年第二季度投产的陈述；(vi) 关于艾芬豪与其合作伙伴紫金正积极研究加快推进卡莫阿-卡库拉III期选厂扩建计划的陈述；(vii) 关于卡莫阿-卡库拉III期扩建计划的范围、时间点、位置及规模的陈述；(viii) 关于规划中的 III 期选厂 (建设在卡索科矿山) 将处理来自卡索科南部开采的矿石以及即将开拓的卡索科中部矿体和卡莫阿北区首个采区提供的矿石的陈述；(ix) 关于卡莫阿-卡库拉III期扩建计划研究工作的范围和时间点的陈述；(x) 关于卡莫阿-卡库拉项目直接粗铜闪速熔炼厂的建设、设计、地点及规模的陈述；(xi) 关于卢阿拉巴铜冶炼厂预计每年将为卡莫阿-卡库拉高达15万湿吨的铜精矿进行粗炼加工的陈述；(xii) 关于已达成协议在英加二期水电站进行5号涡轮机组的升级工程，涡轮机组升级后将产生162兆瓦的清洁、可再生水电，为卡莫阿-卡库拉铜矿项目及冶炼厂提供长期的稳定电力以配合日后扩建计划的陈述；(xiii) 关于卡莫阿-卡库拉旨在成为首个实现净零碳排放的顶级铜矿，采用电池或氢燃料电池驱动的先进设备，全力推进采矿作业电气化的陈述；(xiv) 关于卡莫阿-卡库拉项目在2021年精矿含铜金属的生产指导目标已上调为92,500至100,000吨的陈述；(xv) 关于预计 2021 年第四季度每磅应付铜的销售成本和生产每磅应付铜的 C1 现金成本，与 2021 年第三季度的实际开支不会出现重大差异的陈述；(xvi) 关于普拉特瑞夫分期开发方案的可行性研究更新版进展顺利，将于2022年初完成的陈述；(xvii) 关于分期开发方案初步计划是要加快推进普拉特瑞夫于2024年实现投产，初始年处理矿石70万吨的方案利用矿山现有的1号竖井以及建设产能高达77万吨/年新选厂的陈述；(xviii) 关于2号竖井一旦完工，且两座额外220万吨/年的选厂模块建成后，选厂的产能将会得到扩大，届时项目的总产量将会提升至520万吨/年设计稳态产能的陈述；(xix) 关于普拉特瑞夫的金属流融资快将达成协议，金属流融资计划按项目需求分两期提款，将会用于建设70万吨/年的初始矿山和相关基础设施的陈述；(xx) 关于普拉特瑞夫1号竖井将配备两个12.5吨的箕斗 (提升能力达82.5万吨/年) 以及可转换的罐笼，以配合在首采阶段运送工作人员和物料的陈述；(xxi) 关于普拉特瑞夫项目的径向堆料输送机将于 2022 年 2 月交付，预计废石输送系统将于2022年初全面运行的陈述；(xxii) 关于Ivanplats已为其主要采矿设备下订单，将于 2022 年初交付的陈述；(xxiii) 关于普拉特瑞夫项目计划建设共十部升降机，包括通风和工作人员通道，并计划于2022年5月完工的陈述；(xxiv) 关于Ivanplats向市政府提供经济援助，以高达2.48亿南非兰特 (约1,700万美元) 的认证费完成Masodi处理厂的工程，且Ivanplats将以每1,000公升5南非兰特的较低价格 (每天首1,000万公升) 购买经处理的水，作为抵消部分初步资本开支的陈述；(xxv) 关于矿山的常设培训学院目前正在添置设备，计划于2022年正式开幕的陈述；(xxvi) 关于普拉特瑞夫的分期开发方案，旨在建立一个作业平台，以支持将来可能提升至每年1,200万矿石的扩建方案，年产超过24,000吨镍以及110万盎司的钯、铑、铂金和黄金，这将使普拉特瑞夫成为全球最大型的镍和铂族金属生产矿山之一的陈述；(xvii) 关于艾芬豪矿业及其合作伙伴杰卡明正在审阅基普什的最终可行性研究草案以及开发和融资方案，预计双方将于短期内，在完成可行性研究以及开发和融资方案达成协议后完成协商的陈述；以及 (xviii) 关于在2021 年剩余时间的主要目标和2021年剩余预算的陈述。
此外，卡库拉铜矿可行性研究、卡库拉-卡索科2020年预可行性研究、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，普拉特瑞夫2020年初步经济评估以及基普什项目的预可行性研究的所有结果均构成了前瞻性陈述或信息，并包括内部收益率的未来估算、净现值，未来产量、现金成本估算、建议开采计划和方法、估计矿山全寿命、现金流量预测、金属回收率、资本和运营成本估算，以及项目分期开发的规模和时间点。另外，对于与卡莫阿-卡库拉项目、普拉特瑞夫项目和基普什项目运营及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) 矿化的选冶特征；(iv) 发展充足选矿产能的能力；(v) 铜、镍、锌、铂金，钯、铑和黄金的价格；(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) 合资企业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；(xvi) 项目范围或设计更变；(xvii) 回收率、开采率和品位；(xviii) 政治因素；(xix) 矿山进水情况及对于开采作业的潜在影响；以及 (xx) 电源的稳定性和供应。
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。