TORONTO, CANADA ‒ Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) today announced its financial results for the nine months ended September 30, 2020. Ivanhoe Mines is a Canadian mining company advancing its three mining projects in Southern Africa: the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC); the Platreef palladium-platinum-rhodium-nickel-copper-gold discovery in South Africa; and the extensive upgrading of the historic Kipushi zinc-copper-silver-lead-germanium mine, also in the DRC.
The company also is exploring for new copper discoveries on its wholly-owned Western Foreland exploration licences, adjacent to the Kamoa-Kakula mining licence. All figures are in U.S. dollars unless otherwise stated.
- Development of the Kakula Copper Mine, the first of multiple, planned mining areas at the Kamoa-Kakula Project, is making excellent progress. Overall progress of Kamoa-Kakula’s first phase, 3.8 million tonnes per annum (Mtpa) mining and milling operation is approximately 58% complete, with first production scheduled for July 2021. The project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the Democratic Republic of Congo (20%).
- The Kakula Mine is projected to be the world’s highest-grade major copper mine with an estimated average feed grade of more than 6% copper over the first five years of operation. It also will have one of the smallest footprints in terms of water, electrical energy, tailings and carbon dioxide per unit of copper produced.
- Construction of Kamoa-Kakula’s first-phase 3.8 Mtpa concentrator plant is advancing rapidly and was approximately 28% complete at the end of October. The concentrator plant is expected to be mechanically complete in Q2 2021.
- The Kamoa-Kakula Project will be powered with clean, sustainable hydro-electricity. Ongoing upgrading work at the Mwadingusha hydro-power plant in the DRC is expected to deliver approximately 72 megawatts (MW) of power to the national power grid by early 2021.
- Kamoa-Kakula is in detailed discussions with a number of parties with respect to the marketing and smelting of its copper concentrates. Kakula is expected to produce an extremely high-grade (containing over 55% copper) and clean copper concentrate. Metallurgical testwork indicates that the Kakula concentrate contain extremely low arsenic levels by world standards – approximately 0.01%. This is believed to be a critical competitive marketing advantage.
- The current estimate of Kakula’s initial capital costs is approximately $1.3 billion as of January 1, 2019, which assumes commissioning of the first concentrator plant module in July 2021 and includes pre-production ore stockpiles. The capital costs incurred by the Kamoa-Kakula joint venture in 2019 was $309 million. Additional capital costs of $403 million have been incurred by the joint venture in the nine months ended September 30, 2020, leaving the joint venture with an estimated $570 million capital costs remaining until initial production.
- Kamoa-Kakula joint-venture partners are in the process of finalizing project-level financing credit facilities to accelerate Phase 2 development.
- At the end of Q3 2020, Ivanhoe had cash and cash equivalents of approximately $376 million and no significant debt.
- The scope of facilities for Kamoa-Kakula’s Phase 2 expansion includes the underground expansion at the Kakula Mine to reach an annual production rate of 6 Mtpa; the commencement of mining operations at the nearby Kansoko Mine at a steady state 1.6 Mtpa; a second 3.8-Mtpa concentrator module at Kakula; as well as associated surface infrastructure to support expansion at the various sites.
- Underground development at the Kakula Copper Mine continues to advance ahead of schedule. More than 24.7 kilometres of underground development had been completed to the end of October ─ 7.9 kilometres ahead of plan. The pace of development is expected to continue to accelerate as additional mining crews are added.
- At the end of October, Kakula’s main access drives between the northern and southern declines had less than 100 metres remaining before they are connected in the high-grade centre of the deposit. The holing will significantly increase ventilation to the centre of the orebody, allowing for additional mining crews to begin highly-productive mining operations in Kakula’s high-grade ore zones.
- At the end of October, Kamoa-Kakula’s medium- and high-grade ore stockpiles contained approximately one million tonnes grading 3.47% copper.Mining crews produced a combined 194,000 tonnes of ore grading 4.01% copper in October from the Kakula and Kansoko mines.
- The enormous amount of pre-production development completed to date at both the Kakula and Kansoko mines has positioned the project for a significant acceleration in the tonnage, as well as a marked increase in the grade, of ore added to the project’s surface stockpiles beginning this month.
- At the Platreef tier-one, palladium-platinum-nickel-copper-gold-rhodium project in South Africa, the project’s first shaft (Shaft 1) was completed to a final depth of approximately 996 metres in July.
- Ivanhoe is finalizing a phased development plan for the Platreef Project. The plan would target significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 definitive feasibility study (DFS).
- Concurrently, Ivanhoe is updating the Platreef Project’s 2017 DFS to take into account development schedule advancement since 2017 when the DFS was completed, updated costs and refreshed metal prices and foreign exchange assumptions. The DFS and phased development production plan are scheduled to be issued in the second half of November 2020.
- On July 27, 2020, Ivanhoe announced that it has had, and is continuing to have, strategic discussions regarding its 100%-owned Western Forelands Project that adjoins the Kamoa-Kakula mining licence; the Kipushi zinc-copper-silver-lead-germanium mine in the DRC; as well as its Platreef palladium-platinum-nickel-copper-rhodium-gold project on the Northern Limb of South Africa’s Bushveld Igneous Complex.
- On November 6, 2020, Ivanhoe’s Board appointed its two recently appointed, independent members ─ Nunu Ntshingila and Martie Janse van Rensburg ─ as Chair of the Sustainability Committee and Chair of the Compensation and Human Resource Committee, respectively.
- At the end of September 2020, Kamoa-Kakula had reached 1.64 million work hours free of a lost-time injury and Kipushi had reached 2.68 million work hours free of a lost-time injury.
Principal projects and review of activities
1. Kamoa-Kakula Project
39.6%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kamoa-Kakula Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the world’s fourth-largest copper deposit by international mining consultant Wood Mackenzie. The project is approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi.
Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining in December 2015 for an aggregate consideration of $412 million. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River for $8.32 million - which Crystal River will pay through a non-interest-bearing, 10-year promissory note. Since the conclusion of the Zijin transaction in December 2015, each shareholder has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in Kamoa Holding.
A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the 2002 DRC mining code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding holds an 80% interest in the project.
Health and safety at Kamoa-Kakula
Ivanhoe Mines regrets to report that a fatal accident occurred at the Kamoa-Kakula Project on August 16, 2020. The accident occurred underground at the Kakula North workings when a contractor’s employee collided with the side wall of an access drive while attempting to move a drilling rig which he was not trained or authorized to do.
At the end of September 2020, the Kamoa-Kakula Project reached 1,640,584 work hours free of a lost-time injury. The project continues to strive toward its workplace objective of zero harm to all employees and contractors.
In accordance with health guidelines from the DRC government, and in line with the country’s lifting of restrictions, Kamoa-Kakula’s Congolese workforce has gone back to normal work rotations. Rigorous testing, physical distancing, wearing face masks, frequent hand washing and contact-tracing measures still are in place to protect the safety and health of the workforce and community members.
The project has established a COVID-19 isolation facility at the Kamoa camp. Potential symptomatic patients are moved to this facility, where they will be isolated, tested and treated. Once patients have recovered and are deemed no longer infectious, they can return to work only after an additional quarantine period which is determined by the project’s medical staff.
As the pandemic evolves, the medical team at Kamoa-Kakula continues to review and update its risk mitigation protocols. The project’s preventative measures are at the highest international standards and, if there was a case internally, the risk of spreading or cross-contamination is considered to be very low.
Dr. Patrick Kasongo, Occupational Health Coordinator (left); Brett Watson, Managerial Leader, Health, Safety & Environment (middle); and Greg Hillen, Advanced Life Support Paramedic (right) ─ three key members of Kamoa-Kakula’s first-rate medical team that have been instrumental in the project successfully navigating the COVID-19 pandemic.
Outstanding economic results of the Kamoa-Kakula Integrated Development Plan 2020
On September 8, 2020, Ivanhoe Mines announced the results of an independent Integrated Development Plan (IDP) for the Kamoa-Kakula Project. The Kamoa-Kakula Integrated Development Plan 2020 encompasses three development scenarios:
- The definitive feasibility study (DFS) for the stage one Kakula Mine development. The Kakula 2020 DFS evaluates the development of a stage one, 6-Mtpa underground mine and surface processing complex at the Kakula Deposit with a capacity of 7.6 Mtpa, built in two modules of 3.8 Mtpa, with the first already under advanced construction.
- The pre-feasibility study (PFS) including Kansoko Mine development. The Kakula-Kansoko 2020 PFS evaluates the development of mining activities at the Kansoko Deposit in addition to the Kakula Mine, initially at a rate of 1.6 Mtpa to fill the concentrator at Kakula, eventually ramping up to 6 Mtpa as the reserves at Kakula are depleted.
- The expanded, subsequent development to four producing mines. The Kamoa-Kakula 2020 preliminary economic assessment (PEA) includes an analysis of the potential for an integrated, 19-Mtpa, multi-stage development, beginning with initial production from the Kakula Mine, to be followed by subsequent, separate underground mining operations at the nearby Kansoko, Kakula West and Kamoa North mines, along with the construction of a direct-to-blister smelter. The Kamoa North area comprises five separate mines that would be developed as resources are mined out elsewhere, to maintain the production rate at up to 19 Mtpa, with an overall life in excess of 40 years.
The Kamoa-Kakula IDP 2020 was independently prepared on a 100%-basis by OreWin Pty Ltd. of Adelaide, Australia; China Nerin Engineering Co., Ltd., of Jiangxi, China; DRA Global of Johannesburg, South Africa; Epoch Resources of Johannesburg, South Africa; Golder Associates Africa of Midrand, South Africa; KGHM Cuprum R&D Centre Ltd. of Wroclaw, Poland; Outotec Oyj of Helsinki, Finland; Paterson and Cooke of Cape Town, South Africa; Stantec Consulting International LLC of Phoenix, USA; SRK Consulting Inc. of Johannesburg, South Africa; and Wood plc of Reno, USA.
Highlights of the Kakula 2020 DFS, initial 6 Mtpa mine at Kakula, include:
- The Kakula 2020 DFS evaluates the development of a stage one, 6-Mtpa underground mine with a surface processing complex at the Kakula Deposit with a capacity of 7.6 Mtpa, built in two modules of 3.8 Mtpa, with the first already under advanced construction. For this option, the DFS envisages an average annual production rate of 284,000 tonnes of copper at a mine-site cash cost of $0.52 per pound (lb.) copper and total cash cost of $1.16/lb. copper for the first 10 years of operations, and annual copper production of up to 366,000 tonnes by year four.
- Remaining initial capital cost of $0.65 billion for this option would result in an after-tax net present value at an 8% discount rate (NPV8%) of $5.5 billion.
- The internal rate of return of 77.0% and project payback period of 2.3 years confirm the compelling economics for the Kamoa-Kakula Project’s stage one of production.
- Kakula benefits from an ultra-high, feed grade averaging 6.6% copper over the first five years of operations, and 5.2% copper on average over a 21-year mine life.
Highlights of the Kakula-Kansoko 2020 PFS, that incorporates Kansoko mine development, include:
- The Kakula-Kansoko 2020 PFS evaluates the development of mining activities at the Kansoko Deposit in addition to Kakula, initially at a rate of 1.6 Mtpa to fill the 7.6-Mtpa concentrator at Kakula, eventually ramping up to 6 Mtpa as the reserves at Kakula are depleted. For this option, the PFS envisages an average annual production rate of 331,000 tonnes of copper at a mine-site cash cost of $0.55/lb. copper and total cash cost of $1.23/lb. copper for the first 10 years of operations, and annual copper production of up to 427,000 tonnes by year four.
- Remaining initial capital cost of $0.69 billion for this option would result in an after-tax net present value at an 8% discount rate (NPV8%) of $6.6 billion. The internal rate of return of 69.0% and project payback period of 2.5 years confirm the compelling economics of Kakula and Kansoko.
- The combined Kakula-Kansoko production benefits from an ultra-high, feed grade averaging 6.2% copper over the first five years of operations, and 4.5% copper on average over a 37- year mine life.
Highlights of the modular, integrated, expanded development option potential for the Kakula and Kamoa deposits, mining a total of 19 Mtpa, with construction of a direct-to-blister smelter, include:
- The Kamoa-Kakula 2020 PEA presents an additional development option of a multi-stage, sequential operation on Kamoa-Kakula’s high-grade copper deposits.
- Initial production from the Kakula Mine at a rate of 6 Mtpa, followed by subsequent, separate underground mining operations at the nearby Kansoko, Kakula West and Kamoa North mines, along with the construction of a direct-to- blister smelter. The Kamoa North Area comprises five separate mines that will be developed as resources are mined out elsewhere, to maintain the production rate at up to 19 Mtpa, with an overall life in excess of 40 years.
- For the integrated, 19-Mtpa, multi-stage development, the PEA envisages $0.7 billion in remaining initial capital costs. Future expansion at the Kansoko Mine, Kakula West Mine and Kamoa North mines would be funded by cash flows from the Kakula Mine, resulting in an after-tax net present value at an 8% discount rate (NPV8%) of $11.1 billion, an internal rate of return of 56.2%, and a payback period of 3.6 years.
- Under this approach, the PEA also contemplates the construction of a direct-to-blister copper smelter at the Kakula plant site with a capacity to process one million tonnes of copper concentrate per annum to be funded from internal cash flows. This would be completed in year five of operations, achieving significant savings in treatment charges and transportation costs.
- The 19-Mtpa scenario shows the potential for average annual production of 501,000 tonnes of copper at a total cash cost of $1.07/lb. copper during the first 10 years of operations and production of 805,000 tonnes of copper by year eight.
- At this future production rate, Kamoa-Kakula would rank as the world’s second largest copper mine.
The capital costs incurred by the Kamoa-Kakula joint venture in 2019 amounted to $309.1 million, of which $125.2 million was spent on the Kakula declines and mine development. A further capital cost of $403 million, that includes the costs allocated to the pre-production ore stockpiles, has been incurred in the nine months ended September 30, 2020. Ivanhoe’s share of the capital costs incurred in the nine months ended September 30, 2020, was $200 million, representing its share of approximately 40% of the initial capital costs, plus its share of capital associated with the 20% carried interest owned by the Government of the DRC, which will be repaid through future cash flows from the project. Ivanhoe has budgeted $127 million for its proportionate funding of approximately 50% for the Kamoa-Kakula Project for the remainder of 2020. As of September 30, 2020, the joint venture had an estimated $570 million of capital costs remaining until initial production.
Ivanhoe expects that it will continue to have sufficient cash resources or financing options available to cover its proportionate share of the remaining initial capital costs.
Figure 1. Kamoa-Kakula 19-Mtpa PEA long-term development plan, which would position Kamoa-Kakula as the world’s second largest copper mining complex, with peak annual copper production of more than 800,000 tonnes.
Figure by OreWin 2020
Figure 2: Overview of deposits included within the Kakula 2020 DFS (6 Mtpa ─ outlined by blue dotted line), Kakula-Kansoko 2020 PFS (7.6 Mtpa ─ outlined by purple dotted line) and Kamoa-Kakula 2020 PEA (outlined by green dotted line).
Excellent construction progress being made on Kakula’s concentrator plant; first production now expected in July 2021
Construction of the project’s first-phase 3.8-Mtpa concentrator plant is advancing rapidly and at the end of September 2020 was approximately 28% complete. The concentrator plant is expected to be mechanically complete in Q2 2021, with first copper concentrate production scheduled for July 2021. The project and construction teams have consistently achieved the milestone dates despite the challenges presented by the COVID-19 pandemic, and have placed Kamoa-Kakula in a position to commission earlier than initially planned in 2021.
Civil works for the initial concentrator plant are nearing completion, with approximately 26,000 cubic metres of concrete poured to date. All major construction areas will be handed over to the steel, mechanical, piping and platework (SMPP) contractor imminently.
The final major pieces of equipment − two 80-MVA/220kV electrical transformers – are scheduled to arrive on site in early November 2020. Construction of the various electrical substations is progressing well.
Structural steel and platework fabrication for the concentrator plant is complete, with the bulk of the material already delivered to site. Piping is progressing according to schedule, with more than 60 kilometres (of a total of 83 kilometres) of piping already delivered at the end of October 2020. Limited electrical, controls and instrumentation (EC&I) work has started with the installation of cable racking.
At the end of October 2020, over 2,000 tonnes of steel (of a total of 5,700 tonnes) had been installed. The main focus areas are the conveyor gantries, mill building, reagent storage area, flotation area, and concentrate storage building. Construction has commenced for the plant stores, workshop and water services.
The two ball mills for the initial 3.8-Mtpa concentrator plant; with one of the 7-megawatt, variable-speed-drive motors (blue), manufactured by WEG Industries in Brazil, and the high-pressure grinding rolls stockpile under construction in the background.
A 3D illustration of the first 3.8-Mtpa concentrator plant flotation area, with the recently-initiated second 3.8-Mtpa concentrator plant shown in magenta. A comparison picture below shows progress to date.
A 3D illustration of the finished ball mills (in light green), with the next two ball mills for the recently-initiated second concentrator plant shown in magenta. A comparison picture below shows progress to date. The first-phase (dark green) and second-phase (magenta) high-pressure grinding rolls buildings are shown in the red circle.
Engineering, procurement and construction of other surface infrastructure rapidly progressing
Overall progress of Kamoa-Kakula’s first-phase, 3.8-Mtpa mining and milling operation (covering mine infrastructure, concentrator plant and surface infrastructure) was approximately 58% complete at the end of September 2020.
Beijing-based CITIC Construction is building Kakula’s first phase, backfill paste plant. The backfill plant will be used to mix tailings from the concentrator plant with cement to produce paste backfill. The backfill will be 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, significantly reducing the surface tailings storage. Construction of the backfill plant civil works is well advanced and steel erection has started.
Construction of the tailings dam is progressing well, with the aim to complete most of the earthworks before the rainy season is expected to begin later in November 2020. Installation is well advanced for the three tailings lines and the tailings return water line.
All long-lead mechanical items now have been delivered to site with the exception of the main 220kV transformers which have been off-loaded at port and currently are being transported to site by road.
The gabion wall for the surface bulk reclaim tip system that is located near Kakula’s main northern decline has been constructed and preparation has started for the civil works required at the top of the wall. The bulk reclaim tip system will be used to feed ore from Kakula’s surface stockpiles (and ore from the Kansoko Mine when second-phase operations begin) to the processing circuit.
Underground development is approximately seven kilometres ahead of plan at the end of September 2020
A total of 22.6 kilometres of underground development was completed by the end of September 2020, which was approximately 7 kilometres ahead of plan. A record of 2.172 kilometres of development was subsequently achieved in October 2020, further increasing the underground development to more than 24.7 kilometres which is 7.9 kilometres ahead of plan.
There currently are 10 mining crews (three owner crews and seven contractor crews) at Kakula and one mining crew at Kansoko. The project will continue to add additional crews to further accelerate development.
In the Kakula southern access drives, minor offsets across growth faults have been encountered, but adjustments to the mining has allowed the drives to follow the steeper dips of the mineralization across the faults. In the Kakula northern access drive, a larger growth fault was encountered where the mineralization of the south side of the fault was faulted down (with variable offsets). A spiral decline was developed to accommodate the offsets, and re-established mining on the mineralization.
At Kakula, both main access tunnels (drives) being advanced from the southern decline, and the spiral access drive being advanced from the northern decline, recently have accessed the high-grade zone near the centre of the deposit grading approximately +8% copper. Kakula’s main access drives between the northern and southern declines have less than 100 metres remaining before they are connected (holed) in the high-grade centre of the deposit. The holing will significantly increase ventilation to the centre of the orebody, allowing for additional mining crews to begin highly-productive mining operations in Kakula’s high-grade ore zones.
Chamec Kasatuka Mpungwe operating a piece of semi-autonomous mining equipment at the Kansoko Mine. Kamoa-Kakula is training a new generation of young Congolese women and men to safely operate modern, mechanized equipment in the world-scale underground copper mines being built at Kamoa-Kakula.
Miner Freddy Muba holds a piece of ultra-high-grade, chalcocite-rich ore at the Kakula Mine. Kakula’s high concentration of chalcocite ore – which is almost 80% copper by weight − accounts for the mine’s average feed grade of 6.6% copper over the first five years of operations, and 5.2% copper on average over a 21-year life.
In addition to advancing the main connecting access drives, underground mining crews at Kakula are focused on preparation work for developing the high grade, drift-and-fill mining blocks in the centre of the orebody. Opening up of the mining footprint for these high grade, drift-and-fill mining areas entails development work in areas of low-, medium- and high-grade ore, and is designed to coincide with the start-up of the concentrator plant next year. This will allow mining crews to deliver significant tonnage of high-grade ore directly from Kakula’s underground workings to the concentrator plant.
Kakula’s second underground ore bin (the west tip bin) is undergoing commissioning. Installation of Kakula’s ventilation shaft #2 also is progressing well, with the first of three high-capacity surface fans installed by the contractor.
Underground development at the Kansoko Mine currently is in low-to-medium-grade ore zones, grading approximately 3% copper. In October, mine development work intersected the first exposure of siltstone, marking the transition to higher copper grades at Kansoko. Siltstone is a rock type with a strong influence on copper mineralization at Kamoa-Kakula.
A recent, independent audit of Kamoa-Kakula's greenhouse gas intensity metrics performed by Hatch Ltd. of Mississauga, Canada, confirmed that the project will be among the world's lowest greenhouse gas emitters per unit of copper produced.
Figure 3: Underground development completed at the Kakula Mine to the end of October (in black), and the location where the northern and southern access drives will be joined. Majority of development in November will be in the initial drift-and-fill mining area within the +8% copper zone (in magenta).
Pre-production ore stockpiles now contain approximately one million tonnes grading 3.47% copper
At the end of September 2020, Kakula North’s combined medium- and high- grade, pre-production ore stockpile contained approximately 540,000 tonnes grading 3.73% copper, the medium- and high-grade ore stockpile at Kakula South contained approximately 168,000 tonnes grading 2.73% copper, and stockpiles at Kansoko, contained approximately 95,000 tonnes grading 2.34% copper.
In October, crews at Kakula and Kansoko mined and transported to surface approximately 194,000 tonnes of ore grading 4.01% copper. This brings the project’s total pre-production high- and medium-grade ore stockpiles to approximately 1,000,000 tonnes at an estimated grade of 3.47% copper. An additional 622,000 tonnes of low-grade development ore also has been stockpiled on surface.
The ore being mined from the northern portion of the Kakula Mine is transported to surface via the conveyor system and placed on a blended surface stockpile that contained approximately 639,000 tonnes grading an estimated 3.71% copper at the end of October 2020.
Additional, pre-production ore stockpiles are located at the Kakula southern decline (approximately 67,000 tonnes of high-grade ore grading 5.05% copper, and 171,000 tonnes of medium-grade ore grading 2.62% copper) and the Kansoko decline (approximately 120,000 tonnes grading 2.53% copper).
The project is positioned for a significant acceleration in the tonnage, as well as a marked increase in the grade of ore added to the surface stockpiles, as more mining crews soon will begin working in the higher-grade areas of the Kakula and Kansoko mines.
Chart 1: Cumulative tonnes and grade of pre-production ore stockpiles at the Kakula and Kansoko mines from May 2020 to October 2020.
Chart 2: Growth in contained copper in pre-production ore stockpiles at the Kakula and Kansoko mines from May 2020 to October 2020.
Discussions underway for the marketing of Kakula’s copper concentrates
Kamoa-Kakula is in detailed discussions with a number of parties with respect to the marketing and smelting of its copper concentrates. Kakula is expected to produce an extremely high grade and clean copper concentrate (containing over 55% copper) that will be highly coveted by copper smelters around the world. Metallurgical test work indicates that the Kakula concentrates contain extremely low arsenic levels by world standards – approximately 0.01%.
Kamoa-Kakula expected to be connected to the national power grid in December, providing clean, renewable 220-kV hydropower
The mine is receiving hydro-electric power for the Kamoa 120-kilovolt (kV) overhead line via the 18MW mobile substation, which is connected to the national grid. The mobile substation was recently relocated to the Kakula Mine from the Kansoko Mine to increase transmission capacity to Kakula. Construction of the permanent 220-kV overhead power line, the electrical switching substation (NRO substation) and the Kamoa consumer substation are underway. In December 2020, Kamoa-Kakula is expected to tie in the 35-kilometre, 220-kV power line connecting the Western Dispatch substation in Kolwezi to Kamoa-Kakula, and supply the project with reliable and clean hydro-generated electricity from the national grid.
Tresor Kalenga Musoya (top), Liang Yang (middle) and Chanzhong Yang (bottom) installing the high-tension conductors for the new 35-kilometre powerline that will carry high-voltage (220-kV) hydro-electricity from the national grid to Kamoa-Kakula.
Ongoing upgrading work enables Mwadingusha hydropower station to supply clean, sustainable electricity
The upgrading work at the 72-megawatt Mwadingusha hydropower plant is nearing completion and electricity from all of Mwadingusha’s six turbines is expected to be integrated into the national power grid in the first quarter of 2021. The two main activities remaining are the final installation of the turbines and the completion of the penstock replacement.
The work is being conducted by engineering firm Stucky of Lausanne, Switzerland, under the direction of Ivanhoe Mines and Zijin Mining, in conjunction with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL).
Aerial view of the Mwadingusha dam and spillway. The upgrading of the Mwadingusha hydro-generation facility, in conjunction with Société Nationale d'Electricité (SNEL), is an important step in Kamoa-Kakula’s goal of producing the world’s greenest copper.
Kamoa-Kakula partners accelerate expansion plans and bring Phase 2 copper production forward
In September 2020, Kamoa-Kakula proceeded with orders for the long-lead equipment for the second, 3.8 Mtpa concentrator module at the Kakula Mine, which will double the mine’s processing capacity from 3.8 Mtpa to 7.6 Mtpa. The earlier than planned placement of the orders for the concentrator’s long-lead equipment is expected to accelerate the completion of the Phase 2 mill expansion from Q1 2023 to Q2 2022.
In order to bring forward the expansion of the Kakula concentrator plant, the Kamoa-Kakula joint venture will order long-lead items with a total commitment value of approximately $100 million in 2020, of which an estimated $25 million is expected to be spent this year. Requests for tenders for the second-phase earthworks and civil works also have been issued.
Enriching communities through sustainable development
The Sustainable Livelihoods Program started in 2010 in an effort to strengthen food security and farming capacity in the host communities near Kamoa-Kakula by establishing an agricultural training garden and support for farmers at the community level. Today, approximately 350 community farmers are benefiting from the Sustainable Livelihoods Program, producing high-quality food for their families and selling the surplus for additional income. As Kamoa gears up to take the Livelihood Program to the next level, an agronomy school, which will offer training programs to local farmers and serve as a research facility, is currently under construction. Additional non-farming related activities for 2020 include education and literacy programs, the continuation of a community brick-making program and the supply of fresh water to a number of local communities using solar powered boreholes. During 2020, 18 additional boreholes were drilled in communities, making use of local contractors. A clinic, school and facility for a sewing program are also currently under construction.
Kamoa-Kakula conducted a number of interventions in respect of COVID-19 awareness and prevention. These include the donation of rapid test kits, masks and hand-washing equipment to local communities.
Construction of resettlement houses for the second phase of the relocation program continued throughout the year with 19 families having been relocated. Relocation also took place for the third phase of the relocation program with 14 families relocated during the year. The survey for Kakula North and all crop compensation has been completed, with only six temporary structures being identified. The entire Kakula Mine area, including the tailings dam area, will be secured once these relocation phases are complete.
Members of the Kakula kitchen staff preparing fresh fruits and vegetables; all of which were grown locally in community-run gardens, then sold to the Kamoa-Kakula Project. Another example of the Kamoa-Kakula Sustainable Livelihoods Program supporting economic diversification in surrounding communities.
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, which form part of the company’s mining right.
Health and safety at Platreef
Ivanhoe Mines regrets to report that a fatal accident occurred at the Platreef Project on September 14, 2020. The accident occurred in Shaft 1 when the cable holding a kibble bucket was sheared in the headgear of the shaft and the kibble bucket subsequently fell down Shaft 1 and struck the northern side of the working platform (stage), where four employees were conducting routine water-pumping activities.
One of the employees was rescued from underground and airlifted to a hospital in Johannesburg. He has subsequently been discharged and is expected to make a full recovery. Sadly, the three other miners succumbed to their injuries.
The formal enquiry by the Department of Mineral Resources and Energy is still ongoing, but the preliminary finding is that this tragic accident was caused by an electronic device failure. Leading industry specialists also are assisting the Ivanplats team in determining the possible causes resulting in the accident. The Ivanplats team is in the process of assessing the extent of the damage and the work required to ensure that the shaft can resume normal operations in a safe manner.
Positive independent 2017 definitive feasibility study; Platreef projected to be Africa’s lowest-cost producer of platinum-group metals
In July 2017, Ivanhoe Mines announced the results of an independent, definitive feasibility study (DFS) for the then planned first phase of the Platreef Project’s palladium-platinum-nickel-copper-gold-rhodium mine in South Africa.
The Platreef DFS covered a 4-Mtpa, first phase of development that would include construction of a state-of-the-art underground mine, concentrator and other associated infrastructure to support initial production of concentrate. As Phase 1 is being developed and commissioned, there would be opportunities to refine the timing and scope of subsequent phases of expanded production.
Platreef phased development plan and update of the 2017 DFS
Ivanhoe is investigating a phased development plan for the Platreef Project, targeting significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft. This plan will focus on initially targeting the development of mining zones accessible from Shaft 1 and maximizing the hoisting capacity of this shaft, followed by expansions to the production rate as outlined in the 2017 DFS.
Concurrently, Ivanhoe is updating the Platreef Project’s DFS to take into account development schedule advancement since 2017 when the DFS was completed, updated costs and refreshed metal prices and foreign exchange assumptions. This update, together with the study on the phased development plan, is nearing completion and is expected to be released in mid-November 2020.
Shaft 1 successfully completed down to the final depth of 996 metres
Shaft 1 reached the top of the high-grade Flatreef Deposit (T1 mineralized zone) at a depth of 780.2 metres below surface in Q3 2018 and has since been extended to its final depth of 996 metres below surface. The thickness of the mineralized orebody (T1 and T2 mineralized zones) at Shaft 1 is 29 metres, with grades of platinum-group metals ranging up to 11 grams per tonne (g/t) 3PE (platinum, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper. The 29-metre intersection yielded approximately 3,000 tonnes of ore, estimated to contain more than 400 ounces of platinum-group metals. The ore is stockpiled on surface for further metallurgical sampling.
The 750-, 850-, and 950-metre-level station developments have been completed. The three development stations will provide initial, underground access to the high-grade orebody. Shaft 1 changeover detailed designs have successfully been completed and will enable Shaft 1 to be configured for permanent rock hoisting. The changeover construction has been delayed following the September 14, 2020 accident and the Ivanplats team is in the process of assessing the work required to ensure that the shaft can resume normal operations in a safe manner. Ivanhoe is considering alternative construction sequencing to possibly speed up the changeover construction process.
Underground mining to incorporate highly-productive, mechanized methods
The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. When completed, Shaft 2 is expected to provide primary access to the mining zones; secondary access is expected to be via Shaft 1. During mine production, both shafts also are expected to serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production.
Planned mining methods will use highly-productive, mechanized methods, including long-hole stoping and drift-and-fill mining. Each method will utilize cemented backfill for maximum ore extraction. The ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface.
Development of human resources and job skills
Consultation regarding the Platreef Project’s second Social and Labour Plan (SLP) is in the final stages. In this second SLP, Ivanplats plans to build on the foundation laid in the first SLP and continue 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 our host community members; core technical skills training for at least 100 community members, portable skills; and more.
Local economic development projects will contribute community water source development with the Mogalakwena Municipality boreholes program, educational program in partnership with Department of Education and significant contribution funding for sanitation infrastructure at the municipality.
The enterprise and supplier development commitments comprise of expanding the existing kiosk and laundry facilities even further 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 will assist community members interested to obtain help with development and supplier readiness.
The Platreef Project has continued supporting a number of educational programs, including the E-learning project and the maintenance of science and computer laboratories, as well as the provision of free Wi-Fi in host communities. In pursuit of Ivanhoe’s de-carbonization agenda, the Platreef Project planted 25 trees at two local schools in the mine’s footprint area.
Schematic section of the Platreef Mine, showing Flatreef’s T1 and T2 thick, high-grade mineralized zones (red and dark orange), underground development work completed to date in shafts 1 and 2 (white) and planned development work (gray).
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.
As part of the company’s cost-cutting measures announced on April 27, 2020, Ivanhoe’s board of directors allocated a reduced total budget for 2020 of $28.7 million for the Kipushi Project, of which approximately $8 million remains for the rest of the year.
Health, safety and community development
At the end of September 2020, the Kipushi Project reached a total of 2,677,310 work hours free of lost-time injuries. It has been almost two years since the last lost-time injury occurred at the Kipushi Project.
In response to government-imposed travel restrictions and emergency protocols being introduced worldwide due to the COVID-19 pandemic, Kipushi has temporarily suspended mine development operations in order to reduce the risk to the workforce and local communities. The project is maintaining a reduced workforce to conduct maintenance activities and to maintain pumping operations.
The Kipushi Project operates a potable-water station to supply the municipality of Kipushi with water. This includes power supply, disinfectant chemicals, routine maintenance, security, and emergency repair of leaks to the primary reticulation. During 2020, two additional solar-power boreholes were established, thereby availing clean potable water to a further two host communities near Kipushi.
Other community development projects included the donation of 5,000 N95 face masks to host communities, the donation of additional infrared thermometers to the Health Zone management and sponsoring a COVID-19 awareness campaign broadcast on local radio. Additional COVID-19 awareness efforts include signboards erected throughout the town and a motorized caravan which rotates within communities thrice per week. The sewing training centre project produces cloth face masks and donates approximately 2,000 masks a month to host communities.
Kyungu Kabulo, Instrumentation Assistant (left), and Junior Kisula Ngoy, Instrumentation Engineer (right), installing probes and a balance disk on a grifo pump at Kipushi’s 1,200-metre-level pumping station.
Definitive feasibility study in final stages of completion
The Kipushi Project’s pre-feasibility study (PFS), announced by Ivanhoe Mines on December 13, 2017, anticipated annual production of an average of 381,000 tonnes of zinc concentrate over an 11-year, initial mine life at a total cash cost of approximately $0.48 per pound (lb.) of zinc.
Highlights of the PFS, based on a long-term zinc price of $1.10/lb., include:
- After-tax net present value (NPV) at an 8% real discount rate of $683 million.
- After-tax real internal rate of return (IRR) of 35.3%.
- After-tax project payback period of 2.2 years.
- Pre-production capital costs, including contingency, of $337 million.
- Existing surface and underground infrastructure allows for significantly lower capital costs than comparable greenfield development projects.
- Life-of-mine average planned zinc concentrate production of 381,000 dry tonnes per annum, with a concentrate grade of 59% zinc, is expected to rank Kipushi, once in production, among the world’s largest zinc mines.
All figures are on a 100%-project basis unless otherwise stated. Estimated life-of-mine average cash cost of $0.48/lb. of zinc is expected to rank Kipushi, once in production, in the bottom quartile of the cash-cost curve for zinc producers internationally.
The Kipushi Project’s DFS is in the final stages of completion, and some aspects of the design have progressed into a detailed engineering phase.
Project development and infrastructure
Although development and rehabilitation activities in the nine months ending September 30, 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 head frames, as well as underground mine excavations and infrastructure. A series of crosscuts and ventilation infrastructure still is in working condition and have been cleared of old materials and equipment to facilitate modern, 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.
The main haulage way on the 1,150-metre level, between the Big Zinc access decline and Shaft 5 rock load-out facilities, has been resurfaced with concrete so the mine now can use modern, trackless, mobile machinery. A new truck-tipping bin, which feeds into the large-capacity rock crusher located directly below, has been installed on this level. The old winder at P2 Shaft has been removed and construction of the new foundation, along with assembly and installation of the new modern winder, has been completed and fully commissioned after passing safety inspection and testing procedures.
4. DRC Western Foreland Exploration Project
100%-owned by Ivanhoe Mines
Democratic Republic of Congo
Ivanhoe’s DRC exploration group is targeting Kamoa-Kakula-style copper mineralization through a regional exploration and drilling program on its 100%-owned Western Foreland exploration licences, located to the north, south and west of the Kamoa-Kakula Project. Exploration activities on the Western Foreland's exploration project in the DRC will continue with a 2020 budget of $8 million, of which approximately $3 million remains for the rest of the year.
Drilling re-commenced in Q3 2020 with a total of seven new holes completed at the Makoko prospect, and an eighth drill hole was deepened. The drilling aimed to confirm the continuation of prospective lower Nguba stratigraphy westwards toward the new exploration permits. A total of 2,589 metres were drilled during the quarter. Additionally, exploration continued on the Western Foreland exploration licences with strict procedures in place to protect employees and drilling contractors from COVID-19.
The exploration team conducted exploration on eight new exploration licences in the Western Foreland region. The exploration work, as well as drilling, included stream sediment sampling, soil sampling as well as outcrop and stream mapping. In total, 181 stream sediment samples and 1,249 soil samples were collected and processed for analysis. The target of the current field season is to increase geological understanding for the new permits, as well as to generate targets for future exploration and drilling. The drill core from the program is being processed for analysis and detailed rock physical property testwork also is carried out to further geological understanding, as well as the ability of the data to be used for future larger scale geophysical testwork and analysis.
Logistical organization and mobilization commenced for the planned high-resolution magnetic and radiometric survey, while planning for an airborne gravity survey is ongoing. Both geophysical surveys are planned to commence in Q4 2020. The goal of this work is to understand the magnetic characteristics of the different lithologies and stratigraphy over the broader exploration area.
Road clearance commenced during Q3 2020 in order to extend the current exploration opportunities from the Makoko area. Work planned for Q4 2020 includes the construction of a bridge to access some of the newly acquired permits at the end of the Makoko road, as well as some road upgrades.
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period and did not declare or pay any dividend or distribution in any financial reporting period.
DISCUSSION OF RESULTS OF OPERATIONS
Review of the three months ended September 30, 2020 vs. September 30, 2019
The company recorded a total comprehensive loss of $1.0 million for Q3 2020 compared to loss of $16.8 million for the same period in 2019. The majority of the loss in Q3 2019 mainly was due to an exchange loss on translation of foreign operations of $17.7 million resulting from the weakening of the South African Rand by 7% from June 30, 2019, to September 30, 2019. The company recognized an exchange gain on translation of foreign operations in Q3 2020 of $4.3 million.
Finance income for Q3 2020, amounted to $20.2 million, and was $1.3 million more than for the same period in 2019 ($18.9 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $18.0 million for Q3 2020, and $13.8 million for the same period in 2019, interest increased as the accumulated loan balance increased. Interest received on cash and cash equivalents decreased due to interest rate cuts by the US Federal Reserve.
Exploration and project expenditure amounted to $10.0 million in Q3 2020 and $3.3 million for the same period in 2019. While all the exploration and project expenditure incurred in Q3 2019 related to exploration at Ivanhoe’s 100%-owned Western Foreland exploration licences, Q3 2020 also included $7.7 million spent at the Kipushi Project which incurred limited costs of a capital nature in the quarter due to reduced activities. The main classes of expenditure at the Kipushi Project in Q3 2020 and Q3 2019 are set out in the following table:
The company’s share of losses from the Kamoa Holding joint venture increased from $7.1 million in Q3 2019 to $7.3 million in Q3 2020. The following table summarizes the company’s share of the losses of Kamoa Holding for the three months ended September 30, 2020, and for the same period in 2019:
The finance costs in the Kamoa Holding joint venture relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The Company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
Review of the nine months ended September 30, 2020 vs. September 30, 2019
The company recorded a total comprehensive loss of $77.3 million for the nine months ended September 30, 2020 compared to a loss of $5.3 million for the same period in 2019. 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 of $11.9 million for the same period in 2019.
Finance income for the nine months ended September 30, 2020 amounted to $59.7 million, and was $8.1 million more than the same period in 2019 ($51.6 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $50.6 million for the nine months ended September 30, 2020, and $38.5 million for the same period in 2019, interest increased as the accumulated loan balance increased. Interest received on cash and cash equivalents for the nine months ended September 30, 2020 amounted to $4.2 million and was $5.4 million less than the same period in 2019 ($9.6 million).
Exploration and project expenditure amounted to $31.0 million for the nine months ended September 30, 2020 and $8.0 million for the same period in 2019. While all the exploration and project expenditure incurred in 2019 related to exploration at Ivanhoe’s 100%-owned Western Foreland exploration licences, 2020 also included $25.3 million spent at the Kipushi Project which was on reduced activities and incurred limited cost of a capital nature in the year to date.
The main classes of expenditure at the Kipushi Project for the nine months ended September 30, 2020, and for the same period in 2019 are set out in the following table:
The company’s share of losses from the Kamoa Holding joint venture increased from $19.2 million for the nine months ended September 30, 2019 to $20.6 million for the same period in 2020. The following table summarizes the company’s share of the losses of Kamoa Holding for the nine months ended September 30 2020, and for the same period in 2019:
Financial position as at September 30 , 2020 vs. December 31, 2019
The company’s total assets decreased by $69.2 million, from $2,444.7 million as at December 31, 2019, to $2,375.5 million as at September 30, 2020. The company utilized $47.3 million of its cash resources in its operations and received interest of $4.2 million on cash and cash equivalents during the nine months ended September 30 2020.
Property, plant and equipment decreased by $15.3 million, from $421.1 million as at December 31, 2019, to $405.8 million as at September 30, 2020. The decrease resulted from the foreign exchange translation of property, plant and equipment of non-US dollar operations of $47.6 million due to the weakening of the South African Rand by 22% from December 31, 2019, to September 30, 2020. A total of $35.9 million was spent on project development and to acquire other property, plant and equipment, $34.0 million of which pertained to development costs and other acquisitions of property, plant and equipment at the Platreef Project.
The main components of the additions to property, plant and equipment ─ including capitalized development costs ─ at the Platreef Project for the nine months ended September 30, 2020, and for the same period in 2019, are set out in the following table:
Costs incurred at the Platreef Project are deemed necessary to bring the project to commercial production and are therefore capitalized as property, plant and equipment.
The company’s investment in the Kamoa Holding joint venture increased by $267.4 million from $912.6 million as at December 31, 2019, to $1,180.0 million as at September 30, 2020, with each of the current shareholders funding the operations equivalent to their proportionate shareholding interest. The company’s portion of the Kamoa Holding joint venture cash calls amounted to $237.4 million during the nine months ending September 30, 2020, while the company’s share of losses from the joint venture amounted to $20.6 million.
The company’s investment in the Kamoa Holding joint venture can be broken down as follows:
The Kamoa Holding joint venture principally uses loans advanced to it by its shareholders to advance the Kamoa-Kakula Project through investing in development costs and other property, plant and equipment, as well as continuing with exploration. This can be evidenced by the movement in the company’s share of net assets in the Kamoa Holding joint venture which can be broken down as follows:
The Kamoa Holding joint venture’s net increase in property, plant and equipment from December 31, 2019, to September 30, 2020, amounted to $382.8 million and can be further broken down as follows:
The company’s total liabilities decreased by $6.3 million to $75.6 million as at September 30, 2020, from $81.9 million as at December 31, 2019, due to a $7.3 million decrease in trade and other payables.
LIQUIDITY AND CAPITAL RESOURCES
The company had $375.8 million in cash and cash equivalents as at September 30, 2020. At this date, the company had consolidated working capital of approximately $427.4 million, compared to $688.5 million at December 31, 2019.
Since December 8, 2015, each shareholder in Kamoa Holding has been required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
The Platreef Project’s current expenditure is being funded solely by Ivanhoe, through an interest bearing loan to Ivanplats, as the Japanese consortium has elected not to contribute to current expenditures.
The company has budgeted $127 million for its proportionate funding of the Kamoa-Kakula Project for the remainder of 2020, where mine development work at Kakula continues with first production now expected in July 2021. The company has implemented several cost-saving measures including: reducing its global office footprint; reducing its corporate and senior management headcount by approximately 20%; applying temporary voluntary pay reductions taken by executive management; and implementing other company-wide, cash-saving measures. Ivanhoe’s board of directors also allocated reduced 2020 budgets to its projects. The company has forecasted to spend $8 million on further development at the Platreef Project; $8 million at the Kipushi Project; $3 million on regional exploration in the DRC; and $5 million on corporate overheads for the remainder of 2020.
As Ivanhoe continues to advance its projects, the company’s management has reviewed and assessed numerous alternatives to finance its share of construction costs for the Kakula Copper Mine and to advance exploration and development initiatives at its other projects in Southern Africa. These alternatives include, but are not limited to, existing liquidity sources, including cash, receivables and investments, selling assets, project financing, streaming or royalty transactions, equipment and debt financing. While Ivanhoe expects that it will continue to have sufficient cash resources or project-related financing options available to cover its share of the initial capital costs at the Kakula Mine, the company will continue to seek out and review opportunities presented to Ivanhoe, having regard to the best interests of Ivanhoe as well as to Ivanhoe’s operations and financial position, industry conditions and geopolitical considerations.
The company has a mortgage bond outstanding on its offices in London, United Kingdom, of £3.2 million ($4.1 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 $31.3 million as at September 30, 2020, and a contractual amount due of $34.4 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 $3.1 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’ unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis report for the three and nine months ended September 30, 2020 available at www.ivanhoemines.com and at www.sedar.com.
Disclosures of a scientific or technical nature regarding the revised capital expenditure and development scenarios at the Kamoa-Kakula Project in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is the Head of the Kamoa Project. Mr. Amos has verified the technical data disclosed in this news release.
Other disclosures of a scientific or technical nature 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, Project Geology and Evaluation. Mr. Torr has verified the other technical data disclosed in this news release.
Ivanhoe has prepared a current, independent, NI 43-101-compliant technical report for each of the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project, which are available under the company’s SEDAR profile at www.sedar.com:
- The Kamoa-Kakula 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 2017 Feasibility Study Technical Report dated September 4, 2017, prepared by DRA Global, OreWin Pty. Ltd., Amec Foster Wheeler, Stantec Consulting, Murray & Roberts Cementation, SRK Consulting, Golder Associates, and Digby Wells Environmental, covering the company’s Platreef Project; and
- The Kipushi 2019 Mineral Resource Update dated March 28, 2019, prepared by OreWin Pty Ltd., MSA Group (Pty) Ltd., SRK Consulting (South Africa) (Pty) Ltd and MDM (Technical) Africa Pty Ltd. (a division of Wood PLC), covering the company’s Kipushi Project.
These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release in respect of the Platreef Project, Kipushi Project and Kamoa-Kakula Project. Additional information regarding the company, including the company’s Annual Information Form, is available on SEDAR at www.sedar.com.
Bill Trenaman +1.604.331.9834
Matthew Keevil +1.604. 558.1034
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of the company’s Q3 2020 MD&A.
Such statements include without limitation, the timing and results of: (i) statements that the concentrator plant is expected to be mechanically complete in Q2 2021 and that first copper concentrate production at the Kakula Mine now is expected in July 2021; (ii) statements regarding the pace of underground development at the Kakula Mine is expected to continue to accelerate as additional mining crews are mobilized; (iii) statements regarding Kakula’s high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper; (iv) statements regarding refurbishment of six turbines at the Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure is progressing and that the refurbished plant is projected to deliver approximately 72 megawatts of power to the national grid in the first quarter of 2021; (v) statements that Kakula is expected to produce an extremely high grade and clean copper concentrate (containing over 55% copper) that will be highly coveted by copper smelters around the world; (vi) statements regarding accelerating expansion plans for the second, 3.8 Mtpa concentrator module at the Kakula Mine, which will double the mine’s processing capacity from 3.8 Mtpa to 7.6 Mtpa and the plans to bring forward the completion of the Phase 2 mill expansion from Q1 2023 to Q2 2022; (vii) statements that the holing at Kakula will significantly increase ventilation to the centre of the orebody, allowing for additional mining crews to begin highly-productive mining operations in Kakula’s high-grade ore zones; (viii) statements regarding a phased development plan for the Platreef Project that targets significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 definitive feasibility study (DFS); (ix) statements regarding the timing of the results of the Platreef Project’s phased development plan and updated definitive feasibility study expected to be released in mid-November 2020; (x) statements that the Kamoa-Kakula joint venture had an estimated $570 million of capital costs remaining until initial production; (xi) statements regarding the planned mining methods at Platreef will use highly productive, mechanized methods, including long-hole stoping and drift-and-fill mining, and that each method will utilize cemented backfill for maximum ore extraction; (xii) statements regarding Ivanhoe’s expectation that it will continue to have sufficient cash resources or project-related financing options available to cover its share of the initial capital costs at the Kakula Mine; (xiii) statements regarding timing and duration of reduced activities at the Platreef and Kipushi projects; (xiv) statements that the Kamoa-Kakula joint-venture partners are in the process of finalizing project-level financing credit facilities to accelerate Phase 2 development; and (xv) statements regarding the expected expenditure for the remainder of 2020 of $8 million on further development at the Platreef Project; $8 million at the Kipushi Project; $3 million on regional exploration in the DRC; and $5 million on corporate overheads – as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $127 million for the remainder of 2020.
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 and the pre-feasibility study of the Kipushi Project, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, Platreef and Kipushi projects, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xiv) changes in project scope or design, and (xv) political factors.
This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgments. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under “Risk Factors”, and elsewhere in the company’s MD&A for the three and nine months ended September 30, 2020, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the company’s MD&A for the three and nine months ended September 30, 2020.
加拿大多伦多 — 艾芬豪矿业 (TSX: IVN; OTCQX: IVPAF) 今天公布其截至2020年9月30日止九个月的财务业绩。艾芬豪矿业是一家加拿大的矿业公司，目前正开发其位于非洲南部的三大矿山项目﹕位于刚果民主共和国(以下简称“刚果”)的卡莫阿-卡库拉 (Kamoa-Kakula) 铜矿、位于南非的普拉特瑞夫 (Platreef) 钯-铂-铑-镍-铜-金矿，以及同样位于刚果、久负盛名的基普什 (Kipushi) 锌-铜-银-铅-锗矿的全面复产工程。
同时，艾芬豪正在其全资拥有、毗邻卡莫阿-卡库拉采矿许可范围的西部前沿 (Western Foreland) 勘探许可范围内寻找新的铜矿。所有金额除非另有说明,均以美元为单位。
- 卡库拉铜矿是卡莫阿-卡库拉项目多个计划开采范围中的首产矿山，开发进度表现优异。卡莫阿-卡库拉第一序列的年处理矿量380万吨开采选矿作业整体施工进度理想，目前已完成约58%，并计划于2021年7月实现首批铜生产。项目是艾芬豪矿业(占股39.6%)、紫金矿业集团 (占股39.6%)、晶河全球 (占股0.8%) 及刚果民主共和国政府 (占股20%) 共同持有的合资项目。
- 卡莫阿-卡库拉项目将会使用清洁、可再生的水电。位于刚果的Mwadingusha水电厂目前正进行修缮工程，预计将于2021年初向国家电网提供约 72 兆瓦的电能。
- 截至2019年1月1日，假设第一座选矿厂于2021年7月投产，并包括了预生产矿石堆场的成本，卡库拉项目初期资本开支的最新估算约13亿美元。卡莫阿-卡库拉合资企业在 2019 年产生的资本开支达到 3.09 亿美元。截至2020年9月30日止九个月产生了额外4.03亿美元的资本开支。因此，合资企业在首期投产之前还有约5.7亿美元的资本开支。
- 卡莫阿-卡库拉项目第二序列扩建工程包括：卡库拉矿山的地下扩建至年产量600万吨、将毗邻卡索科 (Kansoko) 矿山的采矿作业提升至年产量160万吨的稳定产量、在卡库拉建设第二座年处理量380万吨的选矿厂，以及支持各个矿场实施扩建的相关地表基础设施。
- 2020年11月6日，艾芬豪董事会委任新就职的两位独立董事，努努·恩辛吉拉 (Nunu Ntshingila) 和马蒂·詹斯·范·雷斯堡 (Martie Janse van Rensburg) 分别出任可持续发展委员会主席和薪酬与人力资源委员会主席的职务。
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。该项目位于科卢韦齐 (Kolwezi) 镇以西约 25 公里处，在卢本巴希 (Lubumbashi) 以西约 270 公里处。
2015年12月，艾芬豪以总价 4.12 亿美元向紫金矿业出售卡莫阿控股有限公司 (以下简称 “卡莫阿控股”) 49.5% 的权益。另外，艾芬豪以 832 万美元向私营公司晶河全球出售卡莫阿控股 1% 的权益，晶河全球将以十年期无息本票支付。2015年12月与紫金的交易完成后，每位股东必须按其持有卡莫阿控股的股权比例支付卡莫阿-卡库拉项目的支出。
根据 2002 年刚果矿业法，卡莫阿-卡库拉项目的5%不可稀释权益已于2012年9月11日无条件让予刚果政府。根据2016年11月与刚果政府签订的协议，卡莫阿-卡库拉项目的额外15% 权益已转予刚果政府，艾芬豪与紫金矿业目前各自间接持有卡莫阿-卡库拉项目39.6% 的权益，晶河全球间接持有0.8% 权益，而刚果政府则直接持有20% 权益。卡莫阿控股直接持有项目 80% 权益。
截至 2020 年9月底，卡莫阿-卡库拉项目录得合共 1,640,584个零失时工伤工时。项目将继续致力为所有员工和承包商提供零伤害的工作环境。
- 卡库拉一期矿山开发的最终可行性研究。2020年版卡库拉最终可行性研究对于卡库拉矿床一期年采矿量600万吨的地下矿山和地表选矿设施 (年处理矿量760万吨) 进行评估。矿山规划了两座年处理矿量380万吨的选矿厂，其中第一座选矿厂的施工正在进行且进展顺利。
2020年卡莫阿-卡库拉综合开发方案，由澳大利亚阿德莱德的OreWin Pty Ltd.、中国江西的中国瑞林工程技术有限公司、南非约翰内斯堡的DRA Global、南非约翰内斯堡的Epoch Resources、南非米德兰的Golder Associates Africa、波兰弗罗茨瓦夫的KGHM Cuprum R&D Centre Ltd.、芬兰赫尔辛基的Outotec Oyj、南非开普敦的Paterson and Cooke、美国凤凰城的Stantec Consulting International LLC 、南非约翰内斯堡的SRK Consulting Inc.以及美国里诺的Wood plc，按100%项目权益进行独立编撰。
- 2020年版的卡库拉最终可行性研究对于卡库拉矿床一期年处理矿量600万吨的地下矿山和地表选矿设施 (年处理矿量760万吨) 进行评估。矿山规划了两座年处理矿量380万吨的选矿厂，其中第一座选矿厂的施工正在进行且进展顺利。根据最终可行性研究的估算，这个开发规划投产后前10年的平均年产量达28.4万吨铜金属，矿场现金成本每磅铜0.52美元，总现金成本每磅铜1.16美元，并于第4年达到年产量36.6万吨铜金属。
- 剩余初期资本开支为6.5亿美元，将会产生55亿美元的税后净现值 (折现率8%)。
- 方案的剩余初期资本开支为6.9亿美元，将会产生66亿美元的税后净现值 (折现率8%)。项目的内部收益率为69.0%，投资回报期为2.5年，证明了卡库拉和卡索科有着可观的经济性。
- 初步经济评估预计，综合年处理矿量1,900万吨的分期开发方案的剩余初期资本开支为7亿美元。卡索科、卡库拉西部和卡莫阿北部矿山的日后扩建将会由卡库拉矿山的现金流出资，并将拥有111亿美元的税后净现值(折现率8%)以及56.2 %的内部收益率，投资回报期为3.6年。
卡莫阿-卡库拉合资企业在 2019 年产生的资本开支达到 3.091 亿美元， 其中 1.252 亿美元花费在卡库拉斜坡道和矿山开发。截至2020年9月30日止九个月产生了额外4.03亿美元的资本开支，其中包括用于建设投产前矿石堆场的开支。截至2020年9月30日止九个月，艾芬豪承担的资本开支份额为2亿美元，其包括初期资本开支约40%的出资份额，以及按比例承担刚果政府持有的20%股本对应的出资份额，后者将由项目未来的现金流予以偿付。艾芬豪已按约50%的出资份额，为卡莫阿-卡库拉项目制定2020年剩余时间的预算为1.27亿美元。截至2020年9月30日，合资企业在首产前还有约5.7亿美元的资本开支。
初始选矿厂的土木工程已接近完成，至今已灌入约26,000立方米的混凝土。所有主要厂房区域即将移交给SMPP (结构、机械、管道和钣金) 承包商继续施工。
项目最后的主要设备 — 两台80兆伏安/220千伏的变压器预计将于2020年11月初运抵矿场。多个变电站的施工进度理想。
选矿厂钢结构和板金的制造已完成，大部分设备已运达现场。管道的铸造正按计划进行中，其中60多公里长的管道 (总长83公里) 已于2020年10月底运抵现场。部分EC&I (电气、控制和仪表) 工作已经开始，并已安装电缆架。
截至2020年10月底，超过2,000吨 (总共5,700吨) 的钢结构已完成安装。目前正全力进行输送架、选矿厂房、试剂仓库、浮选厂和精矿仓库的钢架安装，并已开始厂房仓库、工场和供水装置的施工。
卡莫阿-卡库拉第一序列的年处理矿量380万吨开采选矿作业 (包括矿山基础设施、选矿厂和地表基础设施) 的整体施工进度理想，于2020年9月底已完成约58%。
位于卡库拉主要北面斜坡道附近的大型地表回收卸料系统的石笼挡土墙已建造完成，并已开始准备在挡土墙顶部进行所需的土木工程。大型回收卸料系统将从卡库拉地表矿堆 (于第二序列作业开始后也从卡索科矿山) 运送矿石供给选矿厂。
截至2020年10月底，在卡库拉矿山北部开采的矿石经由输送系统，运送到地表的混合矿堆。混合矿堆目前已储备矿石量约63.9万吨，铜品位约3.71%。此外，项目还有两个额外的投产前矿堆，分别位于卡库拉南面斜坡道 (约6.7万吨高品位矿石，铜品位5.05%以及17.1万吨中品位矿石，铜品位2.62%) 和卡索科斜坡道 (约12万吨矿石，铜品位2.53%)。
工程由瑞士雷恩斯的Stucky工程公司在艾芬豪矿业及紫金矿业的指导下，与刚果国有电力公司 La Société Nationale d’Electricité (以下简称 “SNEL”) 合作施工。
“可持续民生计划”始于2010年，旨在通过建立农业培训园以及在社区层面为农民提供支持，提升卡莫阿-卡库拉项目占地范围内社区的食品安全和农作物产能。如今，约有 350 位社区农民正受益于“可持续民生计划”，为家人生产着优质食品并出售多余的食品以获得额外收入。卡莫阿将进一步发展民生计划，目前正在兴建一所农业学校，将为当地农民提供培训并进行研究。2020年实施的其他非农业相关活动包括教育与读写训练计划、继续延续社区砖块制作计划以及使用太阳能水井向部分当地社区供应淡水。2020年间，聘用了当地的承包商在社区内钻探额外18个水井。目前，还有一所诊所、学校和缝纫机构正在兴建中。
第二阶段搬迁计划的安置房屋建设于年内继续施工，其中19个家庭已搬入安置房屋。年内还实施了第三阶段的搬迁计划，其中14个家庭已完成搬迁。卡库拉北部的调查工作以及所有农作物补偿已经完成，发现仅有六座临时建筑物。全部搬迁计划实施完成后，将满足整个卡库拉矿区 (包括尾矿坝) 的建设需要。
普拉特瑞夫项目由 Ivanplats (Pty) Ltd.（简称 “Ivanplats”）持有，该公司的 64% 权益归属于艾芬豪矿业。普拉特瑞夫项目的 26% 权益由 Ivanplats 的《全面提高黑人经济实力法案》(B-BBEE) 的南非受益人持有。这些受益人包括 20 个当地社区，约150,000 位居民、项目雇员和当地企业主。Ivanplats 在最近 B-BBEE 得分卡上的核实评估中达到 4 级贡献者身份。由伊藤忠商事株式会社、日本石油天然气和金属国家公司和日本天然气公司组成的日本财团通过 2 轮投资 (共 2.9 亿美元) 获取了 Ivanplats 的 10% 权益。
普拉特瑞夫矿化带为延伸30多公里的连续矿化，铂族金属矿化主要发生在该矿化带的北部。艾芬豪的普拉特瑞夫项目位于普拉特瑞夫南部，由Turfspruit及Macalacaskop两个相连的矿权组成。位于最北部的 Turfspruit 矿权，邻近且走向属于英美铂金（Anglo Platinum）的 Mogalakwena 矿群。
自2007 年，艾芬豪重点实施勘探和开发活动，以界定和扩展普拉特瑞夫原本矿体的下部延伸范围， 目前已命名为 Flatreef 矿体，且适合高度机械化的地下开采。整个 Flatreef 矿化范围位于 Turfspruit 和 Macalacaskop 矿权范围内，属于公司采矿许可范围的一部分。
1号竖井已成功到达地表以下 996 米的最终深度
1号竖井于 2018 年第三季度已成功到达位于地表以下 780.2 米深度的高品位 Flatreef 矿床 (T1 矿化带) 的顶部，现已延伸到地表以下 996 米的最终深度。 1号竖井的矿体（T1 和 T2 矿化带）厚度为 29 米，铂族金属（铂、钯和铑）及黄金的综合品位高达 11 克/吨，并含有大量的镍和铜金属。 29 米的钻孔见矿产生了约 3,000 吨矿石，其中估计含有超过 400 盎司的铂族金属。矿石已送往地表堆场以供进一步冶金取样。
750 米水平、850 米水平和950 米水平的工作站都已完工。这3个工作站将会提供前往高品位矿体的初步地下通道。 1号竖井转换的详细设计已接近完成，将使1号竖井配置为可永久进行矿石提升。由于2020年9月14日发生的意外事故，竖井转换的施工已被推迟。目前，Ivanplats团队正在评估所需修复工作，确保以安全的方式恢复竖井的正常运作。同时，艾芬豪正研究施工次序的替代安排以加快转换施工的速度。
目前，普拉特瑞夫采矿计划中的采矿区位于地表以下约 700 米至 1,200 米的深度。2号竖井完工后将会用作通往矿区的主要通道；而1号竖井将会用作次要通道。矿场生产期间，1号和2号竖井将会用作通风入口。规划的另外3个通风天井将用于实现稳定产量。
计划采矿方法将会采用高效率的机械方法，包括深孔采矿法 (long-hole stoping) 及分层充填采矿法 (drift-and-fill)。两种方法都会采用水泥回填以提取最多的矿石。矿石将会从矿场通过一系列的内部矿石运送点输送到2号竖井的底部，然后进行破碎及提升至地表。
普拉特瑞夫项目的第二个社会和劳动计划 (SLP) 的咨询工作已进入最后阶段。在第二个SLP中，Ivanplats计划以第一个SLP为基础，继续专注于培训和开发计划，其中包括﹕增加15名新导师、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训练，以及向最少100名社区成员提供核心技术培训以及通用技能等。
位于刚果的基普什铜-锌-锗-银-铅矿山，邻近基普什镇，距离卢本巴希西南面约30公里。基普什矿山位于中非铜矿带，位于卡莫阿-卡库拉项目东南面约 250 公里，距离赞比亚边境不足一公里。 2011年11月，艾芬豪收购了基普什项目 68% 的权益；其余 32% 权益由刚果国有矿业公司 Gécamines 所拥有。
预可行性研究的重点 (以长期锌价格每磅 1.10 美元计算) 包括﹕
- 税后净现值为 6.83 亿美元，实际折现率为 8%。
- 税后实际内部收益率为 35.3%。
- 税后项目投资回报期为 2.2 年。
- 包括预备费用在内的投产前资本开支为 3.37 亿美元。
- 在矿山全寿命期间，平均年产锌精矿 38.1 万干吨，锌精矿品位 59%。投产后，预计基普什将会成为全世界规模最大的锌矿之一。
除非另有指明，否则所有数字均以 100% 项目为基础进行报告。在矿山全寿命期间，估计每磅锌的平均现金成本为 0.48美元。投产后，预计基普什将会成为世界现金成本最低 (成本曲线位于四分位图底部) 的锌生产商之一。
5号竖井的直径为8米、深 1,240 米，现已进行升级和重新调试。主要的工作人员已到位和材料卷扬机已被升级和进行了现代化改造，以满足全球行业标准和安全标准。5号竖井的岩石卷扬机目前已全面运行，并已安装新的岩石矿兜、新的头尾绳以及相关配件。竖井已安装两个新制造的岩石运输工具(矿兜)和支撑框架(控制电缆)，以方便从主矿提升岩石以及在 1,200 米水平将岩石送入废料储存仓。
大锌斜坡通道与5号竖井出岩设施之间的 1,150 米水平主要运输通道已经重新铺设混凝土，矿山现在可以使用现代化无轨移动机械进行采矿。新的卡车卸料箱 (用于将矿石送入正下方的大容量碎石机) 已在这个深度进行了安装。2号竖井的旧卷扬机已移除。现代化的新卷扬机已建设新地基，且组装和安装都已经完成，并在通过安全检验和测试程序后全面运行。
4. 刚果西部前沿 (Western Foreland) 勘探项目
2020年第三季度重新展开钻孔工程，在 Makoko探矿区共完成了 7个新钻孔，且加深了第8个钻孔。钻孔工程的目的是要确定下Nguba地层朝着新勘探许可区向西面延伸的可能性。本季度共完成了2,589米的钻孔工程。此外，西部前沿勘探许可区继续进行勘探活动，并实施严格的COVID-19防疫程序以保护员工和钻孔工程承包商。
2020年第三季度的财务收入达2,020万美元，与 2019年同期 (1,890万美元) 相比高出 130万美元。财务收入已计入2020年第三季度向卡莫阿控股合资企业提供贷款以运营所得的利息收入1,800万美元以及2019年同期所得的利息收入1,380万美元，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2020年9月30日止九个月的财务收入达5,970万美元，与 2019年同期 (5,160万美元) 相比高出 810万美元。财务收入已计入截至2020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5,060万美元以及2019年同期所得的利息收入3,850万美元，随着累计贷款余额增加。截至2020年9月30日止九个月，现金和现金等价物所得利息达420万美元，与2019年同期 (960万美元) 相比减少540万美元。
截至 2020年9月30日的财务状况对比截至 2019年12月31日的财务状况
截至2020年9月30日止九个月及2019年同期的普拉特瑞夫项目增购不动产、厂房和设备 (已计入资本化开发成本) 的主要条目详见下表：
卡莫阿控股合资企业的不动产、厂房和设备从 2019年12月31日净增长至 2020年9月30日，达到3.828亿美元，可进一步分解如下：
截至2020年9月30日，公司的总负债为7,560万美元，相比截至 2019年12月31日的8,190 万美元减少了630万美元，主要由于贸易及其他应付款项减少730万美元所致。
截至2020年9月30日，公司拥有3.758亿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4.274亿美元，而截至 2019年12月31日则为 6.885亿美元。
目前，普拉特瑞夫项目的开支由艾芬豪独自供资 (通过向 Ivanplats 提供计息贷款)，因为日本财团已决定不为当前的开支供资。
公司已按比例为卡莫阿-卡库拉项目制定2020 年剩余时间的预算为 1.27亿美元，将会继续推进卡库拉矿山的开发工作，并预计于2021年7月实现首批铜生产。公司已实施多项节流措施，包括减少其在全球各地的办事处、削减20%的企业和高管人员人数、高管人员短期自愿性减薪，以及在全公司范围内实施其他现金节流措施。同时，艾芬豪董事会已将各个项目的2020年预算调低。公司预算在2020年剩余时间花费800万美元进一步开发普拉特瑞夫项目、800万美元用于基普什项目、300万美元用于刚果的区域性勘探活动，以及500万美元用于公司经常性开支。
艾芬豪在其英国伦敦办事处有一笔价值320万英镑 (410万美元) 的抵押债券未偿付，需于2025年8月28日全数偿还，此抵押债券以该物业作为抵押担保，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3,220万美元的应付贷款。截至2020年9月30日，该公司的账面值为3,130万美元。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。利息不复利。应付合约金额与贷款账面值相差310万美元，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。
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 标准下的合资格人士。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 条款下的合资格人士。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 条款下的合资格人士。由于托尔先生是项目地质和评估副总裁，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；
- 2017年9月4日发布的2017 年普拉特瑞夫可行性研究技术报告，由DRA Global、OreWin PtyLtd.、Amec Foster Wheeler、Stantec Consulting、Murray & Roberts Cementation、SRK Consulting、Golder Associates 和Digby Wells Environmental编制，涵盖公司的普拉特瑞夫项目；以及
- 2019年3月28日发布的2019 年基普什矿产资源更新，由OreWin Pty Ltd.、MSA Group (Pty) Ltd.、SRK Consulting (South Africa) (Pty) Ltd. 和MDM (Technical) Africa Pty Ltd . (Wood PLC 的一个部门) 编制，涵盖了公司的基普什项目。
这些技术报告包括本新闻稿中引用的普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目的矿产资源估算的生效日期、假设、参数和方法等信息，以及本新闻稿中关于普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目的科学和技术性披露的数据验证、勘探程序和其他事项的信息。更多有关公司的信息 (包括公司的年度信息表)，可在 SEDAR 网站 (www.sedar.com) 获得。
Bill Trenaman +1.604.331.9834 Matthew Keevil +1.604. 558.1034
该等陈述包括但不限于下列事项的时间点和结果﹕(i) 关于选矿厂预计于2021年第二季度完工，并计划于2021年7月实现首批铜精矿生产的陈述；(ii) 关于卡库拉矿山的地下开发速度预计将随着采矿人员的增加而继续加快的陈述；(iii) 关于卡库拉的地下开发在未来几个月将主要集中在铜品位超过5%的矿段，预计其高品位矿堆将得到大量扩充的陈述；(iv) 关于Mwadingusha水电站的6台涡轮机翻新及相关的220 千伏基础设施工程进展顺利，翻新后的水电厂预计将于2021年第一季度向国家电网提供72 兆瓦电力的陈述；(v) 关于卡库拉将会生产极高品位的清洁铜精矿(含铜量达55%以上) ，将会是世界各地铜冶炼厂渴求的高质量产品的陈述；(vi) 关于加快扩建卡库拉矿山第二座380万吨/年选矿厂的速度，从380万吨/年提升到760万吨/年的入选矿量，使选矿厂第二序列的扩建从2023年第一季度提前至2022年第二季度完成的陈述；(vii) 关于卡库拉贯通后将显著改善矿体中心的通风情况，使更多采掘班组可在卡库拉的高品位矿段开始高产能采矿作业的陈述；(viii) 关于普拉特瑞夫项目的分期开发生产方案，以大幅减低初期资本为目标，利用1号竖井作为矿场的首采井以加速投产，然后再逐步提升至2017年最终可行性研究设计的产能的陈述；(ix) 关于预计于2020年11月中公布普拉特瑞夫项目的分期开发生产方案及最终可行性研究更新版的时间点的陈述；(x) 关于卡莫阿-卡库拉合资企业在首产之前还有约5.7亿美元资本开支的陈述；(xi) 关于普拉特瑞夫计划采用高效率的机械采矿方法，包括深孔采矿法及分层充填采矿法，两种方法都会采用水泥回填以提取最多矿石的陈述；(xii) 关于艾芬豪预计将继续持有充足的现金资源或项目相关的可用融资方案，以涵盖其应承担的卡库拉矿山初期资本开支份额的陈述；(xiii) 关于普拉特瑞夫和基普什项目减少开发活动的时间点和期间的陈述；(xiv) 关于卡莫阿-卡库拉的合资伙伴正为项目融资计划作最后定案，全速推进项目第二序列开发的陈述；以及(xv) 关于2020年剩余时间预计花费800万美元进一步开发普拉特瑞夫项目、800万美元用于基普什项目、300万美元用于刚果的区域性勘探活动、500万美元用于公司经常性开支，以及按比例为卡莫阿-卡库拉项目制定2020 年剩余时间的预算为1.27亿美元的陈述。
此外，卡库拉铜矿可行性研究、2020年卡库拉-卡索科预可行性研究以及更新和扩展的卡莫阿-卡库拉项目初步经济评估的所有结果、普拉特瑞夫项目的可行性研究，以及基普什项目的预可行性研究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开发有关的特定前瞻性信息，公司是基于某些不确定因素而作出假设和分析。不确定因素包括：(i) 基础设施的充足性；(ii) 地质特征；(iii) 矿化的冶金特征；(iv) 发展充足选矿产能的能力；(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；(xiv) 项目范围或设计更变；以及(xv) 政治因素。
本新闻稿亦载有矿产资源和矿产储量估算的参考信息。矿产资源的估算具有内在的不确定性，并涉及对许多相关因素的主观判断。矿产储量的估算提供了更多的确定性，但仍然涉及类似的主观判断。矿产资源并非矿产储量，并不显示其具有经济潜力。任何该等估算的准确性是可用数据的数量和质量的函数，并根据工程和地质诠释的假设和判断 (包括估计公司项目的未来产量、预计开采所得的矿石量和品位，以及估计将会实现的回收率) 而作出，可能被证明是不可靠的，在一定程度上取决于钻孔结果和统计推论的分析，而最终可能证明是不准确的。矿产资源或矿产储量估算可能需要根据以下因素重新估算：(i) 铜、镍、锌、铂族元素(PGE)、黄金或其他矿物价格的波动；(ii) 钻孔工程的结果；(iii)冶金测试和其他研究；(iv) 建议开采作业，包括贫化；(v) 在矿山计划的任何估算及/或变更日期之后作出的矿山计划评估；(vi) 未能取得所需准许、批准和许可证的可能性；以及 (vii) 法律或法规的修订。