Q3 2022 Ivanhoe Mines Ltd Earnings Call

November 14, 2022

Operator: Good morning, ladies and gentlemen, and welcome to the Ivanhoe Mines Q3 2022 Financial Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded today, November 14, 2022. I would now like to turn the conference over to Matthew Keevil, Director of Investor Relations and Corporate Communications. Please go ahead.

Today November 14th 2022, I would now like to turn the conference over to Matthew will keep hold director of Investor Relations and corporate Communications. Please go ahead.

Matthew Keevil: Thank you, operator. Hi, everyone. My name is Matthew Keevil and I am the Director of Investor Relations and Corporate Communications with Ivanhoe Mines. It is my pleasure to welcome you to our Q3 2022 conference call. We will finish today's event with a question and answer session. You can submit a question using the Q&A box on the webcast page as well as through the conference operator via your phone line. Given our time constraints, we will likely be unable to answer every question, but please follow up with the IR team after the call.

we will likely be unable to answer every question, but please follow up with the IR team after the call.

Matthew Keevil: Before we begin, I'd like to remind everyone that today's event will contain forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Details of these forward-looking statements are contained in our November 14th news release as well as on SEDAR and at our website at www.ivanhoemines.com.

Matthew Keevil: It is now my pleasure to introduce Ivanhoe Mines' President, Marna Cloete.

Marna Cloete: Thank you, Matt, and welcome everyone to our third quarter earnings of 2022. We've had an extremely busy quarter with our expansion projects at Kamoa and activities ramping up at Platreef and Kipushi. This quarter Kamoa-Kakula kept building on its reputation as a world class mine, with record sales of 94,000 tonnes of payable copper and copper production of 98,000 tonnes of copper for the quarter. This gave us the confidence to up the lower end of our production guidance to 325,000 tonnes of copper in concentrate, with the aim to achieve the upper end of guidance of 340,000 tonnes of copper in concentrate.

We've had an extremely busy quarter with how expansion projects at Kamoa and activities ramping up at Platreef and Kipushi. Kamoa-Kakula kept building on its reputation as a world class mine with record sales of 94,000 tons of payable copper and copper production of 98,000 tons of copper for the quarter.

Kamoa-Kakula kept building on its reputation as a world class mine with record sales of 94,000 tons of payable copper and copper production of 98,000 tons of copper for the quarter.

This gave us the confidence to up the narrow end of our production guidance

Hundreds and 25000 tons of copper in concentrate with the aim to achieve the upper end of guidance of 340000 tonnes of copper in concentrate.

Marna Cloete: The debottlenecking project is now 70% complete, and it is expected to reach annualized copper production of 450,000 tonnes of copper in the second quarter of 2023. Our Phase 3 expansion activities are progressing well and is expected to increase production from Kamoa-Kakula to 600,000 tonnes by the fourth quarter of 2024. Our C1 cash costs continue to be impacted by higher-than-expected logistic charges. But with current mitigation measures in place, we reiterate our guidance and expect to be at the upper end of cash cost guidance for the year. To this end, we have tightened the range to between $1.35 and $1.40 per pound.

Our phase three expansion activities are progressing well and is expected to increase production from Karnataka cooler.

600000 tons by the fourth quarter of 'twenty 'twenty four.

Marna Cloete: Our C1 cash costs continue to be impacted by higher-than-expected logistic charges. But with current mitigation measures in place, we reiterate our guidance and expect to be at the upper end of cash cost guidance for the year. To this end, we have tightened the range to between $1.35 and $1.40 per pound.

Per pound.

Marna Cloete: Before our CFO David van Heerden discuss our financial results in more detail, I would like to provide a quick update on the efforts of our sustainability team. During the quarter, Kamoa-Kakula commenced its bulk earthworks at the Kamoa Centre of Excellence, a rendering of this facility is in the background of the slide. This Centre, once in operation, aims to create a sustainable and community-centered learning environment in the heart of the DRC. It will be a world-class facility offering degrees, diplomas and short courses in collaboration with internationally accredited institutions. At our livelihood programs at Kamoa, our teams are expanding our community forming footprint, which contributes to local entrepreneurs, as well as food security.

During the Covid check market cool off it means the bulk of ethics. After tomorrow I think of accidents, a rendering of the facilities and the background of the slide. I think that once in operation I instantly hike are sustainable and community centers learning and bought land in the heart of the DLC. It will be a world class facility offering degrees to Panama and short courses in collaboration with the internationally accreted institutions. I don't know if you'd programs had come out well our teams are expanding our community forming footprint, which contributes to local entrepreneurs as well as food security.

I think that once in operation I instantly hike are sustainable and community centers learning and bought land in the heart of the DLC. It will be a world class facility offering degrees to Panama and short courses in collaboration with the internationally accreted institutions. I don't know if you'd programs had come out well our teams are expanding our community forming footprint, which contributes to local entrepreneurs as well as food security.

It will be a world class facility offering degrees to Panama and short courses in collaboration with the internationally accreted institutions.

I don't know if you'd programs had come out well our teams are expanding our community forming footprint, which contributes to local entrepreneurs as well as food security.

Marna Cloete: Our team at Platreef focused on enterprise and supply development to enable small and medium enterprises to be included in our supply chain. And at Kipushi we are focused on access to water with a borehole program underway to assist our communities. With that as a short introduction, I would like to now hand it over to David van Heerden for the financial results.

With that as a short introduction I would like to now hand to I bet, you die that fund yet for the financial results.

David van Heerden: Thank you, Marna, and good day to everybody joining our call today. The third quarter of 2022 was another quarter of exceptional performance at Kamoa-Kakula. However, the results was impacted by a further decline in the copper price at the end of the period and inflationary pressures, both of which I will discuss in more detail.

Third quarter two a decrease of two was another quarter of exceptional performance Eskimo Kakuta. However, the results was impacted by the declining copper price at the end of the period and even flashy bridges, both of which I will discuss in more detail.

David van Heerden: This call is of course just a high-level summary of our quarterly results and the presentation should be viewed in conjunction with our quarterly financial statements and MD&A for the three and nine months ended September 30, 2022.

David van Heerden: During the quarter, Kamoa-Kakula sold almost 94,000 tonnes of payable copper in concentrate, leading to quarterly revenue from contract receivables of $570 million before negative remeasurement of $110 million at period end, bringing us to a total revenue of $460 million for Q3. C1 cash costs for the quarter was a fraction higher due to the ongoing elevated logistics charges but we will go into that in more detail in upcoming slides. Notwithstanding the lower copper prices in the quarter, Kamoa-Kakula generated very healthy EBITDA of $254 million.

Moving to quarterly revenue from contract receivables of $517 million before negative re measurement of a $110 million get redeemed.

He asked you had talked to read when you are $460 million for Q3.

So you want cash cost for the quarter was a fraction higher due to the ongoing it looked like it was just extraordinary but we will go into that in more detail I'm not going to be sad.

Notwithstanding the lower copper prices in the quarter come all computer generated very healthy EBITA of $254 million.

Yeah.

David van Heerden: Revenue from contract receivables booked at an average copper price during the month of sale was $570 million in Q3 compared to $699 million in the second quarter of 2022 with the sales provisionally priced at $3.48 per pound in Q3 compared to $4.32 per pound in the second quarter.

With the south provisionally priced at $3 48 per pound in Q3 compared to $4 52 per pound.

Second quarter Q.

David van Heerden: Q2 sales was remeasured at the end of June at a copper price of $3.79 per pound, while the realized copper price for Q3 was $3.50 per pound. And at the end of September, the outstanding balance of provisionally priced sales were remeasured using a copper price of $3.36 per pound, with these collectively resulting in the negative mark-to-market at the end of Q3 of $110 million.

At the end of September the outstanding balance of provisioning across sales were re measured using a copper price of.

$3 36 per pound.

These collective he resulting in a negative mark to marketing at the end of Q3 of <unk>.

$102 billion.

David van Heerden: Kamoa-Kakula’s cost of sales for the third quarter was $216 million in total, and the $1.05 per pound of favorable copper sold, down from $1.15 in the second quarter. After deducting general administrative expenditure, the operating profit for the third quarter of the year was $223 million and Kamoa-Kakula's EBITDA was $254 million. Kamoa Holding recorded finance costs of $81 million in Q3, which is principally the interest on the shareholder loans from Ivanhoe addition, as well as the interest on Kamoa-Kakula’s equipment financing facility.

And the dollar and $51.05 per pound of payable copper sold down.

Down from a dollar and 15 seats in the second quarter.

After deducting general administrative expenditure to operating profit.

For the third quarter was $223 million.

And come out good kudos EBITA was 254 million.

David van Heerden: Kamoa Holding recorded finance costs of $81 million in Q3, which is principally the interest on the shareholder loans from Ivanhoe addition, as well as the interest on Kamoa-Kakula’s equipment financing facility.

David van Heerden: The deferred tax and tax expense for the quarter was $57 million and compared to $62 million in Q2 2022. Non-controlling interest of $20 million for the quarter represents the profit attributable to the DRC government's 20% interest in the Kamoa-Kakula Mining Complex, leaving a profit of $69 million attributable to the joint venture partners, Ivanhoe share of which equals $34 million in Q3.

And compared to $62 million in Q2 'twenty to 'twenty two.

The noncontrolling interest of $20 million for the quarter represents the profit attributable to the DLC governments to 80% interest in o'clock kudos mining complex.

Leaving a profit of $69 million.

You have to give them to the joint venture partnership oven, a share of which equaled $34 million in Q3.

David van Heerden: We move to the next slide. Indicated at the top left of the chart is the quarter-on-quarter comparison of Kamoa’s revenue, while also including the realized copper price in the period. The buildup of the year-to-date revenue to $1.5 billion has been exceptional considering the declining copper price.

I indicated at the top left of the chart.

This is a quarter on quarter comparison of commodity revenue. While also include either of you lost copper pricing theory at the buildup of the year to date revenue.

$215 billion has been exceptional considering the decline in copper price.

David van Heerden: The top right chart indicates the cash Kamoa-Kakula generated from its operating activities. With the bottom left chart underlining the strong quarter-on-quarter EBITDA performance and margin, which has been more than sufficient to cover the current expansion expenditure with a capital expenditure for third quarter summarized at the bottom right hand side.

Underlining the strong quarter on quarter, EBITDA performance and margin.

Which is being more than sufficient to cover the current expansion expenditure with the capital expenditure for the quarter summarized at the bottom right hand side.

David van Heerden: We move to the next slide. The Ivanhoe's consolidated results for Q3 and the chart starts with Ivanhoe’s share of profit from the Kamoa joint venture of $34 million, which was mentioned two slides back. Additionally, Ivanhoe earned interest income of $41 million from Kamoa Holding in the third quarter from shareholder loans advanced to the joint venture. During the quarter, the company spent $4 million on Western Foreland's exploration and $9 million on general and administrative expenditure. Cost incurred at the Platreef and Kipushi project are deemed necessary to bring the project to commercial production and are therefore capitalized as development costs in property, plant and equipment.

We move to the next slide.

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The other nice consolidated results for full Q3.

And the chart starts with either share of profit from joint venture of $34 million, which was mentioned on two slides back.

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Interest income of $41 million from.

Come out of holding in the third quarter.

From Sheldon mindset thoughts to the joint venture during the quarter. The company spent $4 million on wished influence exploration and $9 million on general and administrative expenditure.

Cost incurred at the Platreef and Kipushi project are deemed necessary to bring the project to commercial production and are therefore capitalized as development costs in property, plant and equipment.

Three if I could push a project or two.

Let's see to bring the project to commercial production.

Claude is development cost and property plant and equipment.

David van Heerden: The $27 million loss on the fair valuation of the financial liability in the third quarter represents the change in the deemed fair value of the conversion feature attached to the $575 million, 2.5% convertible senior notes, which Ivanhoe closed in March 2021. The conversion feature is an embedded derivative financial liability and the fee value changes principally due to the fluctuations in our share price, and the losses therefore result from the increase of Ivanhoe’s share price from the end of June 2022 to the end of September this year.

The 27 million.

And all of that loss.

Can you say about your rationale for financial liability in the third quarter represents the change in the deemed to create value of the conversion feature attached to the $575 million two 5%.

Vegetables, senior notes, which often a close date in March 2021 the conversion feature embedded derivative financial liability.

The face value changes principally due to the fluctuations in our share price and the losses stay for a result.

The increase of often a shape prices from the end of June 2022 to the end of September this year.

David van Heerden: Further, Ivanhoe recognized finance costs of $10 million in Q3, relating mainly to the interest on the convertible notes at the effective interest rate. The aforementioned ultimately builds up to Ivanhoe’s profit for Q3 of $24 million.

The interest rate.

The aforementioned ultimately bolt up to Avonex profit for Q3 of $24 million.

David van Heerden: We go to the next slide. And the cash cost per pound of payable copper produced for delivery to China was $1.43 per pound of payable copper for Q3 2022 and largely in line with the $1.42 per pound in the second quarter. The volume benefit from additional tonnage produced in the quarter resulted in decreases in G&A and processing cost but was offset by the increase in logistics cost.

If we go to the next slide.

And the.

The cash cost per pound of payable copper produced food deliveries to China was $1 43.

The pound of.

Payable copper for Q3 was 22 and largely in line with the dollar 42 per pound in the second quarter.

The volume benefit from additional tons produced in the quarter and resulted in decreases in G&A and processing cost, but was offset by the increase in just ex cost.

David van Heerden: Concentrate production at Kamoa-Kakula doubled over the last year, which has not been made with a sufficient supply of trucking capacity and has led to an increase in the trucking contractor market pricing. In addition, the Lualaba Copper Smelter was closed in June for maintenance, thereby temporarily increasing logistics volumes and costs for the last two quarters.

The market cooler doubled over the last year, which is not being made with a sufficient supply of trucking capacity and has led to an increase in the trucking.

Trucking contract at market pricing. In addition to the newer lava copper smelter is closed in June for maintenance.

By temporarily increasing logistics volumes and costs for the last two quarters.

David van Heerden: The Lualaba Copper Smelter completed its scheduled maintenance in early September, which will assist in reducing overall shipping volumes. At the export blister copper incurs lower logistics cost per unit compared to copper concentrate. These factors, together with border congestion, further increased trucking demand resulting in higher logistics cost.

Timber, which will assist in reducing overall shipping volumes.

Yeah, the export blister.

Copying it goes lower logistics cost the unions compete to Copa Com subtract. These factors together with border congestion for the increased trucking demand, resulting in higher logistics cost.

David van Heerden: Importantly though, Kamoa-Kakula was able to sell almost all tonnes in payable copper produced in the quarter with the difference in payable copper sold and payable copper produce being less than 1,000 tonnes. And as Marna mentioned, we still expect to come in on the upper end of our guidance range. So while our costs are higher than we like, and the previous slide has indicated that Kamoa-Kakula still generates excellent EBITDA and cash from its operating activities.

Copper produced in the quarter with a different type of coffee sold in global corporate produce being leased and about one times.

And that's not my mentioned, we still expect to come in.

On the upper end of our guidance range.

So of course, I think we like.

The previous slide has indicated that kumar cooler still generates excellent EBITDAR and cash from its operating activities.

David van Heerden: Thank you. I will now hand over to Alex Pickard, our Vice President -- sorry. One more slide. Just looking at our strong balance sheet position which supports our growth, we are well positioned for further development of our projects with $663 million in cash and cash equivalents on hand and consolidated working capital of $686 million. Our liabilities of $989 million, $610 million relates to the convertible notes, with these only due in 2026 with possible earlier redemption.

Thank you I will.

Now I'll hand over to Alex because vice President Oh I'm sorry.

One was slides just looking at our.

Our strong balance sheet position, which would which supports our growth.

We are well positioned for further development of our projects with $663 million in cash and cash equivalents on hand.

Holiday did working capital of $696 million up.

Liabilities of $999 million 600, attainment and it relates to the convertible notes with these really doing 26 with possible earlier today.

David van Heerden: While $284 million relates to deferred revenue, which represents the prepayment for future sell off refined gold and palladium and platinum to be delivered by the Platreef Project in terms of our streams in the future -- which in the future will be amortized as the ounces are delivered to the stream purchases.

Palladium and platinum to be delivered by the <unk> project in terms of our streams.

The future, which in the future will be almost twice the answers at the end of it to the street purchases.

David van Heerden: Our forecasted spend for the remainder of 2022 is $149 million on Platreef and Kipushi as well as continued exploration on Western Foreland and overheads. All operating and capital expenditure costs at Kamoa-Kakula are expected to be funded from copper sales and facilities in place at Kamoa. And we are forecasting a very healthy cash position at the end of the year.

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$49 million on January 5th Wuxi, That's why that's continued exploration.

Wished influencing overnight.

All operating and capital expansion costs have come up cooler are expected to be funded from copper sales and facilities in place that's come out.

So we are forecasting a very healthy cash position.

David van Heerden: I will now hand over to Alex Pickard, our Vice President, Corporate Development and Marna to provide a brief update on the development of our projects.

I will now hand over to Alex B Calder, Vice President corporate.

Corporate development and Martin to provide a brief update on the development projects.

Alex Pickard: Thank you, David, and good day to everybody on the line. It's Alex Pickard here, VP Corporate Development.

Alex Pickard: And I'll say, I'm very glad you took us through the balance sheet there, because I wasn't prepared to take over then. So now I'll take you through a brief update on Kamoa-Kakula operations and projects and also talk a little bit about our exploration assets out in the field.

So now I will take you through a brief update on <unk> operations and projects and also have to talk a little bit about our our exploration assets out in the field.

Alex Pickard: First of all, looking at Kamoa-Kakula's operational performance, we are very pleased to report another record breaking production quarter of 97,800 tonnes of copper content in concentrates. This included 33,500 tonnes produced in September alone. So that comfortably exceeds an annualized production rate of 400,000 tonnes. And we were pleased to also repeat this level of production during the month of October.

This included 33500 tonnes produced in September alone.

Alex Pickard: So that comfortably exceeds an annualized production rate of 400,000 tonnes. And we were pleased to also repeat this level of production during the month of October.

Alex Pickard: The charts on the right hand side give a bit of an indication of how this was achieved. So as Phase 2 has reached steady state, we've gradually improved our milling rates and so for the quarter we’re now close to 2.1 million tonnes, which was up from 1.85 million tonnes in the previous quarter. And at this milling rate, we're looking at an annualized overall milling rate of roughly 8.3 million tonnes. So that's exceeding our original designed throughput of 7.6 million tonnes.

Alex Pickard: And at this milling rate, we're looking at an annualized overall milling rate of roughly 8.3 million tonnes. So that's exceeding our original designed throughput of 7.6 million tonnes.

Overall milling rates of roughly $8 3 million tons. So that's exceeding our original design throughput of $7 6 million tonnes.

Alex Pickard: We're also very pleased that the grades increased slightly during the quarter to 5.6%. And this is a reflection of the continuing optimization efforts that we're going through with our mining activities at Kakula in particular. Given that Phase 2 has also now ramped up to full capacity, we are pleased to see that the recoveries are hitting our designed targets of very close to 86% overall.

And this is a reflection of the continuing optimization effort and that we're going through with our mining activities at the cooler in particular.

Given that Phase 2 has also now ramped up to full capacity, we are pleased to see that the recoveries are hitting our designed targets of very close to 86% overall.

Alex Pickard: So where that leaves us today is that as at the end of October, we've produced just over 274,000 tonnes of copper and as Marna mentioned at the beginning of the call, that's given us the confidence to increase the lower bound of our production guidance to 325,000 tonnes up to 340,000 tonnes of copper for 2022.

You too.

Alex Pickard: Finally, just looking at the Debottlenecking program. That's also tracking ahead of schedule. Roughly 70% complete today and I said, we are targeting to be fully up and running by the second quarter of next year. This will increase the overall milling capacity to $9 2 million tonnes. So that's roughly 10% higher than what we meld in the previous quarter or in terms of copper production. That's around 450000 tonnes of copper output and but we will be giving more detailed guidance for 2023 early in January .

Roughly 70% complete today and I said, we are targeting to be fully up and running by the second quarter of next year.

This will increase the overall milling capacity to $9 2 million tonnes. So that's roughly 10% higher than what we meld in the previous quarter or in terms of copper production. That's around 450000 tonnes of copper output and but we will be giving more detailed guidance for 2023 early in January .

Alex Pickard: Next slide please. So moving on to our larger Phase 3 expansion project at Kamoa-Kakula. The construction activities are going ahead very much as planned. And we have no change to our targets for commissioning in the fourth quarter of 2024.

So moving on to a larger phase III expansion project at Comerica cooler.

Construction activities are going ahead very much as planned and we have no change to our target for commissioning in the fourth quarter of 2024.

Alex Pickard: So this Phase 3 project includes the construction of a new mining concentrator in the Kamoa area of the mining license. So that's roughly 10 kilometers to the North of the existing concentrator at Kakula and as well as the mining concentrator expansion. We will also be building the largest direct-to-blister smelter in Africa, which has a capacity of 500,000 tonnes of copper anode, and we anticipate that the smelter will be very much a game changer for the overall logistics of Kamoa and will further reduce our cost structure which we already feel is very competitive.

A capacity of 500000 tonnes of copper anode and we anticipate.

It will be very much a game changer for the overall logistics that come our way and will further reduce our cost structure, which we already feel it's very competitive.

Alex Pickard: Where we are today? We've completed basic engineering for the entire project and this will all be incorporated into a new technical report for Phase 3 and beyond that will be published early next year. And on-site, we are well underway with the earthworks, and the early civil works. We are in the process of advancing new declines in order to open up the new underground mines that Kamoa 1 and Kamoa 2 that will ultimately support the Phase 3 concentrated throughputs.

And on-site, we are well underway with the earthworks, and the early civil works. We are in the process of advancing new declines in order to open up the new underground mines that Kamoa 1 and Kamoa 2 that will ultimately support the Phase 3 concentrated throughputs.

We are in the process of advancing new declines in order to open up the new underground mines that come out of a one and come over to that will ultimately support the the phase III concentrated throughput.

Alex Pickard: On the power side, we are also busy with the refurbishment of turbine 5 at Inga II dam which will provide an additional 178 megawatts of renewable power for Phase 3. And at that site, at Inga, we recently completed mobilization with the contractors. And we're pleased to say that the manufacturing of the key long lead equipment is also well underway in China.

And that site. It linger, we recently completed and mobilization with the contractors and we're pleased to say that the manufacturing of the key long lead equipment is also well underway in China.

Alex Pickard: Now moving on to our exploration activities, and starting with the Western Foreland project adjacent to Kamoa-Kakula. So currently, we are in the process of wrapping up the bulk of our regional large scale drilling for this year as we now head into the wet season in the DRC.

Yeah.

Now moving on to our exploration activities and starting with the Western fallen project adjacent to clock in cooler. So currently we are in the process of wrapping up the bulk of our regional large scale drilling for this year as we now head into the wet season in the DRC.

Alex Pickard: We've been busy drilling extensions at a zone known as Makoko West, so this is adjoining a copper discovery that we initially made in 2016 I believe it was, known as Makoko. And then in addition to the drilling of Makoko, we are conducting stratigraphic drilling at Lupemba, which is located in the Far Southwest of the Western Foreland as well as testing for the edge of the Roan sandstone, which is to the North of the existing Kamoa Far North mining area on the Kamoa-Kakula mining right.

16, I believe it was known as Makoko.

And then in addition to the drilling at <unk>, we are conducting stratigraphic drilling at independent and which is located in the far southwest of the western Poland as well as testing for the edge of the round sandstone.

Which is to the north of the existing and Camilla far North mining area on the mine on the club called the mining rights.

Alex Pickard: Finally, a few weeks ago, we made an announcement that we've been awarded new exploration rights in South Africa. These are directly adjacent to Platreef’s mining rights, and are actually slightly larger in size than the two farms that make up the Platreef’s mining rights at roughly 80 square kilometers.

Alex Pickard: So looking at the diagram on the right hand side as an illustration, what we are looking to understand is a very significant gravity anomaly, which is known as the Mokopane Feeder, and the intersection of this anomaly with a regional fault system which occurs on these new licenses. So following that award a few weeks ago, we are now kicking off with high resolution geophysical work and we look forward to providing more information on this new project in due course. With that, I will hand back to Marna to finish off with Platreef and Kipushi.

Right hand side is an illustration and what we're looking to understand it's a very significant gravity anomaly, which is known as the market party feeder and the intersection of this anomaly with a regional fault system, which occurs on these new licenses and so following that award a few weeks ago. We are now kicking off with high resolution.

<unk> physical work and we look forward to providing more information on this new project in due course.

With that I will hand back to moderate to finish off with plot reef honestly pushy.

Marna Cloete: Thank you, Alex.

Marna Cloete: Thank you, Alex. Just a quick reminder that we are currently executing Phase 1, 700,000 tonne per annum mine at our Platreef project in South Africa, which is anticipated to start first production in the third quarter of 2024. Our aim is to seamlessly [technical issues]

I must be seamlessly.

Operator: Her line just dropped. Can somebody please take over?

Okay.

Alex Pickard: Sure. I'm happy to do so. So where we are with Platreef today is based on the completed Shaft 1. We are well underway with the underground mining so we've completed over 300 meters of lateral development work. What we're doing right now is working towards the bottom of the first ventilation shaft which will allow us to significantly increase the number of crews in the mining activity underground.

Sure.

I'm happy to do so.

So while we all with flat rates today is based on the completed shaft. One we are well underway with the underground mining. So we've completed over 300 meters of lateral development, what what we're doing right now is working towards the button.

The first ventilation shaft, which will allow us to significantly increase.

The number of crews in the mining activity on the ground.

Alex Pickard: On surface we have a lot of activity going on. We started the construction of the processing plant for Phase 1. So the civil works are underway there, the long lead time orders have been placed. We are also in construction with the first 5-megawatt solar power plant for Platreef and that's largely to support our construction activities and also to charge the battery electric underground fleet that we are trial-using at Platreef today.

We are also in construction with the first five megawatt solar power plant and supply or anything like that that's largely to support all our construction activities in all started to charge the battery electric underground fleet that we are.

We are trial using a flat rate today.

Alex Pickard: In terms of the remainder of this year, we are forecast to spend $72 million. As David mentioned, all of our expenditures at Platreef are currently being funded by the streaming agreements and we made the final draw down on those $300 million facilities. So we're very much targeting first production in Q3 of 2024. There's no change there. But really with Platreef, we're much more excited about the ultimate expansion and scale of this project, which will be dictated by Shaft 2. So we are continuing with the sinking works of Shaft 2. You will start to see the headframe going up very quickly there. And ultimately, the goal with Platreef is to become one of the largest and lowest cost producers of the PGM metals, platinum, palladium, rhodium, gold as well as a significant quantity of nickel and copper, which contribute roughly up to 30% of the total value of the resource at Platreef.

In Q3 of 2024, there's no change there but.

But really with flat ruffino, we're much more excited about the ultimate expansion and scale of this project, which will be dictated by by shaft two and so we are continuing with the with the I'm thinking works of shaft, two where you will start to see the head frame going up very quickly there and ultimately the goal with plot reef is to become one of the largest and lowest cost per.

Uses of them of the PGM metals platinum Palladium rhodium gold as well as a significant quantity of nickel and copper.

Which contribute roughly up to 30% of the total value of the results at <unk>.

Alex Pickard: Next slide please. And at Kipushi, we also had a very busy quarter in terms of, we kicked off with a breaking of ground ceremony in August. So that was attended by Ivanhoe Mines, members of the DRC government as well, of course as our partners, Gécamines.

And that could push you. We've also had a very busy quarter.

In terms of.

We we kicked off with a breaking of ground ceremony in August . So that was attended by Ivan have mines members of the DLC government as well of course as our partners are Jacqueline.

Alex Pickard: So the first concrete pour took place last month, and we are in the process of ordering the long lead items for the processing plant. That is all underway. We have mining crews operating underground now at Kipushi for the first time since the early 1990s. So that's a very exciting milestone for the team on site.

Alex Pickard: And also we announced that we have a study underway, which is to investigate options to upgrade the DRC-Zambia border crossing at Kipushi, which will allow Kipushi to have a direct access for commercial imports and exports and will also hopefully have knock on positive effects for Kamoa.

Next for Camilla.

Alex Pickard: We hope to come to the market soon with an update on our financing and offtake discussions. But it's safe to say they are well advanced with several interested parties.

Alex Pickard: And looking at the overall schedule for Kipushi, we are keeping the project on track for an 18 to 24 months construction timeline overall. So looking to have Kipushi, together with Platreef, together with the third phase of Kamoa-Kakula, all in production by the end of 2024.

So looking at the halfway pushy together with flat roof together with the third phase of come out cooler all in production by the end of 2024.

Alex Pickard: Perhaps with that, I will pass back to Matt Keevil to conduct the Q&A.

Perhaps with that I will pass back to to Mac cable to conduct the Q&A.

Matthew Keevil: Thank you, Alex. We will now begin the Q&A session. Just a reminder that if you'd like to ask a question, please submit it via the question box on the bottom left hand corner of this webcast page or via the conference line.

And that will begin the Q&A session just to remind you that if you'd like to ask a question. Please submit it via the question box on the bottom left hand corner of this web cast page or via the conference line.

Matthew Keevil: We will then do our best to answer as many questions as possible with the time remaining, but may not get to all of them. So please do follow-up with our IR team if you have an unanswered question. First and foremost, I think we'll hand it back to the operator just to get to everyone who's waiting on the line. Operator, could we jump over to some questions on the line please?

First and foremost I think we'll hand it back to the operator, just to get to everyone who's waiting on the line operator could we jump over to some questions on the line. Please.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star key followed by the number one on your touchtone phone. You'll hear a three-tone prompt acknowledging your request. Questions will be taken in the order they are received. If you're using a speaker phone, please lift up your handset before pressing any keys. We'll take our first question from Lawson Winder with Bank of America Securities. Your line is open.

Her with Banc of America Securities. Your line is open.

Lawson Winder: Good afternoon, guys. Can you hear me fine?

Afternoon, guys can you hear me fine.

Multiple speakers: Yes. Yes.

Yes.

Lawson Winder: Good, okay great. I just wanted to ask about the logistics cost. So just to begin with, the $56 per pound reported in Q3 2022, are you able to kind of break down for us how that splits between Lualaba being closed versus trucker availability and border issues?

Got it. Logistics costs so just. To begin with the $66 per pound.

Logistics costs so just.

To begin with the $66 per pound.

Reported in Q <unk> Q3, 2022 are you able to kind of break down for us how that splits between will allow about being close versus trucker availability and border issues.

Marna Cloete: David, would you like to take this?

But what's.

But you're not I'm sorry for that.

David van Heerden: Yes, I think Lawson it's a bit of an interesting mix. And although with the -- we would say, border issues probably around and these are Argonaut magnitude estimates, but border issues are around $0.03 per pound And if we look at the -- just the increase in costs from our logistics service providers, that's gone up around 20%. I think if we look at ocean freight in that we have seen an increase I think globally over past quarters, but we've seen that sort of come down in Q3. So it's a combination of everything, if we look at the -- if we compare the smelter with concentrate and logistics charges on a like-for-like comparison, and there's about a 20% difference per pound between the two.

Think Lawson, it's I mean, it's it's a.

It's a bit of an interesting mix holds.

Ooh Ooh, we'll see.

We would say.

What are your issues probably around and diesel.

Well go off the magnitude estimates, but buda issues around three.

Three three cents per pound.

David van Heerden: And if we look at the -- just the increase in costs from our logistics service providers, that's gone up around 20%. I think if we look at ocean freight in that we have seen an increase I think globally over past quarters, but we've seen that sort of come down in Q3. So it's a combination of everything, if we look at the -- if we compare the smelter with concentrate and logistics charges on a like-for-like comparison, and there's about a 20% difference per pound between the two.

The increase in cost from our logistics service providers, that's gone up.

Around 20%.

I think if we look at ocean freight in that we have seen an increase I think globally over past quarters, but we've seen that sort of come down in Q3. So it's a combination of everything, if we look at the -- if we compare the smelter with concentrate and logistics charges on a like-for-like comparison, and there's about a 20% difference per pound between the two.

If we look at ocean freight and that we have seen an increase I think globally.

Past quarters, but we've seen that sort of.

Come down in Q3, so it's a it's a [laughter].

Combination of everything if we if we look at the if we compete.

Smelter with concentrate.

Logistics charges.

Like for like comparison in days.

There's about a 20% difference.

The pound and between the two.

Lawson Winder: Okay, maybe I'll ask it-- thank you for that. I'll ask the question again, but maybe from a different point of view which is like, looking into 2023, I mean do you expect $0.56 per pound to be the transportation costs going forward?

The question again, but maybe from a different point of view, which is like looking into 2023, I mean do you expect 56 cents per pound to be the transportation costs going forward.

David van Heerden: Lawson, I think, we would like to see where logistics cost goes with our current initiatives that we've announced and see what impact that's got on the cost in the near-term. And as that becomes apparent, we will look to include that in our guidance provided for 2023 which we will issue early next year.

We would like to see where your logistics cost goes with our current initiatives that we've we've announced.

See what the what impact that Scott on the cost in the near term and as that.

Victims.

Parent we will yeah.

Look to include that in our guidance provided for 2023.

Which we will issue early next year.

Lawson Winder: Okay, and then also, a similar question. What was kind of the exit rate cost from the quarter? So as of like September 30, 2022, where would you have been run, it would have been above $0.56 or below that $0.56?

Q1.

Where would you then run.

Even above 56 or below that 56 cents.

David van Heerden: So exit cost at the end of the quarter below $0.56 because of the fact that we utilized Lualaba in September.

End of the quarter and below 56 because of the.

The fact that we utilized a new law.

In September .

Lawson Winder: Do you have a specific number by chance?

David van Heerden: I think I don't want to be too specific and give too much information other than that we still expect to be within our guidance range for the fourth quarter.

And.

And give too much information other than that we still expect to be within our guidance range for the fourth quarter.

Lawson Winder: Okay. And then just maybe one final question for me on the head grade. So I think, I mean, the expectation for a couple of quarters had been that head grades would start to approach 6%. Why do you think it's still running a little bit below 6% and then into Q4 and into 2023, I mean is 6% head grade to the mill a reasonable expectation?

The head grade so I think I mean, the expectation for a couple of quarters had been that had great start to approach 6%.

Hum.

Why do you think it's still running a little bit below 6% and then.

Into Q4 and into 2023, 6% head grade to the mill a reasonable expectation.

Alex Pickard: Maybe I'll give a little color on that one for you, Lawson. So look, I guess in terms of where we are today, it's really a function of how much can Kakula on a standalone basis, because of course, Kakula has significantly higher grades than Kansoko. So how much can Kakula support the current milling rates, which as I mentioned in my section, as of the last quarter was about 8.3 million, 8.4 million tonnes per annum.

So look I guess in terms of where we are today, it's really a function of how much.

Kanka cooler on a standalone basis, because of course can cooler has significantly higher grades than than cancer hotel I'm, sorry, how much kind of cooler support the current milling rate, which as I mentioned in my section as over the last the last quarter was about $8 $38 4 million tonnes per annum.

Alex Pickard: And today Kakula was not necessarily planned to be able to support that in full, but that is a work in progress. And what that means in practice is doing effectively more development along the sides of Kakula to open up more panels, so that we can have a greater availability of these high grade panels for the mining crews at Kakula. So that sounds very simple in theory, but in practice it does take some time to get it right. There is a bit of a lag. It will require putting in more ore handling infrastructure. So for example, we're looking at an additional conveyor to complement the Kakula South decline. And all of this will take some months to get up to speed.

And what that means in practice is doing effectively more development along the M sites after cool that to open up more panels. So that we can have a greater availability of these high grade panels for.

For the the mining crews ACA cooler so that sounds very simple.

And in theory, but in practice. It you know it does take some time to get it right. There is a bit of a lag.

It will require putting in them you know more ore handling infrastructure. So for example, we're looking at an additional come back to complement the cooler south declined.

And all of this will take some months to get up to speed.

Alex Pickard: We're very confident that we will get there. But in the meantime, we will continue to feed ore from the run of mine -- or sorry, I should say, really the development stockpiles which comes in, I'd say slightly lower grade, but the advantages that's already been paid for effectively from a cash flow point of view. And we can keep our mill as full as possible in the meantime.

And we can keep our all metal as full as possible in the meantime.

Alex Pickard: So looking forward to 2023, we've got this kind of double effect, because while we should be catching up from a mining point of view, and having more availability, the mill also isn't standing still. We'll probably have an additional 1 million tonnes of capacity following the debottlenecking and so the mine will continue to catch up through 2023. In terms of where we get to, I'd say we’d hopefully be somewhere between 5.6% and 6%, but we will probably give a more firm view on that at a later date.

Well, we should be catching up from a mining point of view and having more availability. The mill. So isn't standing still will probably have an additional 1 million tons of capacity following the debottlenecking and so the mine will continue to catch up through 2023.

Alex Pickard: In terms of where we get to, I'd say we’d hopefully be somewhere between 5.6% and 6%, but we will probably give a more firm view on that at a later date.

But we will probably give a more firm view on that at a later date.

Lawson Winder: Yes, okay. Thanks a lot for that color, Alex. Thank you all for those responses.

Yeah, Okay. Thanks, a lot for that color Alex. Thank you all for those responses.

Operator: Next, we'll go to Farooq Hamed with Raymond James. Your line is open.

Farooq Hamed: Hi, good morning or good afternoon, everyone. My question is maybe a little bit bigger picture. Just looking at your CapEx expenditures, they seem to be ramping up as we get into the fourth quarter here. And as we've talked about your project timelines with all three projects, either the expansion with Platreef and Kipushi being delivered in the second half of 2024, it looks like there's going to be quite an increase in intensity here at all three sites. So, I'm just wondering, we've looked at other companies when they start expanding and start trying to do work on multiple assets at the same time, there tends to be an increased risk of timeline slippage of projects, starting to have like creep in different ways, cost creep or whatever it may be, because you have just so many fronts that you're moving forward at the same time. So can you talk a little bit about what kind of fail-safes or what processes do you have in place to ensure that you can move all three projects forward on the timelines that you have guided for without having these risks that we've seen, multiple companies in the mining industry have in the past?

My question, maybe a little bit bigger picture just looking at your your Capex expenditures they seem to be ramping up as we get into the fourth quarter here.

And as you talk about your project timelines with all three projects you know either the expansion or wood clad roofing capuche being delivered in the second half of 2024.

It looks like they're going to be quite a increase in intensity here at all three sites.

So I'm just wondering you know we've looked at other companies when they start expanding and start trying to do work on multiple assets at the same time.

There is there tends to be an increased risk of timeline slippage.

Projects, starting to have like creep in in different ways cost creep whatever it may be.

It gives us so many fronts that you are moving forward at the same time. So can you talk a little bit about you know what kind of sales states or what what processes do you have in place to ensure that you can move all three projects forward on the timelines that you have guided for without having these risks that we've seen you know multiple companies in the mining industry.

In the past.

Marna Cloete: Maybe I'll take this one. We've made great effort in ensuring that we learn from what we've done at Kamoa and we've recently announced that Mark Farren is joining us as our Chief Operations Officer, and he started on the 1st of November, so he's fully back in the saddle, he'll probably join us on the next quarterly call. We've also pulled Steve Amos who did the project execution at Kamoa-Kakula into the group to ensure that we take the learnings forward from Kamoa-Kakula. What we've also done over the past year is capacitating both Kipushi and Platreef with the right skilled levels to ensure that we can deliver these projects, because we do know what it takes.

We've we've made a great effort and ensuring that we learn from what we've done at the marijuana twist recently announced that more parents, joining us as our chief operations Officer and he started on the foodstuff methane besides fully back into the saddle he'll probably join US on the next quarterly call them, we've always had pulled Steve.

I must say that the project execution at the marker light into the group to ensure that we that we take the learnings for wood from come out cooler, but we've also had done over the past year is capacity lighting ballast pushy and platts reef with the right skills levels to ensure that we can deliver these projects because we do.

Marna Cloete: And we are ensuring that we remain on track with long lead order items, we shade all things well in advance. And I must say we do have a competitive edge with our Chinese shareholders assisting with procurement out of China, and ensuring that everything remains on track. So I think we actually have an edge over our peers in terms of our structures with our shareholders to deliver these projects.

In terms of our structures with all shareholders are too.

To deliver these projects I mean.

Marna Cloete: And in terms of capital allocation, in the earlier part of your question, we've carefully crafted each and every project to sort of sustain on this -- to be able to sustain itself with local facilities, and also be augmented by Ivanhoe Mines for Kipushi and for Platreef in terms of our treasury. We flashed all those numbers through and we are comfortable that we will be able to execute these projects with confidence over the next two years.

All those numbers through until we are comfortable that we will be able to execute these projects Smith with confidence after the next two years.

Farooq Hamed: Okay, now that's helpful to understand kind of what you've done internally, and the benchmarking is done on the capital. Just a follow-up to that then, given that these projects are really getting started, and obviously they've been started before, but in earnest here, do you intend to provide kind of milestone updates on a quarterly basis to the market so that we can see how these projects are tracking individually, so that we know when to anticipate production and if there are issues that arise along the way?

And you know the the benchmarking you've done on the capital.

Just a follow up to that then.

Given that these projects are really getting started and obviously they've been started before but in earnest here do you intend to provide kind of milestone updates on a quarterly basis to the market. So that we can see how these projects are tracking individually so that we know. When to anticipate production in and if there are issues that arise along the way.

When to anticipate production in and if there are issues that arise along the way.

Marna Cloete: Most definitely, we joke because everything is happening in 2024 for us. We will be delivering the smelter and Phase 3 at Kamoa-Kakula in 2024. Platreef will go into production in Q3 of 2024. Kipushi will go into production in 2024. So you will see a lot of news flow from us over the next couple of quarters to show that the progress as we do the bolts at both Platreef and Kipushi and as we ramp up our construction activities at Kamoa-Kakula.

Over the next couple of quarters decided that the properties as we as we do the bolt set by flat chief and could push he and as we as we ramp up our construction activities have come off.

Farooq Hamed: Okay, thanks for that. And then maybe just one last one for me. Just as it relates to the CapEx estimates, so for Platreef, I believe it was $488 million and $382 million at Kipushi. Those numbers were provided earlier in the year. Across the industry we've seen inflation impact CapEx estimates for projects and brownfield projects and greenfield projects. So can you tell us how are you tracking to those estimates that you provided at the beginning of the year? Are you seeing inflation pressure on those costs? Do you anticipate having to remeasure those costs in the coming quarters? Or at this point, are you still comfortable with those CapEx estimates?

For Platt reap I believe it was $488 million and $382 million at <unk>.

Those numbers were provided earlier in the year.

Across the industry, we've seen you know inflation impact capex estimates for for projects and brownfield projects.

Projects and Greenfield projects.

So can you tell us how are you tracking to that to those estimates that you provided at the beginning of the year are you seeing inflation pressure on those costs do you anticipate having to re measure those costs.

In the in the coming quarters or are you at this point are you still comfortable with those capex estimates.

Marna Cloete: So we are comfortable to a large degree, because we did place a large number of the long lead to order items based on our cost estimates. But we are seeing some element of inflation. And where we are seeing inflation, that will be communicated once those numbers are firmed up. But it's not inflating the numbers to a degree where the project will be impacted severely negatively, but it is normal inflation that we are seeing coming through. And then David, if you maybe want to add a bit more granular information on the capital inflation we are seeing?

It's not inflating the numbers to a degree we you know the project will be impacted severely negatively but it is normal inflation that we see coming to I've done that divert if you might be going to add a bit more granular information on the capital inflation, we are seeing.

David van Heerden: No thanks, Marna. I think, you've summarized it well. Together with our production guidance which we will issue early next year, we will also update the market on our guidance around our capital expenditure for 2023. And that would include a more detailed indication of where we see there has been inflationary pressures and increases. Just -- but maybe a bit more granular detail, I think on Platreef, specifically, because of the weakening of the South African rand and the impact of inflation has been least felt when compared to Kipushi for instance. And then, I mean on Kamoa, we've got the benefit of being busy with the prefeasibility study at this stage. And so we can build in any -- the latest estimates on inflation as well and that will be reflected in the study.

With all of them.

<unk> guidance, which we will.

Issue early next year, we will also.

But the market on our.

Go ahead and surround our capital expenditure for 2023 and.

And that would include a more detailed indication of where we see there has been inflationary pressures and increases. Just -- but maybe a bit more granular detail, I think on Platreef, specifically, because of the weakening of the South African rand and the impact of inflation has been least felt when compared to Kipushi for instance. And then, I mean on Kamoa, we've got the benefit of being busy with the prefeasibility study at this stage. And so we can build in any -- the latest estimates on inflation as well and that will be reflected in the study.

Has been inflationary pressures and increases.

And it just might.

It might be a bit more granular detail I think on black reef and specifically because of the weakening of the South African Rand and the.

The impact of an inflation has been has been released about when compared to them.

<unk> for instance, and then on Kumamoto and the we've got the benefit of it.

He is busy with the pre feasibility study at this stage I'm just so we can build it in.

Any.

Just estimates an inflection as well and that'll be reflected in the study.

Farooq Hamed: Okay. And sorry, did you just say the timing of that study?

David van Heerden: So the timing of that study is late this year, early next.

Like this year really mixed.

Farooq Hamed: Okay. Thanks very much.

Okay. Thanks very much.

David van Heerden: Yes. No problem.

No problem.

Operator: Next, we'll go to Andrew Mikitchook with BMO Capital Markets. Your line is now open.

Andrew Mikitchook: Hi, I just want to go back to the Western Foreland's exploration at Slide 16 if I’m reading this correctly. Can you just go back to the significance or the prioritizing of Lupemba and Mushiji versus the regional work and extending the known elevations at Makoko West, just so we can stick to that please?

Slide 16.

Things correctly.

I'll just go back to the significance or the.

Prioritizing a loop him and seeking persons.

You know the regional work and are extending.

Okay.

Cocoa life.

So that place.

Alex Pickard: Hi, Andrew, perhaps I'll take this one. I mean look, it's difficult to give a definitive view on priority ranking, but they are sort of looking to achieve different things. So perhaps starting with Makoko that is more kind of, I would view it as low hanging fruit in terms of expanding our knowledge of an existing deposit and seeing what sort of additional resources we can add to that area. So we are drilling there with a sort of reasonable degree of certainty.

Hi, Andrew perhaps I'll I'll take this one.

I mean look it's difficult to give a definitive view on priority ranking, but they all sort of listen to achieve different things. So perhaps starting with with Makoko that is more kind of I would view it as low hanging fruit in terms of.

Expanding our knowledge of them and existing deposit and seeing what some of the additional resources, we can add to that area.

Alex Pickard: So we are drilling there with a sort of reasonable degree of certainty.

Alex Pickard: Whereas what is going on elsewhere in the license, whether that is Lupemba or -- which is in the far southwest or Mushiji up in the North is, what we're trying to do really is cast the net as wide as possible to begin with on the Western Foreland as a whole, to test our knowledge based on the geophysics and the geochem information that we've acquired over the last couple of years. And really what we're doing is testing our knowledge of the underlying base on those structure and what leads to the sort of Kamoa-Kakula style mineralization that ultimately we're searching for. And then, if we don't find exactly what we're looking for, because we've sort of gone beyond the bounds of the Roan sandstone, which is the horizon that we're looking for, in particular, we sort of bring the net back narrower and closer towards our existing operations. But obviously, there's a very rational reason for testing the edges and the perimeter of the portfolio first, because, we're not sort of done in terms of looking at what else might be out there in the Western Foreland. So hopefully, that just gives a bit of context as to the -- yes, it's not so much the ranking, but how we see things.

Protest on knowledge based on the the geophysics and the Geo Chem information that we've acquired over the last couple of years and really what we're doing in testing our knowledge of the underlying them based on the structure.

What leads to the sort of come a cool the style of mineralization that ultimately we're searching for them and then you know if we don't find exactly what we're looking for because when you sort of gone beyond the bounds of the the the rone sandstone, which is the the horizon. What we're looking for in particular, we sort of bring that back narrow width.

And any closer towards.

Our existing operations, but obviously, there's you know there's a very rational reason for testing the edges and in the perimeter of the portfolio first because.

What sort of done in terms of looking at what else might be out there in the western Poland and so.

So hopefully that just gives a bit of context as to the yeah. It's not so much the ranking but how we how we see things.

Andrew Mikitchook: That's great. Thank you very much for the added detail. Some of my other questions have already been asked so I will sign off. Thank you.

All my other questions have already been asked so I will sign off thank you.

Operator: And I am showing we have no further questions on the phone. I'll turn it back over to Matthew Keevil for further questions.

Yeah.

Okay.

Not sure we have no further questions on the phone I'll turn it back over to you Matthew Keevil for free.

Further questions.

Matthew Keevil: Thanks very much operator, we have time for a few from the web, so we'll dive in. Well there's a few repeats here, so we may consolidate some questions as we move forward, just to get through as many as possible.

Matthew Keevil: But first and foremost, we'll start at the top. Marna and David, this is probably a good question for you. This is a popular one on the web client. Given sort of the volatile copper environment recently, how have your expectations changed in terms of shareholder returns, dividends, and sort of the repayment of those loans over the next five years?

Have your expectations changed in terms of shareholder returns dividends and and sort of the repayment of those loans over the next five years.

David van Heerden: Thanks, Matt. I think dividends and shareholder returns are obviously copper price dependent. I think at the moment the focus is on expansion, because we do feel that, firstly, expansion of Phase 3 at Kamoa-Kakula is the most value creative thing we can do; and then -- and also the continued development that Platreef and Kipushi. I mean, as we've highlighted on the call already, everything sort of comes to an end in 2024. And I think after that, this will definitely be a lot about options open to us.

Thanks, Matt.

I think.

Dividends and shareholder returns all obviously copper price dependent dependent I think at the moment the focus.

Is on expansion because we we do feel that.

Firstly the expansion of phase three that's come up.

Most value accretive thing, we can do and Olson.

The continued development of lotteries and completion.

[laughter] as we've had a lot to them.

Really everything sort of comes to an end.

In 2024, and I think.

After that.

Sure.

Yeah.

They can keep the options open to us.

Matthew Keevil: Great. Thanks, David. The next one, Marna, I think this is probably well placed for you. To just elaborate a little bit on the logistics situation within Congo as well as sort of what's going on regionally in terms of those transport items?

Marna Cloete: We've experienced a few issues this past quarter around border congestion. And I think, we had a couple of dry cruise. During the previous quarter, there was only one border which is Kasumbalesa that was open for imports and exports. Subsequently Sakania also opened for imports and exports and we've got a third border that's available for imports called Mokambo.

I think you know we have a couple of breakthroughs during the previous quarter with Andy one Buda, but she's got somebody thought that must happen for imports and exports.

Subsequently second you also open to imports and exports and we've got it as it booted that's that's available for inputs called Mccumber.

Marna Cloete: We ourselves are currently working on a solution at Kipushi that will also cater potentially for volumes from Kamoa which would further alleviate pressures. But ultimately we are also looking at rail solutions which we see as the medium to long-term solution for Kamoa-Kakula. Not only is it a greener solution, but it will be a cheaper solution, a much shorter route if we follow the Western Corridor. So that's a development that we have a keen interest in. We have been working with our local logistics service providers to ensure that we get guaranteed trucking availability to Kamoa-Kakula. We haven't really experienced truck shortages over the past quarter, besides enough availability of trucks.

It's.

Solution full come Alka cooler, north and east its a greener solution, but it will be the cheapest solution I am not sure route if we felt like the waste and correlate all so that's that's that's a development that we have a keen interest in them, we have been working with our local logistics service.

All of this to ensure that we get guaranteed trucking availability to come out of the cooler. We haven't really experienced talk show will teach us over the past quarter, we've had enough availability of trucks.

Marna Cloete: But it's really been around turnaround times on borders. One of the big items that we did also manage to negotiate was longer operating hours at some of the borders. And that also made a huge difference. It does take however, a bit of time for these costs to flush through your balance sheet and income statement. So we're hoping to see some of the fruits of our efforts in the fourth quarter.

Through Yo Yo Yo balance sheet and income statement. So we are hoping to see some of the fruits of how it fits in the fourth quarter.

Matthew Keevil: Thanks, Marna. And just one other popular question on the web. Alex this is probably best positioned for you. Talking a little bit about the company's broader sort of, not necessarily M&A strategy, but growth strategy following the Mokopane Feeder acquisition and what you see moving forward in terms of exploration and development?

Alex Pickard: Thanks Matt, it’s a good question. Look, I think, our announcement with the Mokopane Feeder, hopefully, it illustrates to the market that we're certainly not done with the three projects that we are advancing into production of -- sorry, in the case of Kamoa-Kakula in production, but expanding. And as we've alluded to on this call, we see a really pivotal year for Ivanhoe Mines in 2024, where we will be a material producer with three effectively diversified assets online. And that naturally leads to a bit of a question about what's next in the hopper.

Thanks, Matt that's a it's a.

Good question look I think I think our announcement with the microphone if either hopefully illustrates them to the market that we.

We're certainly not done.

With the three projects that we are advancing into production Oh, sorry in the case of come out of a cooler introduction of an expanding them and as we've alluded to on this call you know we see a.

Really a pivotal year for Ivanhoe mines in 2024.

While we will be we will be immaterial producer with three.

Effectively diversified assets online and and that naturally leads to a bit of a question about what's what's next in the hopper.

Alex Pickard: I think where Ivanhoe Mines has had its greatest successes in the past have been with the drill bit, but also with our sort of differentiated approach to project development and the project development expertise that we've certainly built up with Kamoa-Kakula. And we feel that there are value accretive opportunities out there to find things in a similar vein where we can apply our model and hopefully generate the fourth and fifth and sixth projects, major projects for the Ivanhoe Mines portfolio. So yes, we're certainly interested. We're certainly looking around.

They're all value accretive opportunities out there to find things in a similar vein, where we can apply our model.

And hopefully generate the fourth and fifth and sixth projects major projects for the Ivanhoe mines portfolio.

So yes, well you know essentially interested we're certainly we're certainly looking around.

Matthew Keevil: Thanks, Alex. And with that, we've run slightly a bit over our time. So we'll conclude the call. So yes, this concludes Ivanhoe Mines third quarter 2022 financial results call. Thanks again for everyone attending and we look forward to speaking to you about the exciting milestones coming in 2023. Again, if you have any questions, please do not hesitate to reach out to our IR team and we can answer those on a one-on-one basis. And with that, I will pass over to the operator to close the call.

Our IR team and we can answer those on a one on one basis and with that I will pass over to the operator to close the call.

Operator: Thank you. Ladies and gentlemen, that concludes the conference call for today. We thank you for your participation. You may now disconnect your lines.

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Yeah.

Mhm.

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Uh-huh.

Hum.

Okay.

Yeah. Yeah. Okay. Yes. Hum. Okay. Hum. Yeah. Yes. Yeah. Hum. Uh huh. Hum.

Yeah.

Okay.

Yes.

Hum.

Okay.

Hum.

Yeah.

Yes.

Yeah.

Hum.

Uh huh.

Hum.

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