Q3 2023 Ivanhoe Mines Ltd Earnings Call

Good day, and thank you for standing by and welcome to the Ivanhoe mines third quarter 2023 financial results Conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session.

Good question during that session you will need to press star one on your phone you will then hear an automated message advising raised.

Your question. Please press Star one one again please.

Please be advised that today's conference is being recorded.

Now I'd like to hand, the conference over to your Speaker today, Mr. Matthew Keevil director of Investor Relations and corporate Communications. Sir. Please go ahead.

Thank you very much operator, Hello, everyone and good day. This is Matthew people Lai from Vancouver, It's my pleasure to welcome you to the iron ore mines third quarter 2023 financial results Conference call I'm on the line today from Iron ore mines, we are a founder and executive co Chairman Robert Friedman, President Martin <unk>, Chief Financial Officer, David Van Hilton, Chief Operating Officer, Mark Ferron.

And senior Vice President corporate development, and Investor Relations, Alex Pickert, we'll finish today's event with a question and answer session. You can again submit a question using the Q&A box on the webcast page as well as to the conference operator via your phone line. Please contact our IR team directly for follow up questions that are not addressed during the call.

Before we begin I'd like to remind everyone that today's event will contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements details of the forward looking statements are contained in our news release today November six as well as on SEDAR, plus and at Www Dot Ivanhoe mines Dot com.

It is now my pleasure to introduce Ivanhoe mines, founder and executive co Chairman Robert Friedman for some opening remarks, Robert Please go ahead.

Thank you and welcome to everybody participating on this call I have I have the good fortune to be in California.

On the U S West coast.

I would remind has had a stellar third quarter.

We couldn't be happier to present our prospects.

We're starting with an opening image on the fifth of October when his Excellency Felix just security.

Residents the Democratic Republic of Congo, together with a senior government delegations.

Led by Prime Minister Summer Ah.

Visited our campus and the opening of our command center of excellence.

Educational institution that we've established because this is gonna be 100 year mine.

Generations of young Congolese.

Very happy to tell you that over 97% of our employees are from the Democratic and Republican to Congo.

And one of our major commitments is to invest in the Labor force, both women and men who are doing such a fantastic job.

Peter Copra history, the world desperately needs.

And that in recent weeks, we've had the tragedy tragic situation in the middle East compounding the.

The conflict over the fate of Ukraine.

Considerable attention in the world economy against the background of the Federal Reserve board raising rates.

On Friday, there was some indication that the feds ability to raise rates may be on pause perhaps permanently.

In a period of time when copper inventories are extremely low.

It is difficult to give this audience an idea of how many people have approached either in lines to participate in the unparalleled potential of the western for lens, which is unequivocally the best hunting ground for copper on this planet, we all share.

Those of you who listened to by public remarks know that we think there is no chance whatsoever of a meaningful energy transition without a lot more copper mining.

And there's no point in mining copper, if you're going to generate copious amounts of global warming gas.

Try to get the metal you need to reduce the generation of global warming gas.

So the reinvention of mining by the women an amendment run our company led by our President Martin I'll speak next.

And it serves as a beacon for the industry to prove that we can do things differently.

In this quarter, we announced that the independent audit has shown this to be the greenest major copper producer in the world.

We're building the greenest major copper smelter in the world, which will very much reduce our scope three emissions so essentially the best in the industry.

And I'm very happy to welcome.

Welcome to the support from the G. Seven Nations President, Joe Biden, and his emissary on all things energy transition Emmis oxy.

Who announced European and American support through the Lumi to a corridor.

That quarter will run from a cold waves to the Angolan border and then to the seaport of low Vito and rose sharply reduced our scope three carbon dioxide emissions.

It will reduce the amount of capital.

We will need to develop new mines in the western for Lindsay in fact.

That railroad will go right over our Western Portland Holdings on the way to Angola.

And that means that our cutoff grades come down.

And the thresholds are having spectacular economics in the Congo will do nothing but improve so there's a number of trends under way that are leading to a better and better Democratic Republic of Congo.

I've said unequivocally that the DRC is the best place in the world to be mining copper metal.

Okay.

And.

I've I've repeatedly said that having operated in 64 countries.

Perplexing the discount rates that people are applying and some banks for the world's best place to go mining.

When people actually go there and see the five G wireless the young Labor force the availability of hydro electric power the extremely high grades or lack of ice and snow and the engaged labor force everybody working there with such dedicated efforts I can tell you.

At my age nothing would make us happier than the progress, we're making for all of our stakeholders.

That's off tomorrow and her extraordinary team of managers, who have created the best corporate culture in the mining industry.

And hats off to this incredible quarter, where we can report that we are comfortably and well ahead of schedule.

And the construction of our stage III concentrated and we're also well ahead of schedule for the startup of the Capuche E zinc copper silver mine, which also has a very significant potential entitlement of gallium and germanium to metals that we have not even counting the economics.

The project, but for which there is potential for a recovery from a refining process.

I just want to remind everybody that would have in our minds is doing is unprecedented.

Building several major projects at once.

<unk> number one mine and the commodity number to mind, which we know co joined underground.

The phase III concentrator.

The World Class smelter, which is directed blister smelter state of the art and very very clean and powered by hydro electric power.

The Campos in mind.

The <unk> mine all going into production now, let Richard ever expanded rate opening soon in a theater near you.

And then on top of that we ever exploration efforts and the Western four islands and initiating now at the Moca Party theater, probably the world's largest potential mineral target in South Africa.

We have a very bright.

<unk> ahead of us.

We'll be talking about this in subsequent months I'm off to other W to speak at a conference later this week and with that.

Introduction I'll turn this over to <unk>.

Marta who has done such an incredible job over the last quarter.

Thank you Robert.

<unk> gone through it.

You've covered most of our highlights in your inkjet, but maybe just looking at that picture in front of everybody.

That's a fight off all all mining management team when they complete that the holding between <unk>, one and <unk>. The two mines that will form part of our phase III mine and you can see everybody's really proud of that achievement.

We had a great quarter again, and I always feel a bit guilty that argue to present the highlights in the first opening solve.

But we added another production record in the third quarter, we produced close to 104000 tons of copper.

And I think what we are most proud of is our cash cost at <unk>.

146 pounds.

But.

A $1 46 per pound of copper.

For the year to date is $8 43.

We think we've done a great job in containing our cost and we will continue to do silent and site within guidance towards the fourth quarter.

As Robert mentioned earlier.

Depreciation and hate Akshay, Joe planning to start production in the second quarter of next year <unk>.

Is on schedule for production in the third quarter.

And as we mentioned at <unk> phase III. The concentrate plant is ahead of schedule for the third quarter.

And that would allow us to get some early turns out next year.

And so we will put out in January of next year.

Jake despite.

On the next slide.

Our total recordable injury frequency rate across all three of our thoughts it's well below the industry average.

It is regrettable that we added vitality.

Conoco cooler due to a fall of ground and we embraced the guide that the fall of ground and we implemented mitigating measures to prevent the vehicle.

Stay in the mining industry requires continued focus from each and every <unk> employee and contractor.

We shall learnings across the industry and our operations to continuously strive towards a culture of zero harm, which we aspire to get to each of our sites.

Robert briefly touched on our greenhouse gas emission intensity study our team recently announced the findings of an updated greenhouse gas emissions statement.

As we commission from Skol and associates and W. H B grid and this report confirms that in 2020 to co market gorilla produce among the lowest carbon emissions per unit of copper in the world and the lowest of any major mine any major copper mine.

This is partially due to the incredibly high grade at Comerica Qunar way remote an average grade of five 5% in 2022 extra roughly 10 times higher than the estimated average copper head grade globally, obviously is the other 0.6%.

It is also a function of the DLC grid being amongst the world's cleanest with 99, 5% of grid power generated from hydro electricity.

And on our scope, one and two basis comerica cooler greenhouse gas emissions intensity in 2022 was amongst the world's lowest it ranks at the bottom for Skype, one in Scottsdale and with.

The commissioning of the smelter we will also see a 46% reduction in emissions. Once we include scope three emissions.

And then.

Last from me, but not least we were.

Privilege to house the president.

His excellency President Philip <unk>.

Third slide the Prime Minister.

Gov announced the province, as well as a host of other delegates at Comerica during October.

And the President spent about two hours on site, we addressed to outfit intake of students at the center of excellence and spending some quality personal time with each of them.

Dane.

Two of the mine so what we are busy constructing at the smelter and adjacent to our staff.

Ill concentrate to shade it correct at such a high sense of morale for all our workers and the precedent was pleasantly surprised to see this world class facility in these backyard and he mentioned comerica cooler.

We need to announce his presidency, and I think that is really a feather in our cap to show that we are really a game changer in the DLC in terms of how we run our business, we do mine with a greater purpose.

That doesn't in China, I will now hand over to David <unk>, our CFO to take you through the quarterly financials.

Okay.

We are just checking because we cant hear David audio please just bear with us.

Okay. One moment, please the speaker will be on more materially.

Hello, Alex can you hear me now hi, David yet the value auto. Please go ahead.

Okay great.

I was thinking away.

Thanks, Martin and good day to everybody joining the call today.

Mallika cooler sold just over 96500 tonnes of payable copper in the third quarter of 2023.

<unk>, 5% down from the 101500 tons sold in the second quarter.

You can borrow production was slightly higher copper in concentrate held in inventory increased to over 10000 times.

At quarter end with more than 7000 tons payroll copper in work in progress sinful Sterling at the local smelter in Q3, we.

We expect excess inventory to unwind in the fourth quarter.

With the slight decrease in consoled revenue at <unk> was down only 1% from the previous quarter and up by more than 50% from Q3 last year with the realized copper price.

Q3.

Steve <unk> 84 per pound being slightly up from Q2.

Q3, 2020 for yourselves. Thanks.

<unk> cooler sales for the year to date to well over 2 billion up from one $5 billion for the same period last year.

<unk> costs were slightly higher with the third quarter coming in at $1 36 bounded by World Cup. We produced just 3% up from the average over the last year the quote on quote to cash cost.

Increase reflects some impact of inflation on maintenance and operating cost at <unk> as well as the increase in processing costs driven by.

By higher diesel usage through and generate cash.

Cash costs for the year to date is $1 $33 43 per pound and below the midpoint of our guidance, which we are direct.

<unk> EBITDA was $423 million in the third quarter of 2023 and was 7% down when compared to Q2 2023.

EBITDA and EBITDA margin quarter on quarter was down due to the decrease in tons sold as well as realized foreign exchange, which is illustrated nicely in the next slide.

The 5% decrease in tons sold mentioned earlier was responsible for $34 million decrease in EBITDA and we expect Q4 to reap the benefits as the inventory unwind.

The decrease in the copper price at which proved resilient price settled to be recorded in Q3 had an $8 million impact while the quarter on quarter change in the re measurement of revenue, which was a gain in <unk>.

$13 million in Q3, and a loss of between $8 million in Q2.

$41 million impact.

The $32 million decreased to the right, but as a result of the slightly higher cash cost in Q3, but also due to the realized foreign exchange, causing a $14 million screen quarter on quarter.

As one would expect the opposite the previous slide <unk> group level adjusted EBITDA for Q3 decreased from Q2 with a decrease dropped directly linked to the decrease in <unk> EBITDA.

On the previous slides and the decrease in <unk>, they're all as a result.

<unk> adjusted EBITDA was $496 million to the nine months.

Link studies obtain between three three and that was up from $325 million for the same period entering between the two.

We recognized income in aggregate of $121 million from Kunal Kapoor.

In Q3, a combination of INR ship rocket from the joint venture which is illustrated.

In the chart at the bottom left of your screen together with the interest income of $51 million in Q3 on banks took a joint venture.

Oven and recorded a quarterly profit of $108 million in the first quarter driven by this income from Comox cooler and on the right hand side. We have once again presented a reported net profit alongside the normalized net profit, which excludes fair value adjustments on the convertible notes for each period.

We have recorded a steady increase in profit through the commissioning and ramp up of Comerica Kudos phase two and Debottlenecking, but this slide just illustrates the very small part of organized activities during the quarter.

So much more being worked on that will generate short term growth at all of the <unk> cooler lotteries and depreciate.

The third quarter saw us continue the expansion of price for the ACA market cooler.

Over $320 million in pace to Bayer in the quarter.

With a total investment in 'twenty to 'twenty three now just over $1 billion.

We also continue to progress <unk>, and depreciate development with a basement and capex of $64 million and $74 million, respectively in the quarter and both projects are tracking very well as Alex and Mark will take you through in more detail in upcoming slides.

'twenty, three capex and got Capex guidance and spending plans remain unchanged at each of these projects.

And I have in our minds is a healthy cash balance of $303 million at the end of the period with limited date other than the $575 million convertible notes maturing between 236.

Providing plenty of balance sheet flexibility.

Additional standalone facilities at each project is well advanced most of which are expected to be closed in the very near term.

I will now hand over to Alex <unk>, our senior Vice President corporate development and all to commence the operations and projects update.

Thank you David I'm glad we found you that and good day to everybody on the line from London.

Today, we also have mark foreign our Chief operating officer, joining us directly on the line from Gloucester Cola. So I will kick off on Comerica cooler and then I'll hand over to Mark to take you through the latest updates on our profit on a projects that our construction activities.

As you also heard we also have executive co chairman, Robert <unk>, who will provide an update on the western Poland and close the call out before our Q&A.

Okay.

So starting with Comerica cooler as Monte mentioned, we are very pleased to report another record quarter.

So we just shaded the second quarter by producing close to 104000 tonnes of copper in concentrate.

This brings our year to date copper production to 301336 tonnes. So that places us well on track to meet our initial guidance range for the year, which was 390000 to 430000 tonnes of copper in concentrates.

From the perspective of the recoveries that were very consistent.

Correct exactly in line with the previous quarter at 87, 2% again this is higher than our design recovery rates of eight 6% and on the next slide I will talk a bit more about tower, our tailings recovery project that we announced a couple of months ago.

It's also important just to note that both the.

Got it.

On the solid recoveries that we have been achieving are being done so in.

In spite of the intermittent power issues that we continue to face at Comerica cooler. So in effect, we are producing these volumes, but still leaving quite the bits of production on the table.

So mark higher and we'll also have more details about the initiatives.

And that we are undertaking to address to address those issues across the board.

Alright.

Looking now at the tailings recovery projects or we spoke during the last quarter.

About the preliminary test work that we completed.

And this showed a very very positive result that it is that is possible to increase our recoveries from 87% today towards the mid ninety's by installing quite conventional dedicated grinding and floatation for the tailing stream.

So since the press release, we've now moved into basic engineering. So this will be completed in the first quarter of next year and then after that we will move into implementation to retrofit the necessary equipment to the phase one and two modules.

And maybe just as a reminder of the sort of size of the prize that we have here at Comerica cooler you can see the chart on the right Manav touched on on these thoughts Elliott bet.

One of the problems that we have and it's a good problem to have is the best because we mined at the greater of five 5% copper also we also have.

Tailings that currently are at the greater of somewhere between seven and 8% copper. So I'll tailings grade is significantly higher than the average grade of global copper mine today. So that provides a huge opportunity to increase production and also margins.

And there's a stop there at the bottom of the page that just for the phase one and two concentrates as alone as a rule of thumb for every additional percentage points.

We can achieve in recovery.

Results in approximately 5000 tons of additional copper production annually.

We've also seen a huge amount of interest recently from the media in the lobby so Colorado.

And the reason for this is because the above <unk> seven on the European Union have joined the United States in supporting them.

This this major project together with funding that will be coming from the African development Bank Bank as well as the Africa Finance Corporation. In addition to the funding that has been identified.

By the U S. A the dfc.

So the first step of this levee, Utah, Colorado are projected to rehabilitate the line from Calloway Z, which is just to the east of come out the cooler that joins up with the Atlantic Seaboard La Vito in Angola.

As we previously announced that is being managed by a Trafigura led consortium and we aim to be one of the cornerstone uses of that line.

As we previously disclosed we will be starting trial shipments later on this year.

It's a small small volume to begin with it is roughly 10000 tons that we're looking to do but that will provide us with a lots of additional data in terms of the costs and then also touching on what Robert was saying earlier in terms of the initial footprints.

<unk> line will be a significant additional step in producing zero carbon copper.

It's much more efficient than trucking from a first principles point of view, but it is also roughly half of the distance to ports.

And then the alternatives for example.

King for Devon.

The second stack as well that has also been recently announced is that there is an intention to connect the line from lobby. So into these up in copper belt, which will also make it a full service line connecting both the west and the East coast of.

Africa.

With that I will pass over to Mark <unk>, who will give us an update from come out with Nikola on a project and construction activities, starting with the phase III concentrate though.

Thanks, Alex maybe just to start with three Robert kicked off the presentation phase.

The phase III concentrated itself is ahead of schedule I think we've announced at this time by about a quarter.

So what you're saying is it's sugar for quarter, three I'm, saying hopefully with the front end of quarter three.

Next year.

Render that oxy oxy kicks into gear or the rest of it. So it's the ramp up the crew ramp ups were mining.

The management of the earning as it has happened that Josephine early.

The scheduling and getting the ore zones in place on all three months of console quo tomorrow, one commitment to getting them ready for mining and get them ramped up early next year.

I guess in our back pocket, we've always had quite a big stockpile. It stood around 4 million tons, which will obviously start feeding into that brand new concentrated.

To get things moving and then the next step and challenge Argus is logistics, because we are going to be moving a lot more concentrated I think initially pricing some of that new concentrate share locally.

But that would obviously display some of the Coca Cola concentrate it's being fitted to the Lcs local smelter at the moment.

So my feeling would be that we would have to put quite a bit of pressure on them.

On logistics and make sure that we get everything sorted out which is we have an excellent team yet we'll be doing that and as Alex mentioned down in that low slot delivery took hurdle becomes strategically important in the long to imported in the short term just to get something going but strategically important to the long term. So I think.

All in all <unk> itself is going very well.

If you were if we can go to the next.

Slides Alex.

The smelter.

Talk about the smelter itself and that thing is.

Hum.

Online to be.

Commission quota for next year.

I didn't quite nicely with the India project that we are also doing.

No major Red flags Z.

And a big focus now on getting the operational team in place we've recruited executives and we all have busy recruiting the middle management and then obviously the labor force that goes with it.

Theres no major smelting of this size or magnitude will talk in the DLC itself. So we all going to be training some of the leadership all over the world Some young Lcs.

<unk> and <unk>.

In particular, China. So we are assembling a very strong team I believe.

Owners and we also have I think a very strong project team and EPC M people that will use too.

Wrapped up that smelter and quota for next year.

The smelter itself. It's complex, it's the biggest in Africa as everybody knows it's one of the biggest in the world and I think it's going to take some time to ramp, but we have put a very very good team to do this in place on net smelter. So I do believe we'll get it we'll get it done in time.

And we can move to the next slide.

Anger, we're going to talk a little bit about pallets I'm going to talk about two things here one is the actual <unk>.

Refurbishes Depue Dream, we are putting in a 178 megawatt.

Turbine in it and got that project as well as going up good is going well.

We sifted project up two years ago to be commissioned in quarter 424.

So absolutely on track.

There are two one is arriving now in the next month on socks, it's a huge javan.

And it will be the assembly of that terminal starting in January of this year, but in addition to that work we've done a detailed study on the network all the way from Ingo, which is about 1700 kilometres away from Vermont and all the different.

Areas, we their interfaces between the D C land converting back to AC in this province, and nickel Lazy Province.

All the way from Ingo.

And is about $73 million of additional work that is required to upgrade their golan to make sure that we have a stable electrical system electrical reticulated system feeding treat to demand.

That work has been identified and has been put into the same loan as we had in phase one. So we've actually made the scopes Lockheed in phase II Redoing, the India project and the additional upgrade work to make sure that we have a stable electrical grid. Alex mentioned, the fact that we've been battling with stability that we're battling with power.

It's been sort of ongoing through the year.

It's going Okay, I think we've done a motor where to get it in place Ingerson on track and the board of Snow has now proved that additional scope of work. So we kind of move into execution and will go as quickly as we can in addition to that on pallet ashwin a finish of empower.

We are adding.

Lot of extra generating capacity, you said diesel generating capacity.

Into Oman grid too just to ensure that we have stable power under all conditions. So by the end of next year, we will be able to run all three concentrated on diesel power. If we don't if for some reason we have it complete blackout that's not the intention it's not the intention all but we want to make sure because it's such a V.

Oman and these concentrates us.

It creates so much value per hour that we can't afford to be down because of any kind of disruption on power. So we'll have about north of 200 megawatts.

So in place by the end of next year, and it's coming in stages basically fast enough.

To get more phase III concentrated running before that <unk> got two one is running so I think all in all we've made some good decisions on power too.

To fix up and go to make sure that we've stabilized the DLC grid, and then secondly to be able to.

If you have enough generating capacity on.

Oh man, if there's any issues.

I think that's about all on comerica cooler and inger.

Can we move to the next one.

The next one is plenary phase, one, which I'll call the baby bond.

800000 ton a year man that project is also on schedule.

It's going to be running in quarter three 2020 for these underground development as you guys know from trough number one.

Which we've got really quite nasty, we've done some underground modifications.

Just a soldier crushing system to help us with.

With all movement Andrew.

And we've upgraded the waste the Wanda and <unk> and the lighting system.

The ground for that shaft.

We are busy with just an optimization study day.

Which we which we call shop number three.

It's a installation shaft it wasn't installation shaft, but we are probably biggest going to re purposes to be able to do ventilation and wasting of all to the tune of somewhere around 3 million tons per annum.

That gives us the ability to two things. The first thing is to be able to derisk shaft, one which was never really designed as a wasting shaft and then obviously the concentrated it is 800000 tonnes of ore there'll be no risk to waste that but in addition to that it allows us if we want to accelerate the pace.

Number two phase II reconstruct wasting out a short three while we still sinking and equipping shelf number two.

And these are detailed study underway and there'll be a press release out and I think in about a month or so.

Manav I think its about a month.

And I think it's going to be an exhausting upside press release, that's coming on.

It will be before year end mark Okay. Thank you Mona.

When plenary if nothing else really.

Demand as I've always said I'm going to say it again, it's the best platinum orebody in the World. If you know platinum PGM metals, if you compare it to anything on the eastern or Western Bush felt.

With that mining one meter or we get them onto 24 meters at Sumner grades with higher nickel and copper content. So I think it is going to be a massive competitive advantage.

Don't expect to see too much into next year, because it's a tiny mom, but watch this space over the next couple of years, it's going to be the base plus platinum assets in the world and we developing very nicely.

Yeah.

I think the next one is some commentary on <unk>.

Robert spoke about Kopischke Kopischke is a very nasty co verde, 35% grade.

Great.

It is well on track to be commissioned in quarter. Two next year. So I think it's two quarters ahead of what we promised.

Quarter three quarter four somewhere there so it will be running at quota to definitely.

The stoping takes the first stoping is actually happening as we speak we've done slots for a couple of the long haul stopes, we basically drilling the fans at the moment quite about seven levels are open seven off levels have been developed fully developed and ready to go.

And the construction of everything on surface and underground has gone exceptionally well.

<unk> is stable.

The ground physical development is stable.

It's actually on its operating steady.

Steady state already so it's really just about how much we want to want to open up in terms of footprint.

Are these underground infrastructure is working beautifully there's no problem with wasting that are the plant will be early as I said and everything else is more or less on track to be.

In place and running by quarter to quarter. Two next year, so no issues around could push it at occupancy costs. When you do come visit those of you visit you'll see a beautiful modern mind. So much next year, a very nice looking kopischke when look anything like what you might have seen before if you've ever been to that sought to iridium <unk>.

And Ma.

Completely transformed.

I think that's it on the.

The projects as anything else.

That's it from me.

I think we can hand over to Robert <unk>, the west controlling it.

Yes.

Do we have Robert.

Sir if you harness muted please <unk> your line.

Perhaps I'll I'll I'll kick off in the absence of Robert and then he can them. He can take over when he when he rejoins.

So a brief update on our drilling activity to the western Poland.

We've completed 37500 meters of drilling.

The end of the quarter.

The vast majority of that drilling was diamond core drilling.

So that is very much advancing on the schedule that we that we had indicated at the start of the year.

And we've also increased the number of contracts of rigs that we have drilling in the western fallen today to six in addition to and Ivan how owned land cruiser land cruiser.

We have been saying this for a couple of quarters, but the maiden mineral resource estimate for Makoko MTR law.

Has all been completed from a QA QC point of view.

And you can expect the release of that resource imminently.

And then subject to the sorry, as a result, I should say of the drilling that we've completed to date on the western Poland. I think we started out with a a budget just short of $20 million.

We've actually added recently, an additional $2 million of budgets for.

For the remainder of 2023.

That is to further advance setting new targets that we've been we've been looking at more recently.

Can you gentlemen, here me Kennedy.

Javier Robert can everybody hear me, Yeah, I don't know, what's the problem with this conference system brand bankruptcy issue philosophy.

Where we're developing several major projects at once I don't know of a company that has been this ambitious with can soco and criminal minds underground being developed.

And the third concentrate are being developed in the smelter being developed in the hydroelectric capacity in the country being developed in the backup power in the country being developed.

And the largest precious metals mine in the world being accelerated and developed in South Africa, and the richest zinc mine in the world being developed.

And we don't really like to talk much about the western for lunch, but since Christmas is coming.

And our shareholders have so much interest in our discussions.

Mark by saying that we have recently increased.

Our land holding in the western for lens.

We completely dominate the important.

Parts of the basin.

Based on our proprietary geologic knowledge of how the creator put all this metal here in the first place.

If you came from another planet and a flying saucer and your margin.

As Tony to come talk to find copper on this metal there really is nothing to compare to this part of the DRC.

The copper and this person is analogous to the oil and the and the guar oilfield in Saudi Arabia, and nothing is ever match that on a geologic scale. These are not porphyry copper as these are sedimentary deposits that are more akin to oilfields geology. When you find one of these things lately.

Go for miles and miles and miles and miles.

And they're not served bye bye.

But tectonic forces after they've been in place west of a very important fault recall, though at a zipper fault when we find copper it just goes it goes it goes.

Which makes it a amenable to bulk scale.

Mechanization and very low cost now.

What has changed is this new railroad system coming to them.

The western forums.

Again, he is closer to the coast means that mineralization is getting more and more attractive and we have a trained labor force now.

We have five G wireless.

We have domestic food production construction skills and as all of these things develop the attractiveness of the Western Portland does nothing but grow.

It would be difficult for me an inappropriate in this call to explain how many.

Mining organizations from all over the world the largest ones.

And how many sovereign wealth funds and financial institutions have expressed interest in coming to the western Portland, but let's just start with the Japanese.

The current Emperor of Japan.

He was the crown Prince and the Imperial family opened.

Jim on behalf of the Japanese government and the 19 seventies and obviously hampers.

Now the Japanese have come to the Congo and water.

Finance copper production as part of their efforts to reduce global warming gas many of our shareholders may recall that we sold a 10% participation of <unk> project.

We're close to $300 million to a Japanese government led consortium on a chalk matic J.

J G C N itochu. So we have Japanese interest we have interest from sovereign wealth funds in the middle East we have interest from major mining companies.

I'd like to tell this anecdote that one of the largest mining companies in the world.

Have the visit.

What we're doing and concluded that Coca Cola is the best mine in the world.

And he said they could never do it themselves because they didn't have the foresight to be in the Congo 25 years ago. When we were suffering under the tyranny of the net present value model.

This is the future for mining of copper on this planet and so we will in the very near future start off by announcing.

The work we've been doing at the Macacos system.

And another related area.

Hi grid at Kittila.

These two in combination are now being studied.

To make.

Mind that I have in our minds. It upgrade and then 80 20 joint venture with the government and local Congolese.

And so I would expect that we'll be able to give you those independently.

Independently that numbers in the very near future.

And thereafter, we're kicking around the idea of making a second disclosure.

Some work that's going on that is not part of the Makoko area.

And for strategic reasons reminder, would it be too specific but I think we'll have more to say the second press release, let's say before Christmas.

So there'll be more news on this coming soon at a theater near you.

We couldn't be happier with the geologic potential hiding under the Western Orleans.

I don't even think of fracture fraction of 1% of the geologic potential that is there has been delineated.

As our knowledge and understanding.

Of how the creator put the copper in this area.

Has grown now that the president of the Prime Minister have have come along with the first Lady on so many important people in the country.

And now that the country is engaging in another democratic election, and now that the country has support from.

The European Union, and the United States as well as China.

All parties in the World are looking for the bright future of this country.

And I would say the most important resource in the country or the people young women and young men that make great geologists. They know what it looks like to look at the core and then there is the inherent gift from the creator and the Western Foreland I'm very confident we'll be finding new mines and the Washington, Portland for 100 years.

Now.

So coming soon as a theater near you.

I will tell you more specifics about the western Portland.

Everybody.

Thanks, Robert and now we will begin the queue question and answer session as per usual I'll now hand, it back to the operator to populate the phone lines with any analysts questions and following those will turn to the web.

If we have any web based questions to proceed with so please operator go ahead with the phone line.

Thank you Sir.

As a reminder to ask a question. Please press star one one on your phone and wait for your name to be announced to withdraw. Your question. Please press star one one again standby as we compile the Q&A roster.

And again to ask a question. Please press star one on your phone.

One moment please for our first question.

Okay.

Our first question will come from Lawson Winder of Bank of America Global Research. Your line is open.

Okay.

Thank you very much operator, good morning.

I mean, our team and thank you very much for the update.

I wanted to ask about two things one transport costs.

Singular stable around that sort of 45 to <unk> 46 per pound level, which is fantastic to see given all the challenges you guys. A state looking forward into Q4, and 2024 is that the sort of level, we'd expect until the blister is ready for shipping.

Yeah.

Okay.

You're on a playground.

Okay.

Oh, that's good news.

Just not.

I didn't hear the question, we are adding sound issues the sound doesn't come Scott.

My question, Okay, Thanks, Mark I'll check it.

Thats about its a reasonable number loosen.

What are we doing as we actually looking at setting up some longer term contracts right now in a slightly different entities search potentially to lower the costs going forward and then Marc Roberts spoke I mean that'll Vito corridor is going to I think in the longer term creator L solution.

The other thing to bear in mind is that when we restart selling the blister, we basically half the volume.

We all have the amount of tonnes that treat with that relate go. So it is a massive logistics cost.

Cost per pound.

Entrance mat 20 cents per pound.

It does come down we'll redo the Vista. Thank you.

Yeah.

And then if I could just ask your views on the upcoming election that just around the corner here.

I mean from a either one of you.

Things seem to be progressing normally are there any concerns.

Though internally from Ivanhoe that you might highlight or any thoughts on how the election is progressing that would be very helpful. Thank you.

Thanks, Louis and now my sound this miraculously back.

I can maybe take that one.

It's actually been quite a quiet period, leading up to the elections I mean, we were around during the 2018 elections and it wasn't much more volatile we sell a lot more priority has been the mindset. These scientists I think it's been sort of quad campaigning.

This 24 candidates running entitled <unk>, probably for serious candidates out of the <unk> four.

The elections will definitely proceed as plan, that's the current which on the ground on the 20th of December.

And.

Yeah.

There's a lot of support globally to have free and fair elections, they've been about enrollment and to create the danger slide does speed that you gave that and all indications are that it will be a peaceful peaceful election season.

I've been traveling data past couple of weeks Mark today at the moment and it's really been it's really been quite quiet apart from sort of Spanish <unk> seen people using platforms to do political speeches.

But we are quite optimistic that it will be a peaceful election election season.

Yeah listen I think the election, you want to worry about is the one in the United States.

Okay.

Okay. Thank you very much of a comment there.

Thank you.

Thank you.

Again to ask a question. Please press star one on your phone and wait for your name to be announced.

To withdraw your question. Please press star one again.

Okay.

And speakers I'm seeing no further questions in the queue.

We'll turn the call back over to Matthew Keevil. So he may continue with the webcast questions.

Thanks, very much operator.

Yeah, just taking a few here there's a couple of repeat sole group them together and just cover a few topics before closing the call.

First and foremost I have a few questions here, David Alex Martin maybe best suited for you on the sort of expedite or advanced expectation on the phase III concentrate are ramping up.

Sort of Mark touched on this a little bit but the impact on.

The operations and the logistics supply chains on having that concentrate or a phase III come in a bit ahead of schedule.

Yeah. So maybe I can give you the first guy that math I think the way, we see things unfolding exactly we'll try and place a lot of that concentrate with the local smelter.

A single wavy just to lessen the logistic burden. We will also have to build up the stockpile that we will use for blending in the smelter once we start commissioning the smelter.

It will give us access to some cash flow next year that we didn't necessarily bank on it.

West don't the concentrated to go inside with the commissioning of the smelter lift the content trying to coming in a bit earlier, we think we're going to we're going to have increased tonnage available from that concentrate coming through nexgen that will be included in our guidance that we will put out in January of next year.

Lastly, this comes with additional logistics me in the process of setting up long term contracts with logistics service providers to lock in dedicated supply.

We're doing the soda using both negotiation power with Patrick appreciate and Camilla.

Because we expect an increase in volume as these two projects it will sort of ramp up side.

Side by side on the same corridor, but but but we've got a handle on the situation.

That's great. Thanks Marty.

And the next one now there's a few questions on plot Russo group this together as well.

Alex maybe you have a little bit of a finger on the pulse on this one but a question on sort of our view on platinum and sort of the supply demand economics and sort of what's going on in South Africa and more broadly as <unk> comes online.

And our philosophy, that's the ask a question Matt. Thanks, Sarah Thanks for giving me that one.

Look I mean I.

To us we're.

We're not building this mine for today's platinum price or tomorrows platinum price.

We're building this mine because it will be the lowest cost producer in the PGM industry because of the.

The characteristics that Mark mentioned in terms of this being a completely unique ore body in the PGM sector.

So even at today's basket price switches, obviously come off materially.

In the past kind of 12 months or so.

We'd still be a very comfortable high margin producer.

That's what we've kind of got to look forward to but in a more broadly what I would say is that there's clearly a lot of people that are feeling the pain right. Now if you look across the PGM sector and there's clearly a large number of producers that are.

Under water on a.

Our cash cost basis, all secondly on an all in sustaining cost basis, and I think you're already starting to see that.

Supply side response, and contraction coming so so to me I now feel relatively sanguine about that it doesn't it doesn't seem to be a bad time to be building a world class PGM mine that will one day be the future of the industry.

And.

I'd like to add that you keep on calling it a PGM mind, but.

Compared to the competition, we have a uniquely high and dominant nickel in fact, the whole system constitutes one of the world's largest nickel resources. That's why we're drilling the low coupon a feeder theres just an astronomical amount of sulphide nickel in that district.

Pales in comparison to any other nickel target. So the very high nickel endowment the bulk mining the flat nature of the ore body, the amazing thickness and grades and a favorable metallurgy well that's a problem for the rest of the industry.

It's a benefit for humanity, because theres a lot of uses for these metals and there's also a lot of gold in the system.

So theres gold and Theres, rhodium, and as platinum and as Palladium and Theres nickel and Theres copper, it's very important to understand that there's a naturally hedged basket of metals.

South Africa has got a lot of challenges the currency has been weakening.

But this is a mine whose costs are in south African Rand and as revenues are in dollars.

So we just intend to be the best platinum Palladium nickel copper cobalt producer with older rhodium in the world.

And this is a 100 year mine.

Just charge on and do it that's the nature of the industry and that's what we need to do we need to produce these metals and a green and sustainable way that directly benefit local communities and that's what we're doing.

I think that this tier one mine is frequently overlooked.

I have in our minds is frequently referred to as a copper company, but very soon we're going to be one of the world's major precious metals producers and for added <unk>.

<unk> utilizing shifts III to hoist.

This is going to become a really large line much quicker than we've said in the past.

And so as another present for our shareholders, we should come out with a detailed plan before Christmas to explain how quickly Platt revisit.

Coming on the scene, we've we've recently started the tailings.

There's a sewage treatment plants, where we're recycling moca paani city sewage water to produce clean water for the mine that's a very green.

<unk> of water and enables us to move forward and we have uninterrupted horse power for mask.

Uninterruptible industrial power. So this giant project is opening soon.

Over here near you and I would urge all of our shareholders and stakeholders to get to know a lot better.

We'll be speaking again at indaba in February and for those of you that wanted to go on tour. There is no excuse not to come and look at the study.

Movement and what we've done there in February so, let us know Robert and I Dunno Dot net if you'd like to come take a look.

Thank you.

Thanks, very much Robert and Alex that was terrific. So we'll just wrap up with one more question Thats, a rather popular one weekend maybe out through this tomorrow on or Mark.

Have a question on execution are the.

The question is that the mining industry has trouble building small and large scale mines on time and on budget to what do you attribute your ability to sanction sink shafts build mines and smelters in both frontier and established jurisdictions and now you have both the phase III in Campos in mind not ahead of schedule once again whats sort of in Ivanhoe secret sauce, if you would.

I'm going to give it a first drive a cassandra remarks quite humble, but I think a lot of it has to do with the execution team. We have a team that really works well together.

And we've now done this before we know how to be nimble, we know how to do my quick decisions. We don't have a lot of bureaucracy entry type, but we've got good governance.

And then.

I think it's about sort of.

Using the same type of equipment and contractors that you've used before if it was successful provided it's competitive.

But the secret really is in the people and if a team works about together.

You can achieve great things and if everybody works towards the same goal and everybody knows where they need to go.

Anything is possible, but but mark you can also add to this.

Modern and trots excellent team that we have.

And a lot of good capable contractors. It over time, we've managed to to lock in basically the skills that are needed.

In this country and in South Africa, it's going well.

So Iraq, it's cheap it's people it's about leadership.

I'd like to throw in a word taking our Chinese friends for raw material.

S fabricated steel and other critical elements that had been provided through the Chinese economy on time on schedule. So when.

When you get that steel delivered on time on schedule from the other side of the planet. That's very helpful and a lot of engineering capability a lot of skilled labor contributed by our Chinese partners.

No there's nothing there's nobody that can make movies like Hollywood.

Hollywood is a mixture of every conceivable ethnic type of person every cultural backgrounds, and that's how James Cameron can make an avatar and no one else can can make movies like Hollywood.

There's a tremendous strength and cultural diversity, you can get people from different cultures and different backgrounds working towards a common goal.

Our local Congolese speak the local language and understand the local conditions. They are very very keen to build their own country.

The Esprit de Corps amongst management and the people is astonishing and the empowerment of women in the senior ranks of management.

Rates are kind of corporate culture that is so much better than was traditional and the major mining companies.

That's just a fact and we urge people to come in and see is this kind of thing is not captured in net present value models.

It's not captured in spreadsheets, it's captured in flesh and blood.

And corporate culture. So it's the management team that is a critical.

And in calculable value.

And may have continue med flourish in a minute go on for a long time, because this planet needs a lot of conscious mining if you'd have any prayer of changing the way we've done things in the past.

Let's hope for peace and let's hope for a peaceful use of the world's resources and leaving a better world for our kids and our grandkids.

Thank you again.

All of you.

Okay.

Thank you thanks, very much Robert that is a wonderful into the call and I'd just like to say this does conclude our call today and thank you everyone for attending today's event and as the speakers outlined you can look forward to many exciting milestones coming for Ivanhoe minds are towards the end of 'twenty three 'twenty three and moving into 2024 again. If you had no next question. Please do reach out to IR team.

After the call concludes and we would be happy to answer it without I'll pass it back to the operator to wrap the call up thank you very much operator.

Thank you.

This does conclude today's conference call. Thank you all for participating you may now disconnect and have a pleasant day.

Okay.

[music].

Yeah.

[music].

Yeah.

[music].

Yes.

Hum.

[music].

Yes.

[music].

Okay.

Okay.

[music].

Yes.

[music].

Yeah.

[music].

Yes.

Hum.

[music].

Okay.

[music].

Okay.

[music].

Okay.

[music].

Yeah.

[music].