Q4 2023 Ivanhoe Mines Ltd Earnings Call

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I would now like to hand, the conference over to Matt <unk> Director of Investor Relations and corporate Communications you may begin.

Thank you operator, and Hello, everybody.

My pleasure to welcome you to the iron ore mines fourth quarter and annual 2023 financial results Conference call.

Im the director of Investor Relations and corporate communications on the line today from Iron ore mines, we have founder and executive co Chairman Robert Friedman, President Martin <unk>, Chief Financial Officer, David Ben Hogan, Chief Operating Officer, Mark <unk> Executive Vice President projects, Steve <unk>, and senior Vice President of corporate development and Investor Relations Alex <unk>.

We will finish today's event with a question and answer session. You can submit your questions using the Q&A box on the webcast as well as through the conference operator via your phone line.

Please do contact our IR team directly if you have follow up questions or your questions was not we're not.

During the call.

And just ahead of that we would just like to remind everyone.

Debt.

Today's event will contain forward looking statements 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 February.

February 26 news release as well as on SEDAR, plus and at Www Dot <unk> Dot com. It is now my pleasure to introduce Ivanhoe mines, founder and executive Codeshare, Robert Freeland for some opening remarks. Please go ahead Robert.

All of our shareholders and stakeholders around the world welcome to our call.

Okay.

Hello, and thank you for standing by.

Entrance call to discuss our annual results.

After 2020 to 30 years of efforts.

Welcome to Avon whole minds L. T. D 2023, Q4, and four year financial results conference call and webcast.

We're very happy to announce that we have over 20000 individuals.

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

Working directly for either at our mines and we have a lot to go through in this conference call.

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

Further Ado I'll turn this over to <unk>.

Ask a question during this session you will need to press star one on your telephone.

Our president Hu.

Just kicked this write offs. Thank you Myra.

You will then hear an automated message advising your hand is raised.

Thank you Robert.

To withdraw your question. Please press star one again.

Just a brief introduction I've been with the company for the past 17, yes going on <unk> and.

I would now like to hand, the conference over to Matt keyboard director of Investor Relations and corporate Communications you may begin.

And then what you see in front of us.

Thank you operator, and Hello, everybody. It's my pleasure to welcome you to the iron ore mines fourth quarter and annual 2023 financial results Conference call.

High speed plant that's come out of a good luck.

<unk> full commissioning in June. So we are again ahead of schedule I think we previously stated the market will have phase III ready and in the fourth quarter of this year and our team has really done it. The game. So then we definitely getting getting smarter as we as we move along.

I'm the director of Investor Relations.

On the line today from Iron ore mines, we have founder and executive Chairman, Robert Friedman, President Martin <unk>, Chief Financial Officer, David <unk>.

Chief operating officer, Mark <unk> Executive Vice President projects, Steve <unk>, and senior Vice President of corporate development and Investor Relations Alex bigger.

So <unk> has the privilege of starting with the highlights and Matt. If you can just quickly put us on the highlights.

We will finish today's event with a question and answer session. You can submit your questions using the Q&A box on the webcast as well as through the conference operator online.

And I think from a market gorilla perspective, we really had a stellar year, we delivered again.

Please do contact our IR team directly you buy your follow up questions or your questions was not we're not careful here during the call.

We had some challenges and we we did leave some copper on the table 90 due to create instability and more clarity we will talk to you about all the plans we have in place to ensure that we address these issues with the grid stability in the DRC.

And just ahead of that we would just like to remind everyone.

Today's event will contain forward looking statements involve risks and uncertainties could cause actual results to differ materially from those in the forward looking statements details of the forward looking statements are contained in our February.

We've put out our guidance for this year, we are planning to produce between 440000 to 490000 tons of copper.

February 26 news release as well as on SEDAR and at Www Dot Ivanhoe mines Dot Com. It is now my pleasure to introduce Ivanhoe mines, founder and executive Codeshare Robert <unk> for some opening remarks. Please go ahead Robert.

And as I, just mentioned and this is mainly due to the fact that we are again ahead of schedule with the commissioning of the alfalfa plant that phase III.

Okay.

It's no easy task to both five major capital projects at the same time I think we probably the R&D team in the world to do that and that we can only attribute to the wonderful people that we have in place across our organization 2023 was probably for me on a personal level one of my toughest.

Although all of our shareholders and stakeholders around the world welcome to our call.

After this call to discuss our annual results.

After some 28 to 30 years of efforts.

We're very happy to announce today another 20000 individuals.

Working directly whereas in our minds.

Well a lot to go through in this conference call. So without further Ado I'll turn this over to Marlon.

Yes, we've spent a lot of time on clients addressing issues, making sure that we deliver to the market.

Our president and COO.

What we promise.

We were very excited that now in 2024, we will bring capeci into production as well and in the second quarter demand looks very neat.

Just take this write offs. Thank you Barbara.

Thank you Robert.

Maybe just a brief introduction I've been with the company for the past 17, Yeah, that's going on I think.

Again, Mark and Steve will take you through our development plan stand I don't like that I'm, just sort of on the statistics side of things. We've produced over 390000 tonnes of copper in 'twenty to 'twenty three we sold close to 376000 tons in the difference between the two is basically.

And what you see in front of us that picture of all five feet plant that's come out of the cooler that's ready for commissioning in June. So we are again ahead of schedule I think we previously expected the market will have phase III ready in.

What's sitting in inventory.

In the fourth quarter of this year and our team has really done it again.

And also that the new Aloha Pos copper smelter.

The $2 7 billion worth of revenue and.

We definitely getting getting smarter as we as we move along so what has the privilege of starting with the highlights and Mark. If you can just quickly put us on the highlights.

EBITDA of $1 6 billion.

And we were in the mid range of our cash cost guidance.

We're also putting out a guidance for this year and David will take you through our <unk> guidance a bit lighter during the presentation and then of course, it's always exciting to you Robert talk about our exploration success and we think we've got another one with get out Guy. So our team is very active.

And I think from a kabaka gorilla perspective, we really had I I started a year we delivered again.

We had some challenges and we we didn't leave some copper on the title mainly due to greater stability and more Karen will talk to you about all the plans we have in place to ensure that we address these issues with the grid stability in the DRC.

Scientists to balance what we are seeing in the waste and for that with regard to the next slide.

I also have safety is at the core of what we do being in the mining industry and guarantee a dangerous industry, but as you can see at all to all major projects. Our safety statistics are tracking down and we are well below the industry average statistics that we are very proud of and we work hard at this.

We've put out our guidance for this year, we are planning to produce between 440000 to 490000 tons of copper.

And as I've just mentioned this is mainly due to the fact that we are getting ahead of schedule with the commissioning of alcohol to claw that phase III.

It's no easy task to bolt five major capital projects at the same time I think we probably the R&D team in the world to do that and that we can.

Every day to create a culture of zero harm across our organization.

Next slide.

And this is one I'm very excited about the DRC is in fact, a corpus Super power on the rise and I think that you'll see is poised to advertise Peru as the second largest producer of copper in the world and the DRC contributed 11% of global mine copper in 'twenty.

To the wonderful people that we have in place across all organization 2023 was probably for me on a personal level. One of my toughest years. We've spent a lot of time on playing to Jason issues, making sure that we deliver to the market.

What we promise and we were very excited that now in 2024, we will bring appreciate into production as well in the second quarter demand looks very neat and again, Mark and Steve will take you through our development plans beyond that don't like that I'm, just sort of on this the statistics on it.

<unk> 23, and this is in fact truly the future of Green Mako its the neighborhood to be it's it's it's prime real estate, it's where you want to buy your next house.

We had an election in the same boat.

Our prison in Phoenix that Takeda was reelected for a second five year term.

The things we've produced over 390000 tonnes of copper in 'twenty to 'twenty three we sold close to 376000 tons in the difference between the two is basically what was sitting in inventory and all sorts of new out of our caucus smelter.

We attained at the inauguration.

And we're very excited for what the future holds for the country and we're seeing a lot of support from all of the superpowers across the world to ensure that they stability in the DRC.

Sort of on a on a project level.

The $2 7 billion worth of revenue.

Yes from an ESG perspective, we take what we do very serious we work with our communities on a daily basis and we've also showcase the centre of excellence that we launched last year that will be Additionally, educational institution in the DRC.

EBITDA of $1 6 billion and we were in the mid range of our cash cost guidance. We are also putting out a guidance for this year and David will take you through I'll see one guidance a bit lighter during the presentation and then of course, it's always exciting to yeah, Robert talk about Oh.

And then last but not least and Alex will touch on touch on this a little bit lighter than the beta rollout corridor, that's really opened up a new guideline for us to get our product to market. The currently running trial shipments.

Our exploration success, and we think we've got another one with get out Guy. So our team is very excited about what we are seeing in the waste and for that we got to the next slide.

We have reserved significant capacity on this corridor and to be tracking this project.

Okay.

I also have safety is at the core of what we do being in the mining industry.

Forming strategic partnerships with the debate is to ensure that we can move our product. That's what we also ensure that we have an even lower carbon footprint than what we currently have.

A dangerous industry, but as you can see at all three all major projects all safety statistics are tracking down and we are well below the industry average statistics that we are very proud of and we work hard every day to create a culture of zero harm across our organization.

With that as a bit of a lead in I will now hand over to divert one year then our CFO to take you through our annual results for 2023.

Thank you Martin and good day to everybody joining the call today.

Next slide.

And this is one very excited about the D. R. C is in fact, a Copa Super power on the Rod and I think the DRC is voiced appetite Peru, that's the second largest producer of copper in the work and the DRC contributed 11% of global demand copper.

If we go to the mix slide Matt.

<unk> achieved its highest ever annual revenue of $2 $7 billion from 333, and that's at a weighted average realized copper price of $3 $84 per pound revenue was up from the $2 4 billion achieved in 2022, and the strong EBITDA of $1 7 billion.

In 2023.

This is in fact truly the future of Green Mako its the Niobrara B, it's it's it's prime real estate.

What's delivered at a very healthy margin of 62%.

Where do you want to buy your next house.

Okay.

We look at <unk>.

We had an election in the same boat.

<unk> coolers unravel the cash flow generation on the next slide.

A prison and Felix the Takeda was reelected for a second five year term.

Okay.

We attained at the inauguration.

2023 concluded the third consecutive year of outperformance aftermarket cooler.

And we're very excited for what the future holds for the country and we're seeing a lot of support from all of the superpowers across the Walter ensure that they stability in the DRC.

The three years EBITDA growth shown on the left hand side.

With a graph showing the cash generated by operations on the right after excluding noncash working capital.

Sort of on a on a project in April.

<unk> from an ESG perspective, we take what we do very serious we work with all communities on the di devices and we've also showcase the centre of excellence that we launched last year that will be Additionally, educational institution in the D C.

This clearly illustrates that after an initial phase one and phase two investment of just over 2 billion <unk> cooler has returned $3 4 billion.

Of cash in just 15 months.

And then last but not least and Alex will touch on touch on this a little bit lighter.

Just before we move over to the next slide I, just want to make a nice clarifying for inspect the 'twenty to 'twenty, two and 'twenty 'twenty free cash.

Then the beta rollout corridor, that's really opened up a new guide right for us to get our product in bulk or to the currently running trial shipments.

Cash from operating activities.

Is the same it is a coincidence and bought a mistake.

We've reserved significant capacity on this corridor and to be tracking this project.

Moving over to <unk> annual EBITDA waterfall.

Ming strategic partnerships with the debate is to ensure that we can move our product. That's what will ensure that we have an even lower goldman frequent than what we currently have.

The waterfall.

Illustrates.

Perfect.

That is a bit of a need and I will now hand over to David and yet then our CFO to take you through our annual results for 2023.

The 2022.

The <unk> team to move to a $1 seven EBITA.

Thank you Martin and good day to everybody joining the call today.

2023 equates to a 2000.

22% year on year EBITDA growth driven principally.

With regard to the mix slide Matt.

Yes.

<unk> achieved its highest ever annual revenue of $2 $7 billion from 333, and that's at a weighted average realized copper price of $3 $84 per pound revenue was up from the $2 4 billion achieved in 2022, and the strong EBITDA of $1 7 billion.

Our increased production the 'twenty to 'twenty three results also benefited from the higher realized copper price in 2023, when provisional pricing. This combined with process ultimately realized with this partly offset by cost inflation.

If we look at cost a bit further on the next slide.

What's the limit at a very healthy margin of 62%.

<unk> again achieved guidance with 2023 and be exactly at the midpoint of our initial 2023 guidance.

Okay.

Okay.

Look at.

<unk> coolers unravel cash flow generation on the next slide.

Q4, 2023 cash cost slightly up due to generate the power used and implemented power on production.

Okay.

Okay.

2023 concluded the third consecutive year of outperformance aftermarket cooler.

Yeah.

As gross room nights from the stockpile impacting on the great mode during the quarter.

Three years EBITDA growth shown on the left hand side.

Looking ahead at the next slide.

With a graph showing the cash generated by operations on the right after excluding noncash working capital.

Our cash cost guidance for 'twenty 'twenty four is $1 50 to $1 70 broke down of payable copper even with the temporary elevated cash cost <unk> would still be well placed on the global cash cost curve.

This clearly illustrates that after an initial phase one and phase two embracement of just over 2 billion <unk> cooler has returned $3 $4 billion of cash in just 15 months.

For 2020 full guidance is impacted by the earlier commissioning of phase III, both through the both due to the additional backup generation.

Just before we move over to the next slide I just wanted to make a nice clarifying point in fact, the 'twenty to 'twenty, two and 'twenty 'twenty free cash.

Orders in the gardens continued.

Due to the phase III concentrates are coming online before <unk> as well as the slightly lower grade expected to be paid through the place pretty concentrated.

Cash from operating activities.

Is the same it is a coincidence and bought a mistake.

Completion of the onslaught smelter.

Moving over to <unk> annual EBITDA waterfall.

On schedule for commissioning in the fourth quarter of 2024 is expected to drive a decrease in average cash cost over the first five years post completion from 'twenty to 'twenty five onwards.

The waterfall.

Illustrates.

Zach.

The 2022.

We move to the next slide please Matt.

The <unk> team to move to a $1 seven EBITA.

Yeah.

As seen on the left <unk> EBITDA is up by 23% year on year.

In 2023 equates to a 2000.

22% year on year EBITDA growth driven principally.

When excluding the impact of the revaluation of the convertible notes and deferred tax income from pushy recognized in 2022 from a profit the normalized net profit for 2023 was $388 million and that's up 30% from the $298 million.

Increased production for 2023 results also benefited from the higher realized copper price in 2023, when provisional pricing is combined with prices ultimately realized with this partly offset by cost inflation.

If we look at cost a bit further on the next slide.

In 2022.

With construction of phase three of chemo ahead of schedule and could push you can maintain ramp up in just a few months 'twenty to 'twenty four promises to be another year with record results.

<unk> again achieved guidance with 2023 and be exactly at the midpoint of our initial 2023 guidance.

We move to the next slide please.

Q4, 2023 cash cost slightly up due to generate power used and the intermittent power on production.

Our capital expenditure in 2020 strategy was effective and that's clearly illustrated the off grid projects being on Egypt schedule and all tracking on budget and in 2024, we will continue our industry leading investment growth.

Yeah.

As gross win.

Stockpile impacting on the great moat during the quarter.

Looking ahead at the next slide.

Our cash cost guidance for 'twenty 'twenty four is $1 50 to $1 70 per pound of payable copper even with the temporary elevated cash cost <unk> would still be well placed on the global cash cost curve.

We have been active in arranging facilities for each of our projects were $400 million of in country facilities drawn aftermarket cooler.

<unk> hundred $50 million senior debt facility signed for batteries and the same between 'twenty three.

For 2020 full guidance is impacted by the earlier commissioning of phase III.

And financing for could push you expected to be finalized in Q2 this year.

Both due to the additional backup generation provided for in the gardens continued.

On a 100% basis across our project, we invested almost 2 billion growth in 'twenty to 'twenty three alone.

Due to the phase III concentrate to coming online before <unk> as well as the slightly lower grade expected to be straight through the phase III concentrate there.

And this is set to increase further in 2024.

Our investments in 2023.

Completion of the onsite smelter.

And today, our leading to real growth as early as this year.

On schedule for commissioning in the fourth quarter of 2024 is expected to drive a decrease in average cash cost over the first five years.

We move to the next.

We ended the year with a very strong financial position with cash of $574 million in hand.

Completion from 'twenty to 'twenty five onwards.

Pre move to the next slide please Max.

Yeah.

And very little current date.

As seen on the left <unk> EBITDA is up by 23% year on year.

And our $1 2 billion dollar non current date.

Is mainly made up of the $800 million.

When excluding the impact of the revaluation of the convertible notes and deferred tax income from depreciate recognized in 2022 from a profit for normalized net profit for 2023 was $388 million and that's up 30% from the $298 million.

Relating to the convertible senior notes due in 2026 and possibly.

Early redeemable in April 2024.

Our net debt to EBITDA ratio is tiny and sets us up perfectly for the next phase of growth.

In 2022.

It's all about growth story.

With construction of phase III.

And I'll now hand over to Alex because our executive Vice President corporate development and Investor Relations.

Schedule and could push it can maintain ramp up in just a few months 'twenty to 'twenty four promises to be.

To commence the operations and project update presentation.

For the year folds with record results.

We move to the next slide please.

Thank you David and good day to everybody on the line.

Our capital expenditure in 2023 was effectively and Thats clearly illustrated to upgrade projects being on schedule.

As Marty mentioned, we have a full complement here to take you through the fantastic progress we are making.

Operations on our projects.

Further do I think we can move to the next slide.

Schedule and all tracking on budget and in 2024, we will continue our industry leading investment growth we.

Yeah.

So comerica cooler had another outstanding operational yes, as Marty mentioned, we produced 393500 tonnes of copper, which was within our guidance range.

We have been active in the writing facilities for each of our projects were $400 million of.

In country facilities drove an aftermarket cooler.

<unk> hundred $50 million senior Tech facility signed for <unk> in the same between 'twenty three.

I think we are especially pleased with this performance given that we're dealing with the constraints around power stability in the DRC.

And financing for could push you expected to be finalized in Q2 this year.

And Mark is going to take you through much more detail on what we're doing on power, which is a very key focus for this year.

On the 100% basis across our project, we invested almost $2 billion in growth in 2023 alone.

But really we see the production has unfinished business in a way.

We think that all copper output could've been perhaps even 40000 tons or more higher with consistent power availability, so that bodes really well when we when we do do solve that issue.

And this is set to increase further in 2024.

Our investments in 2023.

And today, our leading to real growth.

Early this year.

Of course, we completed the debottlenecking projects that come out earlier and earlier in the first quarter.

We move to the next.

We ended the year with a very strong financial position with cash of $574 million in hand.

Wanted to concentrate those have subsequently shown the ability to operate at the capacity in excess of 10 million tonnes per annum with a clean run.

What is also good is that our recoveries have been in excess of design at 87%.

And very little current date.

And our $1 2 billion non current date.

And that's also a reflection of power stability to some extent so there's an opportunity to push that further Steve.

Okay.

Mainly made up of the $800 million.

Related to the convertible senior notes due in 2026 and possibly.

Steve I'm also going to take you through our very exciting project 95 that we're launching to increase those recovery is much better.

Early redeemable in April 2024.

And then just to reiterate that our guidance range for the year, It's 440000 to 490000 tonnes of copper in concentrates.

Our net debt to EBITDA ratio is tiny and sets us up perfectly for the next phase of growth.

That factors in the early commissioning of the phase III mill and with the copper that we produce from phase III, we will be selling some of that concentrate that is coming in advance of the smelter and we will also be stockpiling a portion to feed that smelter when it becomes available in the fourth quarter.

It's all about growth story.

And I'll now hand over to Alex because our executive Vice President corporate development and Investor Relations.

To commence the operations and project update presentation.

So with that I will pass to Mark <unk>, our chief operating officer.

Thank you David and good day to everybody on the line as Marty mentioned, we have a full complement head to take you through the fantastic progress we are making.

To talk you through the power initiatives in the DRC.

Our operations on our projects so without further Ado I think we can move to the next slide.

Thanks, Alex.

So power is I mean, it's been a little bit of a tune in on sort of the last viewed particular.

Okay.

And our belief locker next week Lyft about 40% to 50000 tons of copper on the table because of coal.

So comerica cooler had another outstanding operational gas as Marty mentioned, we produced 393500 tonnes of copper, which was within our guidance range.

Short term issues really if you take if you if you put all things in context.

To start I'm going to start with <unk> on what we've done on backup power and they're not going to talk you through the two longer term initiatives that we've taken and that we are following through on so on the short term, we have decided to create enough generating capacity on <unk>, which is obviously very expensive and its diesel so it's not exactly a keen either but it's.

I think we are especially pleased with this performance given that we're dealing with the constraints around power stability in the DRC.

And Mark is going to take you through much more detail on what we're doing on power, which is a very key focus for this year.

But Randy we see the production is unfinished business in a way.

We think that our copper output could have been perhaps even 40000 tons or more higher with consistent power availability and so that bodes really well when we when we do.

To reduce the risk and make sure that we have full redundancy within this year to run phase one phase two and phase III under any conditions that decision. We made last year and if you ever look at these data that you're you'll see that Bachelor and the 128 megawatts in bunch Simba generally will have 210 megawatts of diesel.

To solve that issue.

Of course, we completed the debottlenecking projects that come out earlier and earlier in the first quarter.

Voluntary concentrated have subsequently shown the ability to operate at the capacity in excess of 10 million tonnes per annum with a clean run.

Answer so under any conditions, we can run the three phases from the three concentrated in the three months, it's very unlikely that you will have load shifting to the extent of 100% blackout, but it has happened in the Boston and something that we need to manage what can move us to the next lock, which is probably more important.

And what is also good is that our recoveries have been in excess of design at 87%.

And that's also a reflection of power stability to some extent there is an opportunity to push that further Steve.

Steve Amos is going to take you through our very exciting project 95 that we're launching to increase those recoveries much further.

So.

What we've been doing.

In the longer term, we've identified <unk> as it is a project that we need to compete and we picked one of the two bonds. So G 25 to one is a big two bonus of 178 megawatts.

And then just to reiterate that our guidance range for the year, It's 440000 to 490000 tonnes of copper in concentrate.

That factors in the early commissioning of the phase III mill and with the copper that we produce from phase III, we will be selling some of that concentrate that is coming in advance of the smelter and we will also be stockpiling a portion to feed that smelter when it becomes available in the fourth quarter.

That project to speak two years ago, and it's an execution we were replacement tube on inhibit commission of our quota for this year. So it's an additional 178 megawatts that will go into the grid.

But with that work that we've done we've had to do a full study all the way from Ingo ramped up to the gate, we put we put up though into the month and that's about 79 kilometers of different areas to study.

So with that I will pass to Mark <unk>, our chief operating officer.

To talk you through the power initiatives in the DRC.

Thanks, Alex.

So power is I mean, it's been a little bit of a tune in on sort of the lost viewed particular.

And we bought into fund.

Stability issues in the grid the same grid all the way from English to us.

And I believe like Nxp's lift about 40% to 50000 tons of copper on the table because of power.

And isn't there isn't that work that we've done is about $200 million.

Short term issues really if you take it if we put all things in context.

Upgrades that need to take place to make sure that it created a stable and reliable.

To start I'm going to start with <unk> on what we've done on backup power and they're not going to talk you through the longer term initiatives that we've taken and that we are following through on so on the short term, we have decided to create enough generating capacity on such which is obviously very expensive and its diesel so its not exactly keen either but it's.

That work is in execution at the moment, we're working with the state utility.

To make sure you execute these projects and that means that the project.

Project should be complete within 12 to 18 months.

We also have targeted additional power from Zambia.

Taking us some time to be able to organize it.

To reduce the risk and make sure that we have full redundancy within this year to run phase one phase II and phase III under any conditions that decision. We made last year and if you ever look at these data via Youll see that Bachelor below 120 megawatts in bunch Simba January will have 210 megawatts of diesel.

Sure.

We are happy to say that we found an agreement today.

A long term agreement and there could be followed by a short term agreements.

Which will step up the power from Zambia, which will give us a clean chose to hydropower into Oman.

In stages, starting from 15 megawatts and moving to about 100 megawatts. This year.

Onsite so under any conditions, we can run the three phases of the three concentrators and the three months, it's very unlikely that you will have load shading to the extent of 100% blackout, but it has happened in the past and it's something that we need to manage but can move us to the next slot, which is probably more important.

There is a longer term plan to get to 250 megawatts. So in addition to the current work that we're doing on stabilizing the group increasing the power from from Inga and when a good show that we've already completed.

Will it be able to add another 150 megawatts of power into the grid. It's the same grid and it will be stable.

So.

But what we've been doing.

In the longer term we've identified.

That will be in addition to.

It is a project that we need to compete and we picked one of the two months of G. 25 to one is a big bonus of 178 megawatts.

To work that we've done to create that.

Zero spoke to you about earlier about putting into diesel generation as a backup.

All in all if you look at me recurring power in this industry of 'twenty 'twenty, four we will be able to stabilize and make sure that we have sufficient power for phase one phase two phase III and for a smelter and we're looking at how are we going to grow the business over the next couple of years, you'll be more initiatives on Talbot.

That project was picked two years ago, and it's an execution we were replacement tube on inhibit commission of our quota for this year. So it's an additional 178 megawatts that will go into the grid.

But with that work that we've done we've had to do a full study all the way from Ingo ramped up to the gate.

We put we put up our into demand.

Sure that would be.

Dredge stability and enough energy to power with the projects going forward.

And Thats about 1700 kilometres of different areas to study.

Yeah. So it's very important for us because we are growing this month from the current 400000.

We bought into font.

Stability issues in the grid the same grid all the way from <unk> to us.

That we did last year into appropriate pharma Zika north going forward.

And in the in depth work that we've done is about $200 million.

800000 tonnes of copper will need to produce in the next four five years.

Grades it needs to take place to make sure that it created a stable and reliable.

Within our control.

Work is an execution at the moment, we are working with the state utility.

Power has its own enough on but we are addressing it and and we placed this project team on this grouping snow, which is that the local utility.

To make to execute these projects and that means that the.

Project should be complete within 12 to 18 months.

I believe it will be executed properly within this year, so that you don't tomer.

We also have targeted additional power from Zambia.

Has taken us some time to be able to organize that power.

Yeah.

I'm going to talk to.

We are happy to say that we found an agreement today.

Steve to talk a little bit, but we always phase III Steven.

A long term agreement and that could be followed by a short term agreements.

Even as Arctic.

Projects. He has been with me we've worked alongside.

Which will step up the power from Zambia, which will give us a clean source of entre power into Oman.

So at least 10 years.

All of these projects that you see there on time and on budget basically under Steven if we can.

In stages, starting from 15 megawatts and moving to about 100 megawatts. This year.

Tell us about <unk> seen a little bit sure, thanks, Mark and hi, everyone.

There is a longer term plan to get to 250 megawatts. So in addition to the current work that we're doing on stabilizing the <unk>, increasing the power from from Inga and when a good show that we've already completed.

Yes, I think some more modern elixir Klaus alluded to the fact that some phase III is going very well in fact, we were up to four months ahead of schedule. So we really getting good at sort of the stuff now.

Will it be able to add another 150 megawatts of power into the grid. It's the same grid and it will be stable. So that will be in addition to.

On the mining side, we are busy preparing the mine pads and in the run of mine to feed the plants. We've got a mobile crusher on sites, we perceive trucking the ore from <unk>, which is about a kilometer or two away. We're closing a large stockpile ahead of the plants.

So work that we've done to create that.

With respect to you about earlier by putting into diesel generation as a backup.

All in all if you look at the recurring power in this industry.

Next month, we will commission the surface conveyors.

This compares will take the run of mine from the mine effectively to the plants that you plan to build up 20.

2024.

We'll be able to stabilize power in and make sure that we have sufficient power for phase one phase two phase III and for a smelter and we're looking at how are we going to grow the business as the next couple of years there'll be more initiatives on power to make sure that we dredged.

20000 tons of stock ahead of commissioning for the plants and there's plenty of time to do that.

You've got a number of months to do that.

And then June yes, we feed the plant first ore into the mill during June.

Great stability and enough energy to power the projects going forward.

And then I suppose once the ores into the mill, it's all about ramp up.

Yeah. So it's very important for us because we are growing this month from the current 400000 tonnes.

Phase one we did very well we ramp the plant up in three months and phase II, we did even better we ramp the plant up in two weeks, so I'm expecting something good from <unk>.

That we did last year into appropriate follow up north going forward.

800000 tonnes of copper will be produced in the next four five years.

Phase III and I think our track record shows that we will get to steady state reasonably quickly.

We do not control.

Power has to be.

Now that we are addressing it and <unk> and with patients.

I think you can see from the picture that's the mechanical completion and all that will be equipment installation is complete we proceed with the loss of electrical installation cable pulling.

This project team on this working snow, which is that the local power utility and I believe it will be executed properly within this year. So that's it on power.

Et cetera, et cetera, and we can adjust some of the substations and pursue pumping a couple of motors to get things going pretty quickly.

I'm going to talk.

<unk> met.

Steve to talk a little bit about we always phase III, Stephen Stephen as well.

When projects. He has been with me we have worked alongside them.

It hasn't changed from our side is sort of you such that so that's a bit of a bit of a lag okay. So.

With these 10 years.

All of these projects that you see there on time and on budget basically on the Stevens.

This is something quite exciting we call it project 95.

And the reason for the project 95 is that the objective and.

Tell us about <unk> seen a little bit sure, thanks, Mark and hi, everyone.

And there is two fronts to it is to increase copper recovery from the current 88% to 95%.

Yes, I think mark modern elixir, both alluded to the fact that some phase III is going very well in fact, we were up to four months ahead of schedule. So.

We've been working on this for about six months now so we've done a lot of work in the lab and the lab, which is nearing completion.

We're really getting good at sort of the stuff now.

On the mining side, we are busy preparing the mine pads and in the run of mine to feed the plants have been quite a mobile crusher on sites, we perceive trucking the old from <unk>, which is about a kilometer or two away, we putting a large stockpile ahead of the plants.

Speaks to this or firstly modifying the existing phase one and phase two plants.

Additional re grind capacity of flash.

Floats a couple of other odds and so it's to improve recovery from 88 to 95 other scientist with almost complete and looking very positive.

Next month, we will commission the surface conveyors.

This compares will take the run of mine from the mine effectively to the plants you plan to build up.

The way, we will implement this because it's effective to richfield sides of its operating is that do you.

20000 tons of stock ahead of commissioning for the plants and there's plenty of time to do that as we go to a number of months to do that.

These changes will do it's similar to like we did from the Debottlenecking. During the planned shutdowns will come into that with you all the construction during the plant shutdowns will come into the tie in so there'll be minimal effects on existing production.

In June yes, we feed the plant first ore into the mill during June.

And then I suppose once the orders into the most all about ramp up.

Then the second aspect to this is the current arising so the current tailings, we are producing and the tailings that are in the tailings dam. So what we've done there as well over the last six months.

Phase one we did very well we ramp the plant up in three months and phase II, we did even better we ramp the plant up in two weeks, so I'm expecting something good from phase III nothing got track record.

So we've designed a process.

Where we can take these tailings re grind them and get about 60% to 70% recovery on that feeds through to the new plant, that's a greenfield standalone plants.

We will get to steady state reasonably quickly.

I think you can see from the picture that's the mechanical completion in OLED will be equipment installation is complete we proceed with the loss of electrical installation that cable pulling.

And that's effectively taking recovery to do that.

95%.

We believe there's about 30000 tonnes per annum in those current arising plus what's in the dam and then some additional.

Et cetera, and we've energized some of the Substations and busy pumping a couple of motors to get things going pretty quickly.

Recovery from the modifications to the existing plant all on track probably a Polish will have some basic engineering.

Thanks, Chris Metz.

Yeah.

Have a cost budget estimates will get approval and fast track. This.

It Hasnt changed on my side.

Yes, so it's a bit of a bit of a lag okay. So.

As soon as we can.

Next please Matt.

This is something quite exciting we call it <unk>.

<unk> 95.

Okay moving on to the smelter.

And the reason for the project 95 is that the objective and there's two friends to it is to increase copper recovery from the current 88% to 95%.

So state of the art.

500000 tonnes per annum.

Undertake director blister technology.

Director.

You've been working on this for about six months now.

Smelter in the world.

So we've done a lot of work in the lab.

The emissions and the environmental legislation all World class ISR.

The labor is nearing completion.

Two aspects to this or firstly modifying the existing phase one and phase two plants.

IFC Wood will think principles, so absolutely zero pollution to the atmosphere.

Additional re grind capacity.

With the smelter.

<unk> flow a couple of other odds insights to improve recovery from 88% to 95% as a scientist with almost complete and looking very positive.

<unk> been a massive job, it's a totally different league to concentrate we have.

We are importing 73000 tons of equipment.

The way we will implement this because it's affected to richfield cited its operating is that.

From abroad into the Middle of Africa.

You've got about 50, 50% of deaths on sites at the moment and another approximately 25000 tons on route.

These changes will do it's similar to like we did from the Debottlenecking during the plant shutdowns will come into that with you.

So it's looking good.

All the construction.

It's nice when you can see the equipment on site, especially in the Middle of Africa. We are confident of our Q4 2020 for startup and commissioning.

During the planned shutdowns will come into the tie in said there'll be minimal effects on existing production.

And the second aspect to this is the current arising so the current tailings, we're producing and the tailings that are in the tailing stem. So what we've done there as well over the last six months.

Q4 2024.

It also has a significant production and cash costs.

We estimate about 20% and this I mean, you can just think for yourself.

So we've designed a process.

Shipping, 50% copper out of the country as opposed to shipping 100% of the copper out of the country producers your transport by horse, It's also Texas and.

Where we can take these tailings re grind them and get about 60% to 70% recovery on that feeds through to the new plant.

And in a Tc to go with it and a significant amount of asset production, which is a sort of the commodity in the DRC because the bulk of a couple of producers leach oxide with asset and.

Greenfield Standalone plants.

And that's effectively taking recovery to the 95%.

We believe there's about 30000 tonnes per annum in those current arising plus what's in the dam.

Produce copper bus solvent extraction and electrowinning.

And then some additional.

Next slide met them I think it's over to Alex.

The recovery from the modifications to the existing plant all on track probably a Polish will have some basic engineering.

Yeah.

Yes.

Yes, Thank you Steve.

So we did make a landmark announcement at the end of the year that we commenced trial shipments of copper concentrate from comerica cooler.

Cost budget estimates will get approval and we will fast track this.

As soon as we can.

Thanks, Chris Matt.

Via the Davita railcar at all.

Okay moving on to the smelter.

<unk> is a project that has been very publicly supported by the U S government and together with the European Union on the G. Seven.

So state of the art.

500000 tonne per annum.

Undertake director blister technology.

And the good news is that the shipments that they have been a big success. We've taken only eight days on a one way journey, which is less than one third of the time.

As director.

Smelter in the world.

The emissions and the environmental legislation old World Class IFC.

The alternative exporting by by truck via via debit or darice alone.

IFC Wood will bank principles, so absolutely zero pollution to the atmosphere.

And obviously, that's a reflection of the.

The shipment being on rail, but also of the overall length of the journey is roughly almost half of the last of the journey to Durban.

With the smelter.

Its been a massive job it's a totally different league to concentrates are we.

So ultimately what this should mean is that the cost of shipment will certainly go down over time.

We are importing 73000 tons of equipment from abroad into the middle of Africa, We've cut about 50, 50% of that on sites at the moment and another approximately 25000 tons on route so it's looking good.

But also it's important to note that the <unk> C O two emissions associated with the transportation by rail are much lower.

Comerica cooler, we're very lucky in terms of the grades that we have in the hydropower. We already have the lowest C. O. Two emissions of any major copper mine and these are set to decrease by approximately half with the commissioning of the smelter and the reduction in the logistic burden as Steve mentioned.

It's nice when you can see the equipment on site, especially in the Middle of Africa. We are confident of our Q4 2020 for startup and commissioning.

Q4 2024.

Then that will be further reduced by shipping and on the <unk>, Colorado.

It also has a significant production and cash costs.

Just in terms of the sort of next steps on the beta we've recently signed a reserve capacity agreement with Davita consortium led by Trafigura.

We estimate about 20% and this I mean, you can just think to yourself.

Shipping, 50% copper out of the country as opposed shipping 100% of the copper out of the country reduces your transport by horse, It's also Texas and.

And that is to ship up to 240000 tonnes of copper product.

Copper products from next year will be largely 99, 7% coming from the smelter.

In a Tc to go with it.

A significant amount of acid production, which is a sort of the commodity in the DRC because the bulk of a couple of producers leach oxide with assets and.

And then finally, it's also just important to note that the law Vito corridor passes directly through the western Poland exploration licenses that will play a big role in terms of the construction of future mining operation as well as the export of copper products.

Produce copper by solvent extraction and electrowinning.

Next slide met them I think it's over to Alex.

Perhaps a good segue onto the next slide.

Yes, Thank you Steve.

So just looking at a group wide exploration, we announced late last year that we've got.

So we did make a landmark announcement at the end of the year that we commenced trial shipments of copper concentrate from comerica cooler.

Okay.

2000 $24 million to $19 million.

Higher than Davita railcar at all.

Let me tell corridor is a project that has been very publicly supported by the U S government and together with the European Union and the G. Seven.

All lines, but also we are commencing drilling of the market Poly feeder project adjacent to plot reef and also early stage exploration at our new licenses in Angola.

And the good news is that the shipments to date have been a big success. We've taken only eight days on a one way journey, which is less than one third of the time.

I think as Ivanhoe mines as a group we firmly believe is the highest possible return on capital if we can drive for our shareholders.

The alternative exporting by by truck via <unk>.

We've demonstrated that with all of our projects, including Comerica cooler were founded on exploration effectively by this team and so we hope to add huge value with the drill bit this year.

And obviously that is a reflection of.

The shipment being on rail, but also of the overall length of the journey is roughly.

Half of the last of the journey to Durban.

We did announce late last year. The success that we've had already in terms of the initial copper resources at <unk> and <unk>, which are already globally significant and we're moving those into more of a steady phase and then of course, we also.

So ultimately what that should mean is that the cost of shipment will certainly go down over time.

But also it is important to note that the <unk> C O two emissions associated with the transportation by rail are much lower.

Discovery telco.

At Comerica cooler, we're very lucky in terms of the grades that we have in the hydropower, we already have the lowest <unk> emissions of any major copper mine.

Which our founder Robert Friedman will now explain much better than I'm sure icon.

Everybody on this call exploration is the lifeblood.

<unk> decreased by approximately half with the commissioning of the smelter and the reduction in the logistics burden as Steve mentioned.

Of the mining industry and I thought I'd spend a few words.

<unk> why the Congo has become so quickly.

And then that will be further reduced by shipping.

So cardinal.

Equal to or larger than through is the second largest.

Just in terms of the sort of next steps on the beta we've recently signed a reserve capacity agreement with Televisa consortium led by Trafigura.

Copper in the world.

So these are sedimentary copper deposits there.

Actually share a lot of similarities with oilfield geology.

And that is to ship up to 240000 tonnes of copper product and copper products from next year will be largely 99, 7% coming from the smelter.

They incur in the current basins, so I wouldn't call it a desktop, but David the shape of a bird feeder.

And then finally, it's also just important to note that the law Vito corridor passes directly through the western fall in exploration licenses that will play a big role in terms of the construction of future mining operation as well as the export of copper products.

As the business about 150 to 175 kilometers long.

And 25 to 40 kilometers wide.

That is a giant.

Bathtub Birdfeeder very shallow if you fill the bathtub with layers of different colored send.

And that perhaps a good segue onto the next slide.

It shows your bathtub with two inches of Red sand and then two inches of Green Savage loosen.

So just looking at a group wide exploration, we announced late last year.

Gradually lately.

Quadruple.

The basin.

2000 $24 million to $19 million.

The original discovery copper tomorrow, it wasn't a particular says.

Okay.

Sure.

Eastern side of the basin.

All lines, but also we are commencing drilling of the market Poly feeder project adjacent to <unk> and also early stage exploration at our new licenses in Angola.

And we were astonished that we'd had a notion of 3% copper.

The second discovery of copper was cooler much higher grade, 4.5% to 5.5% buffer.

Ivanhoe mines as a group we firmly.

Ocean of it.

Is the highest possible.

This is floodline deposits when you find them they can be.

On top of that we can drive for our shareholders and.

I think we've demonstrated that with all of our projects, including Comerica cooler.

Many many kilometers long they can go 10, or 15 kilometers long or 15 kilometers wide and they're very consistent they live their life.

Founded on exploration effectively by this team and so we hope to add huge value with the drill bit this year.

We did announce late last year. The success that we've had already in terms of the initial copper resources at Macau Cowen key outlet, which are already globally significant and we're moving those into more of a steady phase and then of course, we also.

Our potash mine or in oilfield.

So it's quite remarkable that when he went to the western side of the basin.

In relatively shallow horizon they found the cocoa.

In sands that mimic sands.

But discovery to Tokyo.

The host.

The original claw discoveries 30 kilometers to the east and then with time and continued drilling.

Our founder Robert Friedland will now explain much better than I'm sure icon.

Oh, Hey, everybody on this call exploration is the lifeblood.

Brokaw became about 11 kilometers long it's.

The mining industry.

Still open and we found a second mukoko.

Spend a few words.

Like different layers in the layer cake.

<unk> why the cargo has become so quickly.

Additional drilling even deeper and deeper into the basin.

Equal to or larger than through is the second largest.

Finally closed two stacks, new horizons, 12, key telco, which mean beautiful or gift in the local languages.

Copper in the world.

So these are sedimentary copper deposits there.

Actually share a lot of similarities with oilfield geology.

The deepest hole, we have drilled right to the bottom of the base and it was running over 11% tops or right at the bottom of this this has never happened before in this enormous target area. This is a whole new horizon.

And then the current basins.

I wouldn't call it a desktop, but David the shape of a bird feeder in this case the business about 150 to 175 kilometers long.

As of today is approximately two kilometers open and open in all directions, It's nearly flat line, but it's opened up dip.

And 25% to 40 kilometers wide if you get there.

That is a giant.

Bathtub, there bird feeder very shallow if you've showed the bathtub with layers of different colored sand.

And along strike in virtually all directions, and open down dip as well.

Very very shallow dip as we've shown in many cross sections. So he telco has led allergic or characteristics that you see in this picture.

It shows you better with two inches of Red sand and then two inches of Greens added two inches of Lucerne.

Gradually lately.

Side of the basin.

Identical to control, though we see a point.

The original discovery copper comeaux within a particular says.

Pulling on it and telecom side, which is a very richest copper minerals.

Eastern side of the basin.

And we were astonished that we had a notion of 3% copper.

This is a really great abundance and just to make sure that that initial discovery hole.

The second discovery of copper was cooler much higher grade four five to five 5% copper.

11% was that a fluke.

Initially put a wedge in the hull and drilled off of it.

Ocean of it.

And again it is just the same horizon.

This is flatlining deposits when you find them they can be.

All over 11% copper so it's consistent it's real it's open in all directions and it shows that the physician can throw off.

Many many kilometers long they can go 10 or 15 kilometers long.

E Commerce is wide and theyre very consistent very laser like.

A number of additional cooler type discoveries.

Our potash mine or in oilfield.

So I think those are just the geologic.

So it is quite remarkable that what do you what's the western side of the basin.

I'm, just sort of a bunch of copper.

In relatively shallow horizon, we found makoko in.

We could be finding more of those types of deposits for generations.

<unk> that mimics the sands.

The greatest amount of value that we can add for our shareholders is to add more drill rigs.

Post.

The original tableau discoveries 30 kilometers to the east and then with time and continue to drilling.

Seven drill rigs turning now.

We will have two more going shortly.

Shortly that's despite the fact that this is the right issues.

On the FERC became about 11 kilometers long its still open and we found a second lococo stacks.

In the old days, we would have stopped drilling in the rainy season, but this one is this really excited.

And the layer cake.

With.

This isn't as great in two or three more months, but despite that we were shooting for sure.

Additional drilling we went deeper and deeper into the basin.

Finally, two stacks new horizons.

Nine drill rigs turning on this and that's going to create a lot of value.

Key telco, which mean beautiful or gift in the local languages.

There's this ground is held by us in our mines and a few joint venture partners that hold minority interests.

The deepest hole with build rates are at the bottom of the basin is running over 11% tops or right at the bottom of the base of this has never happened before.

So this first area is really a very bright future for us.

If there was ever a reason to be interested in other assets too.

Enormous targeted area. This is a whole new horizon.

All over the world the shortage.

Oh that is living with for a copper metal.

As of today is approximately two kilometers open.

For electrification of National security.

We open in all directions, it's nearly flat line, but it's open up dip.

This is where you're going to find it.

This lessons for treason region is brand new.

And along strike in virtually all directions, and open down dip as well very very shallow dip as we've shown in many cross sections. So can you telco.

Our railroad coverage going straight to the portion of Angola, and it's all downhill Oh by the way.

Were fortunate to enter to 1600 meters elevation in the western for launching we're going into the Atlantic Ocean, Obviously C level.

Metallurgical characteristics that you see in this picture almost identical to controller, we see.

So the railroad trends heading that way or else, you're going to be able to generate electricity going downhill as we go to the seacoast.

<unk> and caliber side, which are the very richest copper minerals.

Great abundance.

And so we've learned so much in the last 20 years, we know how to build mines in this region.

Just to make sure that that initial discovery hole.

So was that a fluke.

The hydro electric Power's been developed.

Recently put a wedge in the hull and drilled off of it.

All of the benefits of having the operating mine nearby.

And again, the same horizon, well over 11% copper so it's consistent it's real it's open in all directions and it shows that the physician can throw off.

Enable us certain things faster quicker cheaper and better or was it in the past so the.

The future of <unk>.

Our mines in copper lines or the western furloughs.

A number of additional two equivalent type discoveries.

I'm happy to say for annual results.

So.

Our team couldn't be more excited and that's why we've boosted our exploration budget for this.

In terms of the geologic areas.

The other metric copper.

This year at about $90 million.

We could be finding more of those types of deposits for generations.

And with that I'll take it.

I'll turn this over to March or so.

The greatest amount of value that we can add for shareholders is to add more drill rigs we have.

Sorry, but our new thoughts new plans to accelerate the production of the world's largest.

Seven drill rigs turning now.

We will have two more going very shortly.

Brian precious metals and base metals mine, which is put rich so that mark turning over to you.

Despite the fact that this is the rainy season.

In the old days, we would have stopped drilling in the rainy season, but this one is really excited.

So we moved from one fantastic month to the other one.

I know that Pjm's.

<unk>.

PGM space is a bit of the to actually sustainable moment that it is going through right now.

The rainy season is going to end in two or three more months, but despite that we are richer.

Nine drill rigs turning on this and that's going to create a lot of value.

But can you just talk a little bit about flattish.

Tony but on what the actual but it looks like first before I talk about the phases. So the orebody what's different about this ore body is that it's 20 to 25 meters thick compared to the rest of the Bush felt complex, which is about one we just stick on average and with the same grades.

This ground is held by us and their lines and shoe joint venture partners that hold minority interests.

So this first area is really a very bright future for us.

If there was ever a reason to be interested in our assets to solve the world shortage.

Same great. So you're still sitting with you for two five grams per tonne.

That is living to a copper metal both for electrification and national security.

<unk> and huge nickel and copper credits, so you've got 3% nickel, which differentiates it massively from anything else in the sickness of this ore body, which makes it completely unique and amenable to mechanization and automation of Crystal body.

This is where you're going to find it.

This western.

The region is brand new.

Railroad coverage going straight to that portion of Angola.

That's all down Hello by the way.

Fortunately <unk> hundred meters elevation in the western <unk>.

I was in England patent pool of about 23 years and I can tell you know this is a piece of ore body in the world difficulty scripted and unscripted thickness compared to anything else.

Into the Atlantic Ocean, obviously at sea level.

So the railroad trends heading that way are actually going to be able to generate electricity going down as well as we go to the seacoast.

Good.

What we did do is we started off with a phase one, which we call a baby bond, it's too small and it's just something we've put together with a concentrated that Steve will talk you through just now to get ourselves growing and understand the opening.

And so we've learned so much in the last 20 years, we know how to build mines in this region.

The hydro electric power as they developed.

All of the benefits of having the operating mine nearby.

With us getting moving on phase one we've looked at how can we accelerate the development of this month, how can we accelerate this development and bringing in phase two and a meaningful level of production in <unk>.

Enable us to do things faster quicker cheaper and better or is it in the past.

The future.

As a reminder, copper lines or the western <unk> and I'm happy to say for our annual results.

As early as possible.

With the Big show up that you see in the background of the picture witnessed basically a phase III portion.

Team couldn't be more excited.

As always boosted our exploration budget for this.

That's a huge shift it's going to be able to waste.

This year at about $90 million.

Million tons, a year, but the phase one two trial.

And with that I think.

I'll turn this over to Mark churn so sorry.

Trying to use to optimize what we have in our footprint before this huge.

Sorry, but our new thoughts.

Plans to accelerate the production of the world's largest.

I am sure is in place so phase one and two together will look will give us the potential to hoist.

In precious metals and base metals mine, which is flat rates so that mark.

3 million tonnes in the full proceeds 3 million tons instead of the 1 million tons or that you're going to get out of phase. One. So the work that we've done really now is to is to be able to accelerate phase II and then also start looking at phase III.

Turning over to you.

So we moved from one fantastic month to the other one.

I know that.

G M space is a bit of the to actually sustainable moments that it is going through right now, but can you just talk a little bit about flattish.

When you look at the end of the day, we will have at least 10 million ton operation readiness, which is over a million ounces, a foggy and huge credits of nickel.

A tiny bit on what the actual but it looks like first before I talk about the phases.

The ore body, what's different about this ore body is that it's 20% to 25% compared to the rest of the Bush felt complex, which is about one which is the current average and with the same grades the same great. So you're still sitting with you for two five grams per tonne.

So the timing of this will ever be done and it is done the phase III. If this will be complete merger.

Quarter three at the latest in a PEO.

10 million tonne case that we are busy with.

And while we're talking about these things we execute execution. So we're doing a lot of work at the moment to Derisk.

And huge nickel and copper credits, so you've got like a 3% nickel, which differentiates it massively from anything else in the sickness of this ore body, which makes it completely unique.

Just two in phase, one and accelerate the development of the month.

Another area I think.

To talk about is affected we had to close some offtake.

Amenable to mechanization and automation of Crystal.

For phase one has been placed with northern and the phase two with.

I wasn't Anglo platinum pool of about 23 years and I can tell you now.

Managed to place a big chunk of it.

This is the best ore body in the world difficulty scripted and unscripted thickness.

With Savannah.

We do have terms, so thats very favorable terms in the south African market and further downstream, we busy working with.

<unk> anything else.

What we did is we started off with the phase one, which we call a baby bond, it's too small and it's just something we've put together with the concentrate to that Steve will talk you through just now to get ourselves growing and understand the ore body.

As a joint investment with the big players in South Africa to do some announced beneficiary issue.

So I think all in all if you look at what we have the best platinum ore body in the world.

With us getting moving on phase one we've looked at how can we accelerate the development of this month, how can we accelerate this development and rigor in phase two and a meaningful level of production.

Accelerated development and hotel it's.

Alex If you can just show the Q1 cost position of where it's going to be in the next month.

So you will see from the <unk> that is actually going to be.

And as early as possible.

With the big shift that you see in the background of the picture with Thats basically a phase III portion.

The best place lowest cost producer in the world and Thats simply because you have the ore body, that's amenable to mechanization and automation, it's a very simple, but it's very hard right.

It's a huge soft it's going to be able to waste.

<unk> tons, a year, but the phase one and two.

Trying to use to optimize what we have in our footprint before this huge.

There's nothing else like this ore body in the world I know that for sure because of being in that space for a very long time.

<unk> is in place so phase one and two together will look we will give us the potential to at least three.

Okay, we can move on to Steven or you're going to carry on its just give an update on where we are the construction.

3 million tonnes, and therefore proceeds 3 million tons instead of the 1 million tons or that youre going to get out of phase. One. So the work that we've done really now is to is to be able to accelerate phase II and then also start looking at phase III. When you look at the end of the day, we will have at least 10 million ton operation readiness.

Yes, if you could just move to the next slide Matt.

So in terms of concentrates the concentrate to construction of about 80% complete to the coal Commission. This plant in August this year and they will start the plant up on run of mine H One next year.

Which is over a million ounces, a foggy and huge credits with nickel.

What you see there is a phase one plant.

So the timing of this will have a pea item and it is done the phase III, if it will be complete mid year.

<unk> II plant will be adjacent to the plant and it'll be a similar size to come out of phase one.

A total of 4 million tons of run of mine treatment phase one phase two and that'll give us about half a million ounces of three <unk> plus gold and about 10000 tons.

43 at the latest NFPA further.

10 million ton <unk>.

And while we're talking about these things we actually had execution. So we're doing a lot of work at the moment to Derisk phase.

Nickel production.

Phase II and phase, one and accelerate the development of the mine.

There is space on the mine footprint for the phase III concentrate as well.

Another area I think too.

To talk about is affected to hit to close some offtake.

Just to add we recently secured wassa for the mine.

For phase one has been placed with northern and the phase III.

We did a water treatment plant called <unk>, a few days away from the mine and we're receiving team water for the mine now and our connection to the Eskom grid is.

Managed to place a big chunk of it.

With savanna here.

We do have terms, so thats very favorable terms in the South African market and further downstream we are busy working with.

Imminence, we've just constructed 28 kilometer line from our Peru, two substation onto the mine, so everything going well at <unk> focus on phase II and phase III.

As a joint investment with other big players in South Africa to do some announced beneficiary.

So I think all in all if you look at what we have to base platinum ore body in the world accelerate development and Courtelle.

Thanks, Matt that's all for me next lotteries.

I think it's over to Marc.

It's not necessary.

Alex if you could just show the Q1 cost position of where it's going to be in the next month.

So maybe just quickly on <unk>, and we announced earlier last year that that will reach terms in terms of offtake, but we were surprised as did the favorable conditions that we could find in the local market for financing today.

So you will see from the <unk> that is actually going to be.

The best place lowest cost producer in the world and Thats simply because you have the ore body, that's amenable to mechanization and automation, which is terrific, but it's very hard right.

Diagnosed managed to conclude I $80 million facility with one of the local banks with very close to closing another facility with a local bank and then wait for all sides.

There's nothing else like this but in the world I know that for sure because of being in that space for a very long time.

Entered into discussions with multiple offtake partners.

Okay, we can move on to Steven or Youre going to carry on its just give an update on where we are the construction.

And that does discussions or nearing completion and it will include IP timing portion that will be associated with the offtake and titled facilities that we are planning to rise for completion would be in the order of between $100 million to $200 million sympathize with working capital.

Yes, if you can just move to the next slide Matt.

So in terms of concentrates concentrates.

Construction of about 80% complete.

Cold commissioning this plant in August this year and they will start the plant up on run of mine.

We are also planning to embark on logistics ourselves spoke appreciate a fabric setup and logistics company and we will be handling the logistics in house delivery at both times with the offtake.

Next year.

What you see there is a phase one plant phase.

Phase II plant will be adjacent to the plant and it will be a similar size to come out of phase one.

And regarding to the next slide I think molecule just quickly discuss the mining currently at completion.

A total of 4 million tons of run of mine treatment phase one phase two and that'll give us about half a million ounces of <unk>, plus gold and about 10000 tons.

I'll just talk you through the project update.

Thanks Mona.

So that could push you mined underground was a very nice if you like mining two beautiful month.

Of nickel production.

There is space on the mine footprint for the phase III concentrate as well.

<unk> stoping, that's fantastic ground.

Ms Derisked completely.

Maybe just to add we recently secured water for the mine be greedy.

We've done we've opened up seven levels are ready for the open stope as long haul open stoping.

We did a water treatment plant called <unk>, a few days away from the mine and we're receiving team water for the mine now and our connection to the Eskom grid.

And we've put a stockpile on surface, which people would laugh about low grade recalling at 22% 220 tonnes 220000 tonnes of ore, which we call low grade at 22%.

Imminent just construct to the 28 kilometer line from Peru to substation onto the mines, so everything going well at <unk> focus on phase II and phase III.

<unk> great runs at 35% average so it's a fantastic it's a fantastically in cold weather.

Zinc ore bodies, Gerry and it's well set up.

Thanks, Matt that's all for me next slide please.

Again, Stephen will talk to you ahead of schedule on the concentrate to the mining footprint is ready to go.

I think it's over to Marc.

It's not necessary.

Problem.

Because you do see any major risk to that it will be at the completion excuse me do you want to talk a little bit about the concentration in extra work. If you can just put the next lineup to Smith.

Maybe just quickly on <unk>, we announced earlier last year that we've reached terms in terms of offtake, but we were surprised as did the favorable conditions that we could find in the local market for financing today.

So very excited about Q pushy.

We've transformed the landscape if you push it look it's really looking fantastic.

To date, we've managed to conclude $80 million facility with one of the local bank with very close to closing another facility with a local bank and then wait for <unk>.

We slightly ahead of schedule sort of same timeline as Camilla Commission in June.

Because he was the lost electrical installation and the judge of Substations.

Entered into discussions with multiple offtake partners.

The process is exceptionally simple I mean, if you can just have looked at this five float cells in the whole plant very easy metallurgy.

That those discussions or nearing completion and it will include IP timing portion that will be associated with the offsite and tighter facilities that we are planning to rise for completion would be in the order of between 100 to 200 million to facilitate both working capital.

And the design throughput of 800000.

Tpa, but I think what we'll probably do ease of debottlenecking exercise and <unk>.

Increase that fairly significantly, but all looking good for pushy no issues whatsoever very excited about <unk>.

We are also planning to embark on logistics ourselves full capacity.

<unk> setup and logistics company, and we will be handling the logistics in house with delivery at both times with the offtake.

Thank you very much.

Sorry go ahead, operator, ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and then wait to hear your name amount to withdraw your question. Please press star one again.

With regard to the next slide I think molecule just quickly discuss the mining currently ask appreciate and thank Steve for <unk>.

Please stand by while we compile the Q&A roster.

Okay.

The project update.

Thanks Warner.

Our first question comes from the line of Andrew <unk> with BMO capital markets. Your line is open.

So that could push you mined underground was a very nice if you like mining to beautiful month.

Oh stoping fantastic ground.

Hi, good morning, congratulations on a lot of uptake that went into this press release and a lot of hard work I'm just kind of forward looking when all this power arrives from Zambia, and ink and even the backup power on site.

Ms Derisked completely.

We've done we've opened up seven levels are ready for their open stope Islamo open stoping.

We've put a stockpile on surface, which people would laugh about come in low grade recalling at 22% 220 tonnes 220000 tons of ore with record low grade at 22% demands great runs at 35% average so it's a fantastic fantastic zinc already as zinc ore bodies Gerry.

The rail is there any sense that this would cause kind of a a rethinking or optimization of the.

Mine plan.

Around Kumar.

Phases, 123, and I guess for you.

And it's well set up.

Again, Stephen will talk to you. We are ahead of schedule on the concentrate to mining footprint is ready to go.

Yes definitely Andrew.

So you'll see what we're doing now and it will be announced in the next couple of months.

Please see any major risk to that it will be it appreciate Stephen you want to talk a little bit about the concentration.

The same thing you saw with phase one and two.

Phase III will also do Debottlenecking, it and I think we can probably tweak up the production of ultra concentrated too.

If you can just put the next slide please.

So very excited about <unk>.

It's a statement we call it 14, because it's perfect.

We've transformed the landscape if you push it looked at is really looking fantastic.

<unk> 16 or 17.

Plus all the recovery work that were doing and Thats a few extra megawatts.

We slightly ahead of schedules sort of same timeline as Camilla Commission in June.

Gives us a little bit of time to get stability to the creatives in Tom face to face.

Busy with the lost electrical installation and in the Johnson of Substations.

Who when we went to it and I don't think it's in about two or three years' time.

The process is exceptionally simple I mean, if you can just have looked where there's five float cells in the whole plant very easy metallurgy.

We need to start executing so no risk around take short term power.

How is the issue that we need to just get over the nine months.

And the design throughput 800000.

Okay.

And the just a second question on the exploration.

But I think what we'll probably do is a debottlenecking exercise and <unk>.

Obviously very encouraging that further progress is being made on katanga, what what kind of timeline.

Increase that fairly significantly, but all looking good for pushy no issues whatsoever very excited about <unk>.

Should investors be expecting for updates and pushing ahead.

Yeah.

Yeah.

The usual torrid Ivanhoe pace.

You bet.

[laughter] usual tours Iva Lopez.

Thank you very much.

We've found 50 million tonnes of copper.

Sorry go ahead, operator, ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and then wait to hear your name amount to withdraw your question. Please press star one again.

The highest grade largest copper mine in the world.

In recent memory for sure.

We have no intention of slowing that down.

Please standby, while we compile the Q&A roster.

We have every incentive in the world to find more copper on the western Portland.

So we're talking about 500, 607 hundred 800000 tonnes of copper a year.

On our original joint venture ground, that's on 400 square kilometers.

Our first question comes from the line of Andrew <unk> with BMO capital markets. Your line is open.

We're into.

Designing and developing new production at Mon Coco and <unk>.

Hi, good morning, congratulations on a lot of updates that went into this press release and a lot of hard work.

I would say telcos. So here, we go we're going to keep drilling.

Just kind of forward looking when all this power arrives from Zambia, and ink and even the backup power on site.

Speaking of religious Ludmer drill rigs.

Keep going.

As I said earlier this is gonna be quicker than it was the best.

The rail is there any sense that this would cause kind of rethinking or optimization of the.

Started 25 years ago that was a very different DRC Congo than we have today today, we have.

<unk> wireless we are a new international airport.

The mine plan.

Fantastic access.

Around <unk>.

Brand New railroad that goes downhill to the ocean.

Phases, 123, and I guess for.

Yes definitely Andrew.

And we're going to have too much electrical power rather than not enough. So I guess it just a good way of saying that is.

So you'll see what we're doing now and it will be announced in the next couple of months.

We don't really have a shortage of copper.

The same thing you saw with phase one and two.

Can find proper faster.

Phase III will also do Debottlenecking, it and I think we can probably tweak up to production on ultra concentrated too.

To build a concentrator.

It's a market.

We can find we can build concentrator.

It's a statement we call it 14 basis, probably getting.

Plus so that we can build smelters.

16 or 17.

Produce copper metal.

Plus all the recovery work that we're doing and that's a few extra megawatts.

But.

We are the fastest growing.

Coffee company in the World.

Gives us a little bit of time to get stability to the creatives in Tom Phase four phase four when we went to it and I don't think it's in about two or three years' time.

Aligning our highest grade ores and we're the lowest global warming does.

With production so I quit.

We need to start executing so no risk around take short term, but how is the issue that we need to just get over the nine months.

20000 people there.

The median age of a person in the Congo is less than 19 years of age the workforce is fantastic.

Okay.

And just a second question on the exploration.

The support we've had from the government through our training programs, our environmental progress.

Obviously very encouraging that further progress is being made on katanga, what what kind of timeline.

ESG programs are without parallel.

Well I think all we need to do is get you off there Andrew you can stand at the drill rig.

Should investors be expecting for updates.

Cushing is ahead.

See this car come out of all of that to telco discovery.

The usual torrid Ivanhoe pace.

Yeah, No I'm a grandfather.

Thank you Beth.

I'll tell you pardon me something like that is exciting is there.

Usual torrid pace, while we've found 50 million tonnes of copper.

Anything you achieve in life.

Even a friend a geologist manage I'll just go through a lifetime and never get near a discovery.

The highest grade largest copper mine in the world.

Cooler or it could telco.

In recent memory for sure.

So we're going to put the pedal to the metal and.

We have no intention of slowing that down.

The pago debt to its rightful position as the largest producer of software in the world. There's no doubt that's achievable.

We have every incentive in the world to find more copper on the western Portland.

We're talking about 500, 600, 700 800000 tonnes of copper a year on our original joint venture ground.

Power line that we brought in from the use of dams.

It can carry 900 megawatts.

400 square kilometers.

We're doing close to 400000 tonnes of copper on.

We're into.

78 megawatts.

Designing and developing new production at <unk>.

At the highest grade copper ore bodies in the world.

<unk>.

The telcos. So here, we go we're going to keep drilling.

And you couple them with hydroelectric power.

And then you've got a really great long life hover nothing to beat that.

If it gets bigger, we'll just add more drilling rigs and keep going.

And so thanks for your enthusiasm and interest Andrew and your support over the years.

As I said earlier this is going to be quicker than even the best when we started 25 years ago that was a very different tier.

Let's extend that it's all a BMO has been a big supporter of all of our efforts because we are speaking here today from the BMO conference.

Congo that went out today today, we have.

<unk> wireless we are a new international airport.

We're scheduled to go down the stairs would give a speech.

Fantastic access of a brand new railroad that goes downhill to the ocean.

<unk>.

15 minutes, Thank you Andrew.

We're going to have too much electrical power, there's not a lot. So I guess I guess, a good way of saying that is it.

Thank you Robert I'll, I'm going to sign off as well and.

Tend to make fun of someone else. Thank you.

Thank you.

We don't really have a shortage of copper.

As a reminder, ladies and gentlemen that star one to ask a question. Please.

We can find copper faster, where we can build the concentrator is to bring it to market.

Please standby for our next question.

We can find we can build concentrator.

Our next question comes from the line of Lawson Winder with Bank of America Securities. Your line is open.

So that we can build smelters.

Produce copper metal.

Thank you very much operator, and good morning, Robert and team. Thank you for today's update fantastic as always just wanted to ask about the temporarily high cash costs and then in the outlook for 2025.

But.

We are the fastest growing copper company in the world.

Aligning our highest grade ores and we're the lowest global warming guess.

Period of production so why quit.

So last quarter you guys had two at.

20000 people there.

20% reduction versus I think what was the midpoint of the 2023 guidance. So that would imply about a $1 15 per pound I just I just wanted to make sure I had my numbers roughly correct.

The median age of a person in the Congo is less than 19 years of age.

Workforce is fantastic and the.

The support we've had from the government through our training programs our environmental programs.

Well I'd like to take a stab at that because I think people get very confused.

Jim programs are without parallel.

All we need to do is get you out there Andrew.

We have 78 megawatts of hydroelectric power we've developed.

<unk> said that the drill rig.

So far and good news is bad news here, we've developed this concentrate or at least six months ahead of the schedule. We told you about last year.

See this car come out of out of the telco discovery.

No I'm a grandfather.

I got to tell you pardon me if something like that is exciting is there anything youre achieving large even for any geologist manage I'll just go through a lifetime and never get near.

I can't think of anybody else building tier one month ahead of schedule Julien.

So with a concentrated starting up in June.

Discovery cooler or it could telco.

We have to burn diesel for six months until the end of them comes on.

We're going to put the pedal to the metal and.

So we're not going to burn diesel as soon as they get them comes out and we just announced an agreement with us.

The Congo get towards rights, our position as the largest producer of software in the world. There is no doubt that's achievable.

Signing an agreement today with.

So I'm gonna have to bring in hydro electric power or sort of this power issue.

The power line that we've brought in from Zynga dams.

The limiting factor is going away.

It can carry 900 megawatts.

So once the smelter is running as the Angola railroad is running well.

We're doing close to 400000 tons of copper.

78 megawatts.

We're saving about 20 cents a pound.

At the highest grade copper ore bodies of the world.

On transportation costs, because we're moving half the volume.

And you couple that with hydroelectric power.

<unk> got a really great long life hover netted to beat that.

Shipping, 99% copper and silver shipping 15 for southern copper costs, the cost and half per pound.

And so thanks for your enthusiasm and interest Android and your support over the years.

We're going to get the benefit of sulfuric acid is impressive.

Let's extend that it's all a BMO has been a big supporter of all of our efforts because we are speaking here today from the BMO conference.

So for the Gaslog, Glasgow was very high in the Congo.

Higher the copper price goes well how are the process of true Kastle goes and the problems that we get a leveraged effect because everybody screams for it for their oxide copper mines.

We're scheduled to go down the stairs to give a speech.

<unk>.

15 minutes, Thank you Andrew.

Thank you Robert I'm going to sign up as well.

Right now our current production.

Tend to make fun of someone else. Thank you.

Consumption.

Thank you.

So it's very close to the Congo, six or 7 million tons a year.

As a reminder, ladies and gentlemen, Thats star one to ask the question.

But that's going up and sort of maybe a smaller can provide 10% of what's required in Chicago.

Please standby for our next question.

Our next question comes from the line of Lawson Winder with Bank of America Securities. Your line is open.

Thank you.

The prices that we assumed on sales of sulfuric acid are very conservative.

Thank you very much operator, and good morning, Robert and team. Thank you for today's update fantastic as always just wanted to ask about the temporarily high cash costs and then any outlook for 2025.

So when we're running out of 100% hydropower.

<unk> got three mills are growing above their nameplate capacity I think a $1 15 is a perfectly realistic target.

So last quarter you guys had.

$1 10 to $1 30, and the midpoint of that range might be $1.20 or $1.15 sounds about right to me.

One 8% reduction versus I think what was the midpoint of the 2023 guidance. So that would imply about $1 15 per pound I just I just wanted to make sure I had my numbers roughly correct.

But you're also not generalize the comment yeah I agree.

Yeah.

Well I'd like to take a stab at that because I think people get very confused.

Yeah, Mark agrees, that's reasonable target that's right at the bottom of the world cost curves in money, but at the bottom of the World class driven global warming gas produced per unit of.

78 megawatts of hydroelectric power, which develops.

So far and good news is bad news here, we've developed this concentrate or at least six months out of the schedule. We told you about last year.

Copper for which we're going to get a premium.

We're absolutely certain.

When they get a premium for a clean copper.

Turning to a theater near all of Us.

I can't think of anybody else building.

Tier one mines out of schedule Julien.

[laughter], okay. Thanks, very much sure so that detail I also wanted to congratulate you guys on getting that agreement with the bond Yang nice that it potentially expandable.

So with a concentrate or starting up in June.

We have to burn diesel for six months until the anger Dan comes on.

What are you what are you guys thinking about in terms of option for processing the remaining part of phase two concentrate from.

So we're not going to burn diesel as soon as they get Dan comes out and we just announced an agreement we just signed an agreement today with.

From flat reef and this is a.

So I'm going to just bring in hydro electric power sort of with.

Based on our refinery on the table for something that I haven't who might build down the routers.

<unk> power issue.

The limiting factor is going away so.

So once the smelter is running as the Angolan railroad is running well.

It is the proposed Matt.

The solution to avoiding having to do that that's very much manav.

We're saving about 20 cents a pound.

Mark could you talk a little bit without mentioning names.

On transportation costs.

We're moving half the volume.

The nature of our discussions about going further downstream.

Shipping, 99% copper and silver shipping 15 for southern copper costs, the cost and half per pound.

Okay.

I'm going to ask Alex to Triptan, but definitely phase two I don't think we had risk Alex you want to carry on there.

We're going to get the benefit of sulphuric acid and the price of fuel.

No I would totally agree Mark I think.

So to us it is very high.

As to especially given that we've.

And the higher the copper price goes well how are the process of true Kastle goes and the problems that we get a leveraged effect.

So to modify the size around this 4 million ton hoisting capacity and we definitely see that there will be capacity in the South African market.

Screams for it for their oxide copper mines.

That concentrate and then really what we're looking at is a joint venture partnership on downstream processing, that's more geared towards phase III. When we have that huge shocked number two available we can increase our processing capacity up to 10 million tons per annum and at that point, where if not the biggest one of the absolute biggest PGM mines and also a huge produce.

Right now current.

Production.

Consumption.

So it's very close to the Congo, six or 7 million tons a year.

But thats going up and so maybe a smaller can provide 10% of what's required in the Congo.

I think the pricing.

Of nickel and copper so that becomes the limiting factor in terms of base metal refinery capacity in South Africa, but what we're looking at is potentially well either building, a greenfield site or even better to repurpose an existing.

Pricing that we assumed on sales of sulfuric acid were very conservative.

We're running out of 100% hydropower.

We got three mills going above their nameplate capacity.

At $1 15 is a perfectly realistic target.

Brownfield sites in South Africa, many good candidates.

<unk>.

$1 10 to $1 30, and the midpoint of that.

Can save significantly on time, and Capex and then the idea being that we would produce a a nickel map. So it's about 50% nickel by content, including the Pgm's and then that becomes a much more marketable product internationally to various different refineries.

The range might be a $1 20, or $1 15 sounds about right to me.

He also in our generalize the comment yes.

Yeah Yeah.

Mercury range, that's reasonable target that's right at the bottom of the world cost curves and money, but at the bottom of the World class driven global warming gas produced per unit of copper for which we're going to get a premium.

So out of the witnesses to reduce and then it's obviously phase threes that decision point that we need to make.

Yeah.

We're absolutely certain we're going to get a premium for clean copper also opening soon in a theater.

Okay. Thank you all very much.

Thank you.

I'm showing no further phone questions I would now like to turn the call back over to Matt.

All of us.

Okay. Thanks, very much sure so that detail I also wanted to congratulate you guys on getting that agreement with the bond Yang nice that it potentially expandable.

Thank you very much operator.

Coming up on the top of the hour. So I think we will wrap the call up there and as Robert mentioned he's got.

His keynote speech here. So we will wrap up today I'd just like to thank everyone for joining us. If you did have any questions that were not answered on the call. Pete. Please do reach out to us at the IR team, Tommy Alex or myself and we'd be happy to.

What are you what are you guys thinking about in terms of option for processing.

Remaining part of phase two concentrate from.

From flat reef and as is.

Finding answers for you, but we're looking forward to a very exciting 2024, and thanks again for joining US we can wrap up operator, ladies and gentlemen. This concludes today's conference call. Thank you for your participation you may now disconnect.

Based on our refinery on the table for something that I haven't who might build down the routers.

Is the proposed Matt.

The solution to avoiding having to do that.

Very much manav.

Mark could you talk a little bit without mentioning names and about the nature of our discussions about going further downstream.

Okay.

I'm going to ask Alex to Triptan, but definitely phase two I don't think we had risk Alex you want to carry on there.

No I would totally agree Mark I think from a phase two especially given that we have.

So to modify the size around this 4 million ton hoisting capacity and we definitely see that there will be capacity in the South African market.

Or that concentrate and then really what we're looking at is a joint venture partnership on downstream processing, that's more geared towards phase III. When we have that huge shaft number two available we can increase our processing capacity up to 10 million tons per annum and at that point, where if not the biggest one of the absolute biggest PGM mines and also huge produce.

Of nickel and copper.

That becomes the limiting factor in terms of base metal refinery capacity in South Africa.

We're looking at is potentially while either building, a greenfield site or even better to repurpose an existing brown.

Brownfield sites in South Africa.

Many good candidates.

Which can save significantly on time and Capex and then the idea being that we would produce a a nickel Max so it's about 60% nickel by content, including the Pgm's and then that becomes a much more marketable product internationally to various different refineries.

So we are out of the woods in phase III and then it's obviously phase threes that decision point that we need to make.

Yeah.

Okay. Thank you all very much.

Thank you.

I am showing no further phone questions I would now like to turn the call back over to Matt.

Thank you very much operator.

We're coming up on the top of the hour. So I think we will wrap the call up there and as Robert mentioned he's got.

I'll give you his keynote speech here. So we will wrap up today I'd just like to thank everyone for joining us. If you did have any questions that were not answered on the call. Pete. Please do reach out to the IR team, Tommy Alex or myself and we'd be happy to find the answers for you, but we're looking forward to a very exciting 2024, and thanks again for joining us.

Wrap up operator, ladies and gentlemen. This concludes today's conference call. Thank you for your participation you may now disconnect.

Okay.

[music].

Okay.

Okay.

[music].

Thank you.

Yes.

[music].

Yes.

Okay.

[music].

Okay.