Ivanhoe Mines: Soft 2Q26 - rebuild begins in 2H26...

Research evidence excerpt

Ivanhoe Mines: Soft 2Q26 - rebuild begins in 2H26...

04 4 0.00

2Q26: The key driver of weaker than expected 2Q results at KK was lower sales vs Q2 0.07 0.05 -24 0.03

production with unit costs of $2.84/lb lifting q/q but in-line with consensus and Q3E 0.08 0.06 -17 0.06

lifting to within unchanged annual guidance of $2.6-3.0/lb. Sulphuric acid credits Q4E 0.08 0.08 0 0.07

increased from Usc32/lb in 1Q to Usc39/lb in 2Q; but based on current market 12/26E 0.27 0.24 -11 0.22

conditions should lift to >Usc60/lb in 3Q; this should provide some cost tailwinds 12/27E 0.51 0.47 -7 0.45

but elevated energy prices are likely to persist. 12/28E 0.79 0.72 -8 0.69

2026: IVN narrowed 2026 copper production guidance from 290-330kt to 290- Daniel Major

Analyst 310kt; this still implies a step-up in production in 2H. The key operational driver in

daniel.major@ubs.com

2H26 is expected to be +30% in Kamoa mining rates to ~8.5Mtpa, supported by +44-20-7568 3472

additional crews, development and initial stoping activities and development of a

additional box cut. IVN also expects to de-stock 10kt of copper contained in Myles Allsop

Analyst inventory (concentrate/finished product) that should support higher sales &

myles.allsop@ubs.com

WC release in 2H. +44-20-7568 1693

2027-28: Achieving the targeted uplift to targeted 380-420kt in 2027 and 500kt George Eadie

from 2028 with need steady state mining of the higher grade Kakula mine to Analyst

results; to achieve this will require: (1) updated mine design; (2) re-design of george.eadie@ubs.com

hydrological models and improvement in mine drainage. To achieve this requires a +1-646-996 4596

longer period of up-front development in 2026/1H27 with stoping at Kakula

targeted to commence in 2H27 driving grade uplift needed to achieve 2027