Ivanhoe Mines (TSE:IVN) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight progress at its Kamoa-Kakula copper complex in the Democratic Republic of the Congo (DRC), a strong ramp-up at the Kipushi zinc operation, and the start of production at the Platreef platinum-group metals (PGM) mine in South Africa.
Kamoa-Kakula: Smelter ramp-up and logistics shift highlighted
Founder and Executive Co-Chair Robert Friedland said the company, together with Trafigura and Germany’s Aurubis, announced the first shipment of 99.7% copper moving via the Lobito Corridor to the Atlantic Ocean. Friedland described Kamoa-Kakula’s facility as “the largest smelter on the African continent” and a “direct-to-blister furnace,” calling it the most modern and “greenest” copper smelter to be connected to the new rail route.
Chief Financial Officer David van Heerden reported Kamoa-Kakula’s 2025 revenue of $3.3 billion (at a realized copper price of $4.40 per pound), up from $3.1 billion in 2024. Annual EBITDA was $1.4 billion with a 44% margin. Fourth-quarter EBITDA was $331 million, up 69% from Q3, though van Heerden said results were still affected by lower grades and ore processing.
In Q4, Kamoa-Kakula sold almost 79,000 tonnes of payable copper for $866 million in revenue at a realized price of $4.98 per pound. Van Heerden noted that tonnes sold exceeded tonnes produced, reducing contained copper inventory on hand to 50,000 tonnes at year-end. He said most inventory was ready to be processed by the Kamoa-Kakula smelter and expected copper held in stockpiles and the smelting circuit to fall to about 17,000 tonnes during 2026 as ramp-up continues. As a result, management expects 2026 copper sales to be at least 30,000 tonnes higher than 2026 production, with most of the drawdown occurring in the first half.
Van Heerden said fourth-quarter cash costs were $2.99 per pound of payable copper, reflecting higher logistics charges and G&A as more tonnes were transported to move the same amount of contained copper, along with certain one-off G&A items. Full-year cash costs were $2.16 per pound, within the company’s revised guidance range. For 2026, he guided to $2.20 to $2.50 per pound, and said costs are expected to improve in 2027. He also said the company expects logistics and treatment and refining charges to improve by about 30% due to the smelter and expects mining, processing, and G&A to improve by about 20% per pound as grades rise.
Operations update: dewatering, access work, and acid sales
Chief Operating Officer Tom van den Berg said Kamoa-Kakula still produced 389,000 tonnes of copper in 2025 and remained “comfortably within the Tier 1 operations.” He said Phase III was the “star performer,” producing a record 145,000 tonnes and operating at more than 30% above mill throughput.
Van den Berg said Stage 2 dewatering activities at the Kakula mine were completed, enabling access to higher-grade areas in Kakula East and Kakula West. He added that the western side of the mine was “totally dewatered,” with crews working to access high-grade areas. Guidance was reiterated at 380,000 to 420,000 tonnes, with a potential 2027 range of 500,000 to 540,000 tonnes cited on the call.
On the smelter, van den Berg said the facility was completed at a capital cost of $1.1 billion and produced its first anode in December. He also discussed sulfuric acid production, saying the smelter was producing about 1,200 tonnes per day at over 60% capacity and that realized acid prices had been “north of $450 a tonne,” reflecting strong domestic demand in the DRC.
Kipushi: record quarter, higher 2026 production guidance
Cloete called Kipushi “the rising star,” saying the mine produced over 200,000 tonnes of zinc in 2025 after completion of a debottlenecking project. She provided 2026 production guidance of 240,000 to 290,000 tonnes, and said 2025 EBITDA was $91 million.
Van Heerden said Kipushi set a quarterly production record in Q4 and sold almost 48,000 tonnes of payable zinc for record revenue of $138 million. Kipushi generated $44 million of EBITDA in Q4 and ended the year with full-year cash costs of $0.92 per pound of payable zinc; Q4 cash costs were $0.86 per pound. For 2026, Kipushi cash cost guidance was $0.85 to $0.95 per pound, including room for higher benchmark treatment charges.
Executive Vice President Corporate Development Alex Pickard said Kipushi’s December performance equated to about 270,000 tonnes annualized and described the operation as having a small footprint while expected to become the “fourth largest zinc mine in the world.” Pickard also said the company is working with joint venture partner Gécamines and an off-taker, Mercuria Trading, on options to recognize value for Kipushi by-product metals, including germanium and gallium, including potentially moving some concentrate to U.S. markets where zinc smelting and refining investments are being made.
Platreef: production started, Phase II expansion underway
Friedland said Platreef, after 34 years, “has initiated production,” and Cloete said the mine is undergoing its Phase II expansion, targeting a quadrupling of annualized production to about 450,000 ounces of precious metals by the end of 2027.
Pickard said the Phase I mill has been processing ore from development at lower grades and that “phase I will start properly once we begin stoping in around one month’s time.”
Executive Vice President for Projects Steve Amos said a key near-term milestone is commissioning Shaft 3 by the end of next month, a repurposed rock-hoisting shaft designed to relieve constraints at Shaft 1. He also provided an update on the larger Shaft 2, describing current work to expand and line the shaft for future phases, and outlined Phase II progress including contract awards and long-lead items, with the Phase II concentrator targeted for the end of 2027.
Safety, liquidity, and exploration plans
Cloete said the company’s total recordable injury frequency rate continued to track in the bottom quartile versus peers, but reported a fatal incident at Kamoa-Kakula during maintenance work at the Phase II concentrator where a flammable liquid ignited. She said one worker died from injuries and a second contractor remained in stable condition, with a full investigation underway.
At year-end, van Heerden said Ivanhoe had $885 million in cash and equivalents and short-term deposits, while Kamoa-Kakula had $311 million. He cited the September private placement with QIA and senior notes issued in January as supporting a “very comfortable position,” and said consolidated net debt to EBITDA was 2.1x.
On exploration, Pickard said the company drilled 53,000 meters at the Western Forelands in 2025 and is targeting an updated mineral resource estimate by mid-year. He said Ivanhoe’s 2026 exploration budget is $90 million, with $50 million planned for the Western Forelands and an overall target of 140 kilometers of drilling across its portfolio, including projects in Kazakhstan.
About Ivanhoe Mines (TSE:IVN)
Ivanhoe Mines Ltd is a mineral exploration and development company. The company, together with its subsidiaries, explores, develops, and recovers minerals and precious gems from its property interests located in Africa. The group explores platinum, nickel, copper, gold, silver, cobalt, iron, vanadium, and chrome. It operates in four segments: Platreef property, Kamoa Holding joint venture, Kipushi properties, and the Company’s treasury offices.
