Ivanhoe Mines (IVN) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw strong operational and financial performance, with Kamoa-Kakula producing 64,328 tonnes of copper and Kipushi delivering a record 70,177 tonnes of zinc at low cash costs; Platreef Phase 2 construction and Shaft #3 commissioning are on track for end-2027 completion.

• The 60 MW solar power plant's first phase is ramping up, expected to reduce diesel consumption by 25%-30% and provide reliable base load power.

• Western Forelands exploration advanced, with a major drill program and a resource update expected in September, targeting >30% resource growth and potential for shallow open-pit mining.

• Sulphuric acid sales offset smelter costs, with prices surging over 80% into Q3, providing significant by-product credits and boosting cash flow.

• DRC copper production rose 7% YoY to 3.2 million tonnes in 2025, maintaining its position as the world’s second-largest copper exporter.

Financial highlights

• Q2 2026 revenue reached $880 million, including $56 million from sulfuric acid sales and a $33 million positive mark-to-market impact; net profit was $46 million, with strong liquidity of $635 million in cash and equivalents at quarter-end.

• Adjusted EBITDA for the quarter was $179 million; Kamoa-Kakula's EBITDA was $385 million (44% margin), and Kipushi's EBITDA was $51 million (35% margin) on $146 million revenue.

• Kipushi recognized $148 million in revenue and $51 million in EBITDA at a 35% margin, with cash cost at $0.90/lb of zinc.

• Kamoa-Kakula produced 64,328 tonnes of copper at a C1 cash cost of $2.84/lb; Kipushi produced 70,177 tonnes of zinc at $0.90/lb C1.

• Pro-rata net debt to adjusted EBITDA was 2.48x at Q2 end; $750 million in senior unsecured notes due 2030 outstanding, yielding 7.542%.

Outlook and guidance

• 2026 copper production guidance for Kamoa-Kakula tightened to 290,000–310,000 tonnes; 2027 guidance set at 380,000–420,000 tonnes.

• Kipushi’s zinc production guidance maintained at 240,000–290,000 tonnes, targeting top-three global status.

• Platreef Phase 2 concentrator on track for Q4 2027 completion; commercial production expected Q4 2026, with financing secured and construction progressing.

• Sulfuric acid prices surged to $840/tonne in July, expected to significantly boost byproduct credits and cash flow in Q3.

• Western Forelands resource update and technical studies to inform future development, with ongoing drilling and early project establishment.