Ivanhoe Mines' Kamoa-Kakula produces first Cu anodes

Executive Summary

• Ivanhoe Mines achieved first copper anode production from its Kamoa-Kakula on-site smelter on December 29, 2025, marking a key milestone in the facility's ramp-up phase.
• The 500,000-tonne-per-annum smelter is expected to reach steady-state operations by year-end 2026, significantly reducing logistics costs and expanding operating margins through higher-value product sales and byproduct revenue.
• Concurrently, Stage 2 dewatering at the Kakula Mine is complete, with selective mining commencing ahead of schedule on the eastern side, while head grades on the western side are projected to increase from 3.5% to 4.0% copper by the end of Q1 2026.

Key Details

• First Anode Production: Achieved on December 29, 2025, approximately five weeks after heat-up commencement and one week after the first feed of concentrate.
• Smelter Capacity & Timeline: The facility has a capacity of 500,000 tonnes per annum of 99.7% pure copper anodes. Ramp-up continues throughout 2026, with steady-state completion expected toward year-end 2026.
• 2026 Production Guidance: Kamoa-Kakula copper production is estimated at 380,000 to 420,000 tonnes for 2026 (midpoint 400,000 tonnes), representing ~80% of smelter capacity.
• Inventory Destocking Impact: 2026 copper sales are expected to be ~20,000 tonnes higher than production due to the destocking of ~37,000 tonnes of on-site concentrate inventory, which is expected to reduce to ~17,000 tonnes by end of 2026.
• Logistics & Margin Expansion: Logistics costs are expected to halve as the copper content per truckload exported doubles (from ~45% contained copper in concentrate to 99.7% pure anodes).
• Byproduct Revenue (Sulphuric Acid): The smelter produced its first batch of sulphuric acid. At steady-state, it is expected to produce up to 700,000 tonnes per annum. Spot prices in Kolwezi have reached as high as $700/tonne. First sales have already occurred.
• Power Infrastructure:
  • A 60-megawatt uninterruptible power supply (UPS) was completed prior to first feed, providing up to two hours of backup power.
  • Construction of a 60-megawatt on-site solar (photovoltaic) facility with battery storage is progressing; expected to be operational from Q2 2026, becoming the largest such facility in sub-Saharan Africa.
  • Existing diesel backup capacity is ~180 megawatts.
• Kakula Mine Dewatering & Mining:
  • Stage 2 dewatering is complete; pumps 3 and 4 ran dry in late November, lowering water levels by 19 meters. Pumps 1 and 2 are expected to run dry in January 2026.
  • Stage 3 dewatering (recommissioning horizontal pump stations) will begin once access is available, continuing into Q2 2026.
  • Selective mining on the eastern side of Kakula began ahead of schedule in late December 2025.
  • Head grades on the western side are expected to rise from 3.5% copper in January to ~4.0% by the end of Q1 2026.
• Health & Safety Record: The smelter construction involved 18 million man-hours with only one lost-time injury (LTI), resulting in a Lost-Time Injury Frequency Rate (LTIFR) of ~0.054 per million hours worked.

Notable Quotes

• Robert Friedland, Founder and Executive Co-Chairman: "The first production of copper anodes from our world-class smelter is a defining moment for Kamoa-Kakula. This achievement is the culmination of a $1.1-billion investment, 18 million man-hours of disciplined execution, and an outstanding health and safety record... This facility will proudly deliver the highest-quality Congolese copper anodes to the international markets, setting a new global benchmark for scale, efficiency and sustainability."