Canadian miner Ivanhoe Mines posted a loss of $2-million and a total comprehensive loss of $35-million for the quarter ended March 31 – the first quarter of its 2026 financial year – compared with a profit of $122-million and total comprehensive income of $128-million reported for the first quarter of 2025.

The company attributed the loss for the period to the company’s share of loss from the Kamoa Holding joint venture (JV), in the Democratic Republic of Congo (DRC), of $42-million, compared with a profit of $108-million in the prior comparable quarter.

Kamoa Holding incurred a loss for the quarter owing to a $183-million tax adjustment to settle tax claims related to tax audit assessments in prior years.

Ivanhoe points out that, although the JV files a tax return every year, the DRC tax authorities have up to five years to audit and raise any disputes arising from tax filings.

“Differences can arise due to ambiguity in mining taxation in the DRC. When disputes arise, DRC companies can either follow judicial proceedings or settle the matter before it goes to court. Kamoa Copper’s tax settlement pertains to disputes raised for the 2022 to 2024 tax years.

“It is Kamoa Copper’s expectation that the $183-million settlement will close out any income tax disputes up to the end of 2024. The total income tax expense previously paid for the period from 2022 to 2024 was $729-million,” it notes.

Meanwhile, Ivanhoe says the total comprehensive loss for the quarter included an exchange loss on translation of foreign operations of $33-million, compared with an exchange gain on translation of foreign operations recognised for the same period in 2025 of $6-million, resulting mainly from the strengthening of the South African rand by 3% from December 31, 2025, to March 31, this year.

Ivanhoe further reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $191-million, compared with adjusted Ebitda of $226-million in the first quarter of 2025.

The adjusted Ebitda included $158-million of attributable Ebitda from Kamoa-Kakula, compared with the $231-million contribution in the prior comparable period.

Nevertheless, Ivanhoe continues to advance developments at its three main Tier 1 mining operations – Kamoa-Kakula and the ultrahigh-grade Kipushi zinc/copper/lead/germanium mine, in the DRC, and the Platreef platinum/palladium/nickel/rhodium/gold/copper mine, in South Africa.

“Our Kamoa-Kakula copper complex and smelter are ramping up in a very strong price environment for the two most critical elements on our planet: copper, which is the king of metals, and sulphuric acid (H₂SO₄), which is the king of chemicals.

“Kamoa-Kakula benefits from a powerful natural hedge: our sulphuric acid production. H₂SO₄, which is a by-product of our copper smelter, is growing into a one-million-dollar-a-day operating credit, massively offsetting rising diesel prices. This advantage is supported by our high-grade ore, which has the lowest hydrocarbon intensity per tonne of produced copper of any major mine in the world,” Ivanhoe founder and co-chairperson Robert Friedland acclaims.

Concurrently, the team is executing a disciplined turnaround at Kamoa-Kakula, he points out.

An updated Kamoa-Kakula life-of-mine integrated development plan details a launchpad for copper production to return to over 500 000 t/y.

“The plan is clear; the execution is under way . . . and the strong tailwinds in copper prices adds to the momentum. We will fully capitalise on our strategic advantages,” Friedland says.

Meanwhile, construction of the Platreef Shaft #3 was completed on schedule, increasing hoisting capacity five-fold, which is expected to increase production in the quarter to end on June 30.

Earthworks are also under way on Platreef’s Phase 2 concentrator, with the aim to markedly increase production from the fourth quarter of 2027.

Ivanhoe has also closed a $700-million Phase 2 project finance facility for Platreef.

In December 2023, Ivanhoe’s subsidiary Ivanplats concluded a senior debt facility with Société Générale and Nedbank to fund the construction of Phase 1. An initial $70-million was drawn, with a further $30-million drawn in the second quarter of 2025.

Following the completion of a Phase 2 expansion study, Ivanhoe entered into negotiations to enlarge the project finance package to fund the Phase 2 expansion's capital requirements. In January this year, credit approvals were received, and underwriting engagements were signed with Société Générale, Absa Bank and Nedbank for a $700-million senior project finance facility.

The Phase 2 facility amends and upsizes the Phase 1 facility, resulting in about $600-million of net additional capital. Financial close of the upsized senior project finance facility took place on April 30.

Financing for the future Phase 3 expansion at Platreef is expected to be underpinned by cash flow generated from the Phase 1 and 2 operations.

EXPLORATION

Friedland lauds the company’s exploration efforts, stating that Ivanhoe leads the copper world in its exploration programmes.

“We have extremely strong momentum in the discovery process for major copper systems. The Makoko District copper discovery in the Western Forelands is an emerging giant in the making, and its significance is growing around the clock. Soon, we will reveal our development plans for the Western Forelands,” he informs.

Ivanhoe's group exploration budget has been upsized to $127-million for this year, from the previously guided $90-million.

The revised 2026 budget is more than double the group's 2025 exploration expenditure of $60-million, as confidence continues to grow across the company's exploration portfolio.

Of the $127-million budget, $86-million will be spent on exploration at Western Forelands in the DRC.

A further $20-million will be spent on exploration activities at Ivanhoe’s JV with UK-based Pallas Resources, in Kazakhstan. Ivanhoe holds a 20% interest in the JV, which is focused on unlocking the potential of the Chu-Sarysu copper basin in the Central Asian country.

Ivanhoe has the option to increase its interest in the JV to 80% through staged earn-in milestones.

The remaining funds will be spent on exploration in the Moxico and Cuando Cubango provinces, in Angola; the North-Western province, in Zambia; and the Mokopane Feeder project, in South Africa.