Kamoa-Kakula sold a record 94 kilotonnes of copper in Q3
Ivanhoe Mines has reported that the Kamoa-Kakula Mining Complex produced 97,820 tonnes of copper in concentrate in Q3 2022, up from 87,314 tonnes in Q2 2022 and 55,602 tonnes in Q1 2022.
During the third quarter, Kamoa-Kakula sold a record 93,812 tonnes of payable copper and recognized revenue of $460.5 million, with an operating profit of $222.8 million and an EBITDA of $254.4 million.
Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was $1.05/lb. for Q3 2022, compared with $1.15/lb. and $1.08/lb. in Q2 2022 and Q1 2022, respectively.
Ivanhoe Mines added it recorded a profit of $23.9 million for Q3 2022, compared with a profit of $351.5 million and $85.4 million during Q2 2022 and Q3 2021, respectively. The quarterly profit includes Ivanhoe Mines’ share of profit and finance income from the Kamoa-Kakula joint venture of $74.9 million for Q3 2022, it said.
The company noted it has a strong balance sheet with cash and cash equivalents of $663.3 million as at September 30, 2022, and expects that Kamoa-Kakula’s operating and expansion capital expenditures on Phase 3 will continue to be funded from copper sales and additional facilities at the Kamoa-Kakula joint venture.
Importantly, Ivanhoe Mines pointed out it further increases the lower end of its 2022 production guidance range for Kamoa-Kakula to between 325,000 and 340,000 tonnes of copper in concentrate following the early commissioning of the Phase 2 expansion.
However, given ongoing cost pressures experienced during the second and third quarters, largely related to logistics costs, the company said it is tightening its full-year C1 cash cost guidance to between $1.35/lb. and $1.40/lb. (previously $1.20/lb. to $1.40/lb.).
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of major new, mechanized, underground mines at the Kamoa-Kakula copper discoveries in the Democratic Republic of Congo and the Platreef palladium-rhodium-nickel-platinum-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic Republic of Congo.
