Ivanhoe Mines Ltd.

Good morning, ladies and gentlemen, and welcome to the Ivanhoe Binds Limited Q2 earnings call. At this time, I'll answer in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Thursday, July 31st, 2025. I would now like to turn the conference over to Matthew Keevil, Director, Investor Relations and Corporate Communications. Please go ahead.

Thanks very much, Operator, and good morning and afternoon, everyone. It's my pleasure to welcome you to Ivanhoe Mines' second quarter 2025 financial results conference call. As the operator mentioned, my name is Matthew Keeble. I am the Director of Investor Relations and Corporate Communications with Ivanhoe Mines. On the line today with the company, we have Founder and Executive Co-Chairman Robert Friedman, President and Chief Executive Officer Marna Cloutier, Chief Financial Officer David Van Hilden, Chief Operating Officer Mark Farron, and Executive Vice President Corporate Development and Investor Relations Alex Pickard. We will be finishing today's event with a Q&A session. You can submit a question using the Q&A box on the webcast as well as through the conference operator via your phone line. Please do contact our Investor Relations team directly if your question is not addressed during the call. We'd be more than happy to follow up with any unanswered questions. And before we begin, I'd like to remind everyone that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Details of these forward-looking statements are contained in our July 30th news release, as well as on CDAR Plus and at www.ivanhomeminds.com. It is now my pleasure to introduce Ivan Home Minds founder and executive co-chairman, Robert Friedman, for opening remarks. Robert, please go ahead.

Thank you and best of wishes to everybody from Switzerland. It's a beautiful day here and I want to start by thanking everybody on the operating team at Komoku Kula for having experienced a bump in the road. immediately getting to work on restoring Ivano Mines as the fastest growing and best new major mining company in the world. I also want to thank very much the people in our Chinese office and our partners at Zijin and CITIC, who expedited a major effort to get world-class pumping systems in place on the site already in record time. And we're going to be telling you more about that pumping and our plans for the future imminently. But never have I seen such a great effort by such a diverse group of people responding to a challenge and working rapidly to overcome it. So with that, and without further ado, let's go on to the management team. Thank you.

Thank you, Robert. This is Marina. Maybe just flip back to that previous photo. where Robert was talking. So there you can see the team. That's the first submersible pump that arrived on site. It was flown there on a Boeing. So we are all flying in four of these pumps and then we also bringing in a spare pump on a ship. So quite a magnificent effort by our team. If we can then go over to my highlights. I think this picture tells a big story. We've been in operation for five years now and the old truck you see there in the back was one of the first fleet that we used underground at Kamaukakula. We have now successfully rebuilt this fleet and you can see the maintenance team standing in front of it that's very proud of its first rebuild and we use this exercise as a skills transfer exercise and it also shows how the mine is slowly maturing to become one of the biggest, best copper mines in the world. So with that as an intro, I will quickly talk you through the highlights of the quarter. So despite our operational challenges, and it feels like I've been engaging with most of you and surely our team out of London and Vancouver as well, continuously and Robert, over the past two, three months, we have returned a positive net cash flow of about $169 million for the second quarter. and we spoke about the dewatering activities, all our dewatering activities are on track and we should be dewatered by the end of this year. Our phase one and two concentrators are operating at between 80 to 85 percent capacity And phase three is operating at above 30% capacity. So really just one of those success stories. We are planning to start the smelter in September still. And what's quite exciting for us is, you know, as we get closer to production at Platrief here in South Africa, We see a turn in sentiments around PGMs with platinum and palladium prices at a high. So bringing online a blood reef just at the right time. And then we're also in the final stages of completing the Capucitti bottlenecking project. and that should enable us to increase our production capacity with about 20%. You can see the statistics there on the left-hand side of the slides. I'm not going to delve into that because David Van Yerden, our CFO, will talk you through the financials. If we then go to the next slide, I think it would be amiss not to just discuss our safety achievements that we've had during the quarter. I think when a company experienced the type of event that we did in May and you get through it without any lost arm injuries, it's a significant accomplishment and I would like to commend the team at Kamau Kakula for handling the situation with absolute maturity and professionalism and looking after all our people. And it's a team effort. It's not just one person that makes a mind safe. It's a culture of safety and it's everybody working together to ensure that we look after each other. But also another significant achievement that should not go unnoticed is that the Kapushi project engineering team has not recorded a single lost time injury since the construction of the Kopushi concentrator and throughout the de-bottlenecking program. So that's also a significant milestone and something that we are very proud of. And then going to the next slide just on our sustainability efforts and there's a little deck we produce with our quarterly news releases where you can see what we are up to. But this quarter we decided to showcase Kapushi. I think we really show sort of the photos of what we achieve at Kapushi. But what we've done over the years is we've replicated what we've done in Kamau Kakula at Kapushi on a slightly smaller scale. but we've started aquaculture and agricultural community projects. There's about 53 fish ponds at Kapushi, and 21 hectares of agricultural farming, and as well as poultry farming, similar to what we have at Kamaoka Kurland. And these projects really influence the whole town. It provides food security and business opportunities for the local community members that's not employed at the mine. So with that as an intro, I will now hand over to David Van Heerden to take you through our quarterly financials. Thank you, David.

Thank you, Marna. And good morning and good day to everyone joining the call today. We can move straight into the next slide. Notwithstanding the impact of the seismic activity in May, Kamoaka Kula sold almost 102,000 tonnes of copper in the second quarter. That's just 8% down from the 110,000 tons sold in Q1. Contained copper in concentrate inventory on hand increased to 53,600 tons, up from the 48,000 tons on hand at the end of Q1. Approximately 31,500 of those tons are located at Kamau Kukula's on-site copper smelter, for a buffer during the ramp-up. And 18,500 tons of the remaining unsolved copper was stored at the nearby Lualaba copper smelter awaiting toll treatment. We expect that to decrease gradually over the next few months, which would mean that sales tons would exceed tons produced in the coming quarters. Kamauka Kula recorded revenue of $875 million in the second quarter of 2025, and that at a realized copper price of $4.34 per pound of payable copper. Revenue included a gain of $6 million on the mark-to-market of provision price sales, and while the Q1 results included a gain of $51 million. Moving to the next slide. Kamoa Kukula recorded EBITDA of $325 million for Q2, which was impacted by the lower tons sold, lower grade processed, and abnormal costs as a result of the seismic activity, but more on that on a later slide. and cash costs for the second quarter was $1.89 per pound of payable copper, with cash costs for the year to date sitting at $1.78 per pound of payable copper. The increase in cash costs in Q2 2025 was driven primarily by lower grade of ore processed, which included stockpiled ore since May. And the quarter's results just really show how well diversified and resilient Kamaoka Kula is as a mining complex with its various mines, concentrators, and ample infrastructure. And moving to the next slide where we illustrate Kamaoka Kula's Ibida waterfall. The EBITDA waterfall highlights the drivers of the quarter-on-quarter EBITDA change. The decrease in tons sold contributed 49 million to the quarter-on-quarter EBITDA decrease, and that can sort of be seen in red there on the left-hand side of your screen. And while there were favorable changes on the copper price and logistics and treatment and refining charges. And in Q1, as I've mentioned previously, we recognized a $51 million gain on the market-to-market of provisionally priced sales, which was only $6 million in Q2, and that resulted in a $45 million delta when comparing the two quarters. Realization cost was slightly up from Q1. And then there was the big standout abnormal cost due to seismic activity. So for Q2, the cost that did not contribute to production from May onwards were identified in ring fence and classified as abnormal cost. As for the accounting standards, these costs are not included in inventory and expensed straight into cost of sales. So in simple terms, the abnormal cost strips out the cost in the quarter related to the downtime at Cucula. As an example, and I'll go into a bit more detail because I've seen there's some analyst questions around the abnormal cost. So as an example, all the costs at Cucula as a business unit, was classified as abnormal since the mining ceased until it recommenced. So abnormal costs therefore includes the dewatering response costs, both permanent and temporary underground pumps, and infrastructure to regain the lost pumping capacity, stabilize water levels, and resume the limited mining in the West. and would of course include the electricity for the dewatering effort. It also includes the cost of idle crews until we were able to utilize them at Kukula West or at Kamoa, as well as similar costs that did not contribute to production. The abnormal cost treatment was applied to the Kukula mine operations, both east and west, until the operations recommenced on the west and thereafter it was applied to the east and dewatering only. And so with the mining crews now and no longer idle, we do expect that the abnormal cost for the third and the fourth quarter will only be the cost linked to the dewatering and likely only the electricity costs because of the fact that the pumps are already procured and still new and limited maintenance is required. So not a reoccurring item essentially. And, of course, the seismic activity resulted in additional inefficiencies over and above that normal cost, and that resulted in further quarter-on-quarter impact on cost of sales, which also impacted on C1. We are going to a little bit more detail on the following slide. Kamathakula recorded an impairment of $59 million in the second quarter of 2025. where specific assets, including fleet, pumps, and other assets impacted by the seismic activity and resulting water inflow, were identified that may be lost or irrecoverable. This included a full assessment of assets the team believes are completely unrecoverable, as well as an impairment charge on the assets that are potentially recoverable using a probability assessment. So ultimately a fairly small number given the scale of the incident, I think. Moving on to the next slide. We have revised our 2025 cash cost guidance range to between $1.90 and $2.20 per pound of payable copper. The increase from our previous guidance is driven by the impact of the lower expected feed grade of ore into the concentrators for the remainder of 2025. Grade mined at Kukula was roughly 5% before the seismic activity, and now we expect the average feed grades into the phase 1, phase 2 concentrators to be approximately 3% of copper until the end of the year, and will be sourced from both surface stockpiles as well as from the western side of the Kukula mine. I would like to stress that this elevated cash cost level is only temporary while the Kukula mine is undergoing the turnaround, and we will get back to the higher portions of Kukula later this year, and then cash costs will obviously drop again. and it's also noteworthy that we will of course get the cash cross reduction benefits of the smelter from very early next year And as we've explained in the past, this will at the very least half the logistics cost, which was 49 cents in Q2 as shown on the breakdown on the right. And this decrease is due to the smelter halving the volumes that will be transported due to the anodes being more than double the grade of the copper concentrate currently being produced and transported. As we turn to Cappucci on the next slide, Cappucci has again contributed positively to our EBITDA while the ramp up to optimal levels continue. Mark will talk you through the production results, which has been positive since the completion of the first debulking step, but we look forward to seeing improved financial results once step two is completed later this year. The cash cost of Kapushi has been controlled nicely and sitting right in the middle of our 2025 gardens range, and we expect that mining support services and processing costs will come down as production increases in the remainder of the year. Turning to Ivanhoe Mines and consolidated profit and EBITDA on the next slide. And Havana reported a quarterly adjusted EBITDA of $123 million in the second quarter of this year. And that's lower than the Q1 EBITDA and due to the low attributable EBITDA from Kamoa Kokula for reasons I've already explained. And adjusted EBITDA for the first six months of the year was $353 million. Even with the seismic activity experience at Kamaukakula during the quarter, Ivano still recorded a profit of $35 million in Q2 and a profit of $158 million for the first six months of the year. Turning to the liquidity snapshot on the next slide. I mean, this slide is pretty clear that Ivano had $672 million of cash and cash equivalents on hand at the end of June, while Kamoa had cash on hand of $246 million. So we are very well placed to deliver this short period of recovery. We look at Kamoa's CAPEX guidance revision on the next slide. And after careful review of the capital expenditure requirements for the recovery and optimization efforts of the MOA, we lowered the top end of our 2025 guidance range. The change includes deferring certain non-essential capital projects, while the cost required for the Phase 1 and Phase 2 pumping, as well as a new box cut, an additional decline at Konsoke, and a decline at Kamoa too, has been incorporated. We have also updated our 2026 guidance to cater for the latest mine plans and to include the portions of this recovery capital that will be spent next year. This range has been made wide enough to provide ample contingency for additional work as the plans are firmed up. But the top end might very well decrease as these plans are finalized. Now turning to our CAPEX plans for Platte Reef and Capuchin on the next slide. And we have kept spending on our growth plans on track during the second quarter and keep our guidance unchanged. Expenditure at Platte Reef is tracking at the lower end of our 2025 guidance and with Phase 1 almost complete. We drew an additional $30 million on Platte Reef's senior debt facility during the quarter and we also continue to advance Phase 2 development and negotiations for a $700 million Phase 2 Senior Project Finance Facility, which is expected to close in the first quarter of 2026, is going well. And the first phase of Kapushi's new bottlenecking program was completed in June, with the second phase on schedule to be completed in August. And Mark will talk more about that later in the presentation. Looking at our pro rata financial ratios on the next slide, our leverage ratio has increased a little from where it was at the end of Q1, but it remains relatively low, even with the well-timed completion of our $750 million notes that was closed in January. Our target net leverage ratio remains one, one times through the cycle. And although it's higher than the self-imposed target on a backward-looking basis at the moment, it will come down pretty quickly when the Cucula recovery plan is complete. And as I already mentioned, we're in a very healthy pro-rata cash position. And at the end of June, our pro-rata cash on hand was $774 million. With that, I hand over to Alex Pickard, our Executive Vice President, Corporate Development and Investor Relations, to cover the exciting operations and project updates, together with Mark Farron, our COO.

Thank you, David, and good day to everyone on the line. It's Alex Pickard here first, and then I'll share the honours on this section with our Chief Operating Officer, Mark Farron. You can see on the photo here two of our mine superintendents recently underground at Kukula. So we can certainly prove to you that the mine hasn't gone anywhere. But for the avoidance of doubt, that is not myself and Mark pictured in the photo. We can move to the next slide, please. So this slide is the usual recap of production at Moa Kukula during the second quarter of 2025. So, as David alluded to, overall the drop in production quarter on quarter was not actually that dramatic, but we did have the benefit of a record month in April, which was our first month operating at over 50,000 tonnes of copper production, which is over 600,000 tonnes of copper annualised, so that was a huge milestone prior to the unfolding of the seismic events. So, those events, as mentioned, really began in mid-May, and they did have a significant impact on our mining and processing at the Kukula operation, at least from that point onwards. We lost around three weeks of operations at Kukula in total due to stoppages, but since we restarted underground mining on June 7th, we have been operating at a curtailed mining rate supported by the stockpiles, but Mark will comment in much more detail on our plans to resolve that in the next few slides. Looking at phase three in isolation, I think Marna mentioned this, it was a fantastic quarter coming from the Kamoa operations, record throughputs of 1.6 million tons from Kamoa phase three, which was very close to 6.5 million tons annualized, and that's without any further spending on debottlenecking. It was also a record in terms of grade at 2.92%, so again, very close to three. And then the recovery of 86% was basically closing in on the design parameter before any of the sort of Project 95 or Project 92 optimization. So over 41,000 tons of copper was produced during the quarter from phase three alone. I'll pass to Mark Farren to take you through the next few slides on the dewatering progress in the mining side of things.

Thank you Alex. Maybe just to reflect backwards to, I think Robert referred to it as the bump in the road. It's not a brick wall, it's a bump, it's a big bump, but it is a bump. So since the seismic activity happened in May, we had to do two stages of dewatering. The one was to stabilise the water levels as they were flowing into the mine because There's a water inflow of 3,700 litres per second every second all the time on the mine. All the vertical pumping infrastructure remained intact, so it was really figuring out how to feed that vertical pumping infrastructure from different areas within the mine. So if you have a look at the dotted lines on the eastern side, so basically to the left-hand side of your page, Those dotted lines are the areas that are currently being mined. And basically that sort of shows you where the water levels are in a saddle between the east and the west. So stage two is really to lower that water completely down, all the red areas basically on the west and the east. And once we've done that, we would have dewatered the mine completely. And I'll talk a little bit about that on the next slide. Next slide, please. So if you have a look at what we've done is we've got the delivery of the first, the first pump is actually on site at the moment. We're going to put in four, four of these big 650 litre per second pumps. They're 2,000, they are, they're 2,000 kilowatt pumps each. And they're going to go in sets of two. I think it's about 150 tonnes of steel in pumps. It's going to be lowered down. two of the raised boards that we have. One is the old multistage pump area and one is a vent shaft, which sort of moves right into the centre of the footprint. And if you can imagine, so these are submersible multistage pumps. They'll be lowered into the water, basically close to the bottom of a mine, and then switched on. With that infrastructure pumping, it's at about 2,600 litres per second. and you've got your other infrastructure being lowered downwards, you'll quickly dewater the mine. The plan is actually to be completely dewatered by December. That's the plan that we have. But as we move down, we'll have access on the western side of the mine, which also happens to be the higher grade areas that Alex was referring to just now. Next slide, please. So if I can refer you guys to this slide. The one, the two and the two, those are the areas that you're mining at the moment. And then that dark red in the middle is the area actually east to west, east to west, where your high-grade mining zone sits. It also happens to be at the bottom of the mine. And in terms of where we are, we've done stability. We've managed to create stability. So in other words, we're pumping all the water that flows into the mine is being removed from the mine. It's stable. We have started mining on the west with a number of crews, about between 10,000 and 15,000 tonnes per day, but it's not the grades that we want to mine in the longer term, obviously. So 10,000 to 15,000, we need about 15,000 tonnes a day to run one of those concentrators, one of the two concentrators. So the rest, to get to the 80%, 85% production or feed, is being fed from stockpiles at the moment. Then there's a plan on the eastern side to develop new mining to the areas beyond the area that was impacted by the seismic activity. That development's already underway. It's going quite nicely. And then we said we're going to dewater the Kukula mine. So the target is from August. So the first set of pumps, a set of two big multi-stage pumps. will be switched on towards the end of August and then the next set will go in September and then we'll be dewatering that mine. Complete geotechnical assessment and then redesign basically from there. We have done a lot of work with David Beck, and we've got some of the best geotech experts in the world looking at what happened, number one. Number two, also looking at how we're going to lay the mines out going forward, not only this mine, but obviously the rest of the mining footprints at Kamoa and Kakula and Kansoko. We're quite excited. about what we're seeing and I'll get to it when I refer to it on the next slide. Next slide please. So if you have a look at this slide on the right hand side is the east. We are doing redevelopment, we're planning it and we've started executing that redevelopment to open up the footprint on the other side of where the seismic activity occurred. We won't have a full assessment of the damage of the areas that were mined until we've completely dewatered the workings on the eastern side. And that will be by December, as I said before. It is very possible that we'll get through some of those areas and re-establish mining on the other side. But the backup plan is this black redevelopment that you see. That redevelopment will be done by next year, and after that we'll be back into the footprint on the east. On the western side, it's really lowering the water levels. We are in on the south and the north, as I said earlier. But to lower the water levels, what's important is to get back into the plus 5% copper. As we lower the water levels, it should happen in this year, so quarter four in this year, we should start seeing an improvement in the mine grade on the western side. So I think all in all, it's really getting the water levels down, re-establishing the East as a worst case scenario, and then getting the mine up and going. And we're talking about this mine only. In terms of where we are, I think the next milestones for us will be to come back to the market and the people that are listening on this call and explain what things look like for the future, short-term future. I will have something by September, which will look at the remainder of 25, which has already been forecast, 26 and 27, and probably I look forward to what the steady state looks like. I'm personally quite upbeat that we will be in the year 27. We'll be up and around the numbers that we were aiming at before. That's where I am personally, and we'll have to come back to you on those issues. And then we will... complete a full life of mine integrated development plan by quarter one 2026 with the right building blocks and with the right of sequencing of all these mines for the next 40 years. It still remains a fantastic ore body. It's the best ore body in the world. We've managed to look at a number of opportunities, especially around Kamoa, one and two, and Konsoko, in fact, as well, which open up more opportunities for us, short-term and long-term. And obviously we'll have to completely re-look at, geotechnically, at the way we've been mining at Kukula. But I think all in all, the long-term prognosis to me is solid. As solid as you'd like to see. Thank you. Next slide. Do you want to talk about the processing strategy, Alex?

Yeah, thanks, Mark. I think it's back to me on this one. So... This is talking about the concentrators, and we did show a similar slide to this on a previous conference call. This is really the processing strategy for the remainder of 2025. So in the bar charts on the right-hand side, first of all, looking at the left-hand bar, that's the phase one and two concentrators with 9.2 million tons of nameplate capacity. Really our aim and where we are right now is filling those concentrators at roughly 80 to 85% of total capacity or potentially more if we can possibly manage it. So today around 50% of that capacity is being fed from the ore stockpiles that we have. at a grade of 2 to 2.5% copper, and the remaining 50% is being fed from the successful restart of mining operations from Kukula West, albeit in that kind of limited footprint until the dewatering advances. So that is sort of roughly a 3% grade, will hopefully be a 4% grade before too long and then getting back up towards 5% grade by the end of the year. Through the year, you will start to see a bit of a shift in this balance, probably in favor of more altons coming from the run of mine, both from Kukula and then also potentially supplemented by run of mine ore coming from the Kamoa side, and obviously that stockpile contribution will also start to reduce. In terms of those stockpiles, we do have enough to basically keep on running until they're depleted in Q1 of next year, and by that time we should have ramped up other mining areas to support the concentrator. um the right hand bar is showing phase three which as i mentioned is um continuing to be the star performer our intention is to basically run phase three at um it's 6.5 capacity which is well in excess of its name plate and really squeeze as many tons out of that side of the mining operation as we can So, we are very much on target to meet the revised 2025 production guidance, which was 370,000 to 420,000 tons of copper in concentrate, but noting that year-to-date, and this is just up until the end of June, we've produced already 245,000 tons of copper in concentrate. Next slide, please. And so moving on to the directed blister smelter and this is really probably the most exciting thing that's happening in the upcoming quarter. The smelter is now basically mechanically complete and you can see a great photo here with the blending facility in the foreground and the smelter in the background. And so we're in the final stages of commissioning and then the heat up of the furnaces is planned in September. And so that will be a big milestone for Kamoa Kahula to basically turn into a fully integrated underground mine to blister copper or anode copper operation. And so we look forward to updating you on that in our next results. And as David mentioned, we do have a lot of copper in inventory at present. There's 31,500 tons of copper at the smelter ready to support the startup. So we're looking forward to working down that balance to roughly 17,000 tons, which will be the sort of working capital in the circuit at the smelter at a normal point in time. We've spoken many times as well about the dramatic reduction in C1 cost that the smelter will bring. If anything, that is more pronounced currently because as we produce ore from lower-grade sources, that does produce a slightly lower-grade concentrate than what we would typically get from Cucula. So that has higher associated logistics and realization charges. And so the smelter really can't come soon enough from that point of view to assist with what David was saying to bring those cash costs back down again. The next slide is moving on to power. And power availability was really the big challenge that we used to discuss in the previous quarters. It really feels quite trivial in comparison to some of the operational issues that we faced during the second quarter. But I think one of the hallmarks of this world-class team is the ability that we've shown to address key challenges over time, make a plan and then execute on that plan very successfully. And in power, I think you will very soon see the fruits of our labor as the giant Inga turbine number five is now mechanically complete. So that's what you can see on this image. The pre-commissioning activities have already started, and then the wet commissioning of that turbine is on track for early next quarter, which will start to supply 178 megawatts of clean energy into the grid. In terms of the supply of that energy into Kolwazi and ultimately Kamoaka Kula, there is a big milestone taking place in Q1 of next year when we will complete a new static compensator at the substation. So that will basically allow for much more stable voltage coming from Inga to reach Kamoaka Kula. And so I think it's very realistic to say that by early next year, we will have broken the back of our power challenges. And that also dovetails quite nicely onto the next slide. So the additional power that we will be generating from INGA, which is close to 180 megawatts, will also be quickly followed up by the completion of a 60 megawatts battery solar energy project. So that's now in execution. The site's clearance and early earthworks are underway. That's actually built in two modules of 30 megawatts each, and they are both separate independent power providers that are funding that CAPEX and will complete that project by mid-2026. So, Kamoaka Cooler will be the off-taker of that power, and that power will cover up to 25% of Kamoaka Cooler's total energy requirements coming from a captive and very green source The project is also very scalable, so we plan to move up to 120 megawatts. There's no reason that we can't continue to move beyond that. So we are now actually facing a realistic possibility. It didn't seem so realistic a few years ago, but we may actually have a surplus of power by this time next year. So with that, that really concludes Kamoa Kikula, but I'll pass back to Mark Farhan to take you through some of the... progress we've been making at Kipushi.

Thanks, Alex. Okay, so, Kipushi, just in a nutshell, no big surprises. We're busy with basically two big shots through the year, which we're ready to finish the de-bottlenecking and a bit of upgrade to take the circuit to be able to produce around about 250,000 tons per annum of zinc. That whole project plan has gone very well. You'll see the first half, basically we've done 84,000 tons of zinc and we forecast 180 to 240,000-odd tons of zinc. And we're maintaining that, which means that it's sort of back-end loaded. If you can go to the next slide, I think it's better. So there's one more big shut that's going to happen in August. And then we finish the de-bottlenecking and that sort of unlocks an additional 20% capacity. In this first half, we've had a number of shuts, so basically about 11 days of production taken off. And I think there's about five days left in August of shuts. And then we should be at the rate of running at beyond 20,000 tonnes of zinc per month, short term, and then longer, probably 25,000 tonnes of zinc. So all in all, kapushi, no surprises on the feed grades, no surprises on the mining, a good result with the work that we've done on the concentrator. This final shutdown is the last one in August, and I think it's going to shoot the lights out. It's going to go well as a zinc mine. It's really one of the major zinc mines in the world, can you believe it? Okay, next slide. I think I've discussed this. No, sorry. Yeah, Platrief. If you cast your mines back, we planned the small phase one concentrator that you see in the foreground over there. And that was going to be fed with the shaft one mine, which was really a bulk sample shaft in the beginning. And then we made a decision last year to do shaft number three to equip it for wasting and to move quickly into, let's call it phase two, into phase two and then schedule the phase two concentrator to go with that. So the phase one concentrator is ready. We are mining in reef at the moment. and we will feed that first concentrator in quarter four, which is exciting for us. At the moment, we are mining development ore, we're stockpiling it on surface, and we will start commissioning that concentrator in quarter four this year. At the same time, we are completing the construction of shaft number three, which really is a game changer for us. It takes the wasting capacity to five million tonnes per annum, As part of that we are going to accelerate and we have committed to accelerate Phase two which were basically unlocks battery the next slide So this job that you're looking at the one there yeah in front of you with the blue roof Robert the roof is now on this is shaft number two. It's a 10 meter diameter shaft and It can be used for some of Phase 2 work, but it's actually the Phase 3 expansion shaft. This shaft can hoist 8 million tons. So if you add that, you can add 5 and 8 is 13. So there's a massive amount of hoisting capacity that goes in when the shaft is complete. As we go with phase one and phase two, we will also be scheduling phase three. That is in the published study that we've released. Thank you. Next slide. I think tailwinds for a change on the platinum side is really going around pricing. um there's been a massive change in platinum and palladium prices in this in this year alone it has a massive impact on you know on on our new um net present value running running through our fs and our phase three pea um so i mean if you have a look at sensitivities it takes the npv from 1.7 to 3.8 and that's in a you know a long lead time to get to the phase three so we i think we are here as we We're walking into this year, quarter four. We will start producing PGMs and selling them. And I think you'll start seeing the major shift from quarter one when shaft number three is running. So quarter one next year, shaft number three is running and we can accelerate the development of phase two. And in my opinion, then you sort of get the right kind of scale that you want. What's also very important here is our $599 per ounce of 3E. It's going to be the lowest in the industry, I believe. I'm not sure that anyone will be able to beat this cost. Thank you. Next slide. Alex, are you going to cover this?

Yeah, thanks, Mark. I'll close out the presentation as usual with an update on exploration and starting with the Western Forelands. So during the second quarter in mid-May, which feels like a long time ago now, we did announce a very significant resource increase at the combined Motoko district, which you can see in the image on the right-hand side. So what this really boils down to is that in the space of about 18 months worth of drilling, we almost doubled the total resource, and we are fast closing in on 10 million tons of contained copper. And really to put it in context in terms of the efficiency of what we're doing in the Western Falklands, that probably came at a cost of somewhere in the region of $30 to $40 million to basically add another 4 or 5 million tons of contained copper. So the strike rate is exceptionally high. On that plan on the right-hand side, you can see the increased dimension of the new resource base. So in red, it's a little bit faint, but you can see the inferred resource outline of the 2023 update. And so now what we've added to that footprint at Makoko is the new discoveries at Makoko West and Kitoko. And then we've significantly infilled the ground between Makoko West, Kitoko, and Makoko. They're not really new discoveries anymore, they're really shaping up to be a new combined sort of cohesive copper district, which we sort of refer to as Makoko Kitoko now, and that is really already comparable in scale to, for example, a Kamoa mine, so it does feel quite similar to that discovery story from 2008 onwards. The mineralization is open in multiple directions, including to the south, and so you can see there's a zone that we are planning to infill, which is really between the bottom edge of the resource shell, and then there is a step-out hole that you can see labeled KTK 48, which is well mineralized, so that's two kilometers to the south. So there's a lot of potential to keep on adding to this resource. It was really a technical cutoff at a point in time to update and QP the statement that we've continued drilling since then. If you move to the next slide. This is really just looking at the Western Fallens, what we've discovered alongside Kamoa Kukula on a global scale. And I think you can already see it's certainly one of the largest discoveries of the past decade or more. We count number five, but still very much growing. And the stars, as always, are highlighting the grade that we have at the Western Fallens, which is very similar to Kamoa Kukula in between 2.5% and 3% copper. and it really is sort of unsurpassed on a global scale. Just repeating, I see the number, the resource number again. So now we have over 500 million tonnes of resource tonnage. So this really already has the scale to be a major development and a standalone mine or in fact multiple standalone mines. But we are by no means finished. The drilling is underway. We're in the middle of the dry season now. We have nine rigs turning in the Western Foreland and we are focusing on some new licenses that we acquired in the Western Foreland. So I would watch this space very carefully. over the next quarter and beyond. The final slide in the presentation, moving to our new exploration horizons. The logo of Ivanhoe Mines did used to say new horizons, but we dropped it at a point in time. But we are now very active in our neighboring countries, Angola and Zambia, as well as much further afield in Kazakhstan. But all of this is following a similar thesis, which is chasing sedimentary copper, which we know as much as anybody in the world about from what we've done at Kamoaka Kula and in the Western Forlands. So in Angola, we are making steady progress on a massive land package. This is very greenfield exploration, but we have a first drilling contract that's been awarded to drill over 6,000 metres that will commence later on this year and progress into 2026. And in Kazakhstan, I think you'll recall that we announced in January we signed a Vendin exploration partnership to stake a very large basinal position in the Chu Sarisu belt in Kazakhstan. The Chu Sarisu belt is thought to be the third largest sedimentary copper belt in the world. And so since January, we've actually moved very quickly there together with our joint venture partner. We've been awarded already close to 17,000 square kilometers of licenses in the space of six months. So that's a licensed position roughly seven times larger than the Western Fallens. It's kind of quite comparable to what Ivanhoe Mines started with in the DRC going way back to the late 1990s. And as always, our thesis is to focus very much on drilling as much as possible within the confines of our budget. So the drilling has already commenced in this month of July and we have 17,500 metres planned and some exciting initial targets to focus on. So with that, I think we will wrap up the presentation and I'll pass back to Matt Keeble to chair our Q&A's.

Thanks, Alex. Yeah, we now will begin the question and answer session. First and foremost, I'll hand it back to the operator to proceed with any questions we have waiting on the phone line with analysts. And then if we have some time at the end, we'll answer any web questions as the time allows. So, operator, please do proceed with the questions on the phone.

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have any questions on the phone, please press star 1. You will hear a prompt that your hand has been raised. First question comes from Daniel Major at UBS. Please go ahead.

Hi, thanks. Can you hear me okay?

Yes, you sound great, Daniel.

Hello, can you hear me all right? Okay, great, thanks. Yeah, so a few questions. The first one, just thinking about the timeline of information around, guidance at Comerica Kula. I understand you're going to give an update to the market in September around a site visit. Can you give us a sense of what you expect to communicate to the market then and then in Q1 as you're kind of working through the dewatering and the kind of work on redesigning geotechnical?

I can maybe help. So we would want to guide the market on the year 26 and 27. That will be the September guidance. And then at the end of Q1 will be a full life of mine planning with a 43-101 March next year. A new full life of mine plan.

Okay. Just a question on the kind of... guidance for 22, 26, 27, what gives you the confidence that you're going to be able to have conviction in that if you haven't actually fully dewatered the mine or redesigned the mine plan yet?

That's a good question. So the assumptions you can assume would be conservative. Let's put it that way.

Maybe also just to jump in here, what we were planning to do is also to just isolate the section that we cannot access yet and provide certain sensitivities around that. But it will show you what it looks like in terms of our future plans based on the new mining method. And then what will still be uncertain would be that central block. and that we will then be able to communicate once devoted. So that's the section where you will have to make certain assumptions. But for the rest of it, I think we will have a pretty high level of confidence as it will flow into our life of mine plans that will be published early in 2026. Okay, thanks.

And then the second question, I don't know if you took a step back and look at what was the cause of the kind of seismic issue and how that might impact mining method productivity and cost going forward I mean should we be thinking about this as smaller blocks ultimately less productive to prevent these issues happening going forward and having a knock on impact on the cost outlook for the operation over the life of mine

It's too soon to say. I think from what we are seeing as Mark alluded to earlier, we're actually quite optimistic around production volume. But it's too soon to say if we still need to schedule cruise, we still need to schedule Pfizer's. So you can only really make an assumption around cost once you've done that work. So you will unfortunately have to wait until we make the information available.

Okay, that's good. And just one more question on Comirca Kula. When I look at the sort of implied C1 cost relative to the difference between revenue and EBITDA, there seems to be quite a large, much larger adjustment this quarter in terms of reconciling the costs. Is that those costs kind of additional costs associated with the incident? Can you just provide a bit more color on that?

Yeah, happy to, Daniel. So our EBITDA reconciliation is included in our MD&A. So if you look at that and you've still got questions about any of those line items, please do reach out. But it is the impact of the abnormal costs that has played the biggest role as that is ultimately added back for C1 purposes.

Right, okay. That's clear, yeah. Because I wasn't really actually talking about the reconciliation of Groove EBITDA. It's the specific EBITDA, the $3 to $5 million for Comerica Cooler. But there is additional costs associated with the incident that aren't captured in the C1. Exactly. With those continuing... Q3 and Q4, I would expect that would be the case as well.

So no, we don't expect those additional costs to be reoccurring in Q3 and Q4, other than maybe a little bit of abnormal costs related to the dewatering. But, I mean, we currently estimate that that would be roughly in the range of $10 million for the remainder of the year. So that won't move the needle much.

Great. That's really helpful. Thanks a lot. I'll go back in the queue. No problem.

Thank you. Next question comes from Andrew Mikichow at BMO Capital Markets. Please go ahead.

Hi. I just wanted to come back to, I think it was slide 24, if I can see this correctly, where you showed the updated and long-term line plans. I guess if we stare at that in fine detail, I'm sure some of this is still being addressed, There's an additional ramp there. Is that kind of a ramp that would have gone down anyway to access the Kukula west portion, not the west part of Kukula? Or is that something that's just being done to adjust in the near to medium term?

That's mainly for logistics. Basically, I think it's a belt section. It might not be the only solution that's lying there. We're looking at race boring as well in the central block of the west. So it's logistics mainly.

Okay. And then I just wanted to just confirm, because you guys put some pictures of what I interpret to be a dewatered portion of Gakula East. and made commentary in the press release that some ports that you have modest continued dewatering of that with the existing pumping capacity. From what you've seen, has there been any surprises or any material damage dewatered so far?

At the moment, no. So what we have been doing is slowly lowering the pump trains as we go. But we can't really move fast until we put these big pumps in. And that's where we are. On the west, we're not seeing any damage at all. And on the east, we've been rehabilitating those top drifts as we go down. So, yeah, that's where we are. It's actually looking okay for now.

Okay. Well, that's good to hear, and I guess we'll all look forward to the September update where we get kind of the medium term. Under the current very near-term plan, I think, again, there's wording in the press release similar to the last disclosures that the stockpile runs out in Q2. It's Q1. Is that an early Q1, mid, late? What's the best-case scenario?

I'm not sure, Andrew, we can sort of predict that with accuracy because it's a bit of a moving target in terms of exactly how much tonnage we can push out of the western section as we continue to dewater. Obviously, that dewatering is not a kind of binary process. It's a linear process. So as we dewater, it's likely that we might be able to open up more areas of the mine sooner. And it also depends to some extent on how quickly we can push more tonnage coming out of the Kamoa side of the mine. So it's difficult to say exactly, you know, how we will manage that stockpile, you know, within Q1.

Okay. Just one last quick question. As the dewatering does start on the east of Kukula, this is stage two, Would that conceptually open up some portions of the upper mine just to a restart of mining or is that really all kind of closed off until it's completely dewatered?

The dewatering process itself, once those big pumps are running, will be quite quick. So it's sort of putting in the first two and then starting them up and then putting in the next two and starting them up and then lowering quite quickly. um so you'd be assessing them i guess on the eastern side but what we're saying is by december we'll be completely dewatered and we'll be able to do a full geotechnical assessment of the east and so within that time frame there might be some mining and whatever but we will make sure that we've done the geotechnical assessment properly before we re-enter the east okay so thank you very much i'll uh step back and let others ask questions congratulations on the

navigating these difficult weeks and months successfully so far.

Thank you. We have no further questions on the line. I'll turn the call back over to Matthew Keeble.

Thanks very much, operator. We actually have no questions waiting in webcast either, and we are coming up on the hour, so we will wrap up the call here. Again, I'd just like to reiterate, if you do have unanswered questions, please do reach out to our IR team, Alex, Tommy, Matt, myself, with any questions that require follow-up. But thank you again for attending today's event, and we very much do look forward to speaking with everyone and updating you on the many exciting milestones management outlined here through the remainder of the year and moving forward. So with that, have a great day, and we'll talk to you soon. Thanks, operator. You can wrap up.

Ladies and gentlemen, this concludes our conference call for today. We thank you for participating, and we ask that you please disconnect your lines.