Ivanhoe Mines Sees Q4 2024 Earnings Miss Estimates, Bets Big On Portfolio In 2025
Ivanhoe Mines (TSX: IVN) released its Q4 and full-year 2024 results, posting a net profit of $193 million, equating to $0.17 per basic share, for the year compared with $303 million or $0.26 per basic share in 2023.
On a normalized basis, 2024 profit reached $386 million ($0.32 per share), marginally down from $388 million ($0.33 per share) a year earlier.
In Q4 2024, normalized earnings per share stood at $0.07. This compares unfavorably to the $0.11 per share recorded in Q4 2023 and also fell short of analysts’ consensus of $0.081.
The company’s shares plummet over 3% on the day following the earnings release.
Full-year 2024 revenues at Kamoa-Kakula—recognized at the joint venture level—were a record $3.11 billion, up from $2.70 billion in 2023. This contributed to Ivanhoe Mines’ consolidated adjusted EBITDA of $625 million for 2024, up from $604 million in 2023.
Ivanhoe Mines also generated $843.3 million in revenue in Q4 at Kamoa-Kakula, up 37% year-over-year. However, adjusted EBITDA of $135.6 million, while 25% higher than the prior year’s quarter, missed market estimates of $185.8 million.
Net cash used in operating activities for 2024 was $152 million, compared with $32 million in outflows during 2023, with the increase influenced by higher development and expansion costs, particularly at Kamoa-Kakula (Phase 3) and Kipushi.
Capital spending at Ivanhoe’s project sites rose to just over $1.6 billion at Kamoa-Kakula and nearly $270 million at Platreef. Kipushi’s re-start consumed $185 million in capital outlay during 2024.
The company ended 2024 with $117 million in cash and equivalents, putting current assets balance at $298.6 million. Current liabilities ended at $238.6 million. Ivanhoe also boosted its liquidity after year-end by issuing $750 million in senior unsecured notes due 2030.
Meanwhile, Ivanhoe’s total assets rose to $5.74 billion as of 2024 year-end, from $5.00 billion a year earlier due to the increased investment in the Kamoa Holding joint venture—up by $516 million over the year—as well as a $524 million jump in property, plant, and equipment tied to Platreef and Kipushi.
The company said Kamoa-Kakula maintained its growth trajectory by delivering 437,061 tonnes of copper in concentrate for the full year, an 11% improvement over 2023 and within the revised production guidance. Fourth-quarter output surpassed expectations at 133,819 tonnes, partly due to steady ramp-up of the Phase 3 concentrator and strong mill throughputs. Kamoa-Kakula sold 396,972 tonnes of payable copper in 2024 at an average realized price of $4.09 per pound.
The project’s 2025 production guidance has been set at 520,000 to 580,000 tonnes of copper in concentrate, with a target production rate of approximately 600,000 tonnes of copper in concentrate for 2026.
Despite a higher realized price than in 2023, cash costs per pound of payable copper rose to $1.65 per pound from $1.45 per pound last year, slightly above the midpoint of the company’s full-year guidance. Management attributed the increase to periods of imported power usage in the Democratic Republic of the Congo and lower-than-planned head grades during Phase 3 commissioning. In Q4 2024, C1 costs settled at $1.75 per pound, and guided the figure to land between $1.65 per pound to $1.85 per pound in 2025.
Kipushi also reached commercial production in Q4 2024, contributing $41 million in revenue by selling 16,999 tonnes of payable zinc with costs of sales totaling $52 million. For the full year, Kipushi produced 50,307 tonnes of zinc in concentrate. The company has guided Kipushi’s C1 costs to $0.90–$1.00 per pound of payable zinc for 2025.
The firm set Kipushi’s 2025 production guidance at 180,000 to 240,000 tonnes of zinc in concentrate, targeting a production rate of over 250,000 tonnes for 2026.
Looking ahead, Ivanhoe has reaffirmed its intention to balance further expansion at Kamoa-Kakula, Kipushi, and Platreef with prudent capital allocation, targeting higher free cash flow once the new smelter and refurbished turbine power source are fully operational.
Ivanhoe Mines last traded at $15.78 on the TSX, falling 3.04% on the day.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
