Ivanhoe Mines
IVN-TSX Rating Price: Aug-31 Target Total Rtn Outperform $10.18 $15.00 47%
Highlighting Kakula/Kamoa Phase 2 Progress Ahead of Monthly Update
Bottom Line:
Ivanhoe released a progress gallery on Tuesday evening ahead of their monthly progress update scheduled for September 7. The gallery contained photos and updates for Kakula/Kamoa, Platreef, and Kipushi, and included some hints regarding progress at Kakula/Kamoa, indicating throughput averaging above 9,000tpd in the first three weeks of August and noting construction at Phase 2 is 44% complete.
Key Points
The progress gallery indicated mill feed at Kakula/Kamoa's Phase 1 concentrator exceeded 9,000tpd at over 6% copper on average through most of August, approaching the 10,500tpd design capacity. We await more detail on copper production and recoveries in the upcoming September 7 progress update as the ramp up of Phase 1 continues.
Phase 2 construction continued to show progress, with the update noting that overall the project is 44% complete (versus +35% in last month's update). Civil works at the site are finished after being over 80% complete last month, and work continues on the setup of structural steel, mechanical, piping and platework. Ivanhoe shared a variety of photos highlighting construction activities at Phase 2 — we've included two on the second page of this note.