Ivanhoe Mines Ltd T.IVN

BMO Mining Conf... IVN Synopsis

[guarantor1]

February 28, 2022 | 16:56 ET~

Ivanhoe Mines

IVN-TSX Rating Price: Feb-25 Target Total Rtn Outperform $11.86 $16.50 39%

Highlights From the 2022 BMO Global Metals & Mining Conference

Bottom Line:

Robert Friedland, founder and executive co-chairman of Ivanhoe Mines, presented at the 2022 BMO Capital Markets Global Metals & Mining Conference in Hollywood, Florida.

Key Points

• Mr.FriedlanddiscussedthestrengthofthePlatreefprojectafterreleasingafeasibility study for the project this morning (see our note here). The Platreef orebody shows the ability to scale beyond the current 5.2mtpa throughput rate envisioned in the feasibility study, and Mr. Friedland emphasized that the current production was limited not by the size of the deposit but by the infrastructure (e.g., shafts) available to extract the deposit, leaving the door open to sequential additional expansions in the future.

• Mr.FriedlandsummarizedwhatheseesasthekeystosuccessatPlatreef.Havinga polymetallic orebody gives significant by-product benefits in terms of cost per ounce, and provides a “cushion against the vagaries of the market” by not being dependent on the price of just one metal. The weakening of the local Rand currency has also benefited the project.

• ThephaseddevelopmentofthePlatreefdepositwasdiscussed,andMr.Friedland noted that using a phased approach is beneficial from both a technical and ESG standpoint. Phasing the development allows training of the local workforce to proceed without needing a significant ex-pat presence, which reduces costs. Phasing also reduces risk by allowing the local community to view the benefits of the project at a smaller scale, often making locals more accepting of a future larger project.

• SuccessatKamoa-Kakulahasbeenfacilitatedbythelarge,high-gradeorebodythat drives high margins, allowing investment in the community, which decreases risk. Similarly, at Platreef, the surrounding communities have a direct ownership interest in the project.

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules.
For disclosure statements, including the Analyst Certification, please refer to page(s) 2 to 5.