Ivanhoe Mines
IVN-TSX Rating Price: May-6 Target Total Rtn Outperform $9.74 $16.50 69%
Shaft 1 Ready, Underground Development Begins at Platreef
Bottom Line:
Ivanhoe has completed the production changeover of Shaft 1 at the Platreef project and has begun lateral development towards the Flatreef orebody as it progresses the project to first production in Q3 2024. Ivanhoe has received the first deliveries of battery-electric mining equipment and is advancing construction of a solar plant to power the mine. IVN will announce its Q1 financials tomorrow morning with a conference call scheduled for 10:30 a.m. E.T.
Key Points
Shaft 1 changeover complete; underground development begins. Ivanhoe has finished the conversion of Platreef's Shaft 1 into a production shaft to be used for the first phase of mining at the project. The completion of the shaft conversion allows underground development to begin — IVN completed the first development blast on April 22 on the 950m level as it advances toward the Flatreef deposit where production will begin from.
Process plant construction approaching. Ivanhoe is carrying out detailed engineering work on the 700ktpa Phase 1 concentrator at Platreef, and plans to begin construction activities starting with earthworks this quarter. Civil works will begin in H2/22 as well as the ordering of long-lead equipment, and IVN also noted that construction works for Shaft 2 are underway, including the completion of the box cut.
Electric mining equipment received and solar plant construction coming soon.
First delivery of battery-electric underground mining equipment has been received
at Platreef and will be used for the ongoing underground development. Ivanhoe will also build a solar power plant to provide clean electricity at the project; construction is planned to begin in August to be completed in 2023.
Platreef on track for production in Q3 2024. Today's announcement reaffirms
the timeline to first production at Platreef, with Ivanhoe's progress to date at the project keeping it in line with the Q3/24 timeline. Phase 1 production is expected to average 113,000oz of 3PE+Au, 5mmlb of nickel and 3mmlb of copper, with a significant expansion expected after Shaft 2 is commissioned in 2027. We look forward to further updates on Ivanhoe's progress as it advances the project to production.