Ivanhoe Mines Ltd. -- “outperform” and $24 target...
RBC Dominion Securities analyst Sam Crittenden comments...
“Completing the smelter is a significant milestone which can lower costs while production continues to grow. We anticipate a neutral reaction to Ivanhoe’s Q4 results as improving production in October and November paired with reset guidance sets up a solid quarter at Kamoa-Kakula. We think the focus will be on 2025 guidance, which was verbally tempered on the Q3 call leading us to forecast 575kt of 2025 production vs. post-Phase 3 nameplate of ~650ktpa.
The Western Forelands exploration update could come anytime now which could be a positive catalyst. The focus in the year ahead will be ramping up the 500ktpa smelter (expected construction completion imminently), updated LOM plan for KamoaKakula (early 2025), Kipushi ramp up (2025), Platreef start up (H2/25), and potential for further value unlocked from Western Forelands exploration (2025).”