Image source: Company Update

Highlights

  • Ivanhoe Mines recognized USD 40.8 million in revenue for FY24, driven by zinc concentrate sales
  • Operating profit for FY24 declined by 17% YoY to USD 148.5 million due to rising operational expenses
  • In FY24, the company reported a 36.2% YoY decrease in profit for the year, partially offset by income tax recovery
  • In FY25, the company expects Kamoa-Kakula mine to produce between 520,000 and 580,000 tonnes of copper concentrate

 Ivanhoe Mines Ltd (TSX:IVN) is a mineral exploration and development company focused on discovering and recovering minerals and precious gems from its properties across Africa.

In the financial year 2024 (FY24), the company recognized revenue of USD 40.8 million, primarily driven by the sale of zinc concentrate. This marked the first time the company reported revenue, as there was no revenue recorded in FY23.

Operating profit for FY24 decreased by 17% YoY to USD 148.5 million, compared to USD 179.0 million in FY23. This decline was largely due to increasing operational expenses, though the company also reported a share of profit from joint ventures, amounting to USD 291.9 million net of tax.

Profit before income taxes dropped by 39.3% YoY, falling to USD 179.1 million in FY24 from USD 295.2 million in the previous year. The decline was mainly due to higher losses from the fair valuation of embedded derivative liability and increased finance costs. As a result, profit for the year decreased by 36.2% YoY to USD 193.2 million, though the impact was partially offset by an income tax recovery.

Recent Business Update

On February 19, 2025, IVN provided an update on the year-on-year increase in cash costs. This rise in costs was attributed to several factors, including the increased consumption of imported power and on-site backup power due to shortfalls in the available DRC grid power.

On the same date, the company provided another update on the Kipushi mine’s production. The company announced that Kipushi produced 50,307 tonnes of zinc in its inaugural year. A new monthly production record of 14,900 tonnes of zinc was achieved in December,.

Company Outlook

The company has recently issued production guidance for FY 2025, anticipating copper production from the Kamoa-Kakula mine to range between 520,000 and 580,000 tonnes in concentrate. Additionally, it projects around 600,000 tonnes of copper concentrate for 2026.

Top 10 Shareholders

The top 10 shareholders of IVN collectively hold approximately 67.97% of the company's total shares. CITIC Metal Group Ltd and Gold Mountains (HK) International Mining Co. Ltd are the largest shareholders, owning around 20.45% and around 12.23%, respectively.

 Stock Information

In the past week, the stock saw a modest increase of approximately 2.83%. However, over the last month, it experienced a notable decline of around 19.50%. The company’s stock is currently trading below the average of its 52-week high of CAD 21.32 and 52-week low of CAD 12.15. As of March 10, 2025, the stock’s closing price is CAD 13.04.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is March 10, 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.