Core Viewpoint - Ivanhoe Electric has successfully closed a $200 million senior secured multi-draw bridge facility to support the Santa Cruz Copper Project in Arizona, enhancing its financial position during ongoing project financing discussions [1][2]. Financing Details - The bridge facility is a crucial part of Ivanhoe Electric's long-term financing strategy for the Santa Cruz Copper Project, providing immediate balance sheet strength and funding for major construction activities set to begin in 2026 [2]. - The facility complements ongoing discussions for broader project financing, which may include project-level minority equity investment and long-term project debt [2]. - Ivanhoe Electric has received a Letter of Interest from the U.S. Export-Import Bank for $825 million in project debt, with the full application currently in process [2]. Key Terms of the Bridge Facility - The bridge facility has a two-year maturity term with a single repayment at maturity [10]. - The borrowing rate is based on the three-month Secured Overnight Financing Rate plus a margin of 5.0%, increasing by 0.5% at specified intervals, with an approximate rate of 8.7% on drawn amounts as of the announcement date [10]. - The facility is secured by Ivanhoe Electric's private land holdings and certain physical assets associated with the Santa Cruz Copper Project [10]. Company Overview - Ivanhoe Electric is focused on developing mines from mineral deposits primarily located in the United States, aiming to support American supply chain independence by delivering critical metals [4]. - The company utilizes advanced technologies, including the Typhoon™ geophysical surveying system and data analytics from its subsidiary, to enhance mineral exploration efforts [4]. - Ivanhoe Electric is also engaged in a joint venture with Saudi Arabian Mining Company to explore minerals in the Arabian Shield and has established an exploration alliance with BHP Mineral Resources Inc. for critical minerals in the U.S. [4].

Summary of J.P. Morgan Copper Dashboard Industry Overview - **Industry**: Copper Mining - **Current Trends**: Global copper production is experiencing a 4% year-to-date increase through August, but growth is slowing due to recent supply disruptions. Global demand has risen by 7% year-to-date as of August, with notable contributions from China, although demand from the rest of the world (RoW) is declining. Global visible inventories have increased to approximately 730,000 tons, which is about 200,000 tons higher than in 2024 and at a five-year seasonal high [1][2][3]. Key Insights 1. **Production and Demand**: - Global copper production increased by 4% year-to-date through August, but there has been a year-over-year decline in output for July and August [1]. - Global demand for copper rose by 7% year-to-date as of August, with Chinese demand growth being offset by a decline in RoW consumption [1]. - The refined copper market is expected to face a deficit of 333,000 tons in 2026 and 162,000 tons in 2027 due to acute supply disruptions [2]. 2. **Price Movements**: - LME copper prices have increased by 25% this year, reaching $4.91 per pound, significantly outperforming aluminum, which saw an 11% increase [1]. - The forward curves for copper are slightly backwardated, indicating potential upside risks to prices due to recent supply disruptions pushing the market into a deficit [1]. 3. **Equity Preferences**: - J.P. Morgan continues to favor specific companies in the copper sector, including Capstone Copper (Overweight), BHP (Overweight), Antofagasta (Overweight), Freeport (Overweight), and First Quantum (Overweight) [1]. 4. **Regional Insights**: - In Chile, overall copper output is expected to remain flat at around 5 million tons per annum, with Codelco facing production challenges. Miners are focusing on technology and innovation to extend mine life and reduce costs, although regulatory reforms are slow [3]. - Labor and equipment markets are tightening, with new activities primarily centered on brownfield projects rather than major expansions [3]. 5. **Market Dynamics**: - High-frequency data shows mixed signals: treatment charges and refining charges (TC/RCs) are firmly negative, while LME net speculative positioning is increasing. However, cancelled warrants and smelter operating rates are declining [1]. - The copper market is expected to tighten as Chinese demand begins to pull on the market, potentially leading to a bullish backdrop for LME copper prices [2]. Additional Important Points - **Global Inventory Trends**: The increase in global visible inventories to ~730,000 tons indicates a significant build-up, which could impact future pricing and supply dynamics [1]. - **Technological Innovations**: The industry is pushing for technological advancements, particularly in ore sorting and chloride-based leaching, to enhance efficiency and reduce costs [3]. - **Investment Recommendations**: J.P. Morgan's coverage includes various companies with differing ratings, highlighting potential investment opportunities and risks within the copper sector [7]. This summary encapsulates the key points from the J.P. Morgan Copper Dashboard, providing insights into the current state of the copper industry, production and demand trends, pricing dynamics, and investment recommendations.

Core Insights - Ivanhoe Electric has completed the final three land acquisition payments totaling $39.3 million for the Santa Cruz Copper Project in Arizona, fulfilling the terms of the Purchase and Sale Agreement with Wolff-Harvard Ventures LLC [1][2] - The company is positioned to commence initial construction at the Santa Cruz project in early 2026, pending the receipt of necessary permits, with a goal of first copper cathode production by late 2028 [2][6] Company Overview - Ivanhoe Electric is a U.S.-based minerals exploration company focused on developing mines from mineral deposits primarily located in the United States, aiming to support American supply chain independence by delivering copper and other critical metals [2] - The company utilizes its Typhoon™ geophysical surveying system and advanced data analytics from its subsidiary, Computational Geosciences Inc., to enhance the mineral exploration process [2] - Ivanhoe Electric also operates a joint venture with Saudi Arabian Mining Company to explore minerals in the Arabian Shield and has established an exploration alliance with BHP Mineral Resources Inc. to search for critical minerals in the U.S. [2]

Core Insights - Elemental Royalty Corporation has executed four option agreements with Ivanhoe Electric for projects in Arizona, focusing on porphyry copper mineralization [1][2][4] - The agreements will provide Elemental with execution payments, option payments, and work commitments, along with a 2.5% net smelter return royalty upon earn-in [2][5] Project Details - The projects are located in the Laramide porphyry copper belt, known for its mineral wealth, and include Dragon's Tail, Copper King, Sleeping Beauty-Jasper Canyon, and Lomitas Negras [2][4] - Dragon's Tail is near the Resolution copper deposit and targets concealed porphyry copper and skarn mineralization [6][8] - Copper King, adjacent to Dragon's Tail, also targets porphyry copper and related skarn mineralization, with previous drilling indicating high-temperature alteration [9] - Sleeping Beauty-Jasper Canyon targets mineralization from the Pinto Valley-Copper Cities porphyry system, with potential for higher grades due to geological displacement [10] - Lomitas Negras shares geological features with the San Manuel-Kalamazoo porphyry copper deposit and may relate to an undiscovered porphyry copper system [11] Financial Terms - Ivanhoe Electric can earn a 100% interest in the projects over an eight-year period by making total payments of US$240,000 in execution payments, up to US$2,325,000 in option payments, and cumulative exploration expenditures of up to US$10,800,000 [4][5] - Upon option exercise, Elemental retains a 2.5% NSR royalty, with a buyback option for 0.5% of the royalty at US$4,000,000 per project [5] Strategic Implications - The agreements exemplify Elemental's royalty generation business model, providing exploration projects to partners in exchange for royalty interests and cash flow [12] - The CEO of Elemental expressed confidence in the partnership with Ivanhoe Electric, highlighting the potential for exploration-driven growth in the Laramide belt [6]

Core Viewpoint - Ivanhoe Electric has secured a $200 million credit facility to support the development of the Santa Cruz Copper Project, marking a significant step in its project financing strategy and enhancing liquidity for early construction activities [1][2][3]. Financing Details - The Bridge Facility will provide early liquidity support and is a crucial part of the overall financing strategy, which may include project-level minority investments and long-term project debt [2][8]. - The facility has a two-year maturity and is priced at the three-month Secured Overnight Financing Rate plus a margin of 5.0%, with an expected rate of approximately 8.8% at the time of the announcement [6][7]. Project Development - Ivanhoe Electric is in advanced discussions with potential minority interest partners and project debt providers, including the U.S. Export-Import Bank [3][9]. - The Santa Cruz Copper Project aims to produce approximately 3 billion pounds of pure copper over its initial 23-year mine life, with first copper cathode production targeted for late 2028 [4][14]. Employment and Economic Impact - The project is expected to create around 1,000 skilled jobs during the construction phase, contributing to local economic development [4][14]. Company Vision - The company aims to establish itself as a new American-focused critical metals producer, enhancing supply chain security for copper and other essential metals [4][10].

Project Overview - The Santa Cruz Copper Project is projected to produce 1.4 million tonnes of copper cathode over a 23-year mine life, with an after-tax Net Present Value of $1.4 billion at an 8% discount rate and an Internal Rate of Return (IRR) of 20%[83]. - The initial project capital for the Santa Cruz Copper Project is estimated at $1.24 billion[83]. - The Santa Cruz Copper Project integrates underground mining with chloride-assisted heap leaching, significantly reducing the project's overall carbon intensity[81]. Financial Performance - For the three months ended September 30, 2025, the net loss attributable to common stockholders was $17.5 million ($0.13 per share), a decrease of $25.7 million compared to a net loss of $43.2 million ($0.36 per share) for the same period in 2024[96]. - For the nine months ended September 30, 2025, the net loss attributable to common stockholders was $71.9 million ($0.55 per share), a decrease of $73.6 million compared to a net loss of $145.5 million ($1.21 per share) for the same period in 2024[103]. - CGI's revenue for the nine months ended September 30, 2025 was $2.3 million, an increase of $0.8 million from $1.6 million for the same period in 2024, representing a 50% increase[110]. - The company reported a total change in cash of $28.1 million for the nine months ended September 30, 2025, compared to a decrease of $118.0 million in the same period of 2024[130]. Exploration and Development - The Maaden Joint Venture has completed approximately 732 square kilometers of geophysical surveys and drilled 16 holes totaling approximately 10,461 meters, identifying mineralization at depths of up to one kilometer[88]. - The company operates a 50/50 joint venture with Saudi Arabian Mining Company ("Maaden") to explore minerals on approximately 48,500 km of the underexplored Arabian Shield in Saudi Arabia[75]. - The company established an exploration alliance with BHP Mineral Resources Inc. in 2024 to search for critical minerals in the United States[75]. - The company utilizes the Typhoon™ geophysical surveying system and advanced data analytics to accelerate and de-risk the mineral exploration process[75]. - The company is focused on supporting American supply chain independence by finding and delivering copper and other critical metals vital to advanced manufacturing and national security[75]. Expenses and Cash Flow - Exploration expenses for the three months ended September 30, 2025 were $14.7 million, a decrease of $15.8 million from $30.5 million in the same period of 2024[97]. - Exploration expenses for the nine months ended September 30, 2025 were $44.6 million, a decrease of $66.8 million from $111.4 million in the same period of 2024[104]. - General and administrative expenses decreased to $9.1 million for the three months ended September 30, 2025, down $1.7 million from $10.9 million in the same period of 2024[98]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $63.5 million, primarily due to $43.2 million in exploration expenditures and $22.7 million in general and administrative costs[132]. - Net cash provided by financing activities during the same period was $83.0 million, largely from a public offering that raised approximately $65.8 million by issuing 11,794,872 units at $5.85 each[135]. Financing Activities - The company completed a public offering in October 2025, issuing 11,500,000 shares at $15.00 per share for gross proceeds of approximately $172.5 million[116]. - The company received a Letter of Interest from EXIM Bank for potential debt financing of up to $825 million for the development of the Santa Cruz Copper Project[120]. - The company is assessing EXIM Bank's interest in financing the Santa Cruz Copper Project, which will require additional capital beyond what EXIM Bank may provide[122]. - The company plans to seek additional financing through various means, including debt and equity, but there is no assurance of success in raising capital on favorable terms[123]. Currency and Foreign Exchange - The company incurs the majority of its expenditures in U.S. dollars, with foreign currency risk primarily arising from transactions in Colombia and Canada[153]. - As of September 30, 2025, the Colombian Peso and Canadian dollar monetary assets and liabilities show a net liability of approximately $2.5 million and a net asset of approximately $3.3 million, respectively[154]. - The Colombian Peso appreciated by 11.0% and the Canadian dollar appreciated by 3.0% against the U.S. dollar during the nine months ended September 30, 2025[154]. - A 10% depreciation or appreciation of foreign currencies against the U.S. dollar would have resulted in an approximate $0.1 million decrease or increase in the company's net loss for the nine months ended September 30, 2025[154].

Core Insights - Ivanhoe Electric Inc. is focused on the exploration and development of electric metals crucial for electric vehicles and renewable energy technologies [1] - Scotiabank has set a price target of $17.50 for Ivanhoe Electric, indicating a potential increase of approximately 16.94% from its current price of $14.97 [1][5] Financial Highlights - Ivanhoe Electric completed the full exercise and closing of the underwriters' option, selling an additional 1.5 million shares as part of a public offering of 10 million shares at $15.00 each, resulting in total gross proceeds of $172.5 million [2][5] - The current stock price is $14.93, reflecting a decrease of 2.10% or $0.32, with a trading range today between $14.73 and $15.25 [3] - Over the past year, the stock has experienced significant volatility, with a high of $17.90 and a low of $4.50 [3] - Ivanhoe Electric's market capitalization is approximately $1.98 billion, with a trading volume of 780,741 shares, indicating strong investor interest [4][5]

Core Viewpoint - Ivanhoe Electric has successfully completed a public offering of common stock, raising a total of $172.5 million, including the full exercise of the underwriters' option for an additional 1,500,000 shares at a price of $15.00 per share [1] Group 1: Offering Details - The public offering consisted of 10,000,000 shares at a price of $15.00 per share, with gross proceeds reaching $172.5 million before deductions [1] - The offering was managed by BMO Capital Markets as the lead book-running manager, with J.P. Morgan and National Bank of Canada Capital Markets as book-running managers [3] Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for completing payments for land acquisition at the Santa Cruz Copper Project, funding early development activities, supporting exploration activities at current projects and joint ventures, and for general corporate purposes [2] Group 3: Regulatory and Compliance - A registration statement related to the securities was filed with the U.S. Securities and Exchange Commission and was declared effective on July 10, 2023 [4] - The final prospectus supplement was filed with the SEC on October 22, 2025, and is available on the SEC's website [4] - The offering received approval from the Toronto Stock Exchange under the exemption for "Eligible Interlisted Issuers" [6] Group 4: Company Overview - Ivanhoe Electric is a U.S. company focused on advanced mineral exploration technologies, primarily targeting copper and other metals, with significant projects including the Santa Cruz Copper Project in Arizona [9]

[Amendment Agreement Details](index=1&type=section&id=Amendment%20Agreement%20Details) This section outlines the parties involved and the specific purpose of the second amendment to the Shareholders' Agreement [Parties to the Agreement](index=1&type=section&id=Parties%20to%20the%20Agreement) This Amendment Agreement is made between four key parties: Saudi Arabian Mining Company (Ma'aden), Ivanhoe Electric Mena Holdings Ltd. (IE Mena), Ivanhoe Electric Inc. (IE Parent), and Ma'aden Ivanhoe Electric Exploration and Development Limited Company - The parties involved in this amendment are **Ma'aden**, **IE Mena**, **IE Parent**, and **Ma'aden Ivanhoe Electric Exploration and Development Limited Company**[2](index=2&type=chunk)[5](index=5&type=chunk) [Purpose and Scope of Amendment](index=1&type=section&id=Purpose%20and%20Scope%20of%20Amendment) This document represents the second amendment to the Shareholders' Agreement (SHA) originally dated July 6, 2023, primarily modifying specific terms concerning exploration licenses - This is **Amendment 2** to the Shareholders' Agreement (SHA) dated July 6, 2023, with a previous amendment on November 1, 2023[1](index=1&type=chunk)[5](index=5&type=chunk) - The amendment specifically targets **Part 1 Exploration Licenses of Schedule 6 (Ma'aden Land Area)** of the SHA[5](index=5&type=chunk) [Schedule 6 Amendments: Exploration Licenses](index=1&type=section&id=Schedule%206%20Amendments%3A%20Exploration%20Licenses) This section details the addition of new exploration licenses to Schedule 6, categorized into converted applications and newly introduced licenses [Group A Additions: Converted Exploration Licenses](index=1&type=section&id=Group%20A%20Additions%3A%20Converted%20Exploration%20Licenses) This section details the addition of numerous exploration licenses that were previously applications and have now been converted into active licenses, primarily in Najran and Wadi Ad Dawasir A regions - The amendment includes the **insertion of a table into Part 1 of Schedule 6**, reflecting the addition of **new Exploration Licenses from previously applied applications**[5](index=5&type=chunk) [Najran Exploration Licenses](index=1&type=section&id=Najran%20Exploration%20Licenses) Fifty exploration licenses have been added in the Najran region, covering approximately 4,199.99 km², issued between January 1-3, 2025, and expiring between December 2029 and January 2030 Summary of Najran Exploration Licenses (Group A) | Metric | Value | | :--- | :--- | | Number of Licenses | 50 | | Total Area | ~4,199.99 km² | | Issue Dates | Jan 1-3, 2025 | | Expiry Dates | Dec 2029 - Jan 2030 | [Wadi Ad Dawasir A Exploration Licenses](index=3&type=section&id=Wadi%20Ad%20Dawasir%20A%20Exploration%20Licenses) Sixty-three exploration licenses have been added in the Wadi Ad Dawasir A region (Riyadh), encompassing approximately 6,284.99 km², issued between January 1-3, 2025, and expiring between December 2029 and January 2030 Summary of Wadi Ad Dawasir A Exploration Licenses (Group A) | Metric | Value | | :--- | :--- | | Number of Licenses | 63 | | Total Area | ~6,284.99 km² | | Issue Dates | Jan 1-3, 2025 | | Expiry Dates | Dec 2029 - Jan 2030 | [Group B Additions: New Exploration Licenses](index=7&type=section&id=Group%20B%20Additions%3A%20New%20Exploration%20Licenses) This section introduces a new set of exploration licenses, categorized as 'Group B Additions,' located across various regions including Madinah and Hail, with different issue and expiry dates - The amendment includes **'Group B Additions'** which are **new exploration licenses**[11](index=11&type=chunk) [Al Mahad Exploration Licenses](index=7&type=section&id=Al%20Mahad%20Exploration%20Licenses) Three new exploration licenses have been added in the Al Mahad group within the Madinah region, covering approximately 146.103 km², issued on June 9, 2021, and expiring on April 16, 2026 Summary of Al Mahad Exploration Licenses (Group B) | Metric | Value | | :--- | :--- | | Number of Licenses | 3 | | Total Area | ~146.103 km² | | Issue Date | Jun 9, 2021 | | Expiry Date | Apr 16, 2026 | [Baara Exploration Licenses](index=7&type=section&id=Baara%20Exploration%20Licenses) One new exploration license has been added in the Baara group within the Madinah region, covering an area of approximately 99.831 km², issued on June 9, 2021, and expiring on April 16, 2026 Summary of Baara Exploration License (Group B) | Metric | Value | | :--- | :--- | | Number of Licenses | 1 | | Total Area | ~99.831 km² | | Issue Date | Jun 9, 2021 | | Expiry Date | Apr 16, 2026 | [La Huf Exploration Licenses](index=7&type=section&id=La%20Huf%20Exploration%20Licenses) Two new exploration licenses have been added in the La Huf group within the Madinah region, covering approximately 152.91 km², issued on August 1, 2020, and expiring on June 6, 2025, with a renewal application pending Summary of La Huf Exploration Licenses (Group B) | Metric | Value | | :--- | :--- | | Number of Licenses | 2 | | Total Area | ~152.91 km² | | Issue Date | Aug 1, 2020 | | Expiry Date | Jun 6, 2025 | | Status | Under renewal application | [Musayna'ah Exploration Licenses](index=7&type=section&id=Musayna%27ah%20Exploration%20Licenses) Twelve new exploration licenses have been added across the Musayna'ah groups within the Hail region, covering approximately 945.91 km², with various issue and expiry dates Summary of Musayna'ah Exploration Licenses (Group B) | Metric | Value | | :--- | :--- | | Number of Licenses | 12 | | Total Area | ~945.91 km² | | Issue Dates | Jun 9, 2021; Jul 28, 2022; Jun 28, 2022 | | Expiry Dates | Apr 16, 2026; Jun 4, 2027; May 6, 2027 | [General Terms and Affirmations](index=8&type=section&id=General%20Terms%20and%20Affirmations) This section clarifies the impact of the amendment on license applications, affirms the continuity of the original agreement, and outlines applicable clauses and required actions [Effect of Amendment on License Applications](index=8&type=section&id=Effect%20of%20Amendment%20on%20License%20Applications) The amendment stipulates that 'Group A Additions,' now converted to exploration licenses, will be removed from Part 2 (Exploration License Applications) of Schedule 6 of the Shareholders' Agreement - **Exploration License Applications corresponding to 'Group A Additions'** are to be **removed from Part 2 of Schedule 6**, as they have been **converted to Exploration Licenses**[12](index=12&type=chunk) [Continuity of Original Shareholders' Agreement](index=8&type=section&id=Continuity%20of%20Original%20Shareholders%27%20Agreement) Except for the specific changes outlined in this amendment, all other provisions of the original Shareholders' Agreement (SHA) remain fully effective and confirmed - The amendment constitutes a **variation of the SHA in accordance with Clause 36.7 (Amendment) of the SHA**[12](index=12&type=chunk) - **All other provisions of the SHA (as amended) are confirmed and remain in full force and effect**[12](index=12&type=chunk) [Applicable Clauses and Further Actions](index=8&type=section&id=Applicable%20Clauses%20and%20Further%20Actions) The parties agree that specific clauses from the original SHA will apply to this Amendment Agreement, and all parties are obligated to undertake necessary actions to fully implement its terms - **Specific clauses from the original SHA (1.2, 31, 32, 33, 35, 36.5, 36.7, 36.8, 36.9, 36.10)** are incorporated into this Amendment Agreement[12](index=12&type=chunk) - **Each party is responsible for doing all acts, executing documents, and taking necessary steps to give full effect to this Agreement**[12](index=12&type=chunk) [Execution of Agreement](index=9&type=section&id=Execution%20of%20Agreement) This section documents the formal execution of the Amendment Agreement by all involved parties and their authorized representatives [Signatures of Parties](index=9&type=section&id=Signatures%20of%20Parties) The Amendment Agreement was formally entered into by all parties on June 25, 2025, with authorized representatives providing their signatures and titles - The Agreement was entered into on **June 25, 2025 (29/12/1446H)**[1](index=1&type=chunk)[13](index=13&type=chunk) Authorized Signatories | Party | Name | Title | | :--- | :--- | :--- | | SAUDI ARABIAN MINING COMPANY (MA'ADEN) | Robert Wilt | Chief Executive Officer | | Ivanhoe Electric Inc. | Taylor Melvin | President and CEO | | IVANHOE ELECTRIC MENA HOLDINGS LTD. | Graham Boyd | Director | | MA'ADEN IVANHOE ELECTRIC EXPLORATION AND DEVELOPMENT LIMITED COMPANY | Louis Irvine | Chairman | | MA'ADEN IVANHOE ELECTRIC EXPLORATION AND DEVELOPMENT LIMITED COMPANY | Quentin Markin | Board Member |

Core Viewpoint - Ivanhoe Electric plans to raise US$125 million through an underwritten public offering of common stock, with an additional option for underwriters to purchase up to US$18.75 million more [1][2]. Group 1: Offering Details - The offering is subject to market conditions and there is no assurance regarding its completion or the actual size and terms [1]. - The net proceeds will be used for payments related to the Santa Cruz Copper Project, early development activities, exploration activities, and general corporate purposes [2]. Group 2: Underwriters - BMO Capital Markets is the lead book-running manager, with J.P. Morgan and National Bank of Canada Capital Markets also serving as book-running managers [3]. Group 3: Regulatory Filings - A registration statement on Form S-3 has been filed with the U.S. Securities and Exchange Commission, which was declared effective on July 10, 2023 [4]. - A final base prospectus has been filed in Canada, excluding Québec, under the multi-jurisdictional disclosure system [5]. Group 4: Company Overview - Ivanhoe Electric focuses on advanced mineral exploration technologies and electric metals exploration projects, primarily in the U.S., with a significant project being the Santa Cruz Copper Project in Arizona [7]. - The company also has a joint venture with Saudi Arabian Mining Company Ma'aden to explore minerals in the Arabian Shield [7].