Financial Performance - Ivanhoe Electric reported a quarterly loss of $0.16 per share, which aligns with the Zacks Consensus Estimate, an improvement from a loss of $0.39 per share a year ago [1] - The company posted revenues of $1.07 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 44.32%, compared to revenues of $0.54 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $0.74 million, and for the current fiscal year, it is -$0.78 on revenues of $2.93 million [7] Stock Performance - Ivanhoe Electric shares have increased approximately 30.6% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Mining - Miscellaneous industry, to which Ivanhoe Electric belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Ivanhoe Electric's stock performance [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q (Mark One) For the transition period from to Commission File Number: 001-41436 Ivanhoe Electric Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 32-0633823 (State or ...

Company Overview - Ivanhoe Electric (IE) shares increased by 12% in the last trading session, closing at $11.4, with a notable volume of shares traded compared to normal sessions. The stock has gained 26.6% over the past four weeks [1] Financial Performance - For the March-end quarter, Ivanhoe Electric reported revenues of $0.73 million, a 104% increase year-over-year from $0.36 million. The gross profit surged 70% year-over-year to $0.44 million. However, the company posted a net loss of $34 million, an improvement from the net loss of $60 million in the same quarter last year [2] - The upcoming quarterly report is expected to show a loss of $0.16 per share, reflecting a year-over-year change of +59%. Revenues are anticipated to be $0.74 million, up 37% from the previous year [3] Earnings Estimates - The consensus EPS estimate for Ivanhoe Electric has been revised 29.4% lower over the last 30 days. A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating caution for future stock performance [4] Industry Context - Ivanhoe Electric is part of the Zacks Mining - Miscellaneous industry. Another company in the same sector, Materion (MTRN), closed the last trading session 1.2% higher at $85.81, with a return of 9.2% over the past month [5] - Materion's consensus EPS estimate for the upcoming report has remained unchanged at $1.16, representing an 18.3% decrease compared to the previous year's EPS. Materion also holds a Zacks Rank of 3 (Hold) [6]

Project Highlights - The Santa Cruz Copper Project has a low initial capital expenditure of $1.24 billion and low unit production costs of $1.32 per pound of copper[30] - The project anticipates a 23-year mine life with a 20,000 tonnes per day operation and conventional heap leach process achieving 92% copper recoveries[30] - During the first 15 years, the project expects to produce 72,000 tonnes of copper cathode per year with an average annual copper grade of 1.1%[30] - At the current COMEX copper price, the project boasts an after-tax Net Present Value (NPV) at an 8% discount rate of $1.9 billion and a 24% Internal Rate of Return (IRR)[30] Financial Metrics - At a copper price of $4.25 per pound, the after-tax NPV8% is $1.4 billion with a 20% IRR[30] - The project anticipates a life of mine revenue of $13.1 billion and after-tax free cash flow of $5.0 billion[31] - The capital intensity is projected at $17100 per tonne[31] Resources and Reserves - The project's probable reserves are estimated at 136 million tonnes with a total copper grade of 1.08%[45] - Indicated resources inclusive of mineral reserves for Santa Cruz and East Ridge contain 3.1 million tonnes of copper[62] - Inferred resources for Santa Cruz and East Ridge contain 0.6 million tonnes of copper[64] Operational Aspects - The surface infrastructure requires approximately 2,600 acres, which is 40% of the total land package[41] - The mine will access the top of mineral reserves at 310 meters beneath the surface via twin decline drifts measuring approximately 8 kilometers[50] - The study incorporates over 200 kilometers of longhole stoping and local drift-and-fill across 16 levels[50]

Company Overview - Ivanhoe Electric's shares increased by 8.7% to $9.17 in the last trading session, with a notable trading volume, contributing to a 14.7% gain over the past four weeks [1][2] Project Development - The rise in share price follows the completion of the Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona, marking a significant milestone for securing long-term project financing [2] - The Study emphasizes advanced engineering design from extraction to processing, ensuring the project's bankability and readiness for financing [3] - Construction for the Santa Cruz project is planned to commence in the first half of 2026, aiming for first copper cathode production by 2028 [3] Financial Performance - Ivanhoe Electric is projected to report a quarterly loss of $0.13 per share, reflecting a year-over-year increase of 66.7%, with expected revenues of $0.74 million, up 37% from the previous year [4] - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] Industry Context - Ivanhoe Electric holds a Zacks Rank of 3 (Hold) within the Zacks Mining - Miscellaneous industry, contrasting with Alpha Metallurgical, which has a Zacks Rank of 5 (Strong Sell) and has seen a 13.3% decline over the past month [6]

Summary of Ivanhoe Electric's Santa Cruz Copper Project Update Company Overview - **Company**: Ivanhoe Electric (IE) - **Project**: Santa Cruz Copper Project - **Location**: Arizona, USA - **Date of Call**: June 23, 2025 Industry Context - The copper mining industry is facing challenges related to supply chain security and national resource independence in the United States - The project aims to address the shortage of modern copper smelters in the U.S. and produce refined copper on-site with minimal environmental impact [4][6][7] Key Points and Arguments 1. **Project Timeline and Development**: - The Santa Cruz project has been in development for approximately 8-9 years and is expected to take about 12-15 years to reach full production [5][20] - The project is designed to produce copper cathode on-site using heap leach technology, which minimizes environmental impacts compared to traditional smelting [7][30] 2. **Economic Viability**: - At a copper price of $4.83 per pound, the project has an after-tax net present value (NPV) of $1.9 billion and an internal rate of return (IRR) of 24% [20] - The project is projected to generate $5 billion in life-of-mine after-tax free cash flow with a payback period of approximately 4.5 years at a $4.25 copper price [21] 3. **Production Capacity**: - The project aims for an average mining rate of 20,000 tons per day and expects to achieve 92% copper recoveries [20] - Average annual copper cathode production during the first 15 years is estimated at 72,000 tons [21] 4. **Resource Estimates**: - The project has defined 136 million tons of probable reserves with an average grade of 1.08% total copper [26] - Significant additional mineral resources exist, indicating potential for future expansion [38] 5. **Infrastructure and Location**: - The project benefits from excellent access to existing infrastructure, including proximity to major highways, rail, and power lines [24] - The location in Arizona provides access to a skilled workforce and a historical context of mining [25] 6. **Environmental Considerations**: - The project is designed to have a small surface footprint and includes plans for an integrated solar and battery storage facility to supply 70% of the mine's electricity demand [25] 7. **Permitting and Regulatory Support**: - The company is actively working on obtaining necessary permits, with strong relationships established with local and state authorities [36] - A letter of support has been received from the U.S. Export-Import Bank, indicating governmental backing for the project [11][43] 8. **Financing Strategy**: - The company is in discussions with various financing institutions and has received a letter of interest for up to $825 million in project debt [43] - The financing strategy includes a combination of structured debt and potential strategic partnerships [44] Additional Important Information - The project is positioned as a critical contributor to U.S. copper supply, addressing both domestic demand and national security concerns [9][10] - The management team has extensive experience in mining finance and operations, enhancing the project's credibility [45] - The company is also pursuing other critical metals exploration projects, indicating a diversified approach to resource development [48] This summary encapsulates the key aspects of Ivanhoe Electric's Santa Cruz Copper Project as discussed in the conference call, highlighting its economic potential, strategic importance, and operational plans.

Core Insights - Ivanhoe Electric has completed a Preliminary Feasibility Study for the Santa Cruz Copper Project, indicating strong economic viability with an after-tax net present value of $1.9 billion and an internal rate of return of 24% at current copper prices [1][6][10] Group 1: Project Overview - The Santa Cruz Copper Project is located in Arizona, a state with a rich mining history, and is expected to become a major domestic producer of refined copper [1][3] - The project is designed as a high-quality underground mining operation utilizing a heap leach process, projected to produce 1.4 million tonnes of copper cathode over a 23-year mine life [1][6] - Initial capital expenditures are estimated at $1.24 billion, with first quartile unit cash costs of $1.32 per pound of copper [1][9][10] Group 2: Economic Metrics - The study indicates probable mineral reserves of 136 million tonnes at a grade of 1.08% copper, totaling 1.5 million tonnes of contained copper [6][26] - Average annual production is projected at 72,000 tonnes of copper cathode during the first 15 years of mining [9][16] - At a current COMEX copper price of $4.83 per pound, the project shows a robust after-tax net present value of $1.9 billion [11][12] Group 3: Financing and Development - Project financing efforts are already underway, with potential support from U.S. government agencies and commercial lending institutions [2][41] - A Letter of Interest from the Export-Import Bank of the United States outlines potential debt financing of up to $825 million [2] - Initial construction is targeted for the first half of 2026, with first copper cathode production expected in 2028 [1][44] Group 4: Technological and Operational Aspects - The project will utilize modern mining technologies, including tele-remote-operated electric fleets and advanced grade control technologies [30][31] - The heap leach process is designed to achieve high copper recoveries of 92.2% over the life of the mine [9][36] - The project is expected to create high-paying jobs in Arizona and contribute significantly to domestic copper production [5][30] Group 5: Environmental and Regulatory Considerations - The project is located on 100%-owned private land, which facilitates a streamlined permitting process [21][41] - Permits required for construction activities are in preparation or have been submitted, with several already obtained for exploration [42][44] - The project aims to produce pure copper cathode for immediate sale to American industry, minimizing environmental impact by avoiding traditional smelting processes [5][10]

Summary of Ivanhoe Electric Conference Call Company Overview - **Company Name**: Ivanhoe Electric - **Founded By**: Robert Friedland, known for his innovation and entrepreneurship in the global mining industry [4][5] - **Public Listing**: Listed on the New York Stock Exchange and Toronto Stock Exchange [5] - **Location**: Based in Tempe, Arizona [6] - **Focus**: Exploration and development of critical minerals, particularly copper, to support the U.S. supply chain [6][10] Industry Context - **Importance of Copper**: Copper is essential for expanding the electric grid, supporting data centers, and defense applications. The U.S. is a net importer of refined metals, highlighting the need for domestic copper production [8][9][10] - **Government Support**: The current U.S. administration emphasizes increasing domestic production of critical metals, including copper [8][24] Key Projects - **Santa Cruz Project**: - Located on private land in Arizona, with access to major infrastructure [12] - Capable of producing pure copper cathode on-site [12] - Preliminary feasibility study (PFS) expected in June 2025, which will support project financing and permitting [12][24][29] - Aims to be fully financed and permitted by early 2026, with initial construction planned for the first half of 2026 [26][29] Strategic Partnerships - **BHP Alliance**: Collaboration with BHP for exploration in the Southwest U.S., with BHP contributing $15 million for early-stage exploration [17][18] - **Saudi Arabia Joint Venture**: Partnership with Ma'aden for a 50/50 exploration joint venture covering 48,000 square kilometers, with Ma'aden investing $150 million for a 9.9% equity stake [16][17] Technological Advancements - **Exploration Technologies**: Utilization of proprietary technologies like Typhoon and Computational Geosciences to enhance exploration efficiency [15][16] - **Geophysical Surveying**: Typhoon technology allows for deep exploration to identify mineralization [15][16] Financial Aspects - **Export-Import Bank Support**: Received a letter of interest from the U.S. Export-Import Bank for potential debt financing of up to $825 million for the Santa Cruz project [24][25] - **Financing Strategy**: Plans to assemble a comprehensive financing package, with significant interest from traditional banks [25] Future Milestones - **Upcoming Catalysts**: - Release of the preliminary feasibility study in June 2025 [29] - Securing project financing and permits to commence construction [29] - Potential for initial production before the end of 2028 [30] Conclusion - Ivanhoe Electric is positioned to play a significant role in the U.S. mining industry, particularly in copper production, with strong government support, strategic partnerships, and innovative technologies driving its projects forward [24][29][30]

Core Viewpoint - Ivanhoe Electric has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][2]. Earnings Estimates and Stock Price Impact - The upward trend in earnings estimates is a significant factor influencing stock prices, with empirical research showing a strong correlation between earnings estimate revisions and near-term stock movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - For Ivanhoe Electric, the increase in earnings estimates reflects an improvement in the company's underlying business, which is expected to drive the stock price higher [4]. - The Zacks Consensus Estimate for Ivanhoe Electric has increased by 4.4% over the past three months, with projected earnings of -$0.65 per share for the fiscal year ending December 2025, representing a year-over-year change of 53.6% [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Ivanhoe Electric to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Viewpoint - Ivanhoe Electric (IE) has shown a recent price increase and analysts suggest significant upside potential based on price targets, with a mean target indicating a 105.9% upside from the current price of $6.80 [1] Price Targets and Estimates - The mean price target for IE is $14, with a standard deviation of $3.81 across five short-term estimates, indicating variability in analyst predictions [2] - The lowest estimate of $10 suggests a 47.1% increase, while the highest estimate of $20 indicates a potential surge of 194.1% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts are optimistic about IE's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlate with stock price movements [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 3.9%, with one estimate moving higher and no negative revisions [12] - IE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them may not be prudent due to concerns about analysts' biases and the accuracy of their predictions [3][7][10] - Analysts may set overly optimistic price targets influenced by business relationships, which can lead to inflated expectations [8]