Ivanhoe Mines Unveils Independent Phase 2 and Phase 3 Expansion Studies for the Super-Giant Platreef Mine - a World-Class, Lowest-Cost Precious Metals and Critical Minerals Producer

Core Insights - Ivanhoe Mines has announced independent studies for Phase 2 and Phase 3 expansions of the Platreef mine, which is projected to be a leading low-cost producer of precious metals and critical minerals [1][2] - The Phase 1 production is set to commence in Q4 2025, with Phase 2 expansion expected to be completed by Q4 2027 [5][20] - The feasibility study for Phase 1 and 2 indicates an after-tax NPV8% of $1.4 billion and an IRR of 20%, while the preliminary economic assessment for Phase 3 suggests an NPV8% of $3.2 billion and an IRR of 25% [5][6] Phase 1 and Phase 2 Expansion - The Phase 1 feasibility study targets a processing capacity of 4.1 million tonnes per annum (Mtpa), with an expected annual production of over 450,000 ounces of platinum, palladium, rhodium, and gold [5][20] - The total cash cost for the 4.1 Mtpa feasibility study is estimated at $599 per ounce of 3PE+Au, which is competitive compared to the current market price of $1,205 per ounce [3][20] - The Phase 2 expansion will increase production capacity significantly, with an anticipated output of approximately 460,000 ounces of 3PE+Au and additional by-products of nickel and copper [5][20] Phase 3 Expansion - The Phase 3 preliminary economic assessment outlines a further increase in processing capacity to 10.7 Mtpa, with annualized production expected to exceed 1 million ounces of 3PE+Au [6][21] - The total cash cost for the 10.7 Mtpa PEA is projected to be $511 per ounce of 3PE+Au, benefiting from economies of scale [20][21] - The expansion is expected to position Platreef among the largest primary platinum group metal producers globally [6][21] Resource Estimates - Platreef contains substantial mineral resources, with 42 million ounces of precious metals classified as Indicated Resources and 53 million ounces as Inferred Resources [1][8] - The mine has a projected life of 35 years based on current Indicated Mineral Resources, with potential for further resource expansion [9][12] Financial Metrics - The capital expenditure for the Phase 1 project is estimated at $1.2 billion, with funding expected from project finance and equity [20][36] - The anticipated cash flow from Phase 1 and Phase 2 operations will support financing for the future Phase 3 expansion [38][36] - The project is expected to generate significant operating margins, with an operating margin of 40% for the 4.1 Mtpa FS and 45% for the 10.7 Mtpa PEA [42][43]