Core Viewpoint - The Kamoa-Kakula copper smelter, the largest in Africa, has commenced production of copper anodes, marking a significant milestone for Ivanhoe Mines and the region's copper industry [1][4][14]. Production and Capacity - The Kamoa-Kakula smelter has a capacity of 500,000 tonnes of 99.7%-pure copper anodes per annum [1][14]. - The smelter's ramp-up is expected to continue throughout 2026, with completion anticipated by year-end [6][33]. - Copper production for 2026 is estimated to be between 380,000 and 420,000 tonnes, with a midpoint of 400,000 tonnes representing approximately 80% of the smelter's total capacity [6][33]. Sales and Inventory - In 2026, copper sales are projected to exceed production by approximately 20,000 tonnes due to the destocking of on-site inventory of unsold copper concentrate [9][33]. - The total unsold copper in concentrate is expected to decrease from approximately 37,000 tonnes to about 17,000 tonnes during 2026 as the smelter ramps up [9][33]. By-Products and Revenue - The smelter has also produced its first batch of by-product sulphuric acid, with an expected annual production of up to 700,000 tonnes [17][18]. - Sulphuric acid is in high demand, especially following Zambia's export ban, with spot prices reaching as high as $700 per tonne [18]. Operational Efficiency - The smelter's logistics costs are expected to halve as the copper content per truck-load exported increases from approximately 45% in concentrate to 99.7% in anodes [16][33]. - The overall copper recovery rate is projected to be 98.5% once fully ramped up [16][33]. Health and Safety - The construction of the smelter was completed with an industry-leading health and safety record, achieving only one lost time injury during 18 million man-hours worked [19][33]. Mining Operations - Stage Two dewatering of the Kakula Mine is complete, allowing for selective mining to commence ahead of schedule [21][25]. - Head grades from mining areas on the western side of Kakula are expected to increase from 3.5% copper in January to approximately 4.0% by the end of Q1 2026 [25][33].

Core Insights - The U.S. stock market experienced its largest single-day decline since April 10, attributed to escalating trade conflicts with China [1][9] U.S.-China Trade Conflicts - Recent trade tensions escalated with China's Ministry of Commerce requiring foreign companies to obtain licenses for exporting products containing over 0.1% rare earth minerals sourced or processed in China, effective December 1 [2][3] - China supplies approximately 70% of global rare earth minerals, essential for high-tech industries, with the U.S. being a major importer [3] U.S. Government Response - On October 10, the U.S. government announced a 100% tariff on additional Chinese exports, on top of the existing average 40% tariff, effective November 1 [4] Investment Recommendations - In light of market volatility, investment in low-beta stocks with high dividend yields is recommended. These stocks are expected to provide stability and potential upside if market conditions improve [5][9] - Five recommended stocks include: - AngloGold Ashanti plc (AU) with a beta of 0.53 and a dividend yield of 4.43% [11] - Dominion Energy Inc. (D) with a beta of 0.62 and a dividend yield of 4.43% [14] - PepsiCo Inc. (PEP) with a beta of 0.46 and a dividend yield of 3.93% [17] - Cincinnati Financial Corp. (CINF) with a beta of 0.72 and a dividend yield of 2.15% [21] - Genuine Parts Co. (GPC) with a beta of 0.77 and a dividend yield of 3.13% [23] Company-Specific Insights - **AngloGold Ashanti plc (AU)**: Expected revenue growth of 61% and earnings growth over 100% for the current year, with a recent earnings estimate improvement of 7.1% [11] - **Dominion Energy Inc. (D)**: Expected revenue growth of 5.4% and earnings growth of 22.4% for the current year, with stable earnings estimates [14] - **PepsiCo Inc. (PEP)**: Expected revenue growth of 1.6% and a slight decline in earnings of -1.4% for the current year, with a recent earnings estimate improvement [17] - **Cincinnati Financial Corp. (CINF)**: Expected revenue growth of 12.3% but a significant decline in earnings of -22.4% for the current year, with a slight improvement in earnings estimates [20] - **Genuine Parts Co. (GPC)**: Expected revenue growth of 2.5% and a decline in earnings of -6.3% for the current year, with stable earnings estimates [23]