(Kitco News) - Ivanhoe Mines (TSX: IVN) reported today that the Kamoa-Kakula Mining Complex produced 97,820 tonnes of copper in concentrate in Q3 2022, up from 87,314 tonnes in Q2 2022 and 55,602 tonnes in Q1 2022.
According to a press release, during the third quarter, Kamoa-Kakula sold a record 93,812 tonnes of payable copper and recognized revenue of $460.5 million, with an operating profit of $222.8 million and an EBITDA of $254.4 million.
Kamoa-Kakula's cost of sales per pound (lb.) of payable copper sold was $1.05/lb. for Q3 2022, compared with $1.15/lb. and $1.08/lb. in Q2 2022 and Q1 2022, respectively.
Ivanhoe Mines added it recorded a profit of $23.9 million for Q3 2022, compared with a profit of $351.5 million and $85.4 million during Q2 2022 and Q3 2021, respectively. The quarterly profit includes Ivanhoe Mines' share of profit and finance income from the Kamoa-Kakula joint venture of $74.9 million for Q3 2022, it said.
The company noted it has a strong balance sheet with cash and cash equivalents of $663.3 million as at September 30, 2022, and expects that Kamoa-Kakula's operating and expansion capital expenditures on Phase 3 will continue to be funded from copper sales and additional facilities at the Kamoa-Kakula joint venture.
Importantly, Ivanhoe Mines pointed out it further increases the lower end of its 2022 production guidance range for Kamoa-Kakula to between 325,000 and 340,000 tonnes of copper in concentrate following the early commissioning of the Phase 2 expansion.
However, given ongoing cost pressures experienced during the second and third quarters, largely related to logistics costs, the company said it is tightening its full-year C1 cash cost guidance to between $1.35/lb. and $1.40/lb. (previously $1.20/lb. to $1.40/lb.).
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of major new, mechanized, underground mines at the Kamoa-Kakula copper discoveries in the Democratic Republic of Congo and the Platreef palladium-rhodium-nickel-platinum-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic Republic of Congo.
