Ivanhoe reports quarterly profit as Kamoa-Kakula recovery gains momentum
TSX-listed Ivanhoe Mines has returned to profitability in the second quarter, reporting a net profit of $46-million, as operations at its flagship Kamoa-Kakula copper complex in the Democratic Republic of Congo (DRC) continued to recover following disruptions earlier this year.
The company posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $179-million for the second quarter, up from $123-million in the corresponding period last year, while Kamoa-Kakula contributed $152-million in attributable Ebitda.
Kamoa-Kakula sold 61 249 t of payable copper during the second quarter and generated revenue of $880-million, an operating profit of $160-million and Ebitda of $385-million, representing a 44% Ebitda margin.
However, the company also notes that about 40 000 t of unsold copper remained in inventory at the end of the quarter, with the planned destocking now expected in the second half of the year.
"Our operational recovery at Kamoa-Kakula is gathering momentum and we firmly believe we have turned the corner. Mining rates have continued to improve at both Kamoa and Kakula as underground development advances and additional mining areas are brought online. We intend to have higher copper production in the second half of 2026, setting the foundation for an even stronger 2027," says Ivanhoe Mines founder and co-chairperson Robert Friedland.
The company also highlights progress beyond its producing assets, particularly within the Western Forelands exploration district in the DRC.
"Beyond our operating mines, we continue to unlock extraordinary value across the Western Forelands. We look forward to publishing a significant mineral resource update in September, which we believe will further demonstrate that this emerging copper district is one of the most important new discoveries anywhere in the world," Friedland says.
Meanwhile, Ivanhoe’s zinc/copper/germanium/silver/lead mine in the DRC generated a quarterly revenue of $146-million and Ebitda of $51-million, despite lower zinc sales volumes owing to logistical constraints that resulted in additional unsold concentrate inventory.
Further, Ivanhoe’s Platreef mine, in Limpopo, South Africa, continued to advance its Phase 2 expansion, while the company completed financial close on the project's $700-million senior project finance facility.
The company has ended the second quarter with cash and cash equivalents of $635-million.
Looking ahead, Friedland says Ivanhoe expects its financial position to strengthen as metal inventories are sold into a favourable pricing environment.
"Our balance sheet will further strengthen in the second half of 2026 as we monetise our stockpiles of unsold metal… at a time when metal prices outperform at $13 700/t of unsold zinc. As the price of copper and zinc rises, so does the value of these stocks," he concludes.
