Canadian mining company Ivanhoe Mines is entering a new phase of strong free cash flow generation, following the completion of peak capital expenditures at its flagship Kamoa-Kakula copper complex in the Democratic Republic of Congo (DRC).

Founder and co-chairperson Robert Friedland on Thursday highlighted the company’s transition, citing production growth, improved margins and strong financial results.

Reporting its 2024 results, Ivanhoe posted profit of $193-million, or $0.17 a share, and normalised profit of $386-million, or $0.32 a share. This compares with a profit of $303-million and normalised profit of $388-million in 2023. The group’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped from $604-million in 2023, to $625-million in 2024.

Kamoa-Kakula delivered record revenue of $3.11-billion, operating profit of $1.43-billion, and Ebitda of $1.81-billion for 2024, achieving a margin of 58%.

Friedland noted that the newly completed 500 000 t/y on-site, direct-to-blister copper smelter would further enhance margins. However, its ramp-up has been deferred by three months owing to power availability issues and is now scheduled to commence in the second quarter of 2025.

“The completion of Africa’s largest and greenest copper smelter marks a pivotal moment, unlocking new potential for enhanced profitability, reduced costs, and streamlined efficiencies,” said Friedland.

The Kamoa-Kakula complex produced 437 061 t of copper in concentrate in 2024, an 11% increase compared with 393 551 t in 2023 following the ramp-up of the Phase 3 concentrator in the second half of 2024.

The operation sold 396 972 t of copper in 2024 at an average realised price of $4.09/lb, up from 375 779 t sold in 2023 at $3.84/lb. While Phase 3 production has started, a portion of the concentrate is being toll-treated into blister copper at the Lualaba copper smelter to enhance profitability until the on-site smelter is fully operational.

At year-end, the company had approximately 30 000 t of unsold copper in inventory, up from 16 000 t at the end of the third quarter.

For 2025, Kamoa-Kakula has set a production guidance of 520 000 t to 580 000 t of copper in concentrate, with production projected to increase to approximately 600 000 t in 2026. This growth will be driven by power initiatives and optimization projects, including the "Project 95" initiative, which aims to enhance recoveries from Phase 1 and 2 concentrators to 95%. The initiative is expected to increase annualised copper production by up to 30 000 t and is on track for completion in the first quarter of 2026.

Meanwhile, the ramp-up of the Kipushi zinc/copper mine in the DRC is progressing, with the mine expected to achieve nameplate milling rates before the end of March. Kipushi produced 50 307 t of zinc in its inaugural year, with a record monthly output of 14 900 t in December. The 2025 production guidance has been set at 180 000 t to 240 000 t of zinc in concentrate, with a target of over 250 000 t for 2026 following the completion of ramp-up and debottlenecking activities.

Beyond its achievements in the DRC, Ivanhoe Mines continues to advance the Phase 2 and Phase 3 development plans at the Platreef project in South Africa.

“In 2024, Ivanhoe Mines achieved remarkable milestones, reinforcing our commitment to sustainable development and production growth,” Friedland said.