TORONTO, CANADA ‒ Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) today announced its financial results for the three and six months ended June 30, 2021. Ivanhoe Mines is a Canadian mining company advancing its three mining projects in Southern Africa: the Kamoa-Kakula copper mining complex in the Democratic Republic of Congo (DRC); the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; and the extensive upgrading of the historic Kipushi zinc-copper-lead-germanium mine, also in the DRC. Ivanhoe also is exploring for new copper discoveries on its Western Foreland exploration licences in the DRC, near the Kamoa-Kakula Project. All figures are in U.S. dollars unless otherwise stated.
- Kamoa-Kakula’s Phase 1 concentrator plant achieved commercial production on July 1, 2021. Kamoa-Kakula’s initial production guidance, on a 100%-project basis, is between 80,000 and 95,000 tonnes of copper in concentrate for 2021.
- Kamoa-Kakula’s Phase 2 construction is progressing slightly ahead of plan and remains on track for start-up in Q3 2022, which will see a doubling of mill throughput to 7.6 million tonnes per annum (Mtpa). Phases 1 and 2 combined are forecast to produce approximately 400,000 tonnes of copper per year.
- Study work to accelerate Phase 3 mine and concentrator expansion to at least 11.4 Mtpa is ongoing. Based on independent benchmarking, the project’s phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world’s second-largest copper mining complex, with peak annual copper production of more than 800,000 tonnes.
- At the end of July 2021, Kamoa-Kakula’s surface ore stockpiles held approximately 3.54 million tonnes grading 4.77% copper, containing more than 168,000 tonnes of copper.
- Ivanhoe, together with its partner Zijin, is exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion, which includes optimization work to determine mining production capacity and costs at the various mining areas on the Kamoa-Kakula complex, including expanded facilities at the Kansoko Mine, Kamoa North (including the Bonanza Zone) and Kakula West. Kamoa Copper also is refining its longer-term downstream processing strategy, including the potential construction of a smelter or hydrometallurgical processing facility.
- In April 2021, Ivanhoe Mines Energy DRC entered into an agreement with the DRC’s state-owned power company Société Nationale d'Électricité (SNEL) to upgrade a major turbine at the Inga II hydropower facility. The upgraded turbine is expected to produce 162 megawatts (MW) of clean, renewable hydropower, providing the Kamoa-Kakula Copper Mine with sufficient, sustainable electricity for future expansions, including a copper smelter.
- In May 2021, Ivanhoe pledged to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at the industry-leading Kamoa-Kakula Copper Mine. Since the mine already is powered by clean, renewable hydro-generated electricity, the focus of the company’s net-zero commitment will be on electrifying the project’s mining fleet with new, state-of-the-art equipment powered by electric batteries or hydrogen fuel cells. Emissions-free underground mining equipment, at the size and scale required for Kamoa-Kakula’s bulk-scale operations, is at an advanced stage of development by several of the world’s leading equipment manufacturers.
- During Q2, Ivanhoe continued its 2021 copper exploration program on its Western Foreland licences that cover a combined area of approximately 2,550 square kilometres in close proximity to Kamoa-Kakula. Drilling in the quarter was focused on the western and eastern extensions of the Makoko Discovery, as well as the northern and western extensions of the Kiala Discovery. Good progress was made on construction of critical infrastructure to access high-priority, newly-acquired westerly exploration permits, including construction of a 60-kilometre spine road across the Western Foreland and a new bridge across the Lubudi River.
- In February 2021, Ivanhoe announced that its South African subsidiary, Ivanplats, is arranging project-level financing of up to $420 million to advance development of the world-scale Platreef palladium, rhodium, platinum, nickel, copper and gold project in South Africa.
- Ivanplats has signed a non-binding term sheet with Orion Mine Finance, a leading international provider of production-linked stream financing to base and precious metals mining companies, for a $300-million gold, palladium and platinum streaming facility. Ivanplats also has appointed two prominent, international commercial banks – Societe Generale and Nedbank – as mandated lead arrangers for a senior project debt facility of up to $120 million.
- Ivanplats’ proposed financings follow the November 30, 2020 issuance of the outstanding findings of an independent Platreef Integrated Development Plan 2020 (Platreef IDP20), which consists of an updated feasibility study (Platreef 2020 FS) and a preliminary economic assessment (Platreef 2020 PEA). The initial capital cost for the phased development plan under the Platreef 2020 PEA, starting at a mining rate of 700,000 tonnes per annum (700 ktpa), is estimated at $390 million.
- Detailed engineering is progressing on Platreef’s 700-ktpa initial mine design, 770-ktpa concentrator and associated infrastructure for the phased development plan, which is scheduled to be incorporated into an updated feasibility study by year end or early 2022. The Shaft 1 changeover is progressing well in preparation for permanent hoisting in early 2022. Construction activities on the Shaft 2 headframe also are advancing. In July 2021, Ivanplats ordered emissions-free, battery electric drill rigs and underground loaders from leading Swedish manufacturer Epiroc, for use in the mine’s underground development.
- Construction activities on Platreef’s Shaft 2 headframe also are advancing.
- At the Kipushi Mine redevelopment project in the DRC, the Kipushi Project’s draft feasibility study, and development and financing plan are being reviewed by Ivanhoe Mines together with its joint-venture partner and state-owned mining company, Gécamines. The project is maintaining a reduced workforce to conduct maintenance activities and pumping operations.
- Ivanhoe has made excellent progress in upgrading Kipushi’s underground infrastructure to allow for mining to quickly begin at the ultra-high-grade Big Zinc orebody. Resumption of production at the mine now requires the construction of a surface processing plant and other related production facilities. Discussions are continuing with Gécamines to advance a new era of production at Kipushi and it is anticipated that these discussions will be concluded with the finalization of the feasibility study and the agreement on the development and financing plan.
- At the end of Q2 2021, Kamoa-Kakula had reached 1.49 million work hours free of a lost-time injury, Kipushi had reached 3.44 million work hours free of a lost-time injury, and Platreef had reached 57,000 work hours free of a lost-time injury.
Principal projects and review of activities
1. Kamoa-Kakula Project
39.6%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kamoa-Kakula Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the world’s fourth-largest copper deposit by international mining consultant Wood Mackenzie. The project is approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi. The Kamoa-Kakula Project began producing copper in May 2021 and achieved commercial production on July 1, 2021.
Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining and a 1% share interest in Kamoa Holding to privately-owned Crystal River in December 2015. Since the conclusion of the Zijin transaction, each shareholder has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in Kamoa Holding.
A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the 2002 DRC mining code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding holds an 80% interest in the project.
Health and safety at Kamoa-Kakula
At the end of June 2021, the Kamoa-Kakula Project reached 1,492,769 work hours free of a lost-time injury. A fatality occurred on May 31, 2021 when a contractor’s employee was hit in the leg by a loose falling rock while working at one of the mine’s underground faces, which caused the employee to fall backwards, striking his head. Despite immediate first-aid assistance by his colleagues, he passed away at the accident scene. Since the fatality, remedial safety interventions have been implemented. Two other lost-time injuries occurred in Q2 2021. The project continues to strive toward its workplace objective of zero harm to all employees and contractors.
Kamoa-Kakula has successfully focused on prevention, preparation, and mitigation in managing the risks associated with COVID-19. Large-scale testing, combined with focused preventative measures, ensured that positive cases were quickly identified, isolated, and treated, with cross contamination kept to a minimum. Maintaining this high standard of risk management remains a daily focus, to prevent future cases. During the first six months of 2021, the Kamoa-Kakula Project conducted 3,743 COVID-19 tests, with 163 patients testing positive for COVID-19.
Kamoa Copper has secured an initial supply of the AstraZeneca vaccine for employees, contractors and Democratic Republic of Congo residents who live in the mine’s host communities. Kamoa Copper continues to administer its initial supply of 1,500 doses. The second dose will be administered eight to 12 weeks after the first and a certificate of vaccination completion will be issued to those who have received two doses.
The Kamoa COVID-19 hospital continues to treat patients when required, as construction progresses well for the expansion and upgrade of the primary healthcare wing. Kamoa-Kakula’s highly-experienced doctors and nurses apply the latest medical treatments, supported by a world-leading emergency response and paramedic team.
Kamoa is one of 15 sites in the province where COVID-19 vaccination programs are being rolled-out to curb the spread of the virus. As the pandemic evolves, the medical team at the Kamoa hospital continues to review and update risk mitigation protocols, while ensuring that new medical advances are investigated and applied to protect the health and safety of employees and community members.
Copper concentrate production from the initial 3.8-Mtpa Kakula concentrator plant commenced in May 2021; commercial production achieved on July 1, 2021
Overall progress of Kamoa-Kakula’s first phase, 3.8-Mtpa mining and milling operation (covering mine infrastructure, concentrator plant and surface infrastructure) was very nearly complete at the end of Q2 2021. The only major construction activity that still was outstanding was the backfill plant which was completed in July 2021, with the first paste to be delivered to underground stopes in August 2021.
The backfill plant will be used to mix tailings from the processing plant with cement to produce paste backfill. The backfill will be pumped back into the mine and used to help support mined-out areas. Approximately one-half of the mine’s tailings will be sent back underground, significantly reducing the surface tailings storage. Construction of the tailings storage facility has been completed and first tailings deposited.
Overall construction of the project’s first phase, 3.8-Mtpa concentrator plant and associated facilities is complete, with C4 or hot commissioning advancing according to plan. First ore was introduced into the ball mills on May 20, 2021, and first saleable concentrate was filtered on May 25, 2021, marking the start of concentrate production. Lower-grade ore was fed into the plant during initial hot commissioning and the feed grade has since been increased.
The Kamoa-Kakula Project was deemed to have reached commercial production on July 1, 2021, after achieving a milling rate in excess of 80% of design capacity and recoveries close to 70% for a continuous, seven-day period. Revenue recognition, as well as depreciation of Kamoa-Kakula’s first phase, 3.8-Mtpa concentrator plant and milling operation, commenced from this date.
Approximately 500,000 tonnes of ore had been milled by early August 2021. Copper production has steadily increased since hot commissioning began at the end of May 2021. Copper production exceeded 500 tonnes per day on occasion during July, nearing the Phase 1 steady-state design capacity of approximately 550 tonnes per day, or 200,000 tonnes per year. During August, the focus of the commissioning team will shift from the front end crushing and milling circuit to balancing and optimizing the flotation and regrind milling areas. This is expected to further improve concentrate grade and recovery.
Copper recoveries increased from an average of approximately 70% in June 2021 to approximately 81% in July 2021, progressively increasing toward the Phase 1 steady-state design copper recoveries of approximately 86%.
As at June 30, 2021, contained copper in concentrate produced by the Kamoa-Kakula Project amounted to 9,858 tonnes. Ivanhoe’s guidance for contained copper in concentrate expected to be produced by the Kamoa-Kakula Project for 2021 assumes ramp-up from first production continues in line with published technical disclosures, and is as follows:
Kamoa-Kakula Project 2021 Guidance
Contained Copper in Concentrate 80,000 to 95,000 tonnes
All figures in the above table are on a 100%-project basis. Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms. Cost guidance is expected to be provided once the Kamoa-Kakula Project’s Phase 1 plant has operated at steady-state production for a continuous period.
Loading high-grade copper concentrate at the Kamoa-Kakula concentrate storage warehouse for transport to the nearby Lualaba Copper Smelter for processing into blister copper ingots, containing approximately 99% copper.
Construction of Kamoa-Kakula’s Phase 2 expansion is more than 35% complete; Phase 3 studies are progressing
Construction of the second 3.8-Mtpa concentrator plant is progressing well toward a Q3 2022 start-up with the current focus on the completion of civil works and early structural steel erection. Civil works are over 80% complete with a number of areas handed over to the steel, mechanical, piping and platework contractor.
Engineering and procurement activities are well advanced with both approximately 80% complete. Structural steel, platework and major equipment has started arriving on site and steel erection in the high-pressure grinding rolls and tailings thickening areas has commenced. The bulk of the structural steel and platework is scheduled to be on site in early Q3 2021. Piping fabrication is advancing well with some piping en route to site.
Ivanhoe and its partner Zijin are exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion, which may be fed from expanded mining operations at Kansoko, or new mining areas at Kamoa North (including the Bonanza Zone) and Kakula West.
Study work for the Phase 3 mine and concentrator expansion is underway, which includes optimization work to determine mining production capacity and costs at the various mining areas. This work also will inform the optimal sizing of the Phase 3 concentrator, which was outlined as a further expansion of 3.8 Mtpa in the Kamoa-Kakula Integrated Development Plan announced in September 2020. In addition, the studies will take into consideration the plans to upgrade Turbine 5 at the Inga II hydropower complex to provide 162 megawatts of renewable hydropower, as well as the construction of a direct-to-blister smelter.
Once the optimization work is completed, Kamoa Copper will advance into a more detailed phase of design and engineering work with its objective to accelerate the Phase 3 concentrator expansion.
Two views of Kamoa-Kakula’s Phase 1 concentrator plant in full operation and the adjacent, parallel Phase 2 concentrator plant under construction.
Construction of the Phase 2 tailings thickener is nearing completion.
Ore stockpiles now hold approximately 3.54 million tonnes grading 4.77% copper, containing more than 168,000 tonnes of copper
At the end of March 2021, Kamoa-Kakula’s pre-production surface stockpiles contained approximately 2.56 million tonnes of high-grade and medium-grade ore at an estimated blended grade of 4.60% copper, containing more than 117,000 tonnes of copper.
The project’s combined medium-grade and high-grade ore mined was approximately 409,000 tonnes at an average grade of 5.71% copper in April 2021; approximately 406,000 tonnes at an average grade of 5.77% copper in May 2021; and approximately 338,000 tonnes at an average grade of 4.59% copper in June 2021.
This brings the project’s total pre-production high- and medium-grade ore surface stockpiles to approximately 3.40 million tonnes at an estimated grade of 4.78% copper as of the end of June 2021.
A total of 414,000 tonnes grading 5.16% copper was mined in July 2021 and comprised 367,000 tonnes grading 5.29% copper from the Kakula Mine, including 85,000 tonnes grading 7.70% copper from the mine’s high-grade centre, and 47,000 tonnes grading 4.13% copper from the Kansoko Mine.
First ore was fed into the concentrator plant on May 20, 2021, and the start of copper concentrate production occurred on May 25, 2021, several months ahead of schedule. As of June 30, 2021, 313,000 tonnes of ore grading 4.85% copper had been conveyed to the run-of-mine (ROM) stockpile.
New employee accommodations under construction at the Kakula Mine, with the Kakula North ore stockpiles and concentrator plant in the background.
Kamoa-Kakula’s off-take agreements signed for Phase 1 blister copper and copper concentrate
On June 9, 2021, Kamoa Copper signed off-take agreements with CITIC Metal (HK) Limited (CITIC Metal) and Gold Mountains (H.K.) International Mining Company Limited, a subsidiary of Zijin, for 50% each of the copper products from Kamoa-Kakula’s Phase 1 production. The off-take agreements are evergreen for the production volumes from Phase 1, including copper concentrate and blister copper resulting from processing of copper concentrates at the nearby Lualaba Copper Smelter.
The off-take agreements contain standard, international commercial terms, including copper payables and treatment and refining charges based on the annual benchmark across the copper industry. The ultra-high-grade, clean concentrate produced by Kamoa-Kakula is expected to contain approximately 57% copper and very low levels of impurities.
CITIC Metal and Zijin are purchasing the copper concentrate at the Kakula Mine and the blister copper at the Lualaba Copper Smelter on a free-carrier basis, meaning the buyers will be responsible for arranging freight and shipment to the final destination, initially via the port of Durban, South Africa.
CITIC Metal and Zijin each provided an advance payment facility of $150 million ($300 million in total), which was drawn at the election of Kamoa Copper and received in June 2021. The facility carries an annual interest rate of 8% and will be offset against provisional payments due to Kamoa Copper from product deliveries. Payment terms include an option to receive a provisional payment on a 100%-basis within three business days of invoicing, at the end of each delivery month.
Agreement signed with Lualaba Copper Smelter to produce 99% blister copper in the DRC
On May 31, 2021, Kamoa Copper signed a 10-year agreement with the Lualaba Copper Smelter, located outside the town of Kolwezi, for the processing of a portion of Kamoa’s copper concentrate production. Kamoa Copper delivered its first bulk copper concentrates to the Lualaba Copper Smelter on June 1, 2021, and since then, deliveries to the smelter have been occurring on a daily basis. The Lualaba Copper Smelter is 60%-owned by China Nonferrous Metal Mining Group (CNMC) of Beijing, China. Yunnan Copper of Kunming, China, owns the remaining 40%.
The smelter, which began operations in early 2020, will treat up to 150,000 wet metric tonnes of copper concentrates from Kamoa-Kakula, in return for a treatment charge and market-based realization fee, and produce blister copper containing approximately 99% copper that will be returned to Kamoa Copper, and collected by CITIC Metal and Zijin from a dedicated storage area at the Lualaba Copper Smelter.
The Lualaba Copper Smelter is the first modern, large, pyro-metallurgical copper smelter built in the DRC, and is approximately 40 kilometres from Kamoa-Kakula via the recently-constructed, dedicated by-pass road.
The first truckloads of Kamoa-Kakula’s blister copper ingots, containing approximately 99% copper, were exported from the Lualaba Copper Smelter to international markets in July 2021.
Pouring Kamoa Copper blister ingots, containing approximately 99% copper, at the local Lualaba Copper Smelter.
Kamoa Copper blister copper ingots produced at the Lualaba Copper Smelter being loaded for transport to international markets.
Kamoa-Kakula begins exporting copper concentrate internationally as production ramps up
Kamoa Copper SA began exporting its copper concentrate internationally in July 2021. The first truckloads of copper concentrate destined for smelters outside of the DRC departed from the mine site on July 17, 2021, marking a significant milestone in the ongoing ramp-up of Kamoa-Kakula’s Phase 1, 3.8-Mtpa concentrator plant.
By early August 2021, approximately 32,700 tonnes of copper concentrate had been loaded at the mine site for delivery to either the Lualaba Copper Smelter, or to international markets.
Kamoa Copper received all necessary authorizations from the DRC government to export copper concentrate and blister copper on June 8, 2021.
Transport trucks loaded with high-grade copper concentrate at Kamoa-Kakula awaiting customs approval, which usually takes five days, before beginning their journey to international smelters, via the port of Durban, South Africa.
Draw-down of equipment financing facility successfully commenced
On December 1, 2020, Ivanhoe announced the Kamoa-Kakula Project had secured an equipment financing facility of up to EUR 176 million (approximately $211 million), together with a $9 million down-payment facility to purchase underground mobile mining equipment and services from leading Swedish manufacturers Sandvik AB and Epiroc AB, and Finnish manufacturer Normet Oy.
The facility has an availability period of three years and amortizes over five years from utilization and is tied to underground mining equipment at the Kamoa-Kakula Project. The Swedish Export Credit Agency (EKN) has provided both political and commercial cover to the lenders and receives a one-off premium per each tranche’s first utilization.
After the completion of all conditions precedent, the Kamoa-Kakula Project completed the draw-down of $9 million of the down-payment facility, and an equivalent of $56 million of the equipment financing, in December 2020. In 2021, further draw-downs of the equipment financing equivalent of $16.2 million were completed. Further draw-downs under the equipment finance facilities remain subject to conditions precedent customary for facilities of this nature. The company expects the conditions precedent to be met prior to each utilization.
The equipment finance is secured only by the equipment that is being financed. The down-payment facility is unsecured. No guarantee is required from any of the sponsors or parent companies with Kamoa Holding Limited issuing a non-binding Letter of Support, confirming its support for the project.
In addition, Gold Mountains (H.K.) International Mining Company has provided Kamoa Holding Limited with a limited recourse line of credit of $200 million secured by the project’s pre-production ore stockpiles to fund the Phase 2 concentrator expansion. Kamoa Holding has not yet drawn on this line of credit.
Kamoa-Kakula connected to the national power grid, providing clean, renewable 220-kV hydropower
The mine is receiving hydroelectric power via the permanent 35-kilometre, 220-kilovolt (kV) power line, supplying the project with reliable and clean hydro-generated electricity from the national grid.
The main mine 220-kilovolt Kamoa Consumer Substation (KCS) has been energized on grid power, as has the 33kV KCS substation. The main plant 33kV substation and all the plant medium-voltage and low-voltage substations also are energized.
Agreement reached to upgrade major turbine at the Inga II hydropower facility
On April 26, 2021, Ivanhoe announced that Ivanhoe Mines Energy DRC, a subsidiary of Kamoa Holding and sister company of Kamoa Copper SA, tasked with delivering reliable, clean, renewable hydropower to the Kamoa-Kakula Project, signed a memorandum of understanding in a public-private partnership with the DRC’s state-owned power company SNEL to upgrade a turbine 5, a major turbine at the existing Inga II hydropower facility on the Congo River. The upgraded turbine is expected to produce 162 MW of clean, renewable hydropower, providing the Kamoa-Kakula Copper Mine with sufficient, sustainable electricity for future expansions, including its own copper smelter.
A definitive agreement superseding the memorandum of understanding has been prepared and is expected to be signed imminently.
Aerial view of the Inga I (rear) and Inga II (front) hydropower plants on the Congo River. The penstock funneling water to turbine 5 at Inga II is circled in red.
Ongoing upgrading work enables Mwadingusha hydropower station to supply clean, sustainable electricity
The upgrading work of six new turbines at the Mwadingusha hydropower plant, the first public-private partnership between Ivanhoe Mines Energy DRC and SNEL, is nearing completion and is expected to soon deliver approximately 78 MW of electricity to the national electrical grid, to provide power for Kamoa-Kakula’s initial two phases of production to 7.6 Mtpa. Five of the six new turbines at the Mwadingusha hydropower plant now have been synchronized to the national electrical grid, with each generating unit producing approximately 13 MW of power. The completion and commissioning of the hydropower plant’s remaining one generating unit is in progress. The synchronization of this last unit to the grid is expected in August 2021.
The work is being conducted by engineering firm Stucky Ltd. of Renens, Switzerland, under the direction of Ivanhoe Mines and Zijin Mining, in conjunction with the DRC’s state-owned power company, SNEL.
Aerial view of the 78-MW Mwadingusha hydropower plant, the reservoir and the community of Mwadingusha.
Kamoa-Kakula aiming to become the first net-zero carbon emitter among top-tier copper mines by electrifying its mining fleet with state-of-the-art equipment powered by electric batteries or hydrogen fuel cells
On May 5, 2021, Ivanhoe Mines announced its pledge to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at the industry-leading Kamoa-Kakula Copper Mine.
In support of the Paris Agreement on climate change, and in the spirit of the commitments at the April 2021 Leaders Summit on Climate by the Chinese and American governments to sharply cut emissions, Ivanhoe Mines has committed to working with its joint-venture partners and leading underground mining equipment manufacturers to ensure that Kamoa-Kakula becomes the first net-zero operational carbon emitter among the world’s top-tier copper producers.
Since the Kamoa-Kakula mine and concentrator plant already are powered by clean, renewable hydro-generated electricity, the focus of the company’s net-zero commitment will be on electrifying the project’s mining fleet with new, state-of-the-art equipment powered by electric batteries or hydrogen fuel cells.
Kamoa-Kakula is working closely with its mining equipment suppliers to decrease the use of fossil fuels in its mining fleet, and evaluate the viability, safety and performance of new electric, hydrogen and hybrid technologies. The mine plans to introduce them into its mining fleet as soon as they become commercially available.
Enriching communities through sustainable development
The Sustainable Livelihoods Program was founded in 2010 to strengthen food security and farming capacity in the host communities near Kamoa-Kakula by establishing an agricultural training garden and support for farmers at the community level. Today, approximately 467 community farmers are benefiting from the Sustainable Livelihoods Program, producing high-quality food for their families and selling the surplus for additional income. The Sustainable Livelihoods Program, which commenced with maize and vegetable production, now includes fruit, aquaculture, poultry and honey.
The construction of 100 new fish ponds is progressing well with 60 ponds complete, of which 21 ponds are fully stocked and operational, and 20 ponds currently under construction. The project will significantly contribute toward local entrepreneurship and enhanced regional food security. The Musokantanda Agronomist Secondary School, constructed and equipped during 2020, now serves as a research facility and offers educational programs to 118 students, as well as training programs to local farmers. Plans also are underway for a collaboration between the agronomy school and the University of Kolwezi, which will provide further practical training for students.
Additional non-farming-related activities continued during Q2 2021 and include education programs, a community brick-making program, a sewing program, and the supply of fresh water to a number of local communities using solar-powered boreholes. The Tujenge brick-making program purchased an additional machine to enable the production of hollow bricks to meet the mine’s demand, successfully producing 9,000 bricks so far. To ensure that the sewing team is geared to commence operations and that production of Kamoa-Kakula personal protective equipment (PPE) and other garments meet quality standards, 28 members of the project have completed a six-month professional training program. The new Muvunda Primary School, catering to 206 students, has been opened. Construction and equipping of the Kaponda Primary School is underway. A total of 13 of a planned 29 boreholes were drilled in communities using local contractors, providing thousands of community members with easy access to clean water.
Construction of resettlement houses for the relocation program is continuing as planned. To date, 114 homes have been relocated, with 20 households remaining. The remaining families are scheduled for relocation upon completion of the construction of their new homes. Construction of the community church at Kaponda is 80% complete, with all concrete work finalized and the contractor currently installing all door frames and windows.
Excellent progress is being made on the new primary healthcare wing of the Kamoa hospital.
Five of the 100 new fish ponds being constructed in surrounding communities under the Kamoa-Kakula Sustainable Livelihoods Program.
2. Platreef Project
64%-owned by Ivanhoe Mines
The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with approximately 150,000 people, project employees and local entrepreneurs. Ivanplats reached Level 4 contributor status in its most recent verification assessment on the B-BBEE scorecard. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation, and Japan Gas Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million.
The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province – approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane.
On the Northern Limb, platinum-group metals mineralization is primarily hosted within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe’s Platreef Project, within the Platreef’s southern sector, is comprised of two contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of mining operations and properties.
Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly-mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties that form part of the company’s mining right.
Health and safety at Platreef
At the end of June 2021, the Platreef Project reached a total of 57,616 lost-time, injury-free hours worked, after the Project reported the first recordable injury for 2021 in June.
COVID-19 protocols are continuously reviewed and optimized to prevent and mitigate viral spread. During the first 6 months of 2021, the Platreef Project conducted 760 COVID-19 tests, with 38 patients testing positive for COVID-19. In support of the National Department of Health’s national vaccine rollout strategy, Ivanplats launched its own on-site COVID-19 vaccination campaign that has administered 279 vaccine doses to date. Approximately 73% of the Platreef Project’s employees and contractors working on site have at minimum received their first dose of vaccine.
Phased development plan, detailed engineering and feasibility study progressing well
Platreef’s detailed engineering and updated feasibility study for the phased development plan is progressing well toward completion by late 2021 or early 2022. Most of the design and engineering work has been completed and the focus now is on finalizing cost estimates.
Platreef Project with the Shaft 1 headframe on the right and a construction crane working on Shaft 2 in the centre.
Project-level financing arrangements of up to $420 million to advance Platreef’s development
In February 2021, Ivanplats signed a non-binding term sheet with Orion Mine Finance, a leading international provider of production-linked stream financing to base and precious metals mining companies, for a $300 million gold, palladium and platinum streaming facility. The stream financing remains subject to completion of legal due diligence and structuring, as well as negotiation and execution of definitive documentation. The streaming facility is planned to be drawn down in two separate tranches, as needed, in parallel with the engineering studies to upgrade the Platreef 2020 PEA to a feasibility study and the changeover of Platreef’s Shaft 1 to a production shaft.
Ivanplats also appointed two prominent, international commercial banks – Societe Generale and Nedbank – as mandated lead arrangers for a senior project debt facility of up to $120 million. The senior project debt facility is scheduled to be utilized only after the streaming facility is fully drawn. Definitive terms and conditions of the debt facility are subject to the completion of the feasibility study for Platreef’s phased development plan, completion of due diligence and structuring, as well as negotiation and execution of definitive documentation. Terms and conditions of the debt facility will be made available when finalized.
Shaft 1 changeover to a production shaft progressing well
The construction of the 996-metre-level station at the bottom of Shaft 1 was completed in July 2020. Shaft 1 will initially be used to access the orebody, and is approximately 350 metres away from a high-grade area of Flatreef that is planned for bulk, mechanized mining. The three development stations that will provide initial, underground access to the high-grade orebody also have been completed on the 750-, 850-, and 950-metre levels.
Construction of the auxiliary winder foundations has been completed, and the auxiliary winder installed and commissioned. The headgear, both winders, equipping stage, conveyances and control systems comply with the highest current industry safety standards, with proven and tested safety and redundancy systems in place.
The changeover construction at Shaft 1 is progressing to plan and is on schedule for commencement of rock hoisting early in 2022. All equipment for the shaft changeover has been procured and is on site. The changeover work within the shaft is being done by Platreef’s experienced owners’ team.
The winder that was used to successfully sink Shaft 1 has been converted to function as the main equipping conveyance during the shaft changeover, and will serve as the permanent rock, personnel and material winder following the shaft-equipping phase. The shaft will be equipped with two 12.5-tonne skips (with hoisting capacity of 825,000 tonnes per year) and an interchangeable personnel and materials conveyance to accommodate the movement of personnel and materials during the initial phase of mining.
Rope guides will be used for the main rock, personnel and materials conveyances, while steel sets and guides will be used for the auxiliary winder conveyance. The stage and winder ropes used during the sinking phase have been removed, and the new equipping stage, permanent guide-ropes and permanent hoisting ropes have been installed. The auxiliary winder has been installed and commissioned to assist during the shaft and station equipping phase, and to function as a man winder during the main rock hoisting cycle. Shaft equipping reached the 450-metre-level station in July 2021.
Newly-designed rock chutes will connect the conveyors feeding the concentrator plant and the waste rock area; from there the waste rock will be crushed and used as cemented backfill underground, as well as for protection berms to contain storm water and reduce noise emissions.
Shaft equipping commenced in May 2021 and remains on track to be completed in early 2022. Following the completion of the changeover work in the shaft, underground stations, and establishment of the ore and waste passes, lateral underground mine development will commence toward high-grade ore zones.
Key underground development orders placed
The design and engineering for the waste conveyor, which will feed from Shaft 1, has been completed with the radial stacker conveyor order placed for delivery in February 2022. Additionally, Ivanplats placed an initial order with Epiroc for its primary mining fleet consisting of emissions-free, battery electric jumbo face drill rigs and load haul dumpers, due for delivery in early 2022.
An Epiroc Scooptram ST14 Battery loader, one of the emissions-free mining machines ordered by Ivanplats to begin underground development at the Platreef Mine.
Shaft 2 headgear construction from hitch to collar well underway
Early-works surface construction for Shaft 2 began in 2017, including the excavation of a surface box-cut to a depth of approximately 29 metres below surface and construction of the concrete hitch for the 103-metre-tall concrete headgear (headframe), which will house the shaft’s permanent hoisting facilities and support the shaft collar.
The Shaft 2 headframe construction, from the hitch to the collar level, is progressing well with the first and second headgear lifts well advanced. A total of 10 civil lifts are to be constructed, including a ventilation plenum and personnel access tunnel, with a targeted completion of May 2022.
Platreef’s Shaft 2 construction, raising the headframe from the hitch to the collar (at surface).
Underground mining to incorporate highly-productive, mechanized methods
Mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Initial access to the mine will be via the 996-metre-deep, 7.25-metre-diameter Shaft 1, that recently has been sunk to its final depth. Once expanded mine production is achieved, primary access to the mine will be by way of a 1,104-metre-deep, 10-metre-diameter production shaft (Shaft 2). During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises (Ventilation Raise 1, 2 and 3) are planned to achieve steady-state production.
Mining will be performed using highly-productive mechanized methods, including long-hole stoping and drift-and-fill. Each method will utilize cemented backfill for maximum ore extraction. The production plans in both the PEA’s initial five-year drift-and-fill mining operation hoisting from Shaft 1, and the expansion when Shaft 2 is available, are focused on maximizing higher-grade areas, which is achieved through optimization based on stope locations, stope grades, mining method, and zone productivities. The orebody was targeted to recover approximately 125 million tonnes at the highest net smelter return.
Ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of the shafts, where it will be crushed and hoisted to surface.
Development of human resources and job skills
The Platreef Project’s second Social and Labour Plan (SLP) now has been approved. Through the implementation of this second SLP, Ivanplats plans to build on the first SLP and continue with its training and development suite, which includes 15 new mentors, internal skills training for 78 staff members, a legends program to prepare retiring employees with new/other skills, community adult education training for host community members, core technical skills training for at least 100 community members, portable skills training, and more. The Platreef Project continues to support several educational programs and the provision of free Wi-Fi in host communities.
Local economic development projects will contribute to community water-source development through the Mogalakwena Municipality boreholes program. Other projects, which will be undertaken in partnership with other parties, include the refurbishment and equipping of a clinic in Tshamahansi Village.
The enterprise and supplier development commitments comprise of expanding the existing kiosk and laundry facilities and adding expanded change house facilities to be managed by a community partner in the future. A five-year integrated business accelerator and funding project will assist community members to obtain help with development and supplier readiness.
3. Kipushi Project
68%-owned by Ivanhoe Mines
Democratic Republic of Congo
The Kipushi copper-zinc-germanium-silver-lead mine in the DRC is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located on the Central African Copperbelt, approximately 250 kilometres southeast of the Kamoa-Kakula Project and less than one kilometre from the Zambian border. Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the state-owned mining company, Gécamines.
Health and safety at Kipushi
At the end of June 2021, the Kipushi Project reached a total of 3,441,678 work hours free of lost-time injuries. It has been more than two and a half years since the last lost-time injury occurred at the project.
Since temporarily suspending mine development operations due to the COVID-19 pandemic, the project maintained a reduced workforce to safely and cost-effectively maintain infrastructure and pumping systems and to execute planned projects.
The Kipushi Project has built a new potable water station to provide a free daily supply of water to the municipality of Kipushi. The daily support in supply of free potable water to the Kipushi municipality community members includes power supply, disinfectant chemicals, routine maintenance, security and emergency repair of leaks to the primary reticulation to the benefit of an estimated 100,000 people, excluding those from rural areas. Approximately 1,000 cubic metres of potable water is pumped hourly and continuously to consumers on a daily basis.
50 boreholes of potable water are planned to be drilled around the Kipushi district over five years to reach areas not served by the current distribution reticulation. To date, 11 solar-powered potable water wells have been drilled and operate throughout the district.
The Kipushi Project continues to support educational initiatives through renovations and the supply of school desks to the Mungoti School, and the granting of bursaries and scholarships to students from Kipushi. Over the past four years, approximately 300 students have been supported through the bursary program. The sewing training centre project established by the Kipushi Project continued producing cloth face masks, donating approximately 2,000 masks a month to host communities. The Kipushi Project also is broadcasting daily COVID-19 awareness messages on a local community radio station, as well as through a motorized caravan.
The Sustainable Livelihoods Program, which commenced in 2020 with a poultry farming initiative established for the benefit of a consortium of local women, is progressing well with more than 500 chickens having been brought to market. This program is planned for expansion around the Kipushi district.
Kipushi’s definitive feasibility study in final stages of completion
The Kipushi Project’s pre-feasibility study (PFS), announced by Ivanhoe Mines on December 13, 2017, anticipated annual production of an average of 381,000 tonnes of zinc concentrate over an 11-year, initial mine life at a total cash cost of approximately $0.48 per pound (lb) of zinc.
The draft definitive feasibility study, together with the development and financing plan for Kipushi, are being reviewed by Ivanhoe Mines and its partner Gécamines. It is anticipated that these discussions will be concluded with the finalization of the feasibility study and the agreement on the development and financing plan by Q4 2021.
(L-R) Ethienne Mulambe, Jhon Nkunda and Mulanga stripping out the old winder from Kipushi’s Shaft 15.
Project development and infrastructure
Although development and rehabilitation activities in the first half of 2021, as well as for 2020, were limited, significant progress has been made in recent years to modernize the Kipushi Mine’s underground infrastructure as part of preparations for the mine to resume commercial production, including upgrading a series of vertical mine shafts to various depths, with associated headframes, as well as underground mine excavations and infrastructure. A series of crosscuts and ventilation infrastructure still is in working condition and have been cleared of old materials and equipment to facilitate modern, mechanized mining. The underground infrastructure also includes a series of high-capacity pumps to manage the mine’s water levels, which now are easily maintained at the bottom of the mine.
Shaft 5 is eight metres in diameter and 1,240 metres deep and has been upgraded and re-commissioned. The main personnel and material winder has been upgraded and modernized to meet international industry standards and safety criteria. The Shaft 5 rock-hoisting winder also is fully operational with new rock skips, new head- and tail-ropes, and attachments installed. The two newly-manufactured rock conveyances (skips) and the supporting frames (bridles) have been installed in the shaft to facilitate the hoisting of rock from the main ore and waste storage silos feeding rock on the 1,200-metre level.
Since temporarily suspending mine development operations, priority engineering tasks still continue, including new winder installations as a second means of egress on the cascade side, and repairs, as well as replacement of main critical pump columns in Shaft 5 to ensure reliable and continued pumping of water from the mine.
Gael Shimatu drilling an anchor hole to install a safety barricade.
4. Western Foreland Exploration Project
100%-owned and 90%-owned by Ivanhoe Mines
Democratic Republic of Congo
Ivanhoe’s DRC exploration group is targeting Kamoa-Kakula-style copper mineralization through a regional exploration and drilling program on its Western Foreland exploration licences, located to the north, south and west of the Kamoa-Kakula Project. Ivanhoe’s Western Foreland Exploration Project consists of 17 licences that cover a combined area of approximately 2,550 square kilometres.
Exploration models that successfully led to the discoveries of Kakula, Kakula West, and the Kamoa North Bonanza Zone on the Kamoa-Kakula joint-venture mining licence are being applied to the extensive Western Foreland land package by the same team of exploration geologists responsible for previous discoveries.
Exploration activities at the Western Foreland area continued during Q2 2021, with drilling in the western and eastern extensions of the main Makoko area.
In Q2 2021, 32 diamond holes were completed at the Makoko area, on the west and the east of the main Makoko areas, following a fence of 1,000-metre spacing for a total of 7,310 metres. These results are pending assay. A 200-metre by 200-metre soil-sampling grid on this zone is planned for Q3 2021 for a follow-up on the previous soil geochemistry work.
Diamond drilling started at the Kiala discovery zone in late April. Nine holes have been drilled in the area to date for a total of 2,947 metres, investigating the extension to the north of the high-grade copper structure, as well as exploring the western extent of the zone. Assay results are pending.
The construction of a 16-kilometre road to provide critical access to the new exploration target areas on the newly-acquired western permits has been completed, as well as a bridge over the Lubudi River. Construction of a 60-kilometre access spine road across the western permits also has started, with 20 kilometres having been cleared to date, of which six kilometres have been covered with laterite. The plan is to complete the final bridge construction toward the end of the year once the spine road is complete.
Geophysical airborne surveys such as magnetics, gravity and electromagnetics are scheduled to start in early Q3 2021 in the Western Foreland and the Kamoa North areas. This new geophysical data will enhance the target delineation program for drill testing and soil sampling.
The recent Makoko West drilling is extremely significant for the exploration potential of the new exploration permits as it demonstrates that the target stratigraphy extends westward and that the copper mineralizing system on the western edge of the basin is laterally extensive. Future drilling in the Makoko West area will target specific structural locations that are conducive to developing higher copper grades.
Ivanhoe Mines’ Western Foreland exploration core shack at the Makoko Discovery.
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period and did not declare or pay any dividend or distribution in any financial reporting period.
DISCUSSION OF RESULTS OF OPERATIONS
Accounting for the convertible notes closed in March 2021
The company closed a private placement offering of $575.0 million of 2.50% convertible senior notes maturing in 2026 on March 17, 2021. Upon conversion, the convertible notes may be settled, at the company’s election, in cash, common shares or a combination thereof. Due to this election right, the convertible notes have an embedded derivative liability that is measured at fair value with changes in value being recorded in profit or loss, as well as the host loan that is accounted for at amortized cost.
The convertible senior notes are senior unsecured obligations of the company which will accrue interest payable semi-annually in arrears at a rate of 2.50% per annum and will mature on April 15, 2026, unless earlier repurchased, redeemed or converted. The initial conversion rate of the notes is 134.5682 Class A common shares of the company per $1,000 principal amount of notes, or an initial conversion price of approximately $7.43 (equivalent to approximately C$9.31) per common share.
Holders of the notes may convert the notes, at their option, in integral multiples of $1,000 principal amount, or in excess thereof, at any time until the close of business on the business day immediately preceding October 15, 2025, but only under the following circumstances:
- during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the company’s Class A common shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; or
- during the five consecutive business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the company’s Class A common shares and the conversion rate on each such trading day; or
- if the company calls any or all of the notes for redemption in certain circumstances or upon the occurrence of certain corporate events.
On or after October 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing conditions.
The convertible notes will not be redeemable at the company’s option prior to April 22, 2024, except upon the occurrence of certain tax law changes. On or after April 22, 2024 and on or prior to the 41st scheduled trading day immediately preceding the maturity date, the notes will be redeemable at the company’s option if the last reported sale price of the company’s common shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides notice of redemption at a redemption price equal to 100% of the principal amount of the convertible notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
Due to the fact that upon conversion, the notes may be settled, at the company’s election, in cash, common shares or a combination thereof, the conversion feature is a derivative financial liability. The effect of this is that the host liability will be accounted for at amortized cost, with an embedded derivative liability being measured at fair value with changes in value being recorded in profit or loss.
The effective interest rate of the host liability was deemed to be 9.39% and the interest recognized on the convertible notes amounted to $9.8 million in Q2 2021 and $11.3 million for the six months ended June 30, 2021. The carrying value of the host liability was $425.3 million as at June 30, 2021.
The derivative liability had a fair value of $150.5 million on closure of the convertible notes offering, which decreased to $124.9 million as at March 31, 2021 and increased to $210.6 million as at June 30, 2021, resulting in a gain on fair valuation of financial liability of $25.6 million for Q1 2021 and a loss on fair valuation of financial liability of $85.7 million for Q2 2021. The change in the fair value of the embedded derivative liability is largely due to the changes in the closing share price of the company’s common shares at the different reporting dates.
The following key inputs and assumptions were used in determining the fair value of the embedded derivative liability:
Transaction costs on the convertible notes offering relating to the derivative liability amounted to $3.7 million and was expensed and included in the profit and loss for Q1 2021.
Review of the three months ended June 30, 2021 vs. June 30, 2020
The company recorded a total comprehensive loss of $95.7 million for Q2 2021 compared to income of $0.3 million for the same period in 2020.
As explained above, the company recognized a loss on fair valuation of the embedded derivative financial liability of $85.7 million for Q2 2021. Finance cost increased from $0.1 million for Q2 2020 to $10.1 million for the same period in 2021, $9.8 million of which related to the interest on the convertible notes at the effective interest rate.
Finance income for Q2 2021 amounted to $25.1 million, and was $6.4 million more than for the same period in 2020 ($18.7 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $23.0 million for Q2 2021, and $16.4 million for the same period in 2020, and increased as the accumulated loan balance increased.
Exploration and project evaluation expenditure amounted to $12.0 million in Q2 2021 and $9.0 million for the same period in 2020. Exploration and project evaluation expenditure related to exploration at Ivanhoe’s Western Foreland exploration licences and amounts spent at the Kipushi Project which was on reduced activities and incurred limited cost of a capital nature during these periods. The main classes of expenditure at the Kipushi Project in Q2 2021 and Q2 2020 are set out in the following table:
The company’s share of losses from the Kamoa Holding joint venture increased from $6.6 million in Q2 2020 to $10.0 million in Q2 2021. The following table summarizes the company’s share of losses of the joint venture for the three months ended June 30, 2021, and for the same period in 2020:
The finance costs in the Kamoa Holding joint venture relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
Review of the six months ended June 30, 2021 vs. June 30, 2020
The company recorded a total comprehensive loss of $79.5 million for the six months ended June 30, 2021 compared to a loss of $76.3 million for the same period in 2020. As explained above, the company recognized a loss on fair valuation of the embedded derivative financial liability of $60.1 million for the six months ended June 30, 2021.
The comprehensive loss for the six months ended June 30, 2020, included an exchange loss on translation of foreign operations of $53.9 million, resulting from the weakening of the South African Rand by 24% from December 31, 2019, to June 30, 2020, compared to an exchange gain on translation of foreign operations recognized for the same period in 2021 of $8.7 million.
Finance income for the six months ended June 30, 2021, amounted to $47.9 million, and was $8.4 million more than for the same period in 2020 ($39.5 million). Included in finance income is the interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $44.1 million for the six months ended June 30, 2021, and $32.7 million for the same period in 2020, interest increased as the accumulated loan balance increased. Interest received on cash and cash equivalents decreased due to US interest rate cuts by the Federal Reserve.
Exploration and project evaluation expenditure amounted to $20.7 million for the six months ended June 30, 2021, and $21.0 million for the same period in 2020. Exploration and project evaluation expenditure related to exploration at Ivanhoe’s Western Foreland exploration licences and amounts spent at the Kipushi Project which was on reduced activities and incurred limited cost of a capital nature in the periods. The main classes of expenditure at the Kipushi Project for the six months ended June 30, 2021 and for the same period in 2020 are set out in the following table:
The company’s share of losses from the Kamoa Holding joint venture increased from $13.3 million for the six months ended June 30, 2020 to $14.1 million for the same period 2021. The following table summarizes the company’s share of the losses of Kamoa Holding for the six months ended June 30 2021, and for the same period in 2020:
Financial position as at June 30, 2021 vs. December 31, 2020
The company’s total assets increased by $567.2 million, from $2,417.1 million as at December 31, 2020, to $2,984.3 million as at June 30, 2021. The main reason for the increase in total assets was the receipt of the net proceeds from the convertible senior notes that closed on March 17, 2021. The net proceeds from the sale of the convertible notes, after deducting the expenses of the offering that related to the host liability of $10.3 million, was $564.7 million.
Cash and cash equivalents increased by $381.6 million, from $262.8 million as at December 31, 2020, to $644.5 million as at June 30, 2021 due to the receipt of the convertible note proceeds. The company utilized $36.4 million of its cash resources in its operations and advanced loans of $127.6 million to the Kamoa Holding joint venture during the six months ended June 30, 2021.
The company’s total liabilities increased by $637.3 million to $717.9 million as at June 30, 2021, from $80.6 million as at December 31, 2020, with the increase mainly due to the private placement offering of $575.0 million of 2.50% convertible senior notes described above.
The net increase of property, plant and equipment amounted to $24.5 million, with additions of $19.9 million to project development and other property, plant and equipment. Of this total, $19.4 million pertained to development costs and other acquisitions of property, plant and equipment at the Platreef Project.
The main components of the additions to property, plant and equipment – including capitalized development costs – at the Platreef Project for the six months ended June 30, 2021, and for the same period in 2020, are set out in the following table:
Costs incurred at the Platreef Project are deemed necessary to bring the project to commercial production and are therefore capitalized as property, plant and equipment.
The company’s investment in the Kamoa Holding joint venture increased by $157.7 million from $1,289.5 million as at December 31, 2020, to $1,447.2 million as at June 30, 2021, with each of the current shareholders funding the operations equivalent to their proportionate shareholding interest. The company’s portion of the Kamoa Holding joint venture cash calls amounted to $127.6 million during the six months ended June 30, 2021, while the company’s share of losses from the joint venture amounted to $14.1 million.
The company’s investment in the Kamoa Holding joint venture can be broken down as follows:
The Kamoa Holding joint venture principally uses loans advanced to it by its shareholders to advance the Kamoa-Kakula Project through investing in development costs and other property, plant and equipment, as well as continuing with exploration. This can be evidenced by the movement in the company’s share of net assets in the Kamoa Holding joint venture which can be broken down as follows:
The Kamoa Holding joint venture completed the draw-down of EUR 45 million (approximately $56 million) of the equipment financing and $9 million of the down-payment facilities in late December 2020 and EUR 13.4 million (approximately $16.2 million) of the equipment financing during the six months ended June 30, 2021. The equipment finance is secured only by the equipment that is being financed and has an effective interest rate of 8.96%. The down-payment facility is unsecured and has an effective interest rate of 11.58%.
Furthermore, Kamoa Copper elected to draw the $300 million advance payment facility available under its offtake agreements in June 2021. The facility bears interest at a rate of 8% and will be offset against provisional payments due to Kamoa Copper from product deliveries.
The Kamoa Holding joint venture’s net increase in property, plant and equipment from December 31, 2020, to June 30, 2021, amounted to $383.4 million and can be further broken down as follows:
LIQUIDITY AND CAPITAL RESOURCES
The company had $644.5 million in cash and cash equivalents as at June 30, 2021. At this date, the company had consolidated working capital of approximately $689.9 million, compared to $544.8 million at December 31, 2020.
Since December 8, 2015, each shareholder in Kamoa Holding has been required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
The Platreef Project’s current expenditure is being funded solely by Ivanhoe, through an interest-bearing loan to Ivanplats, as the Japanese consortium has elected not to contribute to current expenditures.
The company’s main objectives for the remainder of 2021 at the Platreef Project is the detailed engineering and updated feasibility study for the phased development plan, progression of the Shaft 1 changeover and the construction of the Shaft 2 headframe to the collar. At Kipushi, cost-saving measures will continue until the finalization of the feasibility study and the development and financing plan are agreed. With first production achieved at the Kamoa-Kakula Project, construction of the Phase 2 concentrator expansion and associated infrastructure continues.
The company has forecast to spend $56 million on further development at the Platreef Project; $17 million at the Kipushi Project; $15 million on Western Foreland exploration projects; and $16 million on corporate overheads for the remainder of 2021.
The Kamoa Holding joint venture had cash and cash equivalents on hand of $288.1 million as at June 30, 2021. Going forward, all Phase 1 operating costs and the majority of Phase 2 capital expenditures are expected to be funded from copper sales and facilities in place at Kamoa. Ivanhoe’s proportionate funding of Kamoa-Kakula’s Phase 2 construction capital costs for the remainder of 2021 is expected to be $85 million, with the assumption that the limited recourse line of credit from Zijin is not drawn.
On March 17, 2021, the company closed a private placement offering of $575 million of 2.50% convertible senior notes maturing in 2026. The convertible senior notes are senior unsecured obligations of the company which will accrue interest payable semi-annually in arrears at a rate of 2.50% per annum and will mature on April 15, 2026, unless earlier repurchased, redeemed or converted. The notes will be convertible at the option of holders, prior to the close of business on the business day immediately preceding October 15, 2025, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled, at the company’s election, in cash, common shares or a combination thereof. The carrying value of the host liability was $425.3 million and the fair value of the embedded derivative liability was $210.6 million as at June 30, 2021.
The company has a mortgage bond outstanding on its offices in London, United Kingdom, of £3.2 million ($4.5 million). The bond is fully repayable on August 28, 2025, secured by the property and incurs interest at a rate of GBP 1 month LIBOR plus 1.9% payable monthly in arrears. Only interest will be payable until maturity.
In 2013, the company became party to a loan payable to ITC Platinum Development Limited, which had a carrying value of $32.9 million as at June 30, 2021, and a contractual amount due of $34.8 million. The loan is repayable once the Platreef Project has residual cashflow, which is defined in the loan agreement as gross revenue generated by the Platreef Project, less all operating costs attributable thereto, including all mining development and operating costs. The loan attracts interest of USD 3 month LIBOR plus 2% calculated monthly in arrears. Interest is not compounded. The difference of $1.9 million between the contractual amount due and the carrying value of the loan is the benefit derived from the low-interest loan.
The company has an implied commitment in terms of spending on work programs submitted to regulatory bodies to maintain the good standing of exploration and exploitation permits at its mineral properties. The following table sets forth the company’s long-term obligations:
Debt in the above table represents the mortgage bond owing to Citibank and loan payable to ITC Platinum Development Limited, as described above.
The company is required to fund its Kamoa Holding joint venture in an amount equivalent to its proportionate shareholding interest.
This news release should be read in conjunction with Ivanhoe Mines’ Q2 2021 Financial Statements and Management’s Discussion and Analysis report available at www.ivanhoemines.com and at www.sedar.com.
Qualified Persons and NI 43-101 Technical Reports
Disclosures of a scientific or technical nature regarding the revised capital expenditure and development scenarios at the Kamoa-Kakula Project in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is the Head of the Kamoa Project. Mr. Amos has verified the technical data disclosed in this news release.
Other disclosures of a scientific or technical nature regarding the Kakula and Kansoko stockpiles in this news release have been reviewed and approved by George Gilchrist, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Gilchrist is not considered independent under NI 43-101 as he is the Vice President, Resources of Ivanhoe Mines. Mr. Gilchrist has verified the other technical data disclosed in this news release.
Other disclosures of a scientific or technical nature in this news release have been reviewed and approved by Stephen Torr, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is the Vice President, Geosciences. Mr. Torr has verified the other technical data disclosed in this news release.
Ivanhoe has prepared a current, independent, NI 43-101-compliant technical report for each of the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project, which are available under the company’s SEDAR profile at www.sedar.com:
- The Kamoa-Kakula Integrated Development Plan 2020 dated October 13, 2020, prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA Global, Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D Centre Ltd., Outotec Oyj, Paterson and Cooke, Stantec Consulting International LLC, SRK Consulting Inc., and Wood plc., covering the company’s Kamoa-Kakula Project;
- The Platreef Integrated Development Plan 2020 dated December 6, 2020, prepared by OreWin Pty Ltd., Wood plc (formerly Amec Foster Wheeler), SRK Consulting Inc., Stantec Consulting International LLC, DRA Global, and Golder Associates Africa, covering the company’s Platreef Project; and
- The Kipushi 2019 Mineral Resource Update dated March 28, 2019, prepared by OreWin Pty Ltd., MSA Group (Pty) Ltd., SRK Consulting (South Africa) (Pty) Ltd, and MDM (Technical) Africa Pty Ltd. (a division of Wood PLC), covering the company’s Kipushi Project.
These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release in respect of the Platreef Project, Kipushi Project and Kamoa-Kakula Project.
Bill Trenaman +1.604.331.9834
Matthew Keevil +1.604.558.1034
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of the company’s MD&A for the three and six months ended June 30, 2021.
Such statements include without limitation, the timing and results of: (i) statements regarding that first paste from the backfill plant at Kakula will be delivered to underground stopes in August 2021; (ii) statements regarding approximately one-half of the Kakula mine’s tailings will be sent back underground, significantly reducing the surface tailings storage; (iii) statements regarding during August 2021 the focus of the commissioning team will shift from the front end crushing and milling circuit to balancing and optimizing the flotation and regrind milling areas and that this is expected to further improve concentrate grade and recovery; (iv) statements regarding construction of the second 3.8-Mtpa concentrator plant is progressing well toward a Q3 2022 start-up; (v) statements regarding Ivanhoe and its partner Zijin exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion; (vi) statements regarding the ultra-high-grade, clean concentrate produced by Kamoa-Kakula is expected to contain approximately 57% copper and very low levels of impurities; (vii) statements regarding the Lualaba Copper Smelter will treat up to 150,000 wet metric tonnes of copper concentrates from Kamoa-Kakula, in return for a treatment charge and market-based realization fee, and produce blister copper containing approximately 99% copper that will be returned to Kamoa Copper, and collected by CITIC Metal and Zijin from a dedicated storage area at the Lualaba Copper Smelter; (viii) statements regarding that as of June 30, 2021, the Kamoa-Kakula joint venture had an estimated $697 million of initial capital costs remaining for completion of Phase 1 and Phase 2; (ix) statements regarding the agreement reached to upgrade a major turbine at the Inga II hydropower facility including that the upgraded turbine is expected to produce 162 megawatts (MW) of clean, renewable hydropower, providing the Kamoa-Kakula Copper Mine with sufficient, sustainable electricity for future expansions, including its own copper smelter; (x) statements regarding refurbishment of six turbines at the Mwadingusha hydro-electric power plant and that the synchronization of the last unit to the grid is expected in August 2021; (xi) statements regarding Kamoa-Kakula aiming to become the first net-zero carbon emitter among the top-tier copper mines by electrifying its mining fleet with state-of-the-art equipment powered by electric batteries or hydrogen fuel cells; (xii) statements regarding the Platreef Project’s streaming facility, including that it is planned to be drawn down in four separate tranches; (xiii) statements regarding the Platreef Project’s Shaft 1 changeover and equipping including that it is progressing to plan and is on schedule for commencement of rock hoisting early in 2022; (xiv) statements that the construction of the Shaft 2 headframe from the hitch to the collar level is scheduled for completion in May 2022; (xv) statements regarding the planned mining methods at Platreef will use highly productive, mechanized methods, including long-hole stoping and drift-and-fill mining, and that each method will utilize cemented backfill for maximum ore extraction; (xvi) statements regarding the orebody at Platreef was targeted to recover approximately 125 million tonnes at the highest net smelter return; (xvii) statements that the draft feasibility study and development and financing plan for Kipushi are being reviewed by Ivanhoe Mines together with its partner Gécamines and that it is anticipated that these discussions will be concluded with the finalization of the feasibility study and the agreement on the development and financing plan by Q4 2021; (xviii) statements regarding future drilling in the Makoko West area including that it will target specific structural locations that are conducive to developing higher copper grades; (xix) statements regarding Ivanhoe’s guidance of contained copper in concentrate expected to be produced by the Kamoa-Kakula Project; (xx) statements regarding production guidance of between 80,00 and 95,000 tonnes of contained copper in concentrate for 2021 from the Kamoa-Kakula Project; (xxi) statements regarding Ivanhoe’s proportionate funding of Kamoa-Kakula’s Phase 2 construction capital costs for the remainder of 2021 is expected to be $85 million with the assumption that the limited recourse line of credit from Zijin is not drawn; and (xxii) statements regarding the main objectives for the remainder of 2021 and the remaining 2021 budget.
As well, all of the results of the feasibility study for the Kakula copper mine, the Kakula-Kansoko 2020 pre-feasibility study and the updated and expanded Kamoa-Kakula Project preliminary economic assessment, the feasibility study of the Platreef Project, the Platreef 2020 preliminary economic assessment and the pre-feasibility study of the Kipushi Project, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, Platreef and Kipushi projects, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xvi) changes in project scope or design, and (xvii) political factors.
This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgments. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under “Risk Factors”, and elsewhere in the company’s MD&A for the three and six months ended June 30, 2021, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the company’s MD&A for the three and six months ended June 30, 2021.
加拿大多伦多 — 艾芬豪矿业 (TSX: IVN; OTCQX: IVPAF) 今天公布其截至 2021 年6 月 30 日止三个月及六个月的财务业绩。艾芬豪矿业是一家加拿大的矿业公司，目前正推进旗下位于南部非洲的三大矿产项目﹕位于刚果民主共和国 (以下简称"刚果(金)") 的卡莫阿-卡库拉 (Kamoa-Kakula) 铜矿和位于南非的普拉特瑞夫 (Platreef) 钯-铑-铂-镍-铜-金矿，以及同样位于刚果(金)、久负盛名的基普什 (Kipushi) 锌-铜-铅-锗矿。同时，艾芬豪正在刚果(金)毗邻卡莫阿-卡库拉项目的西部前沿 (Western Foreland) 探矿权内寻找新的铜矿资源。除非另有说明，所有数字均以美元为单位。
- 卡莫阿-卡库拉I 期选厂已于2021年7月1日正式实现商业化生产。按卡莫阿-卡库拉的初步生产指导目标，并以项目100% 权益计算，项目2021年生产精矿的铜金属量为80,000吨至95,000吨。
- 卡莫阿-卡库拉II期建设进展顺利，略微超越既定计划，预计于2022年第三季度实现投产，将提升产能至年处理矿石760万吨。I 期和 II 期投产后每年将累计生产高达40万吨铜。
- 艾芬豪与其合作伙伴紫金矿业正开展研究以加快III期采选扩建，其中包括优化工作以确定卡莫阿-卡库拉项目各矿区的采矿产能和成本，包括卡索科矿山的扩建、卡莫阿北区(包括富矿带) 和卡库拉西区。同时，卡莫阿铜业正在完善其下游产业的长期战略，包括探讨新建冶炼厂或湿法选冶设施的可能性。
- 2021年4月，艾芬豪矿业刚果(金)能源公司与刚果(金)国有电力公司SNEL 签署英加二期水电站主要涡轮机组的升级改造协议。涡轮机组升级后将生产162兆瓦的清洁、可再生水电，为卡莫阿-卡库拉铜矿及冶炼厂提供长期的稳定电力以配合日后的扩建计划。
- 2021年5月，艾芬豪承诺其领先行业的卡莫阿-卡库拉铜矿将致力实现净零运营温室气体排放 (范围一和范围二)。目前，矿山已获得清洁、可再生的水电能源供应，公司的净零承诺重点将会在通过采用新引入的电池或氢燃料电池驱动的先进设备，全力推进采矿作业电气化。多家领先全球的设备制造商正全力开发零排放的、符合卡莫阿-卡库拉大型采矿作业规模的规格地下开采设备，这些工作已推进至开发的高级阶段。
- 艾芬豪在第二季度继续在毗邻卡莫阿-卡库拉的、约2550平方公里的西部前沿探矿权内开展勘查。第二季度的钻探工程集中在Makoko勘查区的西部和东部延伸位置，以及Kiala勘查区的北部和西部延伸位置。通往西部高优先性靶区的重要基础设施进度顺利，包括横跨西部前沿探矿权的一条60公里长的进场主干道路，以及在Lubudi 河上修筑的新桥。
- Ivanplats 与猎户座矿业金融集团 (Orion Mine Finance) (以下简称"猎户座") 已就3亿元的黄金、铂及钯金属流融资签订非约束性协议。猎户座是世界领先的金融集团，为基础金属和贵金属矿企提供生产相关的金属流融资。此外，Ivanplats已委托两家国际知名的商业银行 — 法国兴业银行和莱利银行担任受托牵头安排行，负责1.2亿元的项目级高级债务融资。
- 2020年11月30日，Ivanplats披露普拉特瑞夫项目的2020年独立整合开发分案 (以下简称"普拉特瑞夫IDP20") 令人鼓舞的研究结果，随后开始筹措融资安排。普拉特瑞夫IDP20包括项目的可行性研究更新版 (以下简称"普拉特瑞夫2020 FS") 以及初步经济评价 (以下简称"普拉特瑞夫2020 PEA")。普拉特瑞夫2020 PEA分期开发方案预计的初期资本开支约3.9亿元，年处理矿石70万吨。
- 艾芬豪矿业及其合作伙伴、刚果(金)国有矿业公司杰卡明 (Gécamines)正在审阅刚果(金)基普什矿山重建项目的可行性研究草案以及开发融资方案。项目现场目前由一支精干的队伍进行维护和抽水作业。
艾芬豪矿业持有 39.6% 权益
卡莫阿-卡库拉项目是艾芬豪矿业与紫金矿业的合资企业，被国际矿业咨询公司伍德曼肯兹 (Wood Mackenzie) 评为全球第 4 大铜矿床。该项目位于科卢韦齐 (Kolwezi)以西约 25 公里，卢本巴希 (Lubumbashi) 以西约 270 公里处。卡莫阿-卡库拉项目于2021年5月启动铜生产，并于2021年7月1日正式实现商业化生产。
2015年12月，艾芬豪向紫金矿业出售卡莫阿控股有限公司 (以下简称 "卡莫阿控股") 49.5% 的权益，并向私营企业晶河全球出售卡莫阿控股 1% 的权益。与紫金矿业的交易完成后，每位股东必须按其持有卡莫阿控股的股权比例承担对卡莫阿-卡库拉项目的出资。
根据 2002 年刚果(金)矿业法， 2012年9月11日无条件向刚果(金)政府出让卡莫阿-卡库拉5%的不可稀释股权。根据2016年11月与刚果(金)政府签订的协议，再向刚果(金)政府转让卡莫阿-卡库拉项目15%的权益，艾芬豪与紫金矿业目前各自间接持有卡莫阿-卡库拉项目39.6% 的权益，晶河全球间接持有0.8% 权益，而刚果(金)政府则直接持有20% 权益。卡莫阿控股直接持有项目 80% 权益。
截至 2021年6月底，卡莫阿-卡库拉项目录得1,492,769个零失时工伤工时。 2021年5月31日发生了一起伤亡事故，一名承包商员工在矿山的井下作业平台工作时被落石击中腿部，向后跌倒撞伤头部。虽然在场的同事即时开展了现场急救，但已抢救无效，不幸离世。事故发生后，矿山立即开展了安全干预措施。 2021年第二季度还发生了另外两起工伤事故。项目将继续致力为所有员工和承包商提供零伤害的工作环境。
卡莫阿-卡库拉矿山继续以防疫、防控及降低风险为重点，应对COVID-19疫情。开展大规模的检测，实施重点防疫措施，确保能够及早发现确诊个案并即时进行隔离和治疗，以降低交叉感染的风险。项目将继续保持高水平的日常风险管理，以防止将来出现确诊个案。 2021 年上半年，卡莫阿-卡库拉项目共进行了 3,743 次 COVID-19 检测，其中 163 名检测结果呈阳性。
卡莫阿铜业已为其员工、承包商以及矿山运营社区的刚果(金)居民争取到首批阿斯利康 (AstraZeneca)疫苗。卡莫阿铜业继续为上述人士接种首批1,500剂疫苗。第二剂疫苗将在第一剂接种后 8 至 12 周内完成，完成两剂疫苗接种后将发放疫苗证书。
卡莫阿是卢阿拉巴省正在推行 COVID-19 新冠疫苗接种计划的15个地点之一，以防止病毒蔓延。随着疫情的变化，卡莫阿医院的医疗队伍将继续审核和更新其疫情防控方案，并确保在应用新医疗技术之前进行审查，以保护员工和社区成员的安全和健康。
于2021年第二季度末，卡莫阿-卡库拉I期年处理矿石380万吨的采选作业 (包括矿山基础设施、选厂和地表基础设施) 整体进度已非常接近竣工。唯一未完成交付的主要建设项目 — 回填厂已于2021年7月竣工，并于2021年8月向井下采场运送第一批回填膏体。
截至2021年8月初，选厂已经处理约50万吨矿石。自2021年5月底开展带料试车以来，铜产量一直稳步上升。 7月份，铜产量不时超过500吨/天的水平，接近 I 期日均约550吨或年均20万吨的设计稳态产能。 8月份，试车团队的重点将从前端破碎和磨矿流程转移到平衡和优化浮选和再磨工段，有望进一步提高精矿品位和回收率。
铜回收率从2021年6月份平均约70%上升至2021年7月份约81%，持续提升以实现 I 期设计稳态产能的86%铜回收率。截至2021年6月30日，卡莫阿-卡库拉项目生产精矿的铜金属量达9,858吨。
工程设计和采购工作进展顺利，且已完成约80%。钢结构、钣金和主要设备已陆续抵达现场，高压辊磨机和尾矿浓密机厂区已开始安装钢架。大部分钢结构和板金将于 2021 年第三季度初运抵现场。管道加工进展顺利，部分管道正在运送途中。
艾芬豪与其合作伙伴紫金矿业正积极研究加快卡莫阿-卡库拉III期选厂的扩建，并将由卡索科矿山的扩建或卡莫阿北区 (包括富矿带) 和卡库拉西区的新采区供给矿石。
2021年7月共采出41.4万吨矿石，包括在卡库拉矿山采出的36.7万吨矿石，铜品位5.29% (包括矿床高品位中心采出的85,000万吨矿石，铜品位高达7.70%) ，以及在卡索科矿山采出的47,000吨矿石，铜品位4.13%。
2021年6月9日，卡莫阿铜业与中信金属香港有限公司 (以下简称"中信金属") 和金山(香港)国际矿业有限公司 (紫金矿业的子公司) 就卡莫阿-卡库拉I期生产的铜产品签署各50%产量的包销协议。包销协议为常青协议，涵盖 I 期矿山服务年限内的所有产品，包括铜精矿以及在邻近的卢阿拉巴铜冶炼厂加工生产的粗铜。
中信金属和紫金矿业各自向卡莫阿铜业提供1.5亿美元 (合计3亿美元) 的预付款，卡莫阿铜业已选择于2021年6月份提取并已取得款项。预付款的年利率为8%，并将从卡莫阿产品交付的应付款中抵扣。主要的支付条件包括：在每个货物交付月末，销售方可选择在开出货款发票三个工作日内收到100%基准的临时货款。
2021年5月31日，卡莫阿铜业与位于科卢韦齐近郊的卢阿拉巴铜冶炼厂签署一份为期10年的协议，该冶炼厂将负责卡莫阿部分铜精矿的冶炼加工。卡莫阿铜业已于2021年6月1日向卢阿拉巴铜冶炼厂交付第一批铜精矿，并继续开展日常交付。卢阿拉巴铜冶炼厂由北京的中国有色矿业集团 (以下简称“中国有色”) (占股60%)及昆明的云南铜业 (占股40%) 持有。
卢阿拉巴铜冶炼厂是刚果 (金) 第一座先进的大型火法铜冶炼厂，由最近建成的专用道路行驶约40公里即可到达卡莫阿-卡库拉矿山。
卡莫阿铜业於2021年7月开始向国际出口铜精矿。装载第一批铜精矿的车队已于2021年7 月17日从矿山出发，将产品发往刚果(金)境外的冶炼厂，标志着卡莫阿-卡库拉I期380 万吨/年选厂实现产能爬坡的重大里程碑。
截至 2021 年 8 月初，约 32,700 吨铜精矿已从矿山装载交付卢阿拉巴冶炼厂或发往国际市场。
2020 年12 月1 日，艾芬豪宣布卡莫阿-卡库拉项目获得高达1.76亿欧元(约2.11亿美元) 的设备融资以及900万美元首付款，资金将会用于向领先的瑞典制造商Sandvik和Epiroc以及芬兰制造商Normet订购地下采矿移动设备和服务。
贷款有效期3年，自提款日起5年内完成偿付，并与卡莫阿-卡库拉项目的地下采矿设备关联。瑞典出口信用局 (以下简称"EKN") 为贷款人提供了政治和商业保险，并且每期贷款的首次使用将收取一次性保费。
2021年4月26日，艾芬豪宣布艾芬豪矿业刚果(金)能源公司与刚果(金)国有电力公司SNEL 签署了一项合作谅解备忘录，在位于刚果河上现有的英加二期水电项目进行一台主要涡轮机组(5号涡轮机)的升级工程。艾芬豪矿业刚果(金) 能源公司为卡莫阿控股的子公司和卡莫阿铜业的姊妹公司，专门负责为卡莫阿-卡库拉项目提供可靠的清洁、可再生水电。涡轮机组升级后将生产162兆瓦的清洁、可再生水电，为卡莫阿-卡库拉铜矿及冶炼厂提供长期的稳定电力供应以配合日后的扩建计划。
位于刚果河上的英加一期 (后)和英加二期 (前) 水电站的鸟瞰图。红圈位置为英加二期5号涡轮机的压力管道。
艾芬豪矿业刚果(金)能源公司与SNEL首次合作项目--- Mwadingusha水电站6台新涡轮机的升级工程即将竣工，预计将向国家电网提供约78兆瓦的电力，为卡莫阿-卡库拉760万吨/年的I期和II期生产提供电力供应。 Mwadingusha水电站的6台新涡轮机中的5台已与国家电网并网，每台发电机组可产生约13兆瓦的电力。水电站余下一台发电机组快将完工及进行试车，预计将于2021年8月与国家电网并网。
“可持续民生计划” 于2010年创立，旨在通过建立农业培训园以及在社区层面为居民提供支持，提升卡莫阿-卡库拉项目社区的食品安全和农作物生产。迄今，约有 467位社区居民正受益于“可持续民生计划”，为家人生产优质食品并出售多余的食品以获得额外收入。“可持续民生计划”从最初的玉米和蔬菜种植已发展到目前包括水果、水产养殖、家禽和养蜂。
2021年第二季度实施的其他非农业相关活动包括教育计划、社区砖厂计划、缝纫项目以及太阳能水井供水项目。Tujenge砖厂计划再购买一台机器，以生产矿山所需的空心砖，至今已成功生产了9,000块砖。缝纫项目的28名成员已完成了为期6个月的专业培训，以确保缝纫团队有足够的技术，为卡莫阿-卡库拉生产的个人防护设备 (PPE) 和工作服符合质量标准。新建成的Muvunda小学已经开学，可接收206名学生。Kaponda小学正在进行建设和设施安装。民生计划聘用了当地的承包商在社区内钻探13个水井 (计划共29个水井)，为数千名社区成员提供清洁的水源。
普拉特瑞夫项目由 Ivanplats (Pty) Ltd. (以下简称 "Ivanplats") 持有，艾芬豪矿业持有Ivanplats公司64%的股权。由《全面提高黑人经济实力法案》(B-BBEE) 的南非受益人持有项目26%的股权，这些受益人包括 20 个当地社区，约150,000 位居民、项目雇员和当地企业主。Ivanplats 在最近 B-BBEE 评分核实评估中达到 4 级贡献者标准。另外，伊藤忠商事株式会社、日本石油天然气和金属国家公司和日本天然气公司组成的日本财团通过 2 轮投资 (共 2.9 亿美元) 持有 Ivanplats 10% 的股权。
在北翼，铂族金属矿化主要赋存在Platreef层位，走向延伸30多公里。艾芬豪的普拉特瑞夫项目位于普拉特瑞夫南部，由Turfspruit及Macalacaskop两个相连的矿权组成。最北部的 Turfspruit 矿权，邻近且位于英美铂金 (Anglo Platinum) Mogalakwena 矿山的走向延伸上。
自2007 年以来，艾芬豪重点推进勘查和开发活动，以圈定普拉特瑞夫矿体的深部延伸，目前已命名为 Flatreef 矿床，适合高度机械化的地下开采。整个Flatreef 矿区位于 Turfspruit 和 Macalacaskop 采矿权范围内。
普拉特瑞夫项目继续审核和优化其COVID-19疫情防控方案，以控制并降低传播风险。 2021 年上半年，普拉特瑞夫项目共进行了760次COVID-19 检测，其中 38 例检测结果呈阳性。为配合国家卫生部推行的全国疫苗接种计划，Ivanplats 在矿山现场为员工接种COVID-19 疫苗，已完成279 剂疫苗接种。普拉特瑞夫项目约 73% 的现场员工和承包商已接种了至少一剂疫苗。
普拉特瑞夫分期开发方案的详细工程设计和可行性研究更新版进展顺利，预计将于 2021 年底或 2022 年初完成。大部分设计和工程工作已经完成，目前正重点完成成本估算。
2021年2月，Ivanplats 与猎户座签署3亿美元的黄金、钯及铂金属流融资非约束性协议。猎户座是世界领先的金融集团，为基础金属和贵金属矿企提供生产相关的金属流融资。金属流融资仍需完成法律尽职调查和交易架构，以及最终文件的谈判和执行。金属流融资计划按项目需求分两期提款，同时进行工程研究将普拉特瑞夫 2020年初步经济评价升级为可行性研究，并将普拉特瑞夫的1号竖井转换为生产井。
此外，Ivanplats已委托两家国际知名的商业银行 — 法国兴业银行和莱利银行担任受托牵头安排行，负责1.2亿美元的项目级高级债务融资。项目级的高级债务融资，仅在金属流融资全额提取后才能使用。债务融资的最终条款和条件，将取决于普拉特瑞夫分期开发方案的可行性研究完成、尽职调查和交易架构达成，以及最终文件的谈判和执行。债务融资的条款和条件，将在上述各项敲定后进行最终定夺。
1号竖井底部的996米中段工作站已于2020年7月顺利完工。 1号竖井初步将用作进场通道，距离Flatreef高品位矿体约350米，计划开展大规模机械化开采。分别位于750 米、850 米和950米中段的三个工作站都已经完工，采掘班组可以通过初步地下通道前往高品位矿区。
在1号竖井成功进行凿井工程的卷扬机将被改造装配，在竖井转换工程期间用于运送主要设备，以及在竖井进行装配期间用于永久提升矿石、运送工作人员和物料。竖井将配备两个12.5吨的箕斗 (提升能力达82.5万吨/年) 以及可转换的罐笼，以配合在首采阶段运送工作人员和物料进出竖井。
1号竖井的废石输送系统已经完成设计和工程施工，径向堆料输送机已下订单并将于 2022 年 2 月交付。此外，Ivanplats初步已为其主要采矿设备向 Epiroc 下订单，包括零排发的电动巨型钻机和铲运机，将于 2022 年初交付。
Ivanplats 订购的零排放采矿设备之一 — Epiroc ST14 电动铲运机，将用于普拉特瑞夫矿山的地下开拓工程。
2号竖井井架 (从地基至井口) 的建设工程进展顺利
2号竖井的早期地表工程已于2017年展开，包括地表以下约 29 米深的地表箱形切割槽以及建造103 米高的混凝土井架的地基。该井架将设有竖井的永久提升设施并将用于支撑井口。
2号竖井井架 (从地基至井口) 的建设工程进度理想，第一和第二部井架升降机的施工进展顺利。计划建设共十部升降机，包括通风和工作人员通道，并计划于2022年5月完工。
普拉特瑞夫采矿计划中的采区位于地表以下约 700 米至 1,200 米的深度。1号竖井 (996米深、直径7.25米) 的凿井工程最近已完成，并达到其最终深度，将会用作初步进场的通道。一旦扩大生产规模，2号竖井 (1,104米深、10米直径的生产井) 将会用作通往井下采区的主要通道。矿山生产期间，1号和2号竖井同时作为通风井。规划的另外3个通风井 (1号、2号及3号通风井) 将助力实现稳态产能。
普拉特瑞夫项目的第二个社会和劳动计划 (SLP) 已获得批准。在第二个SLP中，Ivanplats计划以第一个SLP为基础，继续专注于培训和开发计划，其中包括﹕增加15名新培训师、向78名员工提供内部技术培训、延续向即将退休的员工提供新/其他技术的培训计划、为项目社区成员提供社区成人教育，以及向最少100名社区成员提供核心技术培训以及常用技能等。普拉特瑞夫项目继续支持多个教育计划，以及在运营社区提供免费无线上网。
位于刚果(金)的基普什铜-锌-锗-银-铅矿，邻近基普什镇，距离卢本巴希西南约30公里。基普什地处中非铜矿带，位于卡莫阿-卡库拉项目东南约 250 公里，距离赞比亚边境不足一公里。 2011年11月，艾芬豪收购了基普什项目 68% 的权益；其余 32% 权益由刚果(金)国有矿业公司杰卡明持有。
基普什项目建设了新的饮用水供应站为基普什市免费供水。基普什市社区成员从免费饮用水得到的日常支持涉及电力、化学消毒剂、日常维护、保安和紧急修复主要管网的泄漏，受惠人数多达十万人 (未计郊区的居民)。日常每小时连续泵送约 1,000 立方米的饮用水供给使用者。
(从左至右) Ethienne Mulambe、Jhon Nkunda 和 Mulanga在基普什的 15竖号拆除旧的卷扬机。
5号竖井的直径为8米、深 1,240 米，现已进行升级和重新试车。主要的工作人员和物料进出场的卷扬机已完成升级改造，以满足全球行业标准和安全标准。 5号竖井的提升岩石卷扬机已全面运行，并已安装新的箕斗、钢索以及相关配件。竖井已安装两个新制造的岩石运输工具(箕斗)和支撑框架(控制电缆)，以方便从1,200 米中段的主矿石仓和废石仓提升岩石。
尽管矿山开发作业受到阻碍，项目仍继续进行主要的工程施工，包括安装新的卷扬机作为瀑布侧的第二出口，以及维修和更换 5 号竖井的主要水泵柱，以确保持续稳定地泵送井下水。
Gael Shimatu 正在钻孔以安装安全防护设施。
2021年第二季度，在 Makoko主矿区西面和东面的Makoko矿区共完成了32个金刚石钻孔，以1,000米间距布设勘探线，共完成了7,310米的钻探进尺，样品分析工作正在进行。计划于 2021 年第三季度开展 200 米 x 200 米网度的土壤采样工作，继续推进土壤化探。
现场团队于4 月底在 Kiala矿区开展了金刚石钻探，至今已完成了9个钻孔、共 2,947 米，有助于调查高品位铜矿化带的北部延伸，以及勘查该矿区的西部延伸范围，样品分析工作正在并行开展。
高级可转债为本公司的高级无抵押债务，息票率2.50%，每半年付息一次。除非提前回购、赎回或转换，债券将于2026年4月15日到期。债券的初步转换率为每份面值1,000美元的债券可转换为134.5682股公司A类普通股，或相当于每普通股约7.43美元 (约9.31加元) 的初步转换价。
- 在截至2021年6月30日止季度之后的任何季度期间 (以及仅在该季度期间)，如果本公司在30个连续交易日 (包括上一季度的最后一个交易日) 期间至少20个交易日 (不论是否连续) 的A类普通股收盘价格高于或相等于当时每个适用交易日转换价格的130%；或
- 在任何10个连续交易日后的5个工作日期间 ("测量周期")，测量周期内每个交易日的每份面值1,000 美元的债券交易价格低于本公司A类普通股的收盘价格与这些交易日的转换率乘积的98%；或
本公司不得在2024年4月22日之前赎回债券 (除非某些税法有所修订)。2024年4月22日或之后，以及在到期日前第41个交易日或之前，如果在本公司提供赎回通知前的任何30个连续交易日 (包括该期间的最后一个交易日) 期间至少20个交易日 (不论是否连续) 的普通股收盘价格高于或相等于当时转换价格的130%，则本公司可以赎回债券。债券的赎回价格为债券面值的100%，加上应计未付利息 (但不包括赎回日)。
由于在转换债券时，公司可选择以现金、普通股或其组合方式结算，因此可转债被视为一种衍生金融负债，导致主负债 (host liability) 以摊余成本入账。嵌入式衍生负债 (derivative liability) 以公允价值计量且其变动计入当期损益。
主负债的实际利率为9.39%，在2021年第二季度可转债认列的利息为 980 万美元，截至2021年6月30日止则为1,130万美元。截至2021年6月30日，主负债的账面值为4.253亿美元。
截至2021年6月30日止三个月 (对比 2020年6月30日) 的回顾
如上所述，公司在2021年第二季度嵌入式衍生金融负债的公允价值录得8,570万美元的损失。财务成本从 2020 年第二季度的 10 万美元增加到 2021 年同期的 1,010 万美元，其中 980 万美元与可转债的利息 (按实际利率计算) 有关。
2021年第二季度的财务收入达2,510万美元，与2020年同期 (1,870万美元) 相比高出640万美元。财务收入中包括向卡莫阿控股合资企业提供的贷款利息，2021年第二季度的利息收入2,300万美元，2020年同期所得的利息收入为1,640万美元，随着累计贷款余额增加。
截至2021年6月30日止六个月的财务收入达4,790万美元，与 2020年同期（3,950万美元）相比高出 840万美元。财务收入已计入截至2021年6月30日止六个月向卡莫阿控股合资企业提供贷款以运营所得的利息收入4,410万美元以及2020年同期所得的利息收入3,270万美元，随着累计贷款余额增加。由于美联储减息，导致现金和现金等价物所得利息下跌。
截至2021年6月30日止六个月的勘查及项目评估开支达到了 2,070万美元，2020年同期达到了2,100万美元。 勘探及项目评估开支用于艾芬豪的西部前沿探矿权的勘查活动，还包括用于基普什项目的开支，但由于项目在期内减少作业而产生了有限的资本开支。下表列出了截至2021年6月30日止六个月和2020年同期基普什项目的主要开支类别﹕
截至 2021年6月30日的财务状况对比截至 2020年12月31日的财务状况
截至2021年6月30日，公司的总资产为29.843亿美元，相比截至2020年12月31日的24.171亿美元增长了5.672亿美元。总资产的增长主要由于2021年3月17日完成发行高级可转债所得的净收入所致。出售可转债所得的收入 (扣除与主负债相关的发行成本1,030万美元) 为5.647亿美元。
于2020年12月底，卡莫阿控股合资企业已从设备融资获得4,500万欧元 (约5,600万美元) 以及从首付款贷款中提取900万美元，并于截至2021年6月30日止六個月內从设备融资获得1,340万欧元 (约1,620万美元)。设备融资仅以设备作为抵押，实际利率为8.96%。首付款贷款则无抵押，实际利率为11.58%。
卡莫阿控股合资企业的不动产、厂房和设备从 2020年12月31日净增长至 2021年6月30日，达到3.834亿美元，可进一步分解如下：
目前，普拉特瑞夫项目的开支由艾芬豪单方出资 (通过向 Ivanplats 提供计息贷款)，因为日本财团已决定不为当前的开支出资。
在 2021 年剩余时间，公司对普拉特瑞夫项目的主要目标是完成分期开发方案的详细工程设计和更新可行性研究、继续转换1号竖井为生产井以及建设2号竖井的井口、井架。基普什项目将继续实施现金节流措施，直至可行性研究完成以及开发和融资方案达成协议。卡莫阿-卡库拉项目已启动首批铜精矿生产，并将继续进行II期选厂扩建和相关基础设施的施工。
公司预算在2021年剩余时间花费5,600 万美元用于进一步开发普拉特瑞夫项目、1,700 万美元用于基普什项目、1,500万美元用于西部前沿勘探项目，以及1,600万美元用于公司经常性开支。
截至 2021 年 6 月 30 日，卡莫阿控股合资企业持有现金和现金等价物2.881 亿美元。展望未来，项目I期的所有运营支出和 II期大部分的资本支出将会从铜销售和卡莫阿现有的信贷出资。在2021年剩余时间内，艾芬豪应为卡莫阿-卡库拉II期建设资本支出所提供的资金份额估计仅为 8,500 万美元，假设尚未提取紫金有限追索权信贷额度的款项。
公司在其英国伦敦办公室有一笔价值320万英镑 (450万美元) 的抵押债券未偿付，需于2025年8月28日全额偿还，此抵押债券以物业资产担保，按1个月期英镑LIBOR加1.9 %的利率每月支付利息。利息仅在到期日支付。
2013年，艾芬豪获ITC Platinum Development Limited提供合约金额3,480万美元的应付贷款。截至2021年6月30日，该公司的账面值为3,290万美元。艾芬豪必须在普拉特瑞夫项目出现剩余现金流后，即时偿还该项贷款。根据贷款协议，剩余现金流定义为普拉特瑞夫项目产生的总收入，扣除所有相关运营成本 (包括所有采矿建设和运营成本)。逾期债款需按3个月期美元LIBOR加2%的利率每月支付利息。利息不进行复利计息。应付合约金额与贷款账面值相差190万美元，主要由于低息贷款所致。
如上所述，上表列出的债务代表应向花旗银行支付的抵押债券以及应付ITC Platinum Development Limited的贷款。
合资格人及符合NI 43-101 标准的技术报告
本新闻稿中关于卡莫阿-卡库拉项目资本开支和开发方案修订版的科学或技术性披露已经由史蒂夫·阿莫斯 (Steve Amos) 审查和批准，他凭借其教育、经验和专业协会会籍被认为是NI 43-101 标准下的合资格人。由于阿莫斯先生是卡莫阿项目的负责人，因此他并不符合NI 43-101 对独立人士的界定。阿莫斯先生已核实本新闻稿所披露的技术数据。
本新闻稿中关于卡库拉和卡索科矿堆的其它科学或技术性披露已经由乔治·吉尔克里斯特 (George Gilchrist) 审查和批准，他凭借其教育、经验和专业协会会籍被认为是NI 43-101 条款下的合资格人。由于吉尔克里斯特先生是艾芬豪矿业资源部副总裁，因此他并不符合NI 43-101 对独立人士的界定。吉尔克里斯特先生已核实本新闻稿所披露的其它技术数据。
本新闻稿中的其它科学或技术性披露已经由斯蒂芬·托尔 (Stephen Torr) 审查和批准，他凭借其教育、经验和专业协会会籍被认为是NI 43-101 条款下的合资格人。由于托尔先生是地球科学副总裁，因此他并不符合NI 43-101 对独立人士的界定。托尔先生已核实本新闻稿所披露的其它技术数据。
艾芬豪已经为普拉特瑞夫项目、基普什项目和卡莫阿-卡库拉项目分别编制了一份符合NI 43-101 标准的最新独立技术报告，这些报告可在SEDAR 网站上的艾芬豪页面获得，网址为 www.sedar.com﹕
- 2020年10月13日发布的2020年卡莫阿-卡库拉综合开发方案，由OreWin Pty Ltd.、中国瑞林工程技术有限公司、DRA Global、Epoch Resources、Golder Associates Africa、KGHM Cuprum R&D Centre Ltd.、Outotec Oyj、Paterson and Cooke、Stantec Consulting International LLC、SRK Consulting Inc.以及Wood plc编制，涵盖公司的卡莫阿-卡库拉项目；
- 2020年12月6日发布的2020 年普拉特瑞夫综合开发方案，由OreWin Pty Ltd.、Wood plc (前为Amec Foster Wheeler)、SRK Consulting Inc.、Stantec Consulting International LLC 、DRA Global以及Golder Associates Africa编制，涵盖公司的普拉特瑞夫项目；以及
- 2019年3月28日发布的2019 年基普什矿产资源更新，由OreWin Pty Ltd.、MSA Group (Pty) Ltd.、SRK Consulting (South Africa) (Pty) Ltd. 和MDM (Technical) Africa Pty Ltd . (Wood PLC 的一个部门) 编制，涵盖了公司的基普什项目。
投资者：比尔·特伦曼 (Bill Trenaman)，电话：+1.604.331.9834 /
媒体：马修·基维尔 (Matthew Keevil)，电话：+1.604.558.1034
该等陈述包括但不限于下列事项的时间点和结果﹕(i) 关于卡库拉回填厂将于2021年8月向井下采场交付第一批回填膏体的陈述；(ii) 关于卡库拉矿山约一半的尾矿将用于井下回填，大大减少地表尾矿量的陈述；(iii) 关于试车团队8月份的重点将从前端破碎和磨矿流程转移到平衡和优化浮选和再磨工段，有望进一步提高精矿品位和回收率的陈述；(iv) 关于II期380万/吨年选厂的施工进展顺利，将于2022年第三季度实现投产的陈述；(v) 关于艾芬豪与其合资伙伴紫金正积极研究加快卡莫阿-卡库拉的III期选厂扩建的陈述；(vi) 关于卡莫阿-卡库拉生产的超高品位、清洁铜精矿，预计铜品位高达57%，有害元素含量极低的陈述；(vii) 关于卢阿拉巴铜冶炼厂将为卡莫阿-卡库拉高达15万湿吨的铜精矿进行粗炼加工，收取加工费和基于市场的变现费作为回报，并生产含铜99%的粗铜，粗铜将由中信金属和紫金从卢阿拉巴铜冶炼厂的仓库提取并送回卡莫阿铜业的陈述；(viii) 关于截至2021年6月30日，卡莫阿-卡库拉合资企业完成I期和II期建设的剩余初期资本开支估算约为6.97亿美元的陈述；(ix) 关于英加二期水电站主要涡轮机组的升级改造达成协议，涡轮机组升级后将产生162兆瓦的清洁、可再生水电，为卡莫阿-卡库拉铜矿及冶炼厂提供长期的稳定电力以配合日后扩建计划的陈述； (x) 关于Mwadingusha水电站6台涡轮机组的升级工程，余下一台发电机组将于2021年8月与国家电网并网的陈述；(xi) 关于卡莫阿-卡库拉旨在成为首个实现净零碳排放的顶级铜矿，采用电池或氢燃料电池驱动的先进设备，全力推进采矿作业电气化的陈述；(xii) 关于普拉特瑞夫项目的金属流融资，包括计划分四期提款的陈述；(xiii) 关于普拉特瑞夫项目1号竖井转换为生产井的进展顺利，将按计划于2022年初开始矿石提升的陈述；(xiv) 关于2号竖井井架(从地基至井口) 的建设工程将于2022年5月完工的陈述；(xv) 关于普拉特瑞夫计划采用高效机械化的开采方法，包括深孔采矿法及进路充填法，两种方法都会采用水泥回填以最大化开采矿石的陈述；(xvi) 关于普拉特瑞夫项目的目标是要在矿体以最高净冶炼收益，回收约1.25亿吨矿石的陈述；(xvii) 关于艾芬豪矿业及其合资伙伴杰卡明正在审阅基普什的可行性研究草案以及开发和融资方案，预计双方将于20 21年第四季度，在完成可行性研究以及开发和融资方案达成协议后完成协商的陈述；(xviii) 关于Makoko西部勘查区未来的钻孔工作，将选择有利于形成更高铜品位的特定构造位置为优先靶区的陈述；(xix) 关于按艾芬豪的指导目标，卡莫阿-卡库拉项目将生产的精矿铜金属量的陈述；(xx) 关于按生产指导目标，卡莫阿-卡库拉项目在2021年生产精矿的铜金属量为80,000吨至95,000吨的陈述；(xxi) 关于在2021年剩余时间内，艾芬豪应为卡莫阿-卡库拉II期建设资本支出所提供的资金份额估计仅为 8,500 万美元，假设尚未提取紫金有限追索权信贷额度的款项的陈述；以及(xxii) 关于在2021 年剩余时间的主要目标和2021年剩余预算的陈述。
此外，卡库拉铜矿可行性研究、卡库拉-卡索科2020年预可行性研究、更新和扩展的卡莫阿-卡库拉项目初步经济评估、普拉特瑞夫项目的可行性研究，普拉特瑞夫2020年初步经济评估以及基普什项目的预可行性研究的所有结果均构成了前瞻性陈述或信息，并包括内部收益率的未来估算、净现值，未来产量、现金成本估算、建议开采计划和方法、估计矿山全寿命、现金流量预测、金属回收率、资本和运营成本估算，以及项目分期开发的规模和时间点。另外，对于与卡莫阿-卡库拉项目、普拉特瑞夫项目和基普什项目开发有关的特定前瞻性信息，公司是基于某些不确定因素而作出假设和分析。不确定因素包括：(i) 基础设施的充足性；(ii) 地质特征；(iii) 矿化的冶金特征；(iv) 发展充足选矿产能的能力；(v) 铜、镍、锌、铂金，钯、铑和黄金的价格；(vi) 完成开发所需的设备和设施的可用性；(vii) 消耗品和采矿及选矿设备的费用；(viii) 不可预见的技术和工程问题；(ix) 事故或破坏或恐怖主义行为；(x) 货币波动； (xi) 法例修订；(xii) 合资企业伙伴对协议条款的遵守情况；(xiii) 熟练劳工的人手和生产率；(xiv) 各政府机构对矿业的监管；(xv) 筹集足够资金以发展该等项目的能力；(xiv) 项目范围或设计更变；以及 (xv) 政治因素。
本新闻稿亦载有矿产资源和矿产储量估算的参考信息。矿产资源的估算具有内在的不确定性，并涉及对许多相关因素的主观判断。矿产储量的估算提供了更多的确定性，但仍然涉及类似的主观判断。矿产资源并非矿产储量，并不显示其具有经济潜力。任何该等估算的准确性是可用数据的数量和质量的函数，并根据工程和地质诠释的假设和判断 (包括估计公司项目的未来产量、预计开采所得的矿石量和品位，以及估计将会实现的回收率) 而作出，可能被证明是不可靠的，在一定程度上取决于钻孔结果和统计推论的分析，而最终可能证明是不准确的。矿产资源或矿产储量估算可能需要根据以下因素重新估算：(i) 铜、镍、锌、铂族元素 (PGE)、黄金或其他矿物价格的波动；(ii) 钻孔工程的结果；(iii) 冶金测试和其他研究；(iv) 建议开采作业，包括贫化；(v) 在矿山计划的任何估算及/或变更日期之后作出的矿山计划评估；(vi) 未能取得所需准许、批准和许可证的可能性；以及 (vii) 法律或法规的修订。