Canada's Ivanhoe Mines Q3 profit rises, lowers 2027 Kamoa-Kakula copper guidance
Overview
Canada mining firm's Q3 profit was $45 mln, adjusted EBITDA reached $241 mln
Kamoa-Kakula copper complex posted record quarterly revenue exceeding $1 bln
Company lowered 2027 Kamoa-Kakula copper production guidance due to operational delays and higher costs
Outlook
Ivanhoe Mines lowers 2027 Kamoa-Kakula copper production guidance to 300,000-350,000 tonnes
2027 Kamoa-Kakula cash cost guidance raised to $2.50-$3.00/lb from $2.10-$2.50/lb
Kamoa-Kakula aims for ~500,000 tonnes annual copper output after Phase 4 expansion
Result Drivers
MINING AND PROCESSING GAINS - Co said increased mining rates and improved concentrator recoveries contributed to Q3 results
ENERGY COST REDUCTION - Ramp-up of hybrid solar power facility lowered energy and diesel costs at Kamoa-Kakula
SULPHURIC ACID SALES - Sulphuric acid by-product sales offset smelter operating costs, per co
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EBITDA | $241 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified mining peer group is "buy"
Wall Street's median 12-month price target for Ivanhoe Mines Ltd. is C$15.50, about 74.5% above its November 3 closing price of C$8.88
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 22 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)