Ivanhoe Mines Posts Q1 Loss After Kamoa-Kakula Tax Hit Despite Strong Copper Expansion Push

Ivanhoe Mines Reports Q1 2026 Loss Amid Kamoa-Kakula Tax Settlement and Expands Copper Growth Strategy

Ivanhoe Mines, a Canadian mining company, reported a net loss of $2-million and a total comprehensive loss of $35 million for the quarter ended March 31, 2026.

This marks a sharp reversal from the same period in 2025, when the company recorded a profit of $122-million and total comprehensive income of $128 million.

The company attributed the decline mainly to its share of losses from the Kamoa Holding joint venture in the Democratic Republic of Congo (DRC), which posted a $42-million loss compared to a $108-million profit in the prior year period.

Tax settlement drives JV losses

Ivanhoe explained that the joint venture loss was largely driven by a $183-million tax adjustment related to the settlement of historical tax disputes covering the 2022 to 2024 tax years.

Although Kamoa-Kakula files annual tax returns, DRC tax authorities retain the right to audit and challenge filings for up to five years.

The company noted that disputes often arise due to ambiguity in mining tax regulations in the country.

According to Ivanhoe, companies can either pursue legal proceedings or settle disputes before they escalate to court.

The recent settlement is expected to close all income tax issues up to the end of 2024. The total income tax already paid for the 2022–2024 period amounts to $729-million.

Currency fluctuations also impact results

The company also recorded a $33-million foreign exchange translation loss, compared with a $6-million gain in the same quarter last year.

This shift was mainly due to movements in the South African rand, which strengthened by about 3% between December 31, 2025, and March 31, 2026.

Earnings and operational performance

Ivanhoe reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $191-million, down from $226-million a year earlier.

The Kamoa-Kakula operation contributed $158-million, compared with $231-million in the prior comparable quarter.

Despite the weaker financial results, the company continued advancing its major Tier 1 assets, including Kamoa-Kakula and the high-grade Kipushi mine in the DRC, as well as the Platreef platinum-group metals project in South Africa.

Copper strategy and operational outlook

Ivanhoe founder and co-chairperson Robert Friedland said the company remains strongly positioned in a favourable copper price environment.

He highlighted the strategic importance of copper and sulphuric acid production at Kamoa-Kakula, describing sulphuric acid as a key cost offset and competitive advantage due to its role in reducing operating expenses linked to fuel consumption.

Friedland also confirmed that a revised life-of-mine development plan for Kamoa-Kakula targets a return to annual copper production above 500,000 tonnes.

Platreef expansion and financing progress

At the Platreef project, construction of Shaft #3 has been completed, significantly increasing hoisting capacity and expected to support higher output in the coming quarters.

Earthworks for the Phase 2 concentrator are underway, with production increases targeted from late 2027.

Ivanhoe also secured a $700-million project finance facility for Platreef’s Phase 2 expansion, strengthening funding for continued development. The facility achieved financial close on April 30, 2026.

The company said future Phase 3 expansion will likely be funded through cash flow generated from earlier production phases.

Exploration spending expands significantly

Ivanhoe also increased its 2026 exploration budget to $127 million, up from $90-million previously and more than double the 2025 expenditure of $60 million.

The majority of the budget $86-million will be directed toward the Western Forelands copper exploration programme in the DRC.

Additional funding will support projects in Kazakhstan through a joint venture with Pallas Resources, as well as exploration activities in Angola, Zambia and South Africa.

Friedland said the Makoko District discovery in the Western Forelands is emerging as a significant copper system, underscoring the company’s long-term growth pipeline.

While Ivanhoe Mines reported a quarterly loss driven largely by tax adjustments and currency impacts, the company continues to push ahead with major expansion projects, increased exploration spending and long-term copper production growth targets across its global portfolio.