Ivanhoe publishes financial statements for the first half of 2020 while updating progress on its mining projects | DRC
Overall, the Company recorded a total aggregate loss of $ 76.3 million for the six-month period ended June 30, 2020 compared to revenue of $ 11.5 million for the same period in 2019.
Reading its financial statements, it appears that Ivanhoe’s board of directors has allocated a reduced 2020 budget of $ 41.7 million for the Platreef project, of which $ 23.4 million is allocated for the remainder of 2020.
The company also allocated a reduced 2020 budget of $ 28.7 million for the Kipushi project, of which $ 13.5 million is allocated for the remainder of 2020, its financial statements reveal. Exploration activities on the Western Foreland exploration project in DRC will continue with a 2020 budget of $ 8.0 million, of which $ 4.5 million is allocated for the remainder of 2020.
“At the Kamoa-Kakula project, the priority remains the continuation of mine development work at Kakula where initial production of copper concentrate is scheduled for the third quarter of 2021. The company has budgeted $ 257 million for its proportionate financing of the Kamoa-Kakula project for the remainder of 2020, ”says Ivanhoe Mines.
Exploration and project expenses amounted to $ 9.0 million in Q2-2020 and $ 3.3 million for the same period in 2019. While all exploration and project expenses incurred in Q2 2019 was related to the exploration of the Western Foreland exploration licenses wholly owned by Ivanhoe, Q2 2020 also included $ 7.5 million spent at the Kipushi project, resulting in limited costs of capital during the quarter due to reduced activity.
Exploration and project spending amounted to $ 21.0 million for the six-month period ended June 30, 2020 and $ 4.7 million for the same period in 2019. While all exploration and of projects initiated in 2019 were related to exploration on the Western Foreland exploration licenses wholly owned by Ivanhoe, 2020 also included $ 17.5 million spent on the Kipushi project, which consisted of reducing activities and initiating limited costs of a capital nature during the year to date.
“The development of the flagship Kakula copper mine continues to exceed expectations; with initial production well on track for the third quarter of 2021 ”, reports Ivanhoe Mines which also announces that a definitive feasibility study for the Kakula mine and an updated integrated development plan for multiple expansions of the mine. The entire Kamoa-Kakula mining permit is nearing completion.
Ivanhoe Mines is a Canadian mining company advancing its three mining projects in southern Africa: the discovery of copper at Kamoa-Kakula in the Democratic Republic of the Congo; the Platreef palladium-platinum-nickel-copper-gold-rhodium discovery in South Africa; and the in-depth modernization of the historic Kipushi zinc-copper-silver-lead-germanium mine, also in the DRC.
The company is also exploring new copper discoveries on its wholly-owned Western Foreland exploration licenses, adjacent to the Kamoa-Kakula mining license.
