Ivanhoe withdraws production guidance at Kakula, shares dive

Ivanhoe Mines (TSX: IVN) shares tumbled on Monday after the miner withdrew cost and production guidance for its Kakula copper mine in the Democratic Republic of Congo, following a temporary suspension of underground operations due to recent seismic activity.The company said it is reviewing its 2024 copper production target of 520,000 to 580,000 tonnes from the Kamoa-Kakula complex. The ramp-up schedule for a new smelter has also been withdrawn.Following the announcement, Ivanhoe Mines’ shares fell 16% in Toronto to C$10.79 ($7.86), giving the company a market capitalization of C$14.6 billion ($10.6 billion).Kamoa-Kakula is Africa’s largest copper mine. Ownership is split among Ivanhoe (39.6%), Zijin Mining (39.6%), Crystal River Global (0.8%), and the DRC government (20%). In April, the mine produced a record 50,176 tonnes of copper.Underground operations were paused again over the weekend after additional seismic activity, following a previous suspension last Tuesday. Mobile equipment has been removed from the mine, and employees have been brought to the surface.Ivanhoe said it is working to boost pumping capacity to address increased water inflows into the mine.Preliminary indications suggest the seismic activity “could potentially continue for weeks,” which would inhibit access to the mine and prolong the temporary suspension of operations at Kakula, according to the company.The Kamoa mine remains operational, and Kakula’s concentrators are currently processing surface stockpiles, Ivanhoe said.On Friday, Ivanhoe disputed a claim by Zijin Mining regarding operational issues and the potential of missing annual production guidance.“I remind readers that SpaceX—today responsible for approximately 90% of total payload launched into space by humanity—did not attain this status without numerous setbacks. Each setback brought their team new knowledge, making the mission stronger… and so we approach our operations at Kamoa-Kakula with the same mindset,” said Ivanhoe Executive Co-Chairman Robert Friedland.“Together we plan to restore operations to be safer and stronger than ever.”Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com