Kamoa finances take a hit from tax bill
Ivanhoe is ramping up exploration in the Wester Forelands region of the DRC. The company's total exploration budget has been increased to $127 million for 2026, from the previously guided $90 million, more than double the 2025 exploration spend of $60 million.
$86 million, 68% of the total spend, will be deployed in the Western Forelands.
"The Makoko District copper discovery in the Western Forelands is an emerging giant in the making, and its significance is growing around the clock," Ivanhoe chair Robert Friedland said. "Soon, we will reveal our development plans for the Western Forelands.
"Tax billIvanhoe announced a loss of $2 million in the first quarter of 2024, compared to a profit $122 million a year earlier, due largely to $183-million tax adjustment for its Kamoa Kakula copper business, to settle claims related to tax audit assessments in prior years. This pushed the Kamoa Holding joint venture into a loss of $42 million, compared to a profit of $108 million a year earlier.
Ivanhoe reported adjusted earnings before interest, taxes, depreciation and amortisation of $191 million, compared with adjusted Ebitda of $226 million in the first quarter of 2025.
"Differences can arise due to ambiguity in mining taxation in the DRC," Ivanhoe said. "When disputes arise, DRC companies can either follow judicial proceedings or settle the matter before it goes to court. Kamoa Copper's tax settlement pertains to disputes raised for the 2022 to 2024 tax years.
"This settlement is expected to resolve any tax issues up to the 2024 tax year. Ivanhoe also made an exchange loss of $33 million, caused by the strengthening of the South African rand. Sulphuric acid hedgeIvanhoe is advancing developments Kamoa-Kakula, as well as the ultrahigh-grade Kipushi zinc-copper mine in the DRC, and the Platreef PGM and gold project in South Africa. The DRC copper business stands to benefit from the global sulphuric acid shortage, Friedland said.
"Our Kamoa-Kakula copper complex and smelter are ramping up in a very strong price environment for the two most critical elements on our planet: copper, which is the king of metals, and sulphuric acid , which is the king of chemicals," Friedland said. "Kamoa-Kakula benefits from a powerful natural hedge: our sulphuric acid production. H2SO4, which is a by-product of our copper smelter, is growing into a one-million-dollar-a-day operating credit, massively offsetting rising diesel prices.
""This advantage is supported by our high-grade ore, which has the lowest hydrocarbon intensity per tonne of produced copper of any major mine in the world," Friedland said. "At the same time, our team are executing a disciplined turnaround at Kamoa-Kakula," Friedland said.
"The plan is clear, the execution is underway… and the strong tailwinds in copper prices adds to the momentum. We will fully capitalise on our strategic advantages. "
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