en.Wedoany.com Reported - Canadian mining company Ivanhoe Mines recently announced its first-quarter results for fiscal 2026, ending March 31, reporting a net loss of $2 million and a total comprehensive loss of $35 million. In the same period last year, the company recorded a profit of $122 million and total comprehensive income of $128 million.

The decline in performance was primarily due to a loss share from its joint venture in the Democratic Republic of Congo (DRC), Kamoa Holding, resulting from a tax settlement. The joint venture contributed an attributable loss of $42 million to Ivanhoe this quarter, compared to a profit contribution of $108 million in the same period of 2025. Kamoa Holding's loss stemmed from a $183 million tax settlement payment made to resolve disputes arising from prior-year tax audits. Ivanhoe noted that DRC tax authorities have the right to audit and dispute previous filings within a five-year period, and the ambiguity in mining tax policies sometimes leads to disagreements. Kamoa Copper expects this tax settlement to resolve all income tax disputes up to the end of 2024. The company paid a total of $729 million in taxes between 2022 and 2024.

Exchange rate fluctuations also impacted comprehensive income. The South African Rand appreciated by approximately 3% during the quarter, resulting in a $33 million loss from the translation of foreign operation financial statements, compared to a $6 million gain in the same period last year.

At the operational level, adjusted EBITDA was $191 million, down from $226 million in the prior-year period. Kamoa-Kakula's contribution was $158 million, compared to $231 million in the first quarter of last year.

Despite short-term earnings pressure, Ivanhoe is advancing three core projects. In the DRC, the Kamoa-Kakula copper mine complex and smelter are operating in a strong market environment for copper and sulfuric acid prices. Company founder and Co-Chairman Robert Friedland stated: "Our sulfuric acid production is evolving into an operating revenue stream of $1 million per day, effectively offsetting rising diesel costs. This advantage is supported by high-grade ore, which maintains the lowest hydrocarbon intensity per tonne of copper among major global mines."

In the mine's transformation and adjustment, the updated life-of-mine development plan lays the foundation for copper production to return to over 500,000 tonnes per year. Friedland said: "The plan is clear, execution is underway, and the favorable copper price trend adds momentum. We will fully leverage our strategic advantages."

At the Platreef mine in South Africa, Shaft 3 has been completed on schedule, increasing hoisting capacity fivefold and expected to drive production growth by the end of June. Earthworks for the Phase 2 concentrator plant have also commenced, targeting a significant production ramp-up in the fourth quarter of 2027. The project's $700 million Phase 2 financing package was closed on April 30, representing a net increase of approximately $600 million compared to Phase 1 financing. Future Phase 3 expansion will be supported by cash flows generated from the first two phases of operation.

In exploration, the group's exploration budget for the year has been increased from the previously planned $90 million to $127 million, more than double the actual expenditure in 2025. Of this, $86 million is allocated for copper exploration in the DRC's Western Forelands, $20 million for joint venture projects in Kazakhstan, with the remaining funds distributed across exploration activities in Angola, Zambia, and South Africa. Friedland specifically mentioned: "The Makoko District copper discovery is growing into a giant deposit, and we will soon announce the development plan for the Western Forelands."

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