EPS of 9.6c beat estimates of 8.9c. Revenue of $617M was 5% short of estimates. The company is still in ramp up mode. Ivanhoe's Kamoa mine could post 2024 Ebitda of about $1.82-$1.85 billion, based on the midpoint of production and cost targets. Kamoa is set to boost output 12-24% to 440-490 thousand tons of copper in 2024, according to guidance, thanks to the commissioning of a new concentrator in June. But a shortage of grid power is forcing the use of expensive diesel backup generators which Ivanhoe says could see costs rise temporarily this year, as much as 17% to $1.50-$1.70 per pound. Costs should begin to fall toward $1.20 per pound from mid-2025. The refurbishment of a hydroelectric dam and the start-up of a new smelter by year-end should lead to savings on tax, power, transport, and processing charges, while also generating revenue from sulfuric acid sales. So, while the quarter was a 'miss' the outlook is still pretty robust here. The stock is doing fairly well as investors anticipate very big cash flow next year.
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