In the world of mining ores, copper prices have had a pretty good year.
After cracking the $5 per pound price level to print all-time highs, the metal pulled back about 20% and settled in a range between $4 and $4.50.
This is generally a good development for miners who specialize in the metal. Prices remaining firm, unlike lithium, cobalt or nickel all of which peaked during the EV battery boom of 2022, means mining operations can still operate profitably.
There’s even incentive to expand.
And one mid-cap Canadian miner has been riding the trend for all it’s worth.
Introducing Ivanhoe Mines Ltd.
Ivanhoe Mines Ltd (IVN) is a TSE traded mid-cap miner specializing in the copper industry.
One of its major properties is the Kamoa-Kakula Copper Complex in the Central African Copperbelt. It’s considered the world’s fastest-growing and highest-grade major copper mine.
Phase 1 production began in 2021 and has been steadily increasing ever since. By 2022, a second production phase had doubled capacity to 400,000 metric tons annually. A third phase completed this past year expanded that capacity to 600,000 metric tons.
Recent financial reports have indicated they’re moving the right direction toward their capacity.
The mine produced a record 116,313 metric tons of copper in Q3 compared with 86,203 MT in Q1 and 100,812 MT in Q2. The mine has produced 303,328 MT of copper year-to-date.
Production guidance for the rest of the year is between 425,00 and 450,000 metric tons.
For their efforts, they were able to report a quarterly profit of $108 million for the third quarter of 2024, compared with $67 million for Q2.
This growth has shown up in their share price. For 2024, the company’s share price is up 41%.
Ivanhoe Mines Ltd. (IVN)
Source: Google Finance
Overall share price has been choppy since May this year. That may be partly due to the company’s slightly rich 109 PE ratio. Compared to a major producer in the copper field like Freeport-McMoRan which sports a more modest valuation of 30.
Still it may also be a sign of optimism where continued growth goes.
Overall IVN has been making the most of a market where ore prices have remained relatively firm.
Continued progress could make 2025 a very good year and IVN worth a look for any mining investor.
