Canada's Ivanhoe Mines Q2 profit rises on higher zinc and sulphuric acid prices

Overview

• Canada mining firm's Q2 profit rose to $46 mln, with adjusted EBITDA up to $179 mln

• Higher sulphuric acid and zinc prices supported results; Kipushi delivered record zinc output

Outlook

• Ivanhoe Mines tightens 2026 copper production guidance to 290,000-310,000 tonnes

• Company expects H2 2026 copper production rates to increase at Kamoa-Kakula

• Ivanhoe Mines maintains 2026 Kipushi zinc production guidance at 240,000-290,000 tonnes

Result Drivers

• SULPHURIC ACID SALES - Higher sulphuric acid prices and sales offset Kamoa-Kakula smelter operating costs, providing a strong by-product credit

• RECORD ZINC OUTPUT - Kipushi delivered record zinc production, supported by multi-year high zinc prices

• IMPROVED MINING RATES - Higher mining rates at Kamoa-Kakula increased ore availability and improved recoveries

Company press release: ID:nNFCc7D471

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• Wall Street's median 12-month price target for Ivanhoe Mines Ltd is C$15.00, about 40.4% above its July 28 closing price of C$10.68

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 29 - Glencore's copper output up 15%, sees strong $3.3 bln marketing EBIT

• July 28 - Canada's First Quantum Q2 adjusted EPS misses estimates on higher costs

• July 29 - Luxembourg's Befesa Q2 revenue rises on higher zinc prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)