Ivanhoe Electric Expands Critical Metals Exploration Footprint in Saudi Arabia and Côte d'Ivoire

Expanded Exploration Fuels Ivanhoe Electric's Critical Metals Strategy

Ivanhoe Electric Inc. (NYSE American: IE) has announced significant expansions in its global critical metals exploration portfolio, signaling a strategic drive to bolster its resource base. The company, in partnership with Saudi Arabian Mining Company Maaden (Saudi Stock Exchange Tadawul: 1211), has secured an additional 1,345 square kilometers of exploration licenses in Saudi Arabia for their 50/50 joint venture. This expansion notably includes 946 square kilometers in the Musayna'ah area, which exhibits strong Iron Oxide-Copper-Gold (IOCG) characteristics, and 399 square kilometers in the Mahd Area, adjacent to Maaden's Mahd Ad Dhahab gold mine, indicating potential for shallow gold and other precious and base metal mineralization.

This strategic move aligns with Saudi Arabia's Vision 2030, which aims to establish mining as a pivotal economic sector, fostering critical metal exploration in underexplored geological terrains. Ivanhoe Electric contributes its proprietary Typhoon™ geophysical surveying technology, a crucial tool for efficient exploration across vast areas. To date, the joint venture has completed approximately 510 square kilometers of geophysical surveys and drilled four holes totaling about 2,100 meters across the Al Amar Belt in 2025, with an additional 4,000 meters of drilling planned.

Simultaneously, Ivanhoe Electric, alongside its joint venture partner Sama Resources Inc., provided an update on the 2025 exploration program at the polymetallic Samapleu-Grata Nickel-Copper Project in Côte d'Ivoire, West Africa. Approximately 840 meters of exploration drilling at the Mossikro Prospect, 10 kilometers south-southwest of existing mineral resources, has identified new polymetallic mineralization. This discovery, characterized by a similar geophysical signature, mineralization style, and host rock geology, validates the regional exploration model and reaffirms the project's district-scale potential. A 3,000-meter infill drilling program is scheduled to commence at the Grata Deposit this fall, aimed at upgrading Inferred Resources to Indicated Resources, thereby improving resource confidence for future economic studies.

Market Response and Financial Context

Following the announcement of the new Saudi Arabian licenses, Ivanhoe Electric's shares experienced a modest 1.33% rise in after-hours trading. While these exploration advancements are significant long-term catalysts, indicating potential for future resource upgrades, the immediate market impact on the company's valuation is anticipated to be muted. This reflects the company's current financial standing: it remains unprofitable with a limited cash runway.

For the second quarter of 2025, Ivanhoe Electric reported US$1.07 million in sales and a narrowing net loss of US$23.85 million. However, for the trailing 12 months ending June 30, 2025, the company recorded a net loss of -$80.7 million, with a loss per share of -$0.65. As of Q2 2025, cash and cash equivalents increased to $88.05 million, yet the company possesses less than one year of cash runway and is not projected to achieve profitability within the next three years. Its operating cash flow for the last 12 months stood at -$103.37 million, resulting in a free cash flow of -$117.11 million.

Valuation metrics suggest that Ivanhoe Electric trades at a price-to-book (P/B) ratio of 3.9x, considerably above the US Metals and Mining industry average of 2.2x. This premium may be attributed to anticipated future growth and strategic advancements, although persistent net losses and volatile revenue growth introduce notable risks. Analyst consensus predicts negative earnings for both 2025 and 2026. Furthermore, the company's forecast annual revenue growth rate of 1.11% is expected to lag behind the US Copper industry's average forecast of 7.36% and the broader US market's average of 10.83%.

Strategic Importance and Future Outlook

These expanded exploration efforts underscore Ivanhoe Electric's strategic positioning in the burgeoning critical metals market, crucial for global electrification and industrial growth. The partnership with Maaden exemplifies a trend toward leveraging advanced technologies, such as Typhoon™, to de-risk and accelerate mineral discovery. The focus on copper, gold, nickel, and other base/precious metals reflects increasing global demand, potentially positioning the joint ventures to contribute significantly to the supply chain of these vital commodities.

Beyond these new initiatives, the company continues to advance its Santa Cruz Copper Project in Arizona, which, according to a recently completed Preliminary Feasibility Study (PFS), defines a high-quality underground mining operation with robust economics. The project boasts a probable mineral reserve of 136 million tonnes at 1.08% copper, supporting a 23-year mine life, with a post-tax net present value (NPV) of US$1.4 billion at a base case of US$4.25 per pound of copper. Initial project capital is forecast at US$1.24 billion. Ivanhoe Electric is actively pursuing multiple financing avenues for Santa Cruz, including a Letter of Interest from the Export-Import Bank of the United States for up to $825 million in debt financing.

"Given global conflicts that concern us all, the United States is now awake to the urgent national security imperative to restore domestic American mineral production to the scale of the American economy," commented Executive Chairman Robert Friedland, highlighting the strategic importance of projects like Santa Cruz for a secure domestic supply of critical minerals.

Looking ahead, investors will be closely monitoring the results from ongoing drilling programs, particularly the infill drilling at Grata, for resource upgrades and further evidence of district-scale potential. Progress in securing financing for the Santa Cruz Copper Project and any developments in its path to commercial production will also be critical indicators for Ivanhoe Electric's long-term valuation and profitability trajectory.