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IE

Ivanhoe Electric Inc. (IE)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a narrower net loss on substantially lower exploration and G&A spending; net loss attributable to common stockholders was $17.5M (EPS -$0.13), an EPS beat versus S&P Global consensus of -$0.204, aided by reduced exploration at Santa Cruz and a swing to equity-method income from VRB China . EPS actual -$0.13 vs -$0.204 consensus mean (2 estimates) was a beat; revenue was $0.545M, all from data processing services . EPS consensus values marked with an asterisk are from S&P Global.
  • IE ended the quarter with $69.5M in cash and equivalents; post-quarter it raised ~$172.5M gross via an equity offering, easing near-term funding and potentially reducing financing overhang .
  • Operationally, Santa Cruz moved from PFS to optimization and detailed engineering; EXIM Bank delivered a Letter of Interest for up to $825M in project debt, and the Ma’aden JV expanded its license position by 1,345 km², with 732 km² surveyed and 10,461 meters drilled YTD in Saudi Arabia .
  • Outlook catalysts include: continued de-risking of Santa Cruz (targeting early construction activities in Q1 2026), progress on EXIM underwriting, Cordoba’s Alacrán sale closing (subject to EIA), and further JV exploration results from Saudi Arabia .

What Went Well and What Went Wrong

  • What Went Well

    • EPS beat: IE posted EPS of -$0.13 vs S&P Global consensus mean of -$0.204, driven by a $15.8M reduction in exploration expense YoY and $1.7M lower G&A; equity-method swing added $8.6M YoY tailwind in the quarter .
    • Santa Cruz de-risking: PFS confirms 1.4Mt copper cathode over 23 years, after-tax NPV8% $1.4B, IRR 20%, initial capex $1.24B; focus shifted to optimization and detailed engineering ahead of early construction activities targeted for Q1 2026 .
    • Saudi momentum: Ma’aden JV added 1,345 km² of new licenses and completed ~732 km² of Typhoon surveys with 10,461 meters drilled YTD; “The Musayna’ah Licenses demonstrate a significant footprint of IOCG-type alteration and mineralization,” management noted in the JV update .

  • What Went Wrong

    • Top-line softness persists: revenue of $0.545M, down 19% YoY, with CGI gross profit of $0.279M; VRB generated no revenue; this underscores the pre-revenue nature of core mining projects .
    • Funding needs remain beyond 12 months: while liquidity improved post-raise, IE expects it will need additional capital to advance projects, especially if a development decision accelerates spend at Santa Cruz .
    • Execution risk at affiliates/partners: VRB China’s second $10M tranche remains outstanding beyond its June 30 due date, creating uncertainty for VRB USA plans; Cordoba’s Alacrán sale still hinges on EIA approval and closing conditions .

Financial Results

Overall P&L and key operating expenses (USD Millions)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($M)$0.671 $0.735 $1.068 $0.545
Gross Profit ($M)$0.415 $0.442 $0.774 $0.279
Exploration Expense ($M)$30.459 $15.785 $14.078 $14.688
G&A Expense ($M)$10.859 $11.586 $9.721 $9.126
Net Loss to Common ($M)$43.236 $30.515 $23.851 $17.521
EPS (Basic & Diluted, $)-$0.36*-$0.24*-$0.18*-$0.13*

Values marked with * are from S&P Global.

Segment revenue (USD Millions)

SegmentQ3 2024Q1 2025Q2 2025Q3 2025
Santa Cruz Copper Project$0.000 $0.000 $0.000 $0.000
Critical Metals$0.000 $0.000 $0.000 $0.000
Data Processing (CGI)$0.671 $0.735 $1.068 $0.545
Energy Storage (VRB)$0.000 $0.000 $0.000 $0.000

Liquidity and project KPIs

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Cash & Equivalents ($M)$81.073 $98.163 $88.050 $69.479
Ma’aden JV – Typhoon surveyed (km², YTD)———~732 to Oct 20
Ma’aden JV – Drill meters (YTD)———10,461
New JV exploration licenses (km²)———1,345
EXIM LOI potential project debt ($M)———825

Vs. Estimates (S&P Global)

MetricQ3 2025 ActualQ3 2025 Consensus MeanSurprise
EPS (Primary)-$0.13*-$0.20435*+$0.07435 (Beat)
Revenue ($M)$0.545 n/a—
EBITDA ($M)n/an/a—

Values marked with * are from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quantitative financial guidanceFY/Q4 2025+None issuedNone issuedMaintained (no formal guidance)
Santa Cruz project timeline2025–Q1 2026PFS completion targeted for mid-2025PFS completed; optimization/detailed engineering underway; initial construction activities targeted Q1 2026Updated timeline detail
Financing framework (Santa Cruz)Multi-yearExploring multiple avenuesEXIM LOI up to $825M; completed $172.5M gross equity raise in Oct 2025Enhanced financing visibility

Earnings Call Themes & Trends

Note: A Q3’25 earnings call transcript was not located in our corpus; themes below use MD&A and company releases.

TopicPrevious Mentions (Q1–Q2 2025)Current Period (Q3 2025)Trend
Santa Cruz developmentPFS in progress; heavy study work; spend tapering post-drilling PFS completed; NPV8% $1.4B, IRR 20%, $1.24B capex; optimization/detailed engineering; early construction targeted Q1 2026 Improving visibility and de-risking
FinancingEquity raise (Feb 2025 units); evaluating options EXIM LOI up to $825M; Oct 2025 $172.5M gross equity offering completed Strengthened
Saudi JV progressJV active; Typhoon deployment and early drilling +1,345 km² new licenses; 732 km² surveyed; 10,461m drilled; IOCG potential emphasized Expanding footprint
CGI (data services)Revenue growth YoY in 1H; lumpy Q3 revenue $0.545M; gross profit $0.279M; YoY down 19% Mixed, remains small
VRB/Red Sun receivableJV formed Oct-2024; tranche 1 $10M received Feb-2025; tranche 2 due 6/30 Tranche 2 $10M not received as of 11/5; risk to VRB USA plans Execution risk elevated
Cordoba/AlacránSale announced May 8; approvals pending Shareholder approval obtained; EIA approval pending; close by 12/31 targeted Approaching decision point

Management Commentary

  • Santa Cruz PFS highlights: “The Santa Cruz Copper Project is projected to produce 1.4 million tonnes of copper cathode over a 23-year mine life… after-tax Net Present Value of $1.4 billion at an 8% discount rate and an Internal Rate of Return (IRR) of 20%… initial project capital is estimated at $1.24 billion.”
  • Saudi JV expansion: “Maaden… has made available an additional 1,345 square kilometers of exploration licenses to the… 50/50 joint venture… The Musayna’ah Licenses demonstrate a significant footprint of Iron Oxide-Copper-Gold (‘IOCG’)-type alteration and mineralization.”
  • Liquidity posture and use of proceeds: “In October 2025, [IE] completed a public offering… for gross proceeds of approximately $172.5 million… We intend to use the net proceeds… to complete remaining land payments at Santa Cruz… fund early development… exploration… and for working capital and general corporate purposes.”

Q&A Highlights

  • We did not locate a Q3 2025 earnings call transcript in our corpus or SEC document listings; therefore, Q&A themes and clarifications are unavailable based on primary sources searched between Sep 1 and Nov 20, 2025 (we searched for “earnings call transcript” and related terms for IE and did not find results).

Estimates Context

  • EPS beat: IE reported EPS of -$0.13 versus S&P Global consensus mean of -$0.204 (2 estimates), a beat of $0.074, driven primarily by materially lower exploration spend at Santa Cruz, reduced G&A, and a swing to equity-method income from VRB China in Q3 . EPS data marked with an asterisk are from S&P Global.
  • Revenue: With $0.545M of CGI service revenue and no revenue from mining projects, revenue estimates were not available; the small top-line remains secondary to expense discipline and financing/progress milestones .

Values marked with * are from S&P Global.

Key Takeaways for Investors

  • IE’s cost discipline is translating into progressively narrower losses; the Q3 EPS beat reflects lower exploration at Santa Cruz while moving into post-PFS engineering and optimization .
  • Financing risk moderated: EXIM’s LOI (up to $825M) and the October $172.5M equity raise enhance funding visibility ahead of targeted early construction in Q1 2026 at Santa Cruz .
  • Saudi JV is scaling: 1,345 km² of new licenses and expanding Typhoon coverage elevate discovery potential and longer-term optionality beyond Santa Cruz .
  • Watch catalysts into 4Q/1H: EXIM due diligence progress, Cordoba’s Alacrán sale closing (EIA approval), further Saudi JV results, and any Santa Cruz early works updates .
  • Near-term trading setup: While revenue remains modest and lumpy, the narrative is increasingly about de-risking and financing; beats/misses will likely be driven by expenses and equity-method swings more than top-line .
  • Risks: VRB China receivable delay ($10M) and Cordoba EIA/gating conditions; overall need for additional capital over a multi-year build remains despite the recent raise .

Values retrieved from S&P Global: EPS consensus mean, EPS actual (-$0.13), and any EPS figures marked with an asterisk.