Sign in

You're signed outSign in or to get full access.

IE

Ivanhoe Electric Inc. (IE)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 produced a clean “print”: revenue of ~$1.33M and positive net income to common of ~$16.9M, driven by the deconsolidation gain on VRB China; exploration spend moderated quarter-on-quarter to ~$19.6M .
  • FY 2024 results: revenue $2.90M, net loss to common $128.6M ($1.07/share), with a $50.7M gain on disposal tied to the VRB China joint venture offsetting heavy exploration and corporate spending .
  • Liquidity at 12/31/24: cash and equivalents $41.0M ($4.3M restricted) with ~$11.2M of cash held by non-wholly-owned subs not available for general corporate purposes; subsequent to quarter-end, IE raised ~$66M net via a Feb 14, 2025 unit offering (warrants at $7.00) and received the first $10M tranche from Red Sun to fund VRB USA .
  • Strategic catalysts: VRB China 51/49 JV closed (Oct 31), VRB China to receive ~$35.2M by end-2025, and VRB Energy to receive $20M in two tranches (1st arrived Feb 12, 2025) to build U.S. battery manufacturing; continuing Santa Cruz advancement and BHP exploration alliance underpin 2025 focus .

What Went Well and What Went Wrong

What Went Well

  • Deconsolidation benefit: A $50.7M gain on disposal from the VRB China JV materially improved Q4 bottom-line results (IE posted positive Q4 net income to common) .
  • Revenue mix shift to services: FY24 revenue ($2.90M) was ~98% CGI data services as VRB recognized minimal product revenue; CGI revenue grew to $2.83M with $1.87M gross profit in FY24 .
  • Liquidity actions identified: VRB USA funding ($20M, first $10M received Feb 12, 2025) and a Feb 2025 equity raise (~$66M net) extended runway for project advancement .

“Today’s announcement is a significant milestone… supported by $20 million from the announced transaction. The Agreement also allows us to benefit from the Joint Venture’s growth in Asia…” — CEO Taylor Melvin (JV announcement) .
“Red Sun’s strategic investment… allows us to scale production, drive innovation, and deliver impactful solutions…” — VRB Energy CEO Charles Ge .

What Went Wrong

  • Minimal product revenue from VRB in FY24 ($0.07M) as no systems were commissioned during the year, pressuring top-line scale; VRB contributed only ~$0.02M gross profit in FY24 .
  • Persistent cash burn: FY24 operating cash outflow ~$162.1M, led by exploration ($126.5M cash basis) and G&A ($32.8M cash basis) .
  • Continued losses in equity-method JVs (notably Ma’aden JV): share of losses for FY24 was $8.67M, although Q4 saw a small share of income .

Financial Results

MetricQ2 2024Q3 2024Q4 2024FY 2024
Revenue ($M)$0.54 $0.67 $1.33 (FY–9M)* $2.90
Gross Profit ($M)$0.35 $0.42 $0.86 (FY–9M)* $1.88
Net Income (Loss) Attrib. to Common ($M)$(46.78) $(43.24) $16.91 (FY–9M)* $(128.62)
Exploration Expense ($M)$37.25 $30.46 $19.59 (FY–9M)* $130.94
Cash & Equivalents (end, $M)$133.81 $81.07 $40.97 (plus $4.34 restricted) —

* Q4 values computed as FY 2024 minus nine-month (9M) amounts; sources cited.

Segment revenue/gross profit mix (FY 2024):

  • CGI (data processing): revenue $2.83M; gross profit $1.87M
  • VRB Energy: revenue $0.07M; gross profit $0.02M

Liquidity disclosures:

  • YE cash & equivalents $40.97M; restricted cash $4.34M; ~$11.2M of YE cash not available for general corporate purposes (held by non-wholly-owned subs) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent UpdateChange
VRB China JV capital injection (from Red Sun)Through end-2025N/A~$35.2M total to JV; $12.7M received to date (as of 2/27/25) New
Proceeds to VRB Energy (for VRB USA)By 6/30/25N/A$20.0M in two tranches; first $10.0M paid Feb 12, 2025 New
Equity financingPost-Q4 (2/14/25)N/A~$66.0M net proceeds; warrants at $7.00, exp. 2/17/26 New
Santa Cruz note payments2024–2027 anniversaries4 x $12.1M annual principal + interestSchedule unchanged; $12.1M due annually on Nov anniversaries Maintained
Formal revenue/EPS guidance2025NoneNone issuedMaintained

Earnings Call Themes & Trends

(Company did not file an earnings call transcript for Q4 2024; themes summarized from filings and press releases.)

TopicQ2 2024 (6/30)Q3 2024 (9/30)Q4 2024 (12/31)Trend
Santa Cruz projectHeavy infill & technical work for PFS; $48.3M YTD exploration Continued studies; $63.5M 9M exploration at Santa Cruz 100% mineral rights secured (Aug 2024); continued advancement Steady advancement toward PFS
CGI revenue & mixCGI revenue $0.90M 1H; mix shifting to services Q3 revenue $0.67M (all CGI) FY24 CGI revenue $2.83M (98% of FY revenue) Positive mix shift to higher-margin services
VRB EnergyNo system completions in 1H No completions in Q3; product revenue minimal VRB China JV closed; FY24 VRB revenue ~$0.07M Strategic refocus to U.S. and JV markets
Ma’aden JVJV losses increased in 1H Share of loss YTD $8.7M Field success highlighted post-Q4 (Jan 13, 2025) with drill intercepts Technical progress; financial drag moderating
Liquidity/financing$133.8M cash at Q2 $81.1M cash at Q3 YE cash $41.0M; subsequent $66M equity & $10M Red Sun tranche Strengthened post-Q4

Management Commentary

  • “The Agreement… supported by $20 million… allows us to benefit from the Joint Venture’s growth in Asia” — Taylor Melvin, CEO (VRB JV announcement) .
  • “Red Sun’s strategic investment… allows us to scale production, drive innovation, and deliver impactful solutions” — Charles Ge, VRB Energy CEO .
  • Post-quarter, IE emphasized Typhoon/CGI-enabled discovery in Saudi JV: “The power and accuracy of our Typhoon… enabled us to discover quickly a new copper zone…” — Robert Friedland, Executive Chairman .

Q&A Highlights

  • No Q4 2024 earnings call transcript was filed; no public Q&A available [ListDocuments returned none].

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 revenue/EPS was unavailable due to data access limits. As a result, we cannot quantify beat/miss versus Street for the quarter (Values from S&P Global were unavailable).

Key Takeaways for Investors

  • One-off Q4 uplift: Positive Q4 net income to common (~$16.9M) was primarily a non-recurring gain from VRB China deconsolidation; underlying cash burn remains significant (FY24 operating cash outflow ~$162.1M) .
  • Clear strategic realignment in energy storage: VRB China JV capitalized for Asia/Middle East/Africa while VRB USA secured $20M funding to pursue U.S. manufacturing; first $10M arrived Feb 12, 2025 .
  • Services-led revenue: FY24 revenue reliance on CGI (98%) underscores near-term monetization via data services while mining remains pre-revenue; sustaining this trajectory supports gross profit expansion .
  • Santa Cruz continues to anchor the thesis: 100% mineral rights secured; heavy spend supports PFS; continued note payments ($12.1M yearly) are manageable post-Feb 2025 capital raise .
  • Liquidity reset post-quarter: YE cash was tight ($41.0M, $4.3M restricted; ~$11.2M not available for corporate), but equity raise and Red Sun tranche improved 2025 funding runway .
  • JV exposures improving: While FY24 share of JV losses was $8.67M, Q4 reflected modest share of income and operational progress in Saudi Arabia (initial copper intercepts) .
  • Near-term catalysts: Santa Cruz study milestones, BHP alliance programs, further Red Sun JV funding receipts, and potential CGI contract wins .

Supporting Detail

Segment Breakdown (FY 2024)

SegmentRevenue ($M)Gross Profit ($M)
CGI (data processing)$2.83 $1.87
VRB Energy (energy storage)$0.07 $0.02

Liquidity and Capital Actions

  • YE 2024 cash and equivalents $40.97M; restricted $4.34M; ~$11.2M of cash not available for general corporate purposes at YE (subsidiaries) .
  • Feb 14, 2025 offering: ~$66.0M net; warrants exercisable at $7.00 to Feb 17, 2026 .
  • VRB USA funding: $20M proceeds from Red Sun (first $10M received Feb 12, 2025) .
  • Santa Cruz note payable schedule: four annual $12.1M principal payments plus interest (first paid Nov 2023; remaining due on subsequent anniversaries) .

VRB/Red Sun Transaction Terms (selected)

  • Red Sun purchases VRB China shares for $20M (two equal tranches); injects ~$35M capital into JV through 2025; VRB retains 49% JV interest; definitive agreements signed Oct 15, 2024; JV formed Oct 31, 2024 .
  • IE statement at JV announcement (Sep 23, 2024) and management quotes cited above .

Post-Quarter Operational Update (Saudi JV)

  • Initial drill program at Umm Ad Dabah: notable intercepts (e.g., 13.1m @ 1.31% Cu) validating Typhoon/CGI approach; three Typhoon systems operating in KSA .

Notes:

  • Q4 values marked “FY–9M” are computed from audited FY 2024 10-K and 9M 2024 10-Q (cited).
  • No earnings-call transcript was available for Q4 2024; qualitative themes sourced from 10-Q/10-K and press releases.