Ivanhoe Mines : Condensed consolidated interim financial statements as at June 30, 2023

Condensed consolidated interim financial statements of

Ivanhoe Mines Ltd.

June 30, 2023

(Stated in U.S. dollars) (Unaudited)

Ivanhoe Mines Ltd.

June 30, 2023

Table of contents

Condensed consolidated interim statements of financial position	3
Condensed consolidated interim statements of comprehensive income	4
Condensed consolidated interim statements of changes in equity	5
Condensed consolidated interim statements of cash flows	6
Notes to the condensed consolidated interim financial statements	7 - 51

Ivanhoe Mines Ltd.

Condensed consolidated interim statements of financial position as at June 30, 2023

(Stated in U.S. dollars) (Unaudited)

		June 30,	December 31,
	Notes	2023	2022
		$'000	$'000
ASSETS
Non-current assets		2,300,195
Investment in joint venture	4	2,047,040
Property, plant and equipment	5	810,387	630,295
Mineral properties	6	264,995	264,995
Deferred tax asset	7	221,042	208,356
Investments	10	87,162	9,652
Loans receivable	8	44,945	92,475
Promissory note receivable	9	26,782	26,756
Other receivables	13	17,403	15,141
Right-of-use asset	11	6,999	7,540
Other assets		5,115	4,372
Total non-current assets		3,785,025	3,306,622
Current assets		392,887
Cash and cash equivalents	12	597,451
Prepaid expenses	14	37,189	28,466
Other receivables	13	20,782	15,742
Consumable stores		845	1,011
Current tax assets		355	364
Loans receivable	8	-	19,629
Total current assets		452,058	662,663
Total assets		4,237,083	3,969,285
EQUITY AND LIABILITIES
Capital and reserves		2,357,010
Share capital	21	2,347,105
Share option reserve	21	148,029	141,541
Foreign currency translation reserve	22	(81,767)	(63,830)
Accumulated profit		688,480	509,801
Equity attributable to owners of the Company		3,111,752	2,934,617
Non-controlling interests	23	(104,349)	(93,486)
Total equity		3,007,403	2,841,131
Non-current liabilities		477,110
Convertible notes - host liability	15	462,290
Deferred revenue	16	301,618	310,725
Convertible notes - embedded derivative liability	15	278,818	221,300
Borrowings	17	41,402	40,823
Lease liability	11	10,748	10,761
Cash-settledshare-based payment liability	18	9,687	9,023
Advances payable	19	3,270	3,123
Deferred tax liability	7	2,030	1,775
Rehabilitation provision		1,609	1,093
Total non-current liabilities		1,126,292	1,060,913
Current liabilities		56,501
Trade and other payables	20	61,637
Borrowings	17	40,027	-
Cash-settledshare-based payment liability	18	3,323	2,025
Convertible notes - host liability	15	2,993	3,033
Lease liability	11	544	546
Total current liabilities		103,388	67,241
Total liabilities		1,229,680	1,128,154
Total equity and liabilities		4,237,083	3,969,285

(Signed) Peter Meredith

Peter Meredith, Director

(Signed) Martie Janse van Rensburg

Martie Janse van Rensburg, Director

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Ivanhoe Mines Ltd.

Condensed consolidated interim statements of comprehensive income for the three and six months ended June 30, 2023

(Stated in U.S. dollars) (Unaudited)

		Three months ended		Six months ended
		June 30,		June 30,
	Notes	2023	2022	2023	2022
		$'000	$'000	$'000	$'000
Operating income (expenses)
Share of profit from joint venture net of tax	4	73,066	49,690	155,725	136,799
Share-based payments	24	(7,120)	(4,637)	(14,822)	(12,026)
Exploration and project evaluation expenditure		(4,375)	(13,470)	(7,756)	(25,713)
Salaries and benefits		(2,823)	(2,265)	(5,069)	(5,285)
Other expenditure		(2,245)	(2,185)	(4,231)	(4,129)
Travel costs		(2,088)	(1,720)	(3,748)	(3,625)
Foreign exchange loss		(1,508)	(2,067)	(2,822)	(688)
Professional fees		(952)	(389)	(1,276)	(797)
Legal fees		(858)	(331)	(1,899)	(671)
Reversal of VAT write-off		-	4,951		-	4,951
Profit from operating activities		51,097	27,577	114,102	88,816
Finance income	26	61,956	38,596	119,782	70,101
Other income	27	4,030	519	7,758	955
Gain (loss) on fair valuation of financial asset		488	(2,942)	(1,107)	416
(Loss) gain on fair valuation of embedded derivative liability	15	(26,618)	183,600	(57,518)	117,200
Finance costs	25	(5,539)	(10,013)	(16,004)	(17,404)
Profit before income taxes		85,414	237,337	167,013	260,084
Income tax (expense) recovery
Current tax		(196)	(1)	(241)	139
Deferred tax		1,965	114,184	2,891	112,837
		1,769	114,183	2,650	112,976
Profit for the period		87,183	351,520	169,663	373,060
Profit (loss) attributable to:
Owners of the Company		92,042	316,242	178,679	342,636
Non-controlling interests		(4,859)	35,278	(9,016)	30,424
		87,183	351,520	169,663	373,060
Other comprehensive (loss) income
Items that may subsequently be reclassified to profit:
Exchange (loss) gain on translation of foreign operations, net		(6,038)		(19,784)
of tax		(10,644)	10,453
Other comprehensive (loss) income for the period, net of tax		(6,038)	(10,644)	(19,784)	10,453
Total comprehensive income for the period		81,145	340,876	149,879	383,513
Total comprehensive income (loss) attributable to:
Owners of the Company		86,588	306,381	160,742	351,876
Non-controlling interests	23	(5,443)	34,495	(10,863)	31,637
		81,145	340,876	149,879	383,513
Basic profit per share	28	0.08	0.26	0.15	0.28
Diluted profit per share	28	0.07	0.11	0.15	0.19

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

Page 4

Ivanhoe Mines Ltd.

Condensed consolidated interim statements of changes in equity for the three and six months ended June 30, 2023

(Stated in U.S. dollars) (Unaudited)

				Foreign
	Share capital		currency		Equity	Non-
	Number		Share option	translation	Accumulated	attributable	controlling
	of shares	Amount	reserve	reserve	profit	to owners	interests	Total
		$'000	$'000	$'000	$'000	$'000	$'000	$'000
Balance at January 1, 2022	1,209,665,401	2,316,293	141,099	(62,508)	98,937	2,493,821	(116,824)	2,376,997
Net profit for the period	-	-	-	-	342,636	342,636	30,424	373,060
Other comprehensive income	-	-	-	9,240	-	9,240	1,213	10,453
Total comprehensive income	-	-	-	9,240	342,636	351,876	31,637	383,513
Transactions with owners
Share-based payments charged to operations
(Note 24)	-	-	12,394	-	-	12,394	-	12,394
Share unit awards vested (Note 21(c))	1,142,820	6,075	(6,075)	-	-	-	-	-
Options exercised (Note 21(b))	1,037,451	4,329	(1,148)	-	-	3,181	-	3,181
Balance at June 30, 2022	1,211,845,672	2,326,697	146,270	(53,268)	441,573	2,861,272	(85,187)	2,776,085
Balance at January 1, 2023	1,216,754,579	2,347,105	141,541	(63,830)	509,801	2,934,617	(93,486)	2,841,131
Net profit (loss) for the period	-	-	-	-	178,679	178,679	(9,016)	169,663
Other comprehensive loss	-	-	-	(17,937)	-	(17,937)	(1,847)	(19,784)
Total comprehensive (loss) income	-	-	-	(17,937)	178,679	160,742	(10,863)	149,879
Transactions with owners
Share-based payments charged to operations
(Note 24)	-	-	12,859	-	-	12,859	-	12,859
Share unit awards vested (Note 21(c))	751,468	5,069	(5,069)	-	-	-	-	-
Options exercised (Note 21(b))	1,061,107	4,836	(1,302)	-	-	3,534	-	3,534
Balance at June 30, 2023	1,218,567,154	2,357,010	148,029	(81,767)	688,480	3,111,752	(104,349)	3,007,403

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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