2026 Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Confirms High-Grade, Low-Cost Project with Strong Economics Initial Capital of $1.43 Billion and Cash Operating Costs of $1.47 Per Pound of Copper Result in an After-Tax Net Present
September 23, 2026
2026 Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Confirms High-Grade, Low-Cost Project with Strong Economics
Initial Capital of $1.43 Billion and Cash Operating Costs of $1.47 Per Pound of Copper Result in an After-Tax Net Present Value8% of $3.5 Billion and a 30.0% Internal Rate of Return at Current COMEX Copper Price Approximating $6.79 per Pound
2026 Preliminary Feasibility Study Incorporates the Industry- Leading Robbins Crossover Tunnel Boring Machine for Improved Mine Access
Improved Mine Ramp-Up Increases First 15 Years’ Average Annual Copper Production to ~75 Thousand Metric Tonnes
Santa Cruz is the Most Advanced Development Project of Scale in the United States Designed to Produce Pure Copper Cathode without Smelting
Initial Development Activities have Commenced with First Copper Cathode Production Projected in 2029
Santa Cruz has Significant Copper Mineral Resources Beyond Current Mine Plan to Support Future Expansion Potential on Existing Private Land
Management will Host a Conference Call on Wednesday, September 23rd at 10am ET
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE; TSX: IE) Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce the completion of the 2026 Preliminary Feasibility Study (the “2026 Study”) for the Company’s 100%- owned Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, a state with a prolific copper mining history and booming technology and defense industries, the Santa Cruz Copper Project is poised to become the United States’ next major domestic producer of 99.99% pure refined copper cathode. The highly engineered 2026 Study incorporates The Robbins Company’s Crossover Tunnel Boring Machine (“TBM”), manufactured in Solon, Ohio, for mine access. The 2026 Study confirms the strong economics of a modern, high-grade underground copper mining operation and heap leach processing facility supported by advanced technologies.
The 2026 Study also reflects the continued advancement of detailed design and engineering, and updated cost estimates based on current market conditions.
Highlights of the 2026 Preliminary Feasibility Study
Low Capital Intensity, Low Cash Operating Costs and High-Grade Copper Reserves Deliver Strong Project Economics
- Initial project capital of $1.43 billion results in capital intensity of
$19,100/tonne of copper produced (first 15 years’ average production)
- Life-of-mine C1 cash costs of $1.47 per pound and all-in sustaining costs of
$2.28 per pound of copper
- Life-of-mine average copper grade of 1.08%
- At a base-case copper price of $4.75 per pound, after-tax NPV8% of $1.5
billion, after-tax IRR of 19% and after-tax payback of 4.8 years
- At current COMEX spot-case copper price of $6.79 per pound, after-tax
NPV8% of $3.5 billion, after-tax IRR of 30% and after-tax payback of 3 years
Robbins Tunnel Boring Machine Provides Enhanced Underground Mine Access and Material Handling
- The TBM will excavate a single decline of approximately 4 kilometers in
length and 9.3 meters in diameter through variable ground conditions to access the Santa Cruz deposit
- The TBM process installs a continuous, sealed, steel-reinforced concrete
lining and incorporates a permanent conveyor for development material and production ore handling
- Further information available: Robbins Video on the Crossover XRE TBM
and material handling system
Key Aspects of the Santa Cruz Copper Project Derisked Through Advanced Engineering Since 2025 Preliminary Feasibility
- Improved mine access and ventilation shaft design
- Optimized material haulage system to include conveyor systems
throughout mine life
- Optimized paste backfill plant design allows faster production ramp up
- Optimized heap leach design reduces pad footprint
- Completion of six-meter column tests support 92.3% life-of-mine copper
recovery
- Optimized mine plan results in faster production ramp-up and 75,000
tonnes of average annual copper cathode production over first fifteen years
Low Sulfuric Acid Consumption Limits Exposure to Volatile Leaching Input Costs
- Naturally high chloride content and chloride-assisted leach process results
in low acid consumption of approximately 9 kilograms of acid per tonne of copper ore processed
- Sulfuric acid represents less than 5% of total cash operating costs
Advanced Permitting and Development Readiness
- Project located on 5,975 of private land near Casa Grande, Arizona
- All necessary city, county and state permits have been obtained to advance
surface construction, complete the box cut and commence TBM decline development
- Early site preparation and development activities have commenced
- Box cut development expected to commence in October 2026
- TBM decline development targeted for Summer 2027
- First copper cathode production targeted for 2029
Significant Additional Mineral Resources at Santa Cruz, East Ridge and Texaco Deposits Provide Expansion Potential Beyond Current PFS Mine Plan
- 3.3 million tonnes of contained copper included in inferred mineral
resources across the three key deposits within the Santa Cruz land package
- Texaco Deposit remains open in several directions
- Robbins Crossover TBM provides enhanced development options for
phased expansion of the high-grade Texaco deposit
Mr. Friedland commented: “Our Santa Cruz Project is the highest grade, most advanced United States pure copper cathode project. We are building the most modern of copper mines in the heart of Arizona, with passionate, talented people and the most advanced technologies available to our industry. Arizona sits at the epicenter of economic growth in the southwest United States. Arizona, “The Copper State,” boasts immense investments in technology, including $265 billion in announced chip manufacturing projects by Taiwan Semiconductor and over
$30 billion of investments by Intel. Both Taiwan Semiconductor and Intel benefit from strong support from the US Government through the CHIPS and Sciences Act of 2022…. Clean and secure 99.99% copper cathode from Santa Cruz will go directly into the US economy from our mine gate. The United States needs massive amounts of critical metals to support our rapidly growing technology industry and infrastructure at the scale of the American economy. Copper is the king of all metals.
Under the current Administration’s leadership, the United States mining industry is answering the call to restore domestic production of the critical metals required to support American industry, technology, and national security. Ivanhoe Electric’s Santa Cruz Copper Project is at the leading edge of this resurgence.”
Mr. Melvin commented: “Since we announced the decision in May 2026 to acquire the Robbins Tunnel Boring Machine, our engineers and underground specialists at Santa Cruz have worked tirelessly with our team of consultants to incorporate the Tunnel Boring Machine into our project design. The 2026 Study includes advanced engineering for mine access, mine design, surface processing design, and updated input costs based on current market conditions to provide a real- time estimate of projected capital and operating costs. We are currently transitioning into early construction. The 2026 Study confirms Santa Cruz’s status as the most advanced, highest grade copper project in the United States capable of producing pure copper metal to support American industry and our nation’s supply chain security.”
2026 Santa Cruz Copper Project Preliminary Feasibility Study Summary
Table 1. Summary Results
| Description | Units | Life of Mine | First 15 Years | ||||
|---|---|---|---|---|---|---|---|
| Production Data | |||||||
| Mine Life | Year | 24 | 15 | ||||
| Reserve Tonnes | Million tonne | 140 | 110 | ||||
| Copper Grade | % | 1.08 | 1.11 | ||||
| Daily Throughput | Tonne per day | 15,346 | 20,030 | ||||
| Annual Copper Production | Tonne per year | 58,385 | 74,722 | ||||
| Total Copper Cathode Produced | Thousand tonne | 1,401 | 1,121 | ||||
| Recovery | % | 92.3% | 92.3% | ||||
| Capital Costs | |||||||
| Initial Capital | $ million | 1,426 | 1,426 | ||||
| Sustaining Capital | $ million | 1,546 | 1,463 | ||||
| Unit Costs | |||||||
| Mining Cost | $ per tonne processed | 21.95 | 21.52 | ||||
| Processing Cost | $ per tonne processed | 7.50 | 7.45 | ||||
| General and Administrative Cost | $ per tonne processed | 2.99 | 3.11 | ||||
| Royalties | $ per tonne processed | 6.90 | 6.93 | ||||
| Total Operating Cost | $ per tonne processed | 39.35 | 39.00 | ||||
| Operating + Sustaining Cost | $ per tonne processed | 50.41 | 52.50 | ||||
| C1 Cash Cost | $ per pound of copper | 1.47 | 1.42 | ||||
| All-in-sustaining Cost | $ per pound of copper | 2.28 | 2.27 | ||||
| Financial Analysis | |||||||
| Copper Price | $ per pound | 4.75 | 4.75 | ||||
| Domestic Cathode Premium | $ per pound | 0.14 | 0.14 | ||||
| Pre-tax Free Cashflow | $ million | 6,761 | 4,971 | ||||
| Pre-tax Net Present Value 8% | $ million | 1,898 | - | ||||
| Pre-tax Internal Rate of Return | % | 20.2% | - | ||||
| After-tax Free Cashflow | $ million | 5,575 | 4,133 | ||||
| After-tax Net Present Value 8% | $ million | 1,519 | - | ||||
| After-tax Internal Rate of Return | % | 18.7% | - | ||||
| After-tax Payback Period1 | Year | 4.8 |
1. After-tax payback period from the start of operations in 2029.
Table 2. Life of mine copper price sensitivity
| Copper Price ($/pound) | Pre-tax | After-tax | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Life of | Net | Internal Rate of Return (%) | Internal | Life of | Net | Internal Rate of Return (%) | Internal | ||||||
| Mine Free | Present | Rate of | Mine Free | Present | Rate of | ||||||||
| Cashflow | Value 8% | Return (%) | Cashflow | Value 8% | Return (%) | ||||||||
| ($ billon) | ($ billion) | ($ billion) | ($ billion) | ||||||||||
| 4.00 | 4.6 | 1.0 | 15% | 3.9 | 0.8 | 14% | |||||||
| 4.75 (Base) | 6.8 | 1.9 | 20% | 5.6 | 1.5 | 19% | |||||||
| 5.00 | 7.5 | 2.2 | 22% | 6.1 | 1.8 | 20% | |||||||
| 6.00 | 10.4 | 3.4 | 28% | 8.4 | 2.7 | 26% | |||||||
| 6.79 (Spot) | 12.6 | 4.3 | 33% | 10.2 | 3.5 | 30% | |||||||
| 7.00 | 13.2 | 4.6 | 34% | 10.6 | 3.7 | 31% |
*COMEX spot price of $6.79 per pound of copper as of September 21, 2026.
The 2026 Study reflects higher overall copper production as well as updates to initial capital and operating costs when compared to the 2025 PFS.
Table 3. Initial Capital and Operating Costs in 2025 PFS and 2026 Study
| 2025 PFS | 2026 PFS | |||
| Initial Capital 2025 PFS ($ million) | 1,236 | |||
| Updated Capital Reflects Changes due to: Cost Escalation (approx. 8% inflation) Mine Development Surface Capital, Indirects and Contingency | 88 18 84 | |||
| Initial Capital 2026 PFS ($ million) | 1,426 |
| C1 Cash Cost ($ per pound of copper) | $1.32 | $1.47 |
| All-in-sustaining Cost ($ per pound of copper) | $2.02 | $2.28 |
Updates to Initial Capital in the 2026 Study reflect:
- Cost escalation driven by inflation of construction materials and labor
- Initial capital for Mine Development updated to include advanced
engineering and design of ventilation shafts and TBM access
- Surface Capital, Indirect Costs and Contingency includes changes to
the construction scope of the solvent extraction and electrowinning facility and associated indirect cost estimates
Updates to C1 Cash Operating and All-in-Sustaining Costs reflect:
- Cost escalation resulting from inflation of consumables, power and
labor inputs
- Increase in quantity of binder in paste backfill based on advanced
engineering and testwork
- All-in-Sustaining Cost includes higher sustaining capital in mine
development to access additional reserve tonnes in the 2026 study
Figure 1. Cash cost curve of copper mines in the Americas, highlighting United States operating mines in blue
Study Supports Ongoing Project Financing Activities
The 2026 Preliminary Feasibility Study builds on the 2025 Preliminary Feasibility Study and provides the necessary engineering studies to support the Company’s current project financing activities. Ivanhoe Electric is in advanced discussions on multiple project financing alternatives, including an application with the Export-Import Bank of the United States (“US EXIM”) under the Make More in America initiative. On August 24, Ivanhoe Electric announced receipt of a Preliminary Project Letter (“PPL”) from US EXIM for potential debt funding of up to $1.1 billion (link: refer to Ivanhoe Electric’s August 24, 2026 news release). The PPL is an important milestone in the US EXIM loan application process, marking the completion of US EXIM’s Phase 1 due diligence and transition to Phase 2 due diligence and final commitment phase.
The 2026 Study Incorporates the Purpose-Built Robbins Crossover XRE Tunnel Boring Machine
Ivanhoe Electric announced its intention to acquire the TBM and material handling system from The Robbins Company of Solon, Ohio, in May 2026. The TBM is designed to operate through the hard-rock, wet and mixed-face ground conditions expected during decline development at Santa Cruz. Its earth- pressure-balance capability controls face stability and helps mitigate groundwater inflow, while the bi-directional cutterhead and high-torque, high- speed drive are designed to manage changing geological conditions in a single drive.
During excavation, the TBM system will install a continuous, fully supported and sealed segmental steel-reinforced concrete lining. The completed flat-bottomed decline will form permanent life-of-mine infrastructure and will contain an integrated conveyor system used first for excavated development material and later enhanced for ore handling during production.
Photo 1. Photo of a Robbins Crossover XRE TBM
Figure 2. TBM mine access and Santa Cruz Project Mineral Reserves
Permitting and Development Timeline
Figure 3. Santa Cruz Copper Project Timeline
The Santa Cruz Copper Project is Located on 100%-owned Private Land in the Heart of America’s Copper State
The Santa Cruz Copper Project is located approximately 40 miles south of Phoenix, Arizona, in the city of Casa Grande on nearly 6,000 acres of private land, including surface, mineral, and associated water rights (Figure 4). The Project has excellent access to existing infrastructure including nearby rail, state and US interstate highways, power, and a natural gas pipeline. Arizona boasts a rapidly growing industrial economy. Several leading technology, aerospace and defense companies have a significant presence in the state.
Figure 4. Santa Cruz Copper Project location
The planned site layout provides for a compact surface footprint of less than 1,600 acres, representing approximately 30% of the nearly 6,000 acres of private land 100% owned by Ivanhoe Electric at the Santa Cruz Copper Project.
The site layout provides space for future expansion opportunities.
Figure 5. Updated planned site layout
High Grade Oxide and Chalcocite Mineral Reserves Support a 24-Year Mine Life
The Study includes a Mineral Reserve Estimate for the Santa Cruz Copper Project, including Probable Reserves for the Santa Cruz and East Ridge Deposits.
Only high-grade copper mineralization from the Oxide and Chalcocite domains of the Santa Cruz and East Ridge Deposits are included in the current Mineral Reserves.
Table 4. Santa Cruz Copper Project Mineral Reserves summary
| Deposit | Classification | Tonnes | Total Copper | Contained Copper | |||||
|---|---|---|---|---|---|---|---|---|---|
| (thousand tonnes) | (%) | (thousand tonnes) | |||||||
| Santa Cruz | Probable | 136,022 | 1.09 | 1,477 | |||||
| East Ridge | Probable | 4,107 | 1.03 | 42 | |||||
| Total | Probable | 140,129 | 1.08 | 1,519 |
Notes on Mineral Reserves: 1. The Mineral Reserves in this estimate are current to September 23, 2026, and were independently prepared, including estimation and classification, by BBA Consultants USA LP. They are reported in accordance with the definitions for Mineral Reserves in S-K 1300. 2. The point of reference for the estimate is the point of delivery to the process facilities. 3. The Mineral Reserves for the Santa Cruz and East Ridge deposits were completed using Deswik mining software. Mineral Reserves are defined within stope designs that are prescribed by rock mechanics, considering the specific characteristics of deposits, mineral domains, mining methods, and the mining sequence. Transverse longhole stoping is the optimal mining method with uppers and cut & fill methods used where appropriate. Mining will occur in blocks, extracting ore from the bottom upwards, with paste backfill providing ground support to sustain a production rate of 20,000 tonnes per day for the first 15 years of operation. 4. Mineral Reserves are estimated at an NSR cutoff value of US$43.95/t for longhole stoping and US$60.00/t for longitudinal retreat stopes and drift-and-fill. The NSR values reflect the discrete metallurgical responses for each Mineral Reserve block using metallurgical recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper, 22% for residual copper. Underground mineable shapes optimization parameters include a long-term copper price of US$4.00/lb. 5. Mineral Reserves account for mining loss and dilution. 6. Mineral Reserves are a subset of the Indicated Mineral Resource and do not include the inferred Mineral Resource. 7. Rounding, as required by the guidelines, may result in apparent summation differences between tonnes, grade, and contained metal content.
Additional Indicated Mineral Resources, Exclusive of Mineral Reserves, Provide Potential Opportunities for Future Expansion across the Santa Cruz, East Ridge and Texaco Deposits
Indicated Resources at Santa Cruz and East Ridge, exclusive of Mineral Reserves, total 1.44 million tonnes of contained copper, including 0.5 million tonnes of contained copper grading 0.73% total copper in the Primary domain. The Primary domain comprises primary copper sulfide mineralization not amenable to the heap leach flowsheet. Additional testwork and studies on the Primary domain may provide longer-term expansion potential, requiring the development of additional processing infrastructure.
The Santa Cruz Copper Project includes Inferred Resources, which are not included in the Study or the associated mine plan, which comprise an additional 3.33 million tonnes of contained copper across the Santa Cruz, East Ridge, and Texaco Deposits.