ie-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41436

Ivanhoe Electric Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware			32-0633823
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
450 E Rio Salado Parkway, Suite 130 Tempe, Arizona			85281
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (480) 656-5821

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o

Non-accelerated filer	o	Smaller reporting company	o

Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of August 7, 2024, the registrant had 120,397,648 shares of common stock, $0.0001 par value per share, outstanding.

Table of Contents

IVANHOE ELECTRIC INC. Form 10-Q

For the Quarter Ended June 30, 2024


		Page
PART I. FINANCIAL INFORMATION		3
Item 1.	Condensed Interim Consolidated Financial Statements	3
	Condensed Interim Consolidated Balance Sheets	3
	Condensed Interim Consolidated Statements of Loss and Comprehensive Loss	4
	Condensed Interim Consolidated Statements of Changes in Equity	5
	Condensed Interim Consolidated Statements of Cash Flows	6
	Notes to Condensed Interim Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II. OTHER INFORMATION		26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities	26
Item 6.	Exhibits	27
Signatures		28

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

IVANHOE ELECTRIC INC.

Condensed Interim Consolidated Balance Sheets (Unaudited)

(Expressed in thousands of U.S. dollars)


	June 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	133,811	$	205,043
Accounts receivable	2,618		3,326
Inventory	5,507		5,013
Prepaid expenses and deposits	5,070		3,104
	147,006		216,486
Non-current assets:
Investments subject to significant influence	35,251		39,130
Other investments	2,198		2,989
Exploration mineral interests	217,166		216,290
Property, plant and equipment	8,955		6,645
Other non-current assets	5,697		5,686
Total assets	$	416,273	$	487,226

Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	21,411	$	19,948
Note payable, current	14,962		12,672
Due to related party	—		4,000
Lease liabilities, current	1,136		699
Contract liability	2,691		2,404
	40,200		39,723
Non-current liabilities:
Note payable	36,244		36,244
Convertible debt	29,596		28,372
Deferred income taxes	4,478		4,845
Lease liabilities, net of current portion	2,037		1,199
Other non-current liabilities	594		562
Total liabilities	113,149		110,945

Commitments and contingencies (Note 15)

Equity:
Common stock, par value $0.0001; 700,000,000 shares authorized;120.4 million shares issued and outstanding as of June 30, 2024 (December 31, 2023 - 700,000,000 authorized; 120.0 million issued and outstanding)	12		12
Additional paid-in capital	795,502		777,816
Accumulated deficit	(503,798)		(401,504)
Accumulated other comprehensive income	(2,561)		(2,073)
Equity attributable to common stockholders	289,155		374,251
Non-controlling interests	13,969		2,030
Total equity	303,124		376,281
Total liabilities and equity	$	416,273	$	487,226

Table of Contents

IVANHOE ELECTRIC INC.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited)

(Expressed in thousands of U.S. dollars, except for share and per share amounts)


	Three Months Ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Revenue	$	538	$	1,314	$	898	$	1,993
Cost of sales	(192)		(1,256)		(292)		(1,440)
Gross profit	346		58		606		553

Operating expenses:
Exploration expenses	37,254		32,551		80,897		59,110
General and administrative expenses	10,694		12,658		23,295		23,291
Research and development expenses	842		2,138		1,652		3,981
Selling and marketing expenses	102		96		189		145

Loss from operations	48,546		47,385		105,427		85,974

Other expenses (income):
Interest expense, net	387		713		352		681
Foreign exchange loss (gain)	692		(1,312)		687		(1,473)
Loss (gain) on revaluation of investments	431		(1,321)		702		(946)
Share of loss of equity method investees	1,453		606		4,465		1,228
Other expense (income), net	12		(1,096)		9		(1,837)

Loss before income taxes	51,521		44,975		111,642		83,627

Income tax recovery	—		(128)		(26)		(200)

Net loss	51,521		44,847		111,616		83,427
Less loss attributable to non-controlling interests	(4,738)		(6,584)		(9,322)		(9,090)
Net loss attributable to common stockholders or parent	46,783		38,263		102,294		74,337

Net loss	51,521		44,847		111,616		83,427
Other comprehensive loss , net of tax:
Foreign currency translation adjustments	329		1,271		721		1,339
Other comprehensive loss	329		1,271		721		1,339
Comprehensive loss	$	51,850	$	46,118	$	112,337	$	84,766

Comprehensive loss attributable to:
Common stockholders or parent	47,021		39,086		102,782		75,206
Non-controlling interests	4,829		$	7,032	9,555		$	9,560
	$	51,850	$	46,118	$	112,337	$	84,766

Net loss per share attributable to common stockholders
Basic and diluted	$	0.39	$	0.41	$	0.85	$	0.80
Weighted-average common shares outstanding
Basic and diluted	120,337,642		93,124,994		120,292,036		93,045,066

Table of Contents

IVANHOE ELECTRIC INC.

Condensed Interim Consolidated Statements of Changes in Equity (Unaudited)

(Expressed in thousands of U.S. dollars, except share amounts)


				Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Non-controlling interest		Total
	Common Stock
Three months ended June 30, 2024	Shares	Amount
Balance at April 1, 2024	120,306,414	$	12	$	790,824	$	(457,015)	$	(2,323)	$	18,234	$	349,732
Net loss	—	—		—		(46,783)		—		(4,738)		(51,521)
Other comprehensive loss	—	—		—		—		(238)		(91)		(329)
Stock options exercised	82,187	—		694		—		—		—		694
Stock-based compensation	—	—		3,969		—		—		100		4,069
Non-controlling interests investment in subsidiary	—	—		15		—		—		364		379
Other changes in non-controlling interests	—	—		—		—		—		100		100
Balance at June 30, 2024	120,388,601	$	12	$	795,502	$	(503,798)	$	(2,561)	$	13,969	$	303,124

Six months ended June 30, 2024
Balance at January 1, 2024	120,025,264	$	12	$	777,816	$	(401,504)	$	(2,073)	$	2,030	$	376,281
Net loss	—	—		—		(102,294)		—		(9,322)		(111,616)
Other comprehensive loss	—	—		—		—		(488)		(233)

SEC Form 10-Q filed by Ivanhoe Electric Inc.