Ivanhoe Mines : Condensed consolidated interim financial statements as at March 31, 2023

Condensed consolidated interim financial statements of

Ivanhoe Mines Ltd.

March 31, 2023

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

Ivanhoe Mines Ltd.

March 31, 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 - 46

Ivanhoe Mines Ltd.

Condensed consolidated interim statements of financial position as at March 31, 2023

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

		March 31,	December 31,
	Notes	2023	2022
		$'000	$'000
ASSETS
Non-current assets		2,177,292
Investment in joint venture	4	2,047,040
Property, plant and equipment	5	680,206	630,295
Mineral properties	6	264,995	264,995
Deferred tax asset	7	216,023	208,356
Loans receivable	8	93,098	92,475
Promissory note receivable	9	26,766	26,756
Other receivables	13	17,351	15,141
Investments	10	7,469	9,652
Right-of-use asset	11	7,248	7,540
Other assets		4,492	4,372
Total non-current assets		3,494,940	3,306,622
Current assets		497,145
Cash and cash equivalents	12	597,451
Prepaid expenses	14	35,037	28,466
Loans receivable	8	21,937	19,629
Other receivables	13	13,055	15,742
Consumable stores		937	1,011
Current tax assets		348	364
Total current assets		568,459	662,663
Total assets		4,063,399	3,969,285
EQUITY AND LIABILITIES
Capital and reserves		2,352,739
Share capital	21	2,347,105
Share option reserve	21	143,342	141,541
Foreign currency translation reserve	22	(76,313)	(63,830)
Accumulated profit		596,438	509,801
Equity attributable to owners of the Company		3,016,206	2,934,617
Non-controlling interests	23	(98,906)	(93,486)
Total equity		2,917,300	2,841,131
Non-current liabilities		469,608
Convertible notes - host liability	15	462,290
Deferred revenue	16	300,940	310,725
Convertible notes - embedded derivative liability	15	252,200	221,300
Borrowings	17	41,391	40,823
Lease liability	11	10,705	10,761
Cash-settledshare-based payment liability	18	10,044	9,023
Advances payable	19	3,196	3,123
Deferred tax liability	7	1,899	1,775
Rehabilitation provision		1,310	1,093
Total non-current liabilities		1,091,293	1,060,913
Current liabilities		45,359
Trade and other payables	20	61,637
Convertible notes - host liability	15	6,577	3,033
Cash-settledshare-based payment liability	18	2,306	2,025
Lease liability	11	564	546
Total current liabilities		54,806	67,241
Total liabilities		1,146,099	1,128,154
Total equity and liabilities		4,063,399	3,969,285
Continuing operations (Note 1)

(Signed) Peter Meredith

Peter Meredith, Director

(Signed) William Hayden

William Hayden, 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 months ended March 31, 2023

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

			Three months ended
	Notes		March 31,
	2023		2022
Operating income (expenses)		$'000		$'000
	82,659
Share of profit from joint venture net of tax	4		87,109
Share-based payments	24	(7,702)		(7,389)
Exploration and project evaluation expenditure		(3,381)		(12,243)
Salaries and benefits		(2,246)		(3,020)
Other expenditure		(1,986)		(1,944)
Travel costs		(1,660)		(1,905)
Foreign exchange (loss) gain		(1,314)		1,379
Legal fees		(1,041)		(340)
Professional fees		(324)		(408)
Profit from operating activities		63,005		61,239
Finance income	26	57,826		31,505
Loss on fair valuation of embedded derivative liability	15	(30,900)		(66,400)
Other income	27	3,728		436
Finance costs	25	(10,465)		(7,391)
(Loss) gain on fair valuation of financial asset	10	(1,595)		3,358
Profit before income taxes		81,599		22,747
Income tax recovery (expense)		(45)		140
Current tax
Deferred tax		926		(1,347)
		881		(1,207)
Profit for the period			82,480		21,540
Profit (loss) attributable to:		86,637		26,394
Owners of the Company
Non-controlling interests		(4,157)		(4,854)
		82,480		21,540
Other comprehensive (loss) income
Items that may subsequently be reclassified to profit:
Exchange (loss) gain on translation of foreign operations, net of		(13,746)
tax			21,097
Items that may subsequently be reclassified to profit		(13,746)		21,097
Total comprehensive income for the period			68,734		42,637
Total comprehensive income (loss) attributable to:		74,154		45,495
Owners of the Company
Non-controlling interests	23	(5,420)		(2,858)
			68,734		42,637
Basic profit per share	28	0.07		0.02
Diluted profit per share	28	0.07		0.02

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 months ended March 31, 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 (loss) for the period	-	-	-	-	26,394	26,394	(4,854)	21,540
Other comprehensive income	-	-	-	19,101	-	19,101	1,996	21,097
Total comprehensive income (loss)	-	-	-	19,101	26,394	45,495	(2,858)	42,637
Transactions with owners
Share-based payments charged to operations
(Note 24)	-	-	6,093	-	-	6,093	-	6,093
Restricted share units vested (Note 21(c))	730,575	2,888	(2,888)	-	-	-	-	-
Options exercised (Note 21(b))	888,377	3,711	(991)	-	-	2,720	-	2,720
Balance at March 31, 2022	1,211,284,353	2,322,892	143,313	(43,407)	125,331	2,548,129	(119,682)	2,428,447
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	-	-	-	-	86,637	86,637	(4,157)	82,480
Other comprehensive loss	-	-	-	(12,483)	-	(12,483)	(1,263)	(13,746)
Total comprehensive (loss) income	-	-	-	(12,483)	86,637	74,154	(5,420)	68,734
Transactions with owners
Share-based payments charged to operations
(Note 24)	-	-	6,400	-	-	6,400	-	6,400
Restricted share units vested (Note 21(c))	641,561	4,218	(4,218)	-	-	-	-	-
Options exercised (Note 21(b))	309,840	1,416	(381)	-	-	1,035	-	1,035
Balance at March 31, 2023	1,217,705,980	2,352,739	143,342	(76,313)	596,438	3,016,206	(98,906)	2,917,300

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

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