Ivanhoe Electric

Initiating Coverage
December 22, 2022

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Ivanhoe Electric Inc.

A Renewed Pursuit of Critical Minerals in the U.S.
Backed by an Unparalleled Management Track Record
Rating: Sector Outperform
1-Year Target: US$14.00
IE-N: US$12.81
IE-T: C$17.48
Orest Wowkodaw, CPA, CA, CFA | Analyst Daniel Sampieri, CPA, CA, CFA | Associate Analyst
416-945-4526 416-863-7623
orest.wowkodaw@scotiabank.com daniel.sampieri@scotiabank.com
Scotia Capital Inc. - Canada Scotia Capital Inc. - Canada
For Reg AC Certification and important disclosures see Appendix A of this report. Analysts
employed by non-U.S. affiliates are not registered/qualified as research analysts with FINRA in the
U.S. unless otherwise noted within this report.
Metals & Mining
IE-N: US$12.81 Target: US$14.00 Rating: Sector Outperform
Global Equity Research IE-T: C$17.48
Company Report
December 22, 2022 A Renewed Pursuit of Critical Minerals in the U.S. Backed by an
Unparalleled Management Track Record
Pertinent Data
Rating Sector Outperform INVESTMENT HIGHLIGHTS
1-Yr. Target US$14.00
IE-N US$12.81
We have initiated coverage on the common shares of Ivanhoe Electric Inc. (IE), an
IE-T C$17.48
exploration and development-stage company primarily focused on critical minerals
1-Yr. Return 9.3%
Risk Ranking Speculative located in the United States, with complementary capabilities in data processing, software
Div. (NTM) $0.00 licensing, and energy storage systems, with a Sector Outperform rating (Speculative
Div. (Curr.) $0.00 risk ranking) and a one-year target of $14.00 per share. Our target is based on 1.4x our
Yield (Curr.) 0.0% 10% NAVPS estimate and has an implied return of 9%. Despite its relatively early-stage
NAVPS $9.84 development, we believe IE shares warrant a premium valuation, given the company’s
P/NAV 1.30x
impressive management track record, proprietary “Typhoon” 3D exploration technology, and
Valuation: 1.4x our 10%NAVPS estimate

focus on U.S.-based critical minerals. In our view, potential undue weakness in the shares due
Capitalization to a near-term expiration of initial public offering (IPO) lock-ups could represent an attractive
Market Cap. (M) $1,190

entry point for investors.
Net Debt + Pref. (M) $-252
Enterprise Value (M) $937
Shares O/S (M) 93
Highly aligned management team with proven track record. Founder and Chairman Robert
Float O/S (M) 44 Friedland (10.1% shareholder) has an exceptional track record of building shareholder value
through his previous leadership in the discovery and development of several world-class
mining assets, including Kamoa-Kakula in the Democratic Republic of the Congo, Oyu Tolgoi
in Mongolia, Platreef in South Africa, and Voisey’s Bay in Canada. Mr. Friedland also serves as
Co-Chairman of Ivanhoe Mines (IVN-T; Sector Outperform – C$13.00 target).
Attractive optionality to U.S.-based critical minerals. IE is currently advancing two flagship

mineral assets in the United States, namely the Santa Cruz Cu deposit located in central
Arizona and the Tintic Cu-Au-Ag district located in central Utah near Bingham Canyon, where
three large porphyry targets have been identified to date. With total measured, indicated, and
inferred resources of 523 Mt grading 0.92% Cu, Santa Cruz is believed to be the third-largest
undeveloped Cu deposit in mainland United States. An updated Santa Cruz resource estimate
and a maiden preliminary economic assessment (PEA) for an ESG-friendly, underground
oxide-focused mine located on private land are anticipated to be released during 1H/23. IE’s
exploration and corporate development strategy includes the utilization and leverage of its
proprietary Typhoon 3D geophysical survey technology, which provides significantly deeper
penetration and better resolution than conventional geophysical instrumentation.
Premium valuation is warranted. We estimate that IE shares are currently trading at a P/

NAV(10%) of 1.30x and at an in situ EV/CuEq lb of resource (Santa Cruz only) of $0.10/lb
versus the Cu development peers under our coverage at 0.69x and $0.12/lb, respectively. We
anticipate IE shares to trade at a significant premium to other copper developers, given Mr.
Friedland’s exceptional track record, the company’s proprietary exploration technology, and
the focus on U.S.-based critical minerals. We anticipate several near-term catalysts.
Price/Cash
Qtly Adj EPS (FD) Q1 Q2 Q3 Q4 Year Flow
2021A $-0.08 $-0.18 $-0.35 $-0.35 $-0.96
Volume and Closing Price for IE-N 2022E $-0.24A $-0.87A $-0.47A $-0.28 $-1.87 n.m.
6 16 2023E $-0.27 $-0.27 $-0.27 $-0.27 $-1.07 n.m.
5 2024E $-0.20 n.m.
14
4 (FY-Dec.) 2021A 2022E 2023E 2024E
12
Vol (M)
Price
3 CFPS $-0.78 $-1.37 $-1.07 $-0.20

10 FCFPS $-1.09 $-1.85 $-1.07 $-0.20
2
8
EBITDA (M) $-57 $-111 $-99 $-19
1
Copper Price (US$/lb) $4.23 $3.95 $3.50 $4.00
0 6
Aug-22 Oct-22 Dec-22 Historical price multiple calculations use FYE prices. All values in US$ unless otherwise indicated.
Volume IE-N Source: FactSet; company reports; Scotiabank GBM estimates.
Source: FactSet.
December 22, 2022
Table of Contents
Financial Summary 3
Stock Catalysts 6
Valuation and Target Price Rationale 7
Company Profile 9
A Brief History 10
Capital Markets and Ownership Profile 10
Debt Financing 11
Board and Management 11
Business Strategy and Operations Analysis 12

Santa Cruz Copper Project 12

Tintic Copper-Gold Project 21
Typhoon and Computational Geosciences Inc. 25
Energy Storage 27
Risk Factors 29
Appendix 1: Select Management Biographies 30

Board of Directors 30
Senior Management 31
Pricing as at December 20, 2022, unless otherwise stated.

Currencies in U.S. dollars unless otherwise stated.
Global Equity Research 2

December 22, 2022
Financial Summary
Overall, given the relatively early- and exploration-stage nature of the company, we do not view our near-term
financial forecasts as particularly meaningful for the shares. Furthermore, our estimates assume only negligible
revenues in the near term, as, in our view, Ivanhoe Electric will not generate meaningful revenues or cash flows
until the potential future development of the Santa Cruz Project in Arizona. In 2021, free cash flows were
negative $67 million (or -$1.09 per share), driven by $40 million in exploration expenses. As at December 31,
2021, Ivanhoe Electric held cash and cash equivalents of $50 million and total convertible debt of $79 million,
resulting in a net debt position of $29 million (or $0.47 per share).
In 2022, we forecast further negative free cash flows of $144 million (or -$1.85 per share), driven by a higher
$95 million in exploration expenses ($75 million spent through Q3/22). However, Ivanhoe Electric raised
$161 million via its initial public offering during the year, plus a further $86 million via convertible notes. As at
year-end 2022, we forecast total cash and cash equivalents of $150 million, total debt of $27 million, and a net
cash position of $123 million (or $1.32 per share).
In 2023, we forecast negative free cash flows of $99 million (or $1.07 per share), driven by a similar $80 million in
exploration expenses. As at year-end 2023, we forecast total cash and cash equivalents of $51 million, total debt
of $27 million, and a net cash position of $24 million (or $0.26 per share).
In 2024, we forecast negative free cash flows of $19 million (or $0.20 per share); however, we have not yet
assumed an exploration expenses figure, as this will be ultimately driven by the drilling success realized in 2023
and will be subject to market conditions. Furthermore, beyond 2024 we have left our model in an unfunded
position, as, at this time, our valuation is driven by in situ resource values and not our operational forecasts.
Exhibit 1 summarizes our operating and financial estimates through 2026; Exhibits 2 to 4 profile our net debt per
share, debt to capitalization, and cash flow forecasts. We currently do not anticipate the potential development
of the Santa Cruz Project to begin within our forecast period.
Ivanhoe Electric reports its financial statements in U.S. dollars and has a December 31 fiscal year-end. All
currency figures listed in this report are in U.S. dollars, unless otherwise stated. IE reports all operating and
technical data in metric units; all operating metrics listed in this report are in metric units, except as otherwise
noted.

December 22, 2022
Exhibit 1 – Ivanhoe Electric Operating and Financial Summary (December 31 Fiscal Year-End)
METAL PRICE FORECAST 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
LME Copper (US$/lb) $2.73 $2.80 $4.23 $3.95 $3.50 $4.00 $4.50 $5.00
PRODUCTION FORECAST 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
Copper (kt) - - - - - - - -
Copper (mlbs) - - - - - - - -
CASH COST FORECAST 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
C1 Costs (US$/lb) - - - - - - - -
All-in Sustaining Costs (US$/lb) - - - - - - - -
INCOME STATEMENT (US$MM) 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
Revenues $4 $5 $5 $9 $8 $8 $8 $8
Cost of sales 2 2 2 1 2 2 2 2
Depreciation and amortizaion - - - - - - - -
Exploration expenses 13 14 40 95 80 - - -
Selling, general & administrative 11 12 20 23 25 25 25 25
Other operating costs 4 4 4 4 - - - -
Operating profit (loss) (26) (27) (61) (114) (99) (19) (19) (19)
Net finance expense 0 0 2 1 - - - -

Other expenses (income) 3 3 6 26 - - - -
Income taxes (1) 0 0 1 - - - -
Minority interest (4) (5) (9) (7) - - - -
Net income to Ivanhoe Electric shareholders ($25) ($25) ($59) ($136) ($99) ($19) ($19) ($19)
Adjusted net income to Ivanhoe Electric shareholders ($25) ($25) ($59) ($143) ($99) ($19) ($19) ($19)
Net earnings per common share (FD) ($0.41) ($0.42) ($0.96) ($1.83) ($1.07) ($0.20) ($0.20) ($0.20)
Adjusted net earnings per common share (FD) ($0.41) ($0.42) ($0.96) ($1.87) ($1.07) ($0.20) ($0.20) ($0.20)
Shares outstanding (FD) 60 60 62 78 93 93 93 93
Adjusted EBITDA (22) (23) (57) (111) (99) (19) (19) (19)
CASH FLOW STATEMENT (US$MM) 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
Net income (29) (30) (69) (143) (99) (19) (19) (19)
Depreciation and amortization 4 4 4 3 - - - -
Other non-cash items and changes in NCWC 2 3 16 33 - - - -
Cash flow from operations ($23) ($23) ($48) ($107) ($99) ($19) ($19) ($19)
CFPS (FD) ($0.38) ($0.38) ($0.78) ($1.37) ($1.07) ($0.20) ($0.20) ($0.20)
Sustaining capital - - - - - - - -
Development capital (9) (17) (19) (37) - - - -
Free cash flow to the firm ($32) ($40) ($67) ($144) ($99) ($19) ($19) ($19)
FCFF per Share ($0.54) ($0.66) ($1.09) ($1.85) ($1.07) ($0.20) ($0.20) ($0.20)
Net financing activities (ex. equity / dividends) 34 44 101 86 - - - (25)
Free cash flow to equity $2 $4 $34 ($58) ($99) ($19) ($19) ($44)
FCFE per Share $0.03 $0.07 $0.56 ($0.74) ($1.07) ($0.20) ($0.20) ($0.48)
Equity issues (repurchases) - - 10 159 - - - -
Dividends to common shareholders - - - - - - - -
Other sources (uses) of cash (0) 0 (3) (1) - - - -
Net sources (uses) of cash $2 $5 $41 $101 ($99) ($19) ($19) ($44)
BALANCE SHEET (US$MM) 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
Cash and cash equivalents $5 $9 $50 $150 $51 $32 $13 ($32)
Trade receivables n/a 3 1 2 2 2 2 2
Inventory n/a 4 6 6 6 6 6 6
Other n/a 1 1 7 7 7 7 7
Current assets n/a 17 58 164 65 46 27 (17)
Exploration interests, property, plant, and equipment n/a 8 76 7 7 7 7 7
Other n/a 64 20 95 95 95 95 95
Total Assets n/a $72 $154 $267 $168 $149 $130 $85
Trade payables n/a 6 10 15 15 15 15 15
Total Current Liabilities n/a 15 41 18 18 18 18 18
Total debt n/a 6 79 27 27 27 27 1
Other liabilities n/a 2 6 4 4 4 4 4
Shareholders' equity n/a 49 28 218 119 100 81 62
Total Liabilities and Shareholders' Equity n/a $72 $154 $267 $168 $149 $130 $85
Source: Company reports; Scotiabank GBM estimates.

December 22, 2022
Exhibit 2 – Net Debt (Cash) per Share Exhibit 3 – Debt to Capitalization
$0.60 $0.47 60%

$0.35
$0.40 51%
$0.15 50%
$0.20
-
-
($0.05) 40%
($0.20) ($0.06)
($0.40) ($0.26)
30%
($0.60)
($0.80)
20%
($1.00) 12%
($1.20) 10% 6% 6% 6% 6%
($1.40) ($1.32) - 0%
($1.60) -
2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
Net Debt (Cash) per Share Debt to capitalization
Source: Company reports; Scotiabank GBM estimates. Source: Company reports; Scotiabank GBM estimates.
Exhibit 4 – Operating and FCF per Share
$0.00
($0.20)
($0.20) ($0.20) ($0.20)
($0.40) ($0.20) ($0.20) ($0.20)
($0.38) ($0.38)
($0.60) ($0.54)
($0.80) ($0.66)
($0.78)
($1.00)
($1.20) ($1.09) ($1.07)

($1.07)
($1.40)
($1.37)
($1.60)
($1.80)
($2.00) ($1.85)
2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E
CFPS FCFPS

December 22, 2022
Stock Catalysts
We anticipate the following material catalysts for IE shares:
• Updated resource estimate for the Santa Cruz Project – Q1/23. Ivanhoe Electric plans to release an
updated resource estimate for its Santa Cruz Cu Project in early Q1/23. The updated resource estimate
is expected to include recent drilling from the East Ridge, Texaco Ridge, and Far Southwest exploration
areas, in addition to the main Santa Cruz deposit.
• Initial preliminary economic assessment (PEA) for the Santa Cruz Project – Q2/23. The company
plans to release a maiden PEA NI 43-101 Technical Report for the Santa Cruz Project in late Q2/23. The
PEA is anticipated to give the market an initial sense of potential scale and planned mining approach,
along with preliminary metallurgical expectations. IE appears focused on a potential ESG-friendly, low-
footprint (all on private land), underground mining operation centred on the extraction of the leachable
copper resources.
• Exploration drilling results from the Santa Cruz Project – ongoing. The company continues to
advance a systematic drill campaign at Santa Cruz and we anticipate the release of drill results to be an
ongoing source of news flow.
• Exploration drilling results from the Tintic Cu-Au Project in Utah – spring 2023. While Ivanhoe Electric
began drilling at Tintic in November 2022, a more comprehensive drill program (following up on the
anomalies identified by its proprietary “Typhoon” surveying system) is planned for spring 2023. We
expect exploration results to be ongoing.
• Typhoon leveraging – ongoing. We anticipate the company to selectively leverage its proprietary
Typhoon geophysical surveying system into potential new joint venture ownership interests in other
deposits.

December 22, 2022
Valuation and Target Price Rationale

Our estimates and base-case valuation for Ivanhoe Electric are driven by the following key assumptions:
• We have ascribed a nominal in situ value of $0.07/lb for all measured, indicated, and inferred resources
(4.8 Mt contained Cu) at the Santa Cruz Cu Project in Arizona.
• We have ascribed a value of $200 million for the Tintic Cu-Au Project in Utah.
• We have estimated a look-through value of $120 million for Ivanhoe Electric’s attributable stake in
VRB Energy.
• Driven by an unparalleled management track record and Ivanhoe’s attractive optionality to U.S.-based critical
minerals (including the leveraging of the company’s proprietary Typhoon geophysical exploration
technology), we have used a 1.4x premium to NAV in our target price build-up methodology.
Based on these assumptions, our NAV(10%) estimate (as at YE2022) is $9.84 per share. See Exhibit 5.
Exhibit 5 – Ivanhoe Electric NAV Estimate Breakdown (as at YE2022E)

(in millions) USD USD USD 10%
10% 8% $/sh % Op. NAV % of NAV
Santa Cruz Cu Project ($0.07/lb in-situ) $740 $740 $7.60 70% 77%
Tintic Cu-Au Project $200 $200 $2.05 19% 21%
VRB Energy $120 $120 $1.23 11% 13%
Other - - - - -
Operating assets $1,060 $1,060 $10.89 100% 111%
Corporate adjustments
Cash $150 $150 $1.54 16%
Non-cash working capital ($3) ($3) ($0.03) (0%)
Total debt ($27) ($27) ($0.27) (3%)
Corporate SG&A ($222) ($259) ($2.28) (23%)
Net Asset Value $958 $921 $9.84 100%
Fully diluted shares outstanding 97
Net Asset Value Per Share $9.84 $9.45
The Santa Cruz Cu Project represents 70% of our operating-level net asset value for Ivanhoe Electric. This is
followed by the Tintic Cu-Au Project at 19% and VRB Energy at 11%. On a geographical basis, our net asset value
is entirely composed of assets based in the United States.
IE shares are currently trading at a relatively elevated P/NAV(10%) multiple of 1.30x (Exhibit 6), which compares
to the developer peers under our coverage at 0.69x. In Exhibit 7, we have also compared Ivanhoe Electric to its
peers based on enterprise value per pound of contained copper equivalent (CuEq) in resources. By this metric,
Ivanhoe Electric trades at a discount to the peer group average, trading at $0.10/lb CuEq resources (based on
Santa Cruz only) versus the peer group average of $0.12/lb.

December 22, 2022
Exhibit 6 – Ivanhoe Electric P/NAV(10%) vs. Developer Peers
1.40x
1.30x
1.20x
1.20x
1.00x 0.94x
P/NAV(10%)
0.80x
0.69x
0.60x 0.54x
0.44x
0.40x
0.24x
0.19x
0.20x
-
IE-N FOM-T FIL-T Average AMC-T SLS-T MIN-T TMQ-T
Source: FactSet; Scotiabank GBM estimates.
Exhibit 7 – Ivanhoe Electric EV per Copper Equivalent Resources ($/lb) vs. Developer Peers
$0.30
$0.27
$0.24
$0.25
$0.20
$0.20
$0.15
$0.12
$0.10
$0.10
$0.05 $0.03
$0.01 $0.00
$0.00
AMC-T* FIL-T** FOM-T Dev. Avg. IE-N SLS-T TMQ-T MIN-T
Note: Resources include all contained measured, indicated, and inferred resources. Copper equivalent contained tonnes calculated based on
SGBM long-term pricing.
*AMC-T (covered by SGBM Analyst Eric Winmill) only includes historical resources (vs. Scotiabank GBM estimate of 21 Mt of contained Cu).
**FIL-T (covered by SGBM Analyst Eric Winmill) does not consider sulphide resource, which has yet to be released.
Source: FactSet; Company reports; Scotiabank GBM estimates.
Our 12-month target for IE of $14.00 per share is based on a multiple of 1.4x our NAVPS(10%) estimate of $9.84
per share. Our target implies a total implied one-year return of 9%. We anticipate IE shares to trade at a
significant premium to other copper developers, given the exceptional track record of Mr. Friedland, the
company’s proprietary Typhoon exploration technology, and the focus on U.S.-based critical minerals. We also
anticipate several near-term catalysts for the shares. For further discussion, see the Business Strategy and
Operations Analysis section.

December 22, 2022
Company Profile
Ivanhoe Electric is a smaller cap, minerals exploration and development company with a focus on identifying and
developing mineral projects, and ultimately mines, associated with the metals necessary for electrification (in
particular, copper, nickel, cobalt, vanadium, gold, silver, and the platinum group metals). The company’s mineral
assets are located predominantly in the United States, and to a lesser degree, other parts of the Americas.
Ivanhoe Electric believes the United States is significantly underexplored and has the potential to yield major
new discoveries of these metals. The company’s material mineral/development assets include the Santa Cruz
Copper Project (Santa Cruz) in Arizona and the Tintic Copper-Gold Project (Tintic) in Utah. The company also
holds ownership interests in several other mineral projects in the United States and other countries, including
the Hog Heaven Silver-Gold Project in Montana and the Sama Nickel-Copper-Palladium Project in the Ivory
Coast, although these projects are lower priority at this time (and we ascribe no value to them).
Exhibit 8 – Ivanhoe Electric Material and Key Projects Map

Source: Company reports.
In addition to Ivanhoe Electric’s portfolio of material and key mineral projects, the company also owns patents
on an exploration geophysical survey technology known as “Typhoon.” Ivanhoe Electric is also the exclusive
worldwide licensee of technology from I-Pulse Inc. for use in geological surveys for mineral exploration. Ivanhoe
Electric also controls a data inversion business, Computational Geosciences Inc. (CGI).

December 22, 2022
Ivanhoe Electric also controls VRB Energy Inc. (VRB), which is primarily engaged in the design, manufacture,
installation, and operation of large-scale energy storage systems. VRB’s major product is a Vanadium Redox
Battery Electrochemical Storage System (VRB-ESS).
A Brief History
Ivanhoe Electric Inc. was incorporated in the State of Delaware, U.S. on July 14, 2020, as a wholly owned
subsidiary of High Power Exploration Inc. (HPX). On April 30, 2021, HPX completed a reorganization whereby it
contributed all of the issued and outstanding shares of HPX’s subsidiaries (other than those holding interests in
its Nimba Iron Ore Project in Guinea, certain property, plant, and equipment, and certain financial assets) in
exchange for shares in Ivanhoe Electric. On April 30, 2021, Ivanhoe Electric also entered into an intellectual
property assignment and novation agreement with HPX, I-Pulse, and several other subsidiaries of IE, by which
the rights to certain technology and patent licences were assigned to Ivanhoe Electric. In November 2021,
Ivanhoe Electric completed a $60 million convertible notes financing (which was converted into shares during
the initial public offering), and on April 5, 2022, Ivanhoe Electric completed a further $86.2 million convertible
notes financing (which was also converted into shares during the IPO). Ivanhoe Electric then completed its initial
public offering on June 28, 2022.
Prior to its incorporation in 2020, Ivanhoe Electric was essentially a division of I-Pulse. I-Pulse served as the
incubator for what is now Ivanhoe Electric. I-Pulse remains a ~9.54% shareholder in the company.
Capital Markets and Ownership Profile
Trading. Ivanhoe Electric shares trade under the ticker symbol IE on the NYSE American Stock Exchange, with a
smaller secondary listing on the Toronto Stock Exchange (TSX). The shares began trading on June 28, 2022,
following an initial public offering. The vast majority of the daily trading volume occurs on the NYSE, with an
average volume of about 170,000 shares over the past 90 days, according to FactSet. Trading volume on the TSX
has averaged well below 10,000 shares over the past 90 days. Since the IPO, the shares reached a high of $15.53
and a low of $7.01.
Share capital history. As a newly listed company, Ivanhoe Electric’s share capital history is relatively limited.
Post-IPO and as of November 14, 2022, IE had 92.9 million shares outstanding. Inclusive of 4.4 million in
employee stock options, the fully diluted share count is 97.3 million shares. Our estimates are based on this fully
diluted share count of 97.3 million shares. Ivanhoe Electric’s IPO on June 28, 2022, consisted of 14.388 million
shares issued at a price of $11.75 for gross proceeds of $169.1 million.
Current share ownership. IE shares are fairly tightly held. According to FactSet, ~52% of the shares are held by
insiders (management and board members). Approximately 28% of the shares are held by institutional
investors, with the top 10 largest institutional holders owning ~26%. Fidelity Management & Research Co. LLC is
currently the largest shareholder, holding 9.3% of shares outstanding, followed by SailingStone Capital Partners
LLC holding 4.3% of shares outstanding. MFN Partners Management LP owns 2.8% of shares outstanding, while
Fidelity Investments Canada ULC holds 2.0% and BlackRock Investment Management (UK) Ltd. holds 1.8%.
Under top insiders, the Cheng Yu Tung Family owns 14.7%, Mr. Friedland owns 10.1%, I-Pulse, Inc. (21.1%-owned
by Mr. Friedland) owns 9.5%, Orion Mine Finance Fund III LP holds 8.0%, and BHP Group Ltd. (BHP-L; not rated)
holds 5.5%.
Approximately 73.8 million (or ~79% of the company’s shares outstanding) were subject to a 180-day lock-up
period post-IPO, which expires on December 25, 2022. In our view, this could result in elevated near-term
volatility in the shares and could represent an attractive entry point for investors if Ivanhoe Electric’s share price
trades lower.

December 22, 2022
Debt Financing
In conjunction with the IPO, convertible debentures totalling ~$160 million were converted into common shares
of the company. Additionally, Ivanhoe Electric still maintains $25 million of convertible debt at the VRB level (the
VRB Convertible bond). This convertible debt was issued on July 8, 2021, for gross proceeds of $24 million. The
bond has a five-year term and interest accrues at a rate of 8% per annum. The bond is automatically converted
into equity in the event of an equity financing or sale event for VRB; if there is no equity financing or sale event,
VRB must repay the outstanding principal and interest on maturity.
Board and Management
We believe Ivanhoe Electric boasts a highly aligned management team with a very strong track record, including
Robert Friedland, Executive Chairman of the Board; Taylor Melvin, President and Chief Executive Officer; Eric
Finlayson, Chief of Global Exploration; and Mark Gibson, Chief Operating Officer; along with a diversified and
comprehensive board of directors.
Founder and Chairman Robert Friedland (10.1% shareholder) has an exceptional and unparalleled track record of
building shareholder value through his previous leadership in the discovery and development of several world-
class mining assets, including Kamoa-Kakula in the Democratic Republic of the Congo, Oyu Tolgoi in Mongolia,
Platreef in South Africa, and Voisey’s Bay in Canada. In addition to his role as Chairman of IE, Mr. Friedland
continues to serve as Co-Chairman of Ivanhoe Mines (IVN-T; Sector Outperform – C$13.00 target).
Please see Appendix 1 for a more fulsome review of the management and board of directors.

December 22, 2022
Business Strategy and Operations Analysis

Santa Cruz Copper Project
The Santa Cruz Copper Project is Ivanhoe Electric’s flagship and principal asset. Santa Cruz is located in a prolific
mining district in Arizona, with numerous major copper mines in close proximity. The project is located in the
Santa Cruz – Miami structural corridor, which IE estimates to contain ~35% of all known copper resources in
Arizona. The region is relatively flat and arid. The project is located between the cities of Casa Grande and
Stanfield in Arizona, approximately one hour’s drive south of Phoenix. The Santa Cruz Project encompasses
~47.3 km2 of land. Santa Cruz is less than 10 km southwest of the Sacaton deposit, which was previously mined
by Arizona Smelting and Refining Company (ASARCO) Inc. and covers a cluster of deposits ~11 km long and
~1.6 km wide.
Exhibit 9 – Map of Santa Cruz Project and Surrounding Area

The project is accessed from the Gila Bend Highway, 9 km from the city of Casa Grande. Santa Cruz is
surrounded by current and past-producing mines and processing facilities. The Greater Phoenix area is a major
population centre (~4.6 million people) with a major international airport, well-developed infrastructure, and
services that support the mining industry. Casa Grande is transforming into a great population centre – a large,
industrial area that includes other mining operations and a new Lucid Motors (LCID-N; not rated) car
manufacturing plant.

December 22, 2022
Exhibit 10 – Santa Cruz Project Landscape

Source: Scotiabank GBM.
Project History
Historically, there are three main deposits that make up the Santa Cruz Project, including Texaco (to the
northeast), Santa Cruz North (directly southwest of Texaco), and Casa Grande West/Santa Cruz South
(southernmost deposit). There has been no previous mining at the Santa Cruz Project. ASARCO owned and
drilled the Texaco and Santa Cruz North deposits, while Hanna-Getty Mining (defunct; not rated) drilled the Casa
Grande West/Santa Cruz South deposit.
The first discovery of Cu mineralization in the area occurred in 1961 by geologists from ASARCO via a small
outcrop of leached capping composed of granite cut by a thin monzonite porphyry dyke. This led to a
geophysical survey and a six-hole drill program, which identified the significant mineralization that became
known as the West Orebody, and eventually became the Sacaton open-pit mine.
Based on the success at Sacaton, ASARCO expanded efforts across the Casa Grande Valley and the first hole was
drilled on the Santa Cruz Project in 1964. By May 1965, 17 drill holes were completed without similar success, and
ASARCO reduced its land position while focusing on the Sacaton open pit Cu mine to the north, which operated
from 1974 to 1984.

December 22, 2022
Meanwhile, in 1973, David Lowell (renowned mining explorer and geologist) put together an exploration program
named “the Covered Area Project,” funded first by Newmont Mining (NEM-N; covered by SGBM Analyst Tanya
Jakusconek), then by a joint venture between Newmont and Hanna Mining (defunct), then Hanna with Getty Oil
Corp. (defunct) and Quintana (defunct), although both Quintana and Newmont pulled out of the project before
any discoveries were made. In 1974, after having drilled 120 holes at 20 projects across southwestern Arizona,
Mr. Lowell and his team focused their attention on the Santa Cruz system. They discovered porphyry
mineralization in their first drill hole, which intersected leached capping, and by their seventh hole they had
intersected ore-grade, supergene-enriched Cu mineralization at what would be called the Casa Grande West
deposit. Hanna-Getty continued drilling between 1977 and 1982 and delineated an estimated 500 Mt of Cu at
~1% at Casa Grande West. However, an underground mining decision was never made and the project became
inactive in the early 1980s due to a combination of encroaching real estate and falling copper prices.
Several other deposits, including Santa Cruz South/Casa Grande West, Santa Cruz North, Texaco, and Parks-
Salyer, were identified during ASARCO drilling in the 1960s and subsequent drilling in the 1970s and 1980s by
numerous exploration companies. In total, 362 drill holes totalling 229,577 m have been drilled by previous
owners delineating the cluster of deposits in the area.
In 2021, after more than seven years of negotiations, Ivanhoe Electric acquired an option to acquire 100% of the
mineral rights constituting Santa Cruz and entered into agreements to acquire further surface rights and mineral
titles (more details below).
Legacy royalty interests remain on the project area, ranging from a 5% net smelter return (NSR) royalty to as
high as a 10% NSR royalty. Economic analysis in the technical report for mineral resources has assumed a 6.5%
NSR royalty on the property.
Geology and Mineralization
The Santa Cruz deposit lies along a northwest to southeast trend, approximately 600 km-long porphyry copper
belt that includes many productive deposits such as Mineral Park, Bagdad, Globe-Miami, and the neighbouring
Sacaton. The deposits are contained within the Basin and Range province that covers most of the southwestern
United States. The porphyry copper deposits within this trend are the result of igneous activity during that
involved northeast-directed subduction and a northwest-southeast-striking magmatic arc. During the Basin and
Range tectonic extension, the copper systems were dismembered, tilted, and buried beneath basinal deposits
that now fill Casa Grande Valley. Prior to this, the deposits also experienced supergene-enrichment events that
make them economically significant deposits.
The Santa Cruz system (Santa Cruz, Texaco, Park-Salyer, and Sacaton deposits) represent one or more large,
Laramide-aged porphyry copper systems that were subsequently enriched by supergene processes.
Mineralization at the Santa Cruz Project is divided into three main types:
1. Primary hypogene sulphide mineralization consisting of chalcopyrite, pyrite, molybdenite, minor bornite,
and covellite hosted within sulphide- and quartz-sulphide stringers, veinlets, veins, vein breccias, and
breccias.
2. Secondary supergene sulphide mineralization composed of chalcocite.
3. Secondary supergene “oxide” mineralization dominated by chrysocolla (Cu-oxide) and atacamite (Cu-
chloride).
The water table at Santa Cruz is relatively shallow, starting at a depth of ~100 metres. It is believed that water
flow decreases at greater depths, where the majority of the copper mineralization rests.

December 22, 2022
Mineral Reserves and Resources
As at December 8, 2021, Santa Cruz had total indicated resources of 274 Mt grading 0.93% copper, containing a
significant 2.5 Mt of copper. The project also includes total inferred resources of 249 Mt grading 0.91% copper
(another 2.3 Mt of contained Cu). Combined, the deposit has very large total measured and indicated (M&I) plus
inferred resources of 523 Mt grading 0.92% copper (containing a very significant 4.8 Mt of copper). We note that on
a contained copper basis, Santa Cruz is believed to be the third-largest undeveloped copper deposit in the United
States, trailing only BHP’s nearby Resolution project and Hudbay Minerals (HBM-T; Sector Outperform; C$8.00
one-year target) redesigned Copper World project. See Exhibits 11 and 12.
Exhibit 11 – Santa Cruz Mineral Resource Estimate

Note: As at December 8, 2021. Based on a 0.39% total Cu cut-off grade.
Exhibit 12 – Santa Cruz vs. Select Large-Scale U.S. Projects: Contained Copper (Mt Cu)
Contained Copper (Mt Cu)
Denotes contained M&I Resources

Denotes contained Inferred Resources
17.1
1.0
2.3
10.2 4.8 1.1
2.2 1
2.5 1.9
0.7 1.4
Resolution* Copper World Santa Cruz Northmet Cactus White Pine
Note: * Resolution project not shown to scale relative to other copper projects.
Source: Company reports; Scotiabank GBM.
The mineral resource estimate is broken down into four main categories: exotic, oxide, chalcocite-enriched, and
primary (sulphide). Mineralization begins ~400 metres below the surface. The grades and future processing
approach vary between these four main resource categories. The company is currently focused on a potential
higher-grade underground operation based on mining and processing the leachable copper mineralization, which
includes the exotic, oxide, and chalcocite-enriched categories of the resource. The deeper primary mineralization is
lower grade and requires an alternative processing approach and is not currently a priority. The total soluble copper

December 22, 2022
grade in the total resource (M&I and inferred) is only 0.50% due to the inclusion of primary sulphides. In Exhibit 13,
we highlight a mineral resource sensitivity to various Cu cut-off grades at Santa Cruz. At a markedly higher 1.00%
Cu cut-off grade (versus only 0.39% in the base-case resource estimate), the indicated plus inferred mineral
resources total 157 Mt at an average grade of 1.77% Cu (2.8 Mt of contained copper), with a soluble Cu grade
estimated at 1.26% (2.0 Mt of contained copper).
Exhibit 13 – Santa Cruz Mineral Resource Sensitivity to Cu Cut-Off Grades

Drilling at Santa Cruz is ongoing. The company is planning to release an updated resource statement during Q1/23.
A PEA is anticipated to follow in Q2/23. We anticipate the PEA to be based on a potential medium-sized
underground mining operation focused on the extraction and processing of the leachable copper mineralization
only. We anticipate the PEA to focus on a private land solution that is ESG-friendly (underground mine, small
footprint, use of solar energy, etc.)
Exploration
At Santa Cruz, up to eight drill rigs are working 24 hours a day to collect resource infill, geotechnical, hydrological,
and metallurgical information to assess potential mine development options. At the Santa Cruz deposit, infill
drilling throughout 2022 has continued to return assay results that both confirm the current resource and
further refine IE’s understanding of the deposit. Moreover, step-out drilling at the East Ridge Exploration Area,
and more recently at the Far Southwest Exploration Area, have also yielded encouraging results.
The infill program at the Santa Cruz deposit is highlighted by hole SCC-084, which intersected over 250 metres
of oxide and exotic copper mineralization. Cores sample from this hole at 756 metres depth showed diorite with
intense high-grade atacamite copper mineralization along fractures and within veins. Atacamite is a high-grade
copper mineral with 60% copper by weight.
At the East Ridge Exploration Area, drill hole SCC-105 (first reported on November 8) intersected over
100 metres of consistent copper oxides. Additional oxide copper mineralization was discovered in drill hole SCC-
109, ~400 metres to the east-southeast of SCC-105, and ~125 metres east of mineralized holes previously drilled
by ASARCO. SCC-109 intersected copper mineralization dominantly as atacamite in fractures beginning at a
downhole depth of ~657 metres and continuing for over 47 metres. This area is open to expansion to the north,
east, and south from SCC-109.

December 22, 2022
More recently, Ivanhoe Electric drilled one step-out hole (SCC-098) in the Far Southwest Exploration Area and
copper was discovered at a depth of ~1,059 metres. This area was identified as a Typhoon geophysical anomaly,
which is what led to the step-out. The discovery of copper here is a clear demonstration of the competitive
advantage that Typhoon can provide in exploration. See Exhibit 14.
Exhibit 14 – Santa Cruz Exploration: Drill Locations and Targets


December 22, 2022
Exhibit 15 – Santa Cruz: Multiple Typhoon Anomalies Now Being Drill Tested
Exhibit 16 – Santa Cruz Drill Core Samples
Source: Scotiabank GBM.

December 22, 2022
Surface and Mineral Rights
The Santa Cruz Project lies primarily on private land, containing split estate between surface and sub-surface
mineral rights. Ivanhoe Electric holds an option on the purchase of the mineral estate, while holding an exclusive
agreement on surface access. Exhibit 17 contains a project map for Santa Cruz, outlining the mineral title and
surface rights.
Exhibit 17 – Santa Cruz Project Mineral Title and Surface Rights

With the project area almost entirely on private land, Santa Cruz will likely face a much simpler and efficient
permitting path process than other projects in the United States that are required to undergo the NEPA
(National Environmental Policy Act) process (notably Hudbay Minerals’ previously dubbed Rosemont project). If
NEPA and other federal permitting is avoided, required permits would be administered by Arizona State, Pinal
County, and Casa Grande authorities. As such, the permits required could then be worked toward in parallel (or
in a modular fashion). Key permits are anticipated to include: Reclamation Plan approval, Water permits, Aquifer
Protection Permit, and Air Quality Operating Permit.

December 22, 2022
However, the private land area still does require a determination that there are no “waters of the United States”
in order for the Santa Cruz Project to avoid the NEPA process. A ruling of this nature is expected in 2023. Given
the company’s significant private land package, IE believes that it can design an underground operation that
avoids any use of federal lands, in any case.
In terms of the mineral estate, Ivanhoe Electric owns an option with DRHE, a private company, to acquire 100%
of the mineral title rights at Santa Cruz (including 39 federal unpatented mining claims, and three small 10-acre
surface parcels), by paying $27.87 million in cash or shares of IE at the election of DRHE over the course of three
years. As of March 31, 2022, $5.37 million was paid, with $22.5 million remaining to be paid to DRHE by 2025.
Currently, Ivanhoe Electric does not own the majority of the surface rights at the Santa Cruz Project. Most of the
surface rights are held by Legends Property, LLC (Legends). IE holds a surface rights access agreement with
Legends that grants access to above-ground, non-invasive, geophysical testing and drilling activities. The access
agreement does not permit Ivanhoe Electric to conduct any mining or processing activities at Santa Cruz, and
expires on August 3, 2024 (with the option to extend the agreement for one further year at a cost of
$0.92 million). To potentially build a mine at Santa Cruz in the future, Ivanhoe Electric will need to either acquire
the surface rights or obtain an expansion of the activities that are permitted under the company’s access
agreements.
Valuation
At this preliminary stage, we value Ivanhoe Electric’s interest in Santa Cruz at $740 million ($7.60 per share)
based on an in situ value of $0.07/lb for all measured, indicated, and inferred contained Cu Resources (4.8 Mt of
contained Cu). Our valuation is based on an in situ valuation methodology due to the relatively early-stage
nature of the project. Based on our analysis, an in situ valuation of $0.07/lb represents the average takeout
valuation for development-stage Cu project transactions over the last ~10 years. In Exhibit 18, we highlight
potential in situ valuation sensitivities for Santa Cruz based on a combination of various contained copper in
resources and in situ values ($/lb). We note that the implied value for Santa Cruz would increase to $1.27 billion
(+71% above our base case) based on the current resource using the current developer peer group average of
$0.12/lb of in situ value for our coverage. We estimate that a larger resource containing 6.0 Mt of copper would
yield an in situ value of $925 million based on a value of $0.07/lb (25% above our base case forecast).
Exhibit 18 – In Situ Valuation Sensitivity Analysis (Potential Valuations in $M)

In Situ $/lb
$0.05/lb $0.06/lb $0.07/lb $0.08/lb $0.09/lb $0.10/lb $0.11/lb $0.12/lb
4.4 $484 $581 $678 $775 $872 $969 $1,066 $1,162
Contained Cu
4.8 $528 $634 $740 $846 $951 $1,057 $1,163 $1,268

(Mt)
5.2 $573 $687 $802 $916 $1,031 $1,145 $1,260 $1,374

5.6 $617 $740 $863 $987 $1,110 $1,233 $1,357 $1,480
6.0 $661 $793 $925 $1,057 $1,189 $1,321 $1,454 $1,586
Note: Grey shading represents SGBM base case forecast.
Source: Scotiabank GBM estimates.
Alternatively, we have developed a preliminary, conceptual mine plan based on the soluble resource base at
Santa Cruz based on a higher 1.00% Cu cut-off grade (resulting in estimated reserves of 157 Mt at 1.26% Cu).
Based on our estimates, we have derived a conceptual NAV at our long-term $3.50/lb Cu price of ~$650 million.
Our additional assumptions include: an underground mining operation with a ~22 ktpd operating rate and ~20
year life of mine, a reserve grade of 1.26% Cu (with stronger grades earlier on in the mine plan), recoveries of
85%, yielding average copper production of 90 ktpy, all-in copper cash costs of ~$2.33/lb, and initial
development capital of $1.3 billion (capital intensity of ~$15,109/t Cu). However, we caution that our conceptual
NAV approach is highly speculative and could vary significantly from the scope of the planned PEA due to be
released in Q2/23. In our view, Ivanhoe Electric is just beginning to scratch the surface regarding the ultimate Cu
project that Santa Cruz could support. Furthermore, we would not be surprised if the eventual mine plan at
Santa Cruz employs a staged development approach.

December 22, 2022
Tintic Copper-Gold Project
The Tintic Copper-Gold project is located in Utah, in a prolific mining district with extensive historical production
of high-grade silver, gold, and copper. The Tintic Project is a gold, silver, and base metal carbonate replacement
deposit (CRD), skarn, fissure vein, and copper-gold porphyry exploration project. The Tintic Mining District lies
on a parallel geological trend, located approximately 40 miles (64 kilometres) south of Rio Tinto’s (RIO-L; not
rated) prolific Bingham Canyon porphyry copper-gold mine. The district contains intrusions of similar age and
composition to those at Bingham Canyon, and highly favourable carbonate host rocks containing most of the
historical precious and base metals. Tintic was a historically significant silver producing district that Ivanhoe
Electric believes has the potential to host a world-class porphyry copper-gold deposit. Tintic is an exploration-
stage project, without any current mineral reserves or resources.
Exhibit 19 – Tintic Project Location Map

Ivanhoe Electric’s exploration area covers approximately 65 km2 of patented claims and unpatented claims and
an additional 75 km2 of state leases and prospecting permits consolidated into a contiguous land package. The
Tintic Project is located near the city of Eureka, approximately 95 km south of Salt Lake City, and can be
accessed from Highway US6, approximately 30 km west of the Interstate 15 junction.

December 22, 2022
The project is managed out of the city of Eureka (population of ~700), which is approximately 2 km north of the
northeastern Tintic Project property boundary. At this time, equipment and other services are mostly obtained
from the towns of Tooele or Payson/Spanish Fork, which are about a 45-minute drive from the project.
Project History
The Tintic Mining District has a storied, century-and-a-half-long history of high-grade silver, gold, and copper
production. Mineralization in the Tintic District was discovered in 1869, and by 1871 mining camps were
established in the nearby city of Eureka. Mining was focused on high-grade Ag-Pb-Zn oxide CRDs, both at
surface and underground, with lesser production from steeply dipping Au-Ag-Pb-Zn-Cu fissure veins. The Tintic
precious and polymetallic mining district saw nearly continuous mining operations from 1871 to 2002. Mines
including the Centennial Eureka, Mammoth, Bullion Beck, Grand Central, Gold Chain, Dragon, Rabbit’s Foot, and
Lucky Boy, produced high-grade copper, gold, silver, lead, and zinc from the surface down to the water table.
Total historical recorded production from deposits located within Ivanhoe Electric’s acquired property, mostly in
the Main and Southwest Tintic mining districts, totals approximately 1.9 Moz Au, 136 Moz Ag, 105 kt Cu, 416 kt
Pb, and 6 kt Zn. In terms of past production, remaining resources, and past production plus remaining resources,
the Tintic Mining District was the third-largest silver mining district in the United States.
Complex land ownership within the district has constituted the single most limiting factor for the development
of mining at Tintic in recent times. The core of Ivanhoe Electric’s land package was assembled by Dr. Spents
Hansen, PhD., a Utah native and experienced geologist and mining engineer. Dr. Hansen acquired numerous
properties and preserved many historical mining maps and reports over a period of several decades. Dr.
Hansen’s long-time experience in the Tintic District has assisted IE in consolidating a large acreage of privately
owned mining claims and mineral leases. Ivanhoe Electric began acquiring property in 2017, and has since
concluded more than 20 land deals to assemble the current land positioning totalling 16,000 acres (65 km2).
Significant portions of the patented claims at Tintic are subject to NSR royalties ranging between 1% and 4%.
Exhibit 20 – Tintic District Ivanhoe Land Ownership

December 22, 2022
Geology and Mineralization
The Tintic District has been broadly divided into four sub-districts: North, East, Main, and Southwest. The
property held by Ivanhoe Electric comprises a large portion of the Main and Southwest Tintic Districts, where
Paleozoic limestone, dolomite, and quartzite rocks, and late Eocene-Oligocene volcanic rocks are intruded by the
Silver City intrusive complex. The Silver City intrusive complex is prospective to host porphyry-style
mineralization at depth.
Across Tintic, three deposit types have been identified:
1. Widespread “fissure vein” deposits that host gold, silver, lead, zinc, and lesser copper.
2. CRDs consisting of columnar and pod-like mineralized bodies connected by pipe-like, tabular, and irregular
masses of mineralization, forming continuous “ore runs” of copper, gold, and silver, zoning distally to lead
and zinc.
3. Porphyry copper deposits.

As depicted in Exhibit 21, historical exploration and mining was focused above the water table. Typically, once
the water table was reached, exploration and mining activities ceased. Therefore, mineralization along existing
mined zones at depth may be preserved below the water table.
Exploration
Exploration by IE commenced in late 2017 via an airborne geophysical survey. This was followed by on-the-
ground exploration in early 2018, which included a ground geophysical survey and a geological baseline work
program (soil and rock grab sampling, age dating, petrology, mapping, prospecting, and identification of key
intrusive and alteration phases). Additional work in 2018 and 2019 focused on re-logging of deep historical
drillholes and the compilation and 3D digitization of historical mines, underground workings, and mineralized
zones. In late 2021, IE completed a small exploration drill program, including two reverse circulation holes and a
fan of four diamond drill holes. IE has also compiled a database from over 125 years of exploration and
development operations in the Tintic Project district by dozens of historical owners and operators. A total of 489
drillholes were completed historically on the Tintic Project by several prior owners and operators.
Typhoon has also completed a 72 km2, fully 3D survey, with effective penetration depths averaging over 1.5 km.
The survey revealed never-before-seen porphyry copper-gold exploration potential areas that appear
prospective for drilling.
Subsequent to Ivanhoe Electric’s IPO, the company released a maiden exploration update for Tintic in
September 2022. Six sections from five historical drillholes from an exploration area known as New Park
“Reserves” were re-sampled by Ivanhoe. In three of the holes immediately below the Mammoth Pipe and water
table, the presence of enargite and pyrite indicated a continuation of the oxidized high-sulphidation
mineralization mined historically into unoxidized sulphide-rich mineralization. Furthermore, the appearance of
chalcocite in one of the holes examined indicates the potential for hypogene copper enrichment replacing pyrite
at higher temperatures within replacement-style mineralization, and may reflect increasing proximity to the
source porphyry copper system that led to the deposits that have been identified within the Tintic District.
In November 2022, Ivanhoe Electric announced that it had commenced its diamond drilling program at Tintic.
The drill program has started in an area with good access during the winter months, using a track-mounted
diamond drill rig. Initial exploration drilling is planned to investigate the near-surface, historically mined, high-
grade copper, gold, and silver mineralization. Drill holes will continue to depth to test for the evidence of a
potential porphyry copper-gold deposit. A more extensive drilling campaign is expected starting in the spring of
2023.

December 22, 2022
In our view, the Tintic District, and specifically the land package held by Ivanhoe Electric, is highly prospective
and has the potential to support a future underground mining operation.
Exhibit 21 – Tintic Historical and Target Model

Valuation
We have an ascribed a nominal value of $200 million (or $2.05 per share) for the Tintic Cu-Au Project in Utah in
our NAV. As an exploration-stage project with no reserves or resources, this valuation is highly speculative .

December 22, 2022
Typhoon and Computational Geosciences Inc.
In addition to its portfolio of mining assets, Ivanhoe Electric also controls patents to an exploration technology
known as Typhoon, and a data inversion business, CGI, that work together to analyze and evaluate mineral
deposits. Ivanhoe Electric believes that Typhoon can provide the company with a proprietary tool to potentially
discover deposits otherwise thought to be undetectable through conventional survey methods and technology.
The Typhoon technology consists of sophisticated codes to process geophysical data and build 3D sub-surface
images that could help indicate the presence of various metals and minerals. Typhoon allows the company to
more cost-effectively and efficiently evaluate large-scale mineral deposits of depths of up to 1.5 km (with better
resolution), while the CGI software interprets and visualizes the geological data generated by Typhoon. Typhoon
works by transmitting a series of pulses or energy into the ground. Exhibit 22 outlines the Typhoon methodology.
Exhibit 22 – Typhoon Methodology

Note: Ivanhoe Electric does not hold any rights to water and oil exploration, as I-Pulse holds an exclusive licence to these elements in geological surveys for mineral exploration.
To date, Typhoon has proven to be an important exploration tool at Tintic. The company plans to use this
technology at Santa Cruz. Exhibit 23 outlines the current and historical deployment of Typhoon (and its
predecessor technology, “Zeus”).
While not utilized as frequently in the current generation of Typhoon (as compared to its predecessor Zeus),
Ivanhoe Electric also holds an exclusive licence to certain technology from I-Pulse to use, develop, sell, and
commercialize products and services incorporating such technology within the field of geological surveying for
mineral exploration.
Ivanhoe Electric believes that the following specifications differentiate Typhoon from conventional geophysical
systems:
• High current that is adjustable according to the depth and scale of the exploration target.
• High voltages that are also adjustable to overcome near-surface resistance.
• The ability to transmit both electromagnetic and direct current signals.

December 22, 2022
• Extremely clean signal, which yields a high signal-to-noise ratio in recorded data.
• The ability to synchronize with multiple types of data receivers, so that the user can choose the receiver
system most appropriate for the exploration environment.
• Three deployment configurations, from a large containerized system to a smaller lightweight system that is
helicopter portable.
Ivanhoe Electric currently has three Typhoon equipment sets.
Exhibit 23 – Current and Historical Deployment of Typhoon

Monetization Opportunities
Currently, Typhoon is a proprietary technology that Ivanhoe Electric is using to advance its portfolio of mineral
assets. However, the company has noted that it has received significant interest with respect to the technology
and its potential use. In the future, the company has noted that it may consider various methods to unlock
additional value through Typhoon, including via joint venture type arrangements, exchanging usage for royalty
or minority ownership interests in assets, or licensing it out with a fee-based approach.
Valuation
We do not ascribe any value to our NAV for Ivanhoe Electric based on Typhoon and CGI. However, in the setting
of our NAV multiple for the company in our target price determination, we have taken the competitive
advantage that Typhoon provides into consideration.

December 22, 2022
Energy Storage
Ivanhoe Electric also owns 90% of the outstanding shares of VRB Energy. VRB is primarily engaged in the design,
manufacture, installation, and operation of large-scale energy storage systems. VRB’s core technology and
primary product is a Vanadium Redox Battery Electrochemical Storage System known as VRB-ESS.
Vanadium redox batteries are a type of rechargeable flow batteries that use vanadium ions as the charge
carriers. Ivanhoe Electric believes that this type of battery has the lowest lifecycle cost of energy, making them
ideal for grid-scale energy storage.
VRB has over 500 megawatt-hours (MWh) of energy storage capacity installed or in development and has
completed over 1 million hours of testing and operation.
Exhibit 24 – VRB Energy: Well-Suited to Large-Scale Storage

Valuation
We have ascribed a value of $120 million (or $1.23 per share) to Ivanhoe Electric’s ownership interest in VRB. Our
valuation is based on a look-through value derived from the capped pre-money valuation of $158 million in
VRB’s $24 million convertible bond issuance in June 2021. Post-conversion (which occurs automatically following
an equity financing or sale event for VRB), Ivanhoe expects its ownership interest in VRB to be diluted by
between ~13.6% and 14.4%. As such, our valuation is based on an attributable 76% ownership interest.

December 22, 2022
Exhibit 25 – VRB Energy: Proven Grid-Scale Battery Technology

Exhibit 26 – Potential Energy Storage Market: A ~150 GW Global Market by 2025
Source: Company reports; Bloomberg Long-Term Energy Storage Outlook, July 2019.

December 22, 2022
Risk Factors
Commodity price exposure. Similar to all mining companies, IE’s results could be volatile and materially
different from our estimates because of its exposure to market prices for commodities, notably copper. The
company also has exposure to gold and potentially silver prices. However, in the near term, the company has no
mineral revenue or cash flow.
Acquisition risk. Ivanhoe Electric does not currently own the surface rights at the Santa Cruz Project. The
acquisition of these surface rights could be more expensive and more challenging than anticipated.
Exploration, development, and construction risks. The entirety of our operating-level NAV for IE is ascribed to
non-producing, development-stage assets, which are generally subject to additional risks (compared with more
mature producing assets) as they progress through the exploration, development, and construction stages.
These risks relate to geological or other physical characteristics of the project, financing capacity, project
execution, and permitting risks, which could all affect the asset’s production outlook.
Resource conversion risk. At Santa Cruz, the mineral deposit is currently outlined in the resource category. The
future conversion of resources to reserves is subject to a variety of technical, operating, and financial risks as
resources, by definition, do not have proven economic viability. Moreover, there can be no assurance that
exploration in the Tintic property will yield a mineral discovery with economic viability.
Balance sheet risk. While funded for near-term exploration, Ivanhoe Electric is not funded for the potential
development of Santa Cruz (or Tintic). Additionally, future commodity price volatility, potential capex overruns,
and/or ramp-up delays, changes in tax and royalty regimes, along with other factors, could result in the need for
additional financing. Given IE is a development-stage company, it will require additional future financing to fund
its ongoing exploration efforts and potentially, development of its asset base.
Near-term share price volatility risk driven by share lock-up expiration. Approximately 73.8 million shares (or
79% of the company’s shares outstanding) are removed from a 180-day post-IPO lock-up on December 25,
2022; in our view, this could result in elevated near-term volatility in the shares.

December 22, 2022
Appendix 1: Select Management Biographies

Board of Directors
Robert Friedland – Executive Chairman
Robert Friedland served as CEO of Ivanhoe Electric from July 16, 2020 to October 2022, and has served as
Chairman (and subsequently Executive Chairman) of the Board of Directors since April 30, 2021. For more than
25 years, Mr. Friedland has been recognized by leaders of the international financial sector and mineral resource
industries as an entrepreneurial explorer, technology innovator, and company builder. Under Mr. Friedland’s
leadership, executives within the Ivanhoe group and associated companies have raised more than $25 billion
through a diverse range of financing vehicles on world capital markets since 1993. Mr. Friedland has extensive
experience in established and emerging markets in the Asia Pacific Region, southern Africa, and the Americas.
Mr. Friedland has been the Director, President, and CEO of Ivanhoe Capital Corporation since July 1988, the
executive Co-Chairman of Ivanhoe Mines Ltd. (IVN-T; Sector Outperform; C$13.00 one-year target) since
September 2018 (and previously Executive Chairman from May 2012 until September 2018), and was the Co-
Chair Director of SK Global Entertainment Inc. from February 2017 to December 2021.
Mr. Friedland previously spearheaded the discovery, development, and ultimate sale of two world-class mining
assets, namely the Oyu Tolgoi copper-gold mine in Mongolia (acquired by Rio Tinto and renamed Turquoise Hill
Resources) and the Voisey’s Bay nickel-copper-cobalt mine in Labrador, Canada (acquired by Inco and now
owned by Vale). More recently, Mr. Friedland spearheaded the discovery and development of the word-class
Kamoa-Kakula copper mine the Democratic Republic of the Congo, along with the Platreef PGM mine in South
Africa. Mr. Friedland was inducted into the Canadian Mining Hall of Fame in 2016 and received a Lifetime
Achievement Award during the Canadian Mining Symposium in 2017. Mr. Friedland graduated from Reed
College with an undergraduate degree in political science.
Russell Ball – Director
Russell Ball is an international mining executive with 30 years of experience. He was CEO of Calibre Mining Corp.
from October 2019 to February 2021 and Chair of the Board beginning in 2018. From May 2013 to December
2017, Mr. Ball held various executive positions with Goldcorp Inc. and was Goldcorp’s Executive Vice-President,
Corporate Development and Chief Financial Officer from March 2016 to November 2017. Prior to that, Mr. Ball
held various positions with Newmont Mining Corporation from 1994 to 2013, including Executive Vice-President
and Chief Financial Officer from 2008 to May 2013. Mr. Ball is a Chartered Accountant (South Africa) and a
Certified Public Accountant in the United States. He holds a Masters in Accounting and Diploma in Accounting
from the University of Natal (South Africa).
Victoire de Margerie – Director
Victoire de Margerie is Founder and Vice-Chairman of the World Materials Forum and Executive
Chairman/Reference Shareholder of Rondol Industrie, a deep technology start-up that develops extrusion
machinery for drug formulations and other high-tech applications. Prof. de Margerie has spent 35 years in the
Materials Industry in Canada, France, Germany, the United Kingdom, and the United States. Prof. de Margerie
was elected an Academician at the National Academy of Technologies of France in 2019 and she joined the
board of Mines ParisTech in 2021. She graduated from HEC Paris and Sciences Po Paris and holds a PhD in
Management from Université de Paris 2.
Francis Fannon – Director
The Honorable Francis (Frank) Fannon is currently the Managing Director of Fannon Global Advisors, a strategic
advisory focused on geopolitics, the energy transition, and market transformation. He is currently a Senior
Advisor for Standard Lithium Ltd., Nano One Materials Corp., and also serves as a Senior Geostrategy Advisor for

December 22, 2022
Appian Capital Advisory LLP. In May 2018, Mr. Fannon was unanimously confirmed by the United States Senate
to serve as the inaugural Assistant Secretary of State for Energy Resources, a position he held until January 2021.
Previously, Mr. Fannon established BHP’s U.S. Corporate Affairs function as a Managing Director and served as a
Chief U.S. Advisor to the BHP Foundation. Mr. Fannon holds a J.D. from the University of Denver College of Law,
MA in International Affairs, Economics & Trade from the University of Denver Korbel School of International
Studies, and a BA from Radford University.
Hirofumi Katase – Director
Hirofumi Katase has served as Executive Vice-Chairman, Director General of Industrial Science and Technology
and a member of the Board of Directors of I-Pulse since December 2017. Mr. Katase has also been President of I-
Pulse Japan Co., Ltd., I-Pulse’s operating subsidiary in Japan, since January 2018. Prior to these roles, he recently
served as Japan’s Vice-Minister for International Affairs at the Ministry of the Economy, Trade and Industry
(METI) from June 2016 to July 2017. He has held numerous management positions in trade, energy, and
industrial policy at METI since joining in 1982. Mr. Katase earned a Bachelor’s degree in law from the University of
Tokyo and a Master’s degree in applied economics from the University of Michigan.
Oskar Lewnowski – Director
For the last nine years, Oskar Lewnowski has been the CEO of the Orion Mine Finance Group, a family of funds
investing in the metals and mining industry since 2013. Mr. Lewnowski is the Chair of the Investment Committee
for each of the funds and sets the overall strategic direction for Orion. Prior to his roles in Orion, Mr. Lewnowski
founded the Red Kite Group, the largest metals trading fund of its time, and was the Chief Investment Officer of
its mine finance business. Mr. Lewnowski earned a Bachelor’s degree from Georgetown University and an MBA
from the Leonard Stern School of Business at New York University.
Priya Patil – Director
Priya Patil is an experienced corporate director, former senior public company executive, and investment banker.
Ms. Patil was Global Head, Business Development (Diversified Industries) of the TSX. She was Managing Director,
Partner and Founding Partner (Eastern Operations) of PI Financial and a Managing Director, Partner and Head of
Investment Banking of Loewen Ondaatje McCutcheon. Ms. Patil holds a B.Sc. (Statistics and Computer Sciences)
from the University of Bombay and a J.D. from the University of Ottawa. Ms. Patil also completed the Directors
Education Program (ICD.D), Rotman School of Management (University of Toronto) and the Innovation
Governance Program of the Council of Canadian Innovators. She is a member of the State Bar of California, the
Ontario Bar (Law Society of Ontario), and Charter of the Institute of Corporate Directors (ICD.D).
Senior Management
Taylor Melvin – President and Chief Executive Officer
Mr. Taylor Melvin has served as President and CEO of Ivanhoe Electric since November 2022. Mr. Melvin has over
20 years of experience in the natural resources sector as a senior corporate development professional and
investment banker, most recently serving as Vice-President, Corporate Development, for Freeport McMoRan Inc.
(FCX-N; Sector Perform; $34.00 one-year target). Prior to joining FCX in 2008, Mr. Melvin was an Executive
Director in J.P. Morgan’s Natural Resources investment banking group in New York. Mr. Melvin received his
Bachelor of Science in Business Administration and his MBA from the University of North Carolina at Chapel Hill.
Eric Finlayson – Chief of Global Exploration
Eric Finlayson served as Ivanhoe Electric’s President since July 2020 and assumed the role of Chief of Global
Exploration in November 2022. Mr. Finlayson is a geologist with ~40 years of global multi-commodity
experience. Previously, Mr. Finlayson was a Senior Advisor at HPX from 2013 until December 2015, when he was
appointed President. Prior to joining HPX, Mr. Finlayson spent nearly 25 years in various positions with Rio Tinto,
including the position of Global Head of Exploration for Rio Tinto and CEO of Rio Tinto Coal Mozambique. Mr.

December 22, 2022
Finlayson is also a director of VRB, Kaizen, Sama and Sunrise Energy Metals Limited, and was a director of
Cordoba from 2015 to 2021. Mr. Finlayson holds a degree in Applied Geology from the University of Strathclyde
in Glasgow.
Mark Gibson – Chief Operating Officer
Mark Gibson has served as COO of Ivanhoe Electric since April 2021 and as the COO of Kaizen since May 2016
and COO of Cordoba since August 2017. Mr. Gibson has ~32 years of wide-ranging experience as a geoscientist
and manager in the natural resources sector. Mr. Gibson joined HPX in 2011 as the company’s founding executive
and was instrumental in the formation of Kaizen in 2013 and HPX’s strategic partnership with Cordoba in 2015.
Prior to HPX, Mr. Gibson worked with Anglo American, and was the founder of a geophysical service company
focused on managing seismic surveys for the mining industry. Mr. Gibson holds an M.Sc. Geophysics from the
University of Leeds; a B.SC. (Hons) Geology from the University of Southampton, is a Professional Natural
Scientist from the South African Council for Natural Scientific Professions, and is a Professional Geoscientist.
Jordan Neeser – Chief Financial Officer

Jordan Neeser assumed the role of CFO in November 2022. Mr. Neeser has over 18 years of experience in
financial reporting, corporate development, and corporate finance, primarily in the mining sector. Most recently,
Mr. Neeser was CFO and Corporate Secretary at TSX-listed Gold Standard Ventures, which was acquired by Orla
Mining in August 2022. Mr. Neeser was previously CFO of Conifex Timber, and before that spent eight years with
First Quantum Minerals (FM-T; Sector Outperform; C$30.00 one-year target) as both Group Controller and
Director, Business Development. Mr. Neeser started his career with KPMG, is a Chartered Public Accountant, and
holds a Bachelor of Commerce degree from the University of British Columbia.
Charles Forster – Senior Vice-President of Exploration
Charles Forster has served as Senior Vice-President, Exploration since April 2021. Mr. Forster is a Professional
Geoscientist with more than 45 years of diversified mineral exploration experience in Canada, United States,
Sub-Saharan Africa, Portugal, the PRC, and Mongolia. Mr. Forster was previously the Senior Vice-President of
Exploration at Oyu Tolgoi in Mongolia from early 2001 to June 2008. Mr. Forster holds a Bachelor of Science
Degree from the University of British Columbia and is a Registered Professional Geoscientist in the Province of
British Columbia.
Graham Boyd – Senior Vice-President, U.S. Projects
Graham Boyd has served as Vice-President, U.S. Projects since June 2021 and was promoted to Senior Vice-
President, U.S. Projects in November 2022. Mr. Boyd is a geologist with over 16 years of base and precious metals
experience. He has held various senior roles at HPX and several Ivanhoe companies, including as Principal and
Senior Geologist since 2013. Mr. Boyd worked with Ivanhoe Australia in 2008, where he was part of the discovery
team for Merlin, the world’s highest-grade molybdenum-rhenium deposit. Mr. Boyd was also a key contributor to
delineation and resource development of the Mount Dore Cu and Mt. Elliott-SWAN Cu-Au deposits. Mr. Boyd
holds a Bachelor of Science in Geoscience from the University of Victoria.
Glen Kuntz – Senior Vice-President, Mine Development
Glen Kuntz has served as Senior Vice-President, Mine Development since November 2022. Previously, he was
Chief Technical and Innovation Officer, starting in January 2022. He is also Vice-President of Mesa Cobre, one of
Ivanhoe Electric’s subsidiaries, effective April 2022. Mr. Kuntz is a Professional Geologist and mining executive
with over 30 years of experience in exploration, project development, open-pit and underground mining
operations, and business development across a variety of commodities and mining types/methods through the
Americas, Africa, and Australia. Prior to joining Ivanhoe Electric, Mr. Kuntz had been a consulting specialist
geology/mining at Nordmin since March 2018 and before that, Director, Exploration Projects, at Yamana Gold
Inc. from 2015 to 2018. Mr. Kuntz holds a Bachelor of Science in Geology from the University of Manitoba.

Scenario Analysis Metals & Mining December 22, 2022
Ivanhoe
Electric Inc. (IE-N; US$14.00; SO)
1-Year Target/Bull Case/Bear Case Scenarios Investment Thesis
1-YR. SCENARIO We rate the common shares of Ivanhoe Electric Sector

(Dec-22-22)
Closing Price for IE-N (USD) Outperform based on the company’s impressive
22 management track record, proprietary ”Typhoon”
Bull case 3D exploration technology, and focus on U.S.-based
20
US$20.00 (+56%)
critical minerals.
18
Risks
16
14
Price target Copper prices, land acquisition risk, exploration/
US$14.00 (+9%)
Closing price
US$12.81
development/construction risk, resource conversion
12
(Dec-21-22) risk, balance sheet risk, share price volatility/low
10 trading liquidity risk.
8
Bear case Key Drivers
US$7.00 (-45%)
6
Jul-22 Oct-22 Copper prices, exploration results, technical study
Created by BlueMatrix
results.
Source: FactSet; Scotiabank GBM estimates.
Bull Case (US$20.00)

Our bull case target is based on a 2.0x multiple on our 10% NAVPS. In our view, an expansion of
IE’s multiple could arrive based on continued exploration success at Santa Cruz, strong exploration
results at Tintic, and/or further evidence of the exploratory powers of its Typhoon technology.
Base Case/Target (US$14.00)
Our base case target is derived from 1.4x our 10% NAVPS multiple, which is largely based on an in
situ value of $0.07/lb on indicated and inferred resources at Santa Cruz.
Bear Case (US$7.00)
Our bear case target is based on a 0.7x multiple on our 10% NAVPS, which is equivalent to the
average multiple for IE’s development peers. In our view, an erosion of IE’s multiple could arrive
based on a lack of exploration success or an inability to meaningfully convert resources at Santa
Cruz into economic reserves.
Company Description Stock Catalysts and Timing

Ivanhoe Electric is a smaller cap minerals exploration and development company with a focus Updated resource estimate for Santa Cruz Project –
on identifying and developing mineral projects, and ultimately mines, associated with the metals Q1/23.
necessary for electrification (in particular, copper, nickel, cobalt, vanadium, gold, silver, and the Initial PEA for the Santa Cruz Project – Q2/23.
platinum group metals). The company’s mineral assets are located predominantly in the United
Exploration drilling results from the Santa Cruz Project
States, and to a lesser degree, other parts of the Americas. The company’s material mineral/
– ongoing.
development assets include the Santa Cruz Copper Project in Arizona and the Tintic Copper-
Gold Project in Utah. In addition to Ivanhoe Electric’s portfolio of projects, the company also Exploration drilling results from the Tintic Project –
owns patents on an exploration geophysical survey technology known as “Typhoon”, which spring 2023.
provides significantly deeper penetration and better resolution than conventional geophysical Typhoon leveraging – ongoing.
instrumentation.


December 22, 2022
Pertinent Data

First Quantum Minerals Ltd. (FM-T; C$27.65)
Valuation: 50/50 weighting of 6.0x avg. 2023E-2024E EV/EBITDA and 1.3x 8% NAVPS
Key Risks: Political, commodity, operating, development, currency, and balance sheet

Freeport-McMoRan Inc. (FCX-N; US$38.45)
Key Risks: Commodity prices; operational; balance sheet; political

Hudbay Minerals Inc. (HBM-T; C$7.11)
Key Risks: Commodity, operating, development, financing, political

Ivanhoe Electric Inc. (IE-N; US$12.81)
Valuation: 1.4x our 10%NAVPS estimate

Key Risks: Commodity prices (largely copper); acquisition risk; exploration, development, and
construction risks; resource conversion risks; balance sheet risk; share-price volatility and low liquidity
risk.

Ivanhoe Mines Ltd. (IVN-T; C$11.12)
Valuation: 1.3x our 10% NAVPS
Key Risks: Copper and PGM prices, geopolitical, project development, ramp-up of mining rates, resource
conversion.


December 22, 2022
Appendix A: Important Disclosures
Company Disclosures (see legend below)*

Excelsior Mining Corp. VS0705
First Quantum Minerals Ltd. O3, VS0725
Hudbay Minerals Inc. VS0738
Ivanhoe Electric Inc. G, I, U, VS0741
Ivanhoe Mines Ltd. VS0691
I, Orest Wowkodaw, certify that (1) the views expressed in this report in connection with securities or issuers that I analyze accurately reflect
my personal views and (2) no part of my compensation was, is, or will be directly or indirectly, related to the specific recommendations or
views expressed by me in this report.
This document has been prepared by Research Analysts employed by The Bank of Nova Scotia and/or its affiliates. The Bank of Nova Scotia,
its subsidiaries, branches and affiliates are referred to herein as "Scotiabank." "Scotiabank" together with "Global Banking and Markets"
is the marketing name of the global corporate and investment banking and capital markets business of The Bank of Nova Scotia and its
affiliates. Scotiabank, Global Banking and Markets produces research reports under a single marketing identity referred to as "globally
branded research" under U.S. rules. This research is produced on a single global research platform with one set of rules which meet the
most stringent standards set by regulators in the various jurisdictions in which the research reports are produced. In addition, the Research
Analysts who produce the research reports, regardless of location, are subject to one set of policies designed to meet the most stringent
rules established by regulators in the various jurisdictions where the research reports are produced.
Scotiabank relies on information barriers to control the flow of non-public or proprietary information contained in one or more areas within
Scotiabank into other areas, units, groups or affiliates of Scotiabank. In addition, Scotiabank has implemented procedures to prevent
research independence being compromised by any interactions they may have with other business areas of The Bank of Nova Scotia. The
compensation of the Research Analyst who prepared this document is determined exclusively by Scotiabank Research Management and
senior management (not including investment or corporate banking).
Research Analyst compensation is not based on investment or corporate banking revenues; however, compensation may relate to the
revenues of Scotiabank as a whole, of which investment banking, corporate banking, sales and trading are a part. Scotiabank Research will
initiate, update and cease coverage solely at the discretion of Scotiabank Research Management. Scotiabank Research has independent
supervisory oversight and does not report to the corporate or investment banking functions of Scotiabank.
For Scotiabank, Global Banking and Markets Research Analyst Standards and Disclosure Policies, please visit www.gbm.scotiabank.com/
disclosures.
For additional questions, please contact Scotiabank, Global Banking and Markets Research, 4 King St W, 12th Flr, Toronto, Ontario, M5H 1A1.
Time of dissemination: December 22, 2022, 06:26 ET. Time of production: December 20, 2022, 21:31 ET. Note: Time of dissemination is
defined as the time at which the document was disseminated to clients. Time of production is defined as the time at which the Supervisory
Analyst approved the document.
*Legend
G Scotia Capital (USA) Inc. or its affiliates has managed or co-managed a public offering in the past 12 months.
I Scotia Capital (USA) Inc. or its affiliates has received compensation for investment banking services in the past 12 months.
O3 The Bank of Nova Scotia and its affiliates collectively have a net long position in excess of 0.5% of the total issued share capital of
the issuer.
U Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or
debt securities of, or have provided advice for a fee with respect to, this issuer.
VS0691 Research Analyst Orest Wowkodaw visited Ivanhoe Mines Ltd’s Kamoa-Kakua, Platreef and Kipushi mine development projects in
the Democratic Republic of the Congo and South Africa on February 12-15 2020. Partial payment was received from the issuer for
the travel-related expenses incurred by the Research Analyst to visit this site.
VS0705 Research Associate Analyst Daniel Sampieri visited Excelsior Mining's Gunnison in situ copper mine in Arizona, USA, on March 28,
2022. The issuer paid for a portion of the travel-related expenses incurred by the Research Associate Analyst to visit the site.
VS0725 Research Analyst Orest Wowkodaw visited the Cobre Panama copper-gold mine in Panama on September 14, 2022. The issuer
paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the site.
VS0738 Research Analyst Orest Wowkodaw visited Hudbay Minerals Inc's Copper World project in Tucson, Arizona on October 17-18, 2022.
Partial payment was received from the issuer for the travel-related expenses incurred by the Research Analyst to visit this site.


December 22, 2022
VS0741 Research Analyst Orest Wowkodaw visited the Santa Cruz copper project in Casa Grande, Arizona on October 18-19, 2022. No
payment was received from the issuer for the travel-related expenses incurred by the Research Analyst to visit this site.


December 22, 2022
Rating and Price Target History
First Quantum Minerals Ltd. (FM-T) as of December 21, 2022 (in CAD)
12-12-2019 03-24-2020 04-09-2020 04-09-2020 07-29-2020 09-15-2020 10-13-2020 10-29-2020 11-12-2020 01-11-2021
Price: 13.96 Price: 7.15 Price: 7.32 Price: 7.32 Price: 12.02 Price: 13.09 Price: 12.32 Price: 14.65 Price: 15.52 Price: 24.68
Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO
Target: 16.50 Target: 16.00 Target: 14.00 Target: 13.50 Target: 14.00 Target: 15.00 Target: 17.00 Target: 17.50 Target: 19.50 Target: 30.00
50
40
Price (CAD)
30
20
10
0
Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23
01-26-2021 02-17-2021 04-12-2021 07-12-2021 10-12-2021 11-02-2021 01-17-2022 01-17-2022 02-02-2022 04-13-2022
07-07-2022 07-27-2022 10-26-2022

Price: 26.71 Price: 20.34 Price: 25.73
Rating: SO Rating: SO Rating: SO
Target: 35.00 Target: 33.00 Target: 30.00
*Represents the value(s) that changed.

Ratings Legend: FS=Focus Stock; SO=Sector Outperform; SP=Sector Perform; SU=Sector Underperform; T=Tender; UR=Under Review; CS=Coverage Suspended; DC=Discontinued Coverage
Source: Scotiabank GBM estimates; FactSet.
Freeport-McMoRan Inc. (FCX-N) as of December 21, 2022 (in USD)

10-15-2019 01-13-2020 01-23-2020 04-09-2020 04-16-2020 04-27-2020 07-09-2020 07-23-2020 10-13-2020 10-22-2020
Rating: SP Rating: SP Rating: SP Rating: SP Rating: SP Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO
60
50
40
Price (USD)
30
20
10
0
11-12-2020 01-11-2021 04-12-2021 07-12-2021 07-22-2021 10-12-2021 11-01-2021 01-17-2022 01-26-2022 02-02-2022
04-13-2022 04-19-2022 04-21-2022 07-07-2022 07-25-2022 10-13-2022 11-11-2022
Price: 49.43 Price: 50.64 Price: 44.95 Price: 29.22 Price: 28.29 Price: 29.36 Price: 38.04
Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SP
Target: 56.00 Target: 57.00 Target: 55.00 Target: 40.00 Target: 36.00 Target: 34.00 Target: 34.00



December 22, 2022
Hudbay Minerals Inc. (HBM-T) as of December 21, 2022 (in CAD)

11-12-2019 01-13-2020 02-04-2020 02-24-2020 03-17-2020 03-31-2020 04-09-2020 04-16-2020 05-07-2020 05-15-2020 07-09-2020
Price: 4.44 Price: 4.93 Price: 4.10 Price: 3.60 Price: 2.18 Price: 2.66 Price: 3.07 Price: 2.86 Price: 3.37 Price: 3.13 Price: 4.48
Rating: SP Rating: SP Rating: SO Rating: SO Rating: SP Rating: SP Rating: SP Rating: SP Rating: SP Rating: SP Rating: SP
Target: 5.25 Target: 5.75 Target: 5.50 Target: 5.00 Target: 3.50 Target: 3.25 Target: 3.50 Target: 4.25 Target: 4.50 Target: 4.00 Target: 4.25
14
12
10
Price (CAD)
8
6
2
0
08-12-2020 10-13-2020 11-04-2020 11-12-2020 01-11-2021 03-30-2021 04-12-2021 05-12-2021 08-10-2021 10-12-2021 11-04-2021
Price: 5.06 Price: 5.89 Price: 6.41 Price: 6.75 Price: 8.73 Price: 8.42 Price: 9.25 Price: 10.43 Price: 8.24 Price: 8.40 Price: 8.42
Rating: SP Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO
Target: 5.00 Target: 7.25 Target: 7.50 Target: 8.25 Target: 12.00 Target: 12.50 Target: 14.00 Target: 13.00 Target: 12.00 Target: 11.50 Target: 11.00
12-15-2021 01-17-2022 02-25-2022 04-13-2022 04-19-2022 05-10-2022 05-12-2022 07-07-2022 08-09-2022
Price: 8.49 Price: 10.09 Price: 9.92 Price: 9.67 Price: 9.42 Price: 6.90 Price: 6.58 Price: 5.24 Price: 5.32
Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO
Target: 11.50 Target: 12.50 Target: 11.50 Target: 12.00 Target: 12.50 Target: 12.00 Target: 10.00 Target: 7.50 Target: 8.00

Ivanhoe Electric Inc. (IE-N) as of December 21, 2022 (in USD)

16
14
12
10
Price (USD)
8
6
Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23

Ivanhoe Mines Ltd. (IVN-T) as of December 21, 2022 (in CAD)

03-22-2021 07-12-2021 10-12-2021 01-17-2022 04-13-2022 05-10-2022 07-07-2022
Price: 6.91 Price: 9.33 Price: 9.12 Price: 11.65 Price: 11.99 Price: 9.29 Price: 7.94
Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO Rating: SO
Target: 10.00 Target: 11.00 Target: 12.00 Target: 15.00 Target: 15.50 Target: 15.00 Target: 13.00
14
12
10
Price (CAD)
2



December 22, 2022
Definition of Scotiabank, Global Banking and Markets Equity Research Ratings

Scotiabank has a three-tiered rating system, with ratings of Sector Outperform, Sector Perform, and Sector Underperform. Each Research
Analyst assigns a rating that is relative to his or her coverage universe or an index identified by the Research Analyst that includes, but is not
limited to, stocks covered by the Research Analyst.
The rating assigned to each security covered in this report is based on the Scotiabank, Global Banking and Markets Research Analyst’s 12-
month view on the security. Research Analysts may sometimes express in research reports shorter-term views on these securities that may
impact the price of the equity security in a manner directly counter to the Research Analyst’s 12-month view. These shorter-term views
are based upon catalysts or events that may have a shorter-term impact on the market price of the equity securities discussed in research
reports, including but not limited to the inherent volatility of the marketplace. Any such shorter-term views expressed in research report are
distinct from and do not affect the Research Analyst’s 12-month view and are clearly noted as such.
Ratings

Sector Outperform (SO) Other Ratings

The stock is expected to outperform the average 12-month total
return of the analyst’s coverage universe or an index identified by Under Review – The rating has been temporarily placed under
the analyst that includes, but is not limited to, stocks covered by the review, until sufficient information has been received and assessed
analyst. by the analyst.
Sector Perform (SP) Tender – As of January 25, 2021, Scotiabank GBM discontinued the
Tender rating.
The stock is expected to perform approximately in line with the
average 12-month total return of the analyst’s coverage universe or Risk Ranking
an index identified by the analyst that includes, but is not limited to,
The Speculative risk ranking reflects exceptionally high financial
stocks covered by the analyst.
and/or operational risk, exceptionally low predictability of financial
Sector Underperform (SU) results, and exceptionally high stock volatility. The Director of
Research and the Supervisory Analyst jointly make the final
The stock is expected to underperform the average 12-month total
determination of the Speculative risk ranking.
return of the analyst’s coverage universe or an index identified by
the analyst that includes, but is not limited to, stocks covered by the
analyst.
Focus Stock (FS)

As of April 29, 2019, Scotiabank GBM discontinued the Focus
Stock rating. A stock assigned this rating represented an analyst’s
best idea(s); stocks in this category were expected to significantly
outperform the average 12-month total return of the analyst’s
coverage universe or an index identified by the analyst that
included, but was not limited to, stocks covered by the analyst.
Ratings Distribution
As of November 30, 2022
Companies Rated Investment Banking Service Provided
in Each Category in the Last 12 Months
Rating Count Percentage Count Percentage
Sector Outperform 259 50% 70 27%
Sector Perform 244 47% 55 23%
Sector Underperform 18 3% 0 0%
For the purposes of the ratings distribution disclosure FINRA requires members who use a ratings system with terms different than
“buy,” “hold/neutral” and “sell,” to equate their own ratings into these categories. Our Sector Outperform, Sector Perform, and Sector
Underperform ratings are based on the criteria above, but for this purpose could be equated to buy, neutral and sell ratings, respectively.


December 22, 2022
General Disclosures
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Ivanhoe Electric

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Initiating Coverage

December 22, 2022

Ivanhoe Electric Inc.

Market Cap. (M) $1,190

Attractive optionality to U.S.-based critical minerals. IE is currently advancing two flagship

Premium valuation is warranted. We estimate that IE shares are currently trading at a P/

3 CFPS $-0.78 $-1.37 $-1.07 $-0.20

Valuation and Target Price Rationale 7

Business Strategy and Operations Analysis 12

Santa Cruz Copper Project 12

Appendix 1: Select Management Biographies 30

Pricing as at December 20, 2022, unless otherwise stated.

Global Equity Research 2

Global Equity Research 3

Net finance expense 0 0 2 1 - - - -

Source: Company reports; Scotiabank GBM estimates.

Global Equity Research 4

Exhibit 2 – Net Debt (Cash) per Share Exhibit 3 – Debt to Capitalization

$0.60 $0.47 60%

Net Debt (Cash) per Share Debt to capitalization

Exhibit 4 – Operating and FCF per Share

($1.20) ($1.09) ($1.07)

Source: Company reports; Scotiabank GBM estimates.

Global Equity Research 5

Global Equity Research 6

Valuation and Target Price Rationale

Exhibit 5 – Ivanhoe Electric NAV Estimate Breakdown (as at YE2022E)

Fully diluted shares outstanding 97

Net Asset Value Per Share $9.84 $9.45

Source: Company reports; Scotiabank GBM estimates.

Global Equity Research 7

Exhibit 6 – Ivanhoe Electric P/NAV(10%) vs. Developer Peers

Source: FactSet; Scotiabank GBM estimates.

Source: FactSet; Company reports; Scotiabank GBM estimates.

Global Equity Research 8

Exhibit 8 – Ivanhoe Electric Material and Key Projects Map

Source: Company reports.

Global Equity Research 9

Capital Markets and Ownership Profile

Global Equity Research 10

Board and Management

Global Equity Research 11

Business Strategy and Operations Analysis

Exhibit 9 – Map of Santa Cruz Project and Surrounding Area

Source: Company reports.

Global Equity Research 12

Exhibit 10 – Santa Cruz Project Landscape

Source: Scotiabank GBM.

Global Equity Research 13

Geology and Mineralization

2. Secondary supergene sulphide mineralization composed of chalcocite.

Global Equity Research 14

Exhibit 11 – Santa Cruz Mineral Resource Estimate

Note: As at December 8, 2021. Based on a 0.39% total Cu cut-off grade.

Source: Company reports.

Denotes contained M&I Resources

Resolution* Copper World Santa Cruz Northmet Cactus White Pine

Source: Company reports; Scotiabank GBM.

Global Equity Research 15

Exhibit 13 – Santa Cruz Mineral Resource Sensitivity to Cu Cut-Off Grades

Source: Company reports.

Global Equity Research 16

Exhibit 14 – Santa Cruz Exploration: Drill Locations and Targets

Source: Company reports.