08:22 AM EDT, 06/19/2025 (MT Newswires) -- Ivanhoe Mines's ( IVPAF ) suspension of the Kakula mining copper complex in the Democratic Republic of Congo due to seismic activity will cause short-term cash flow volatility for the company, S&P Global Ratings said.

Due to the disruption at Kakula, Ivanhoe reduced its 2025 copper production guidance to a range of 370,000-420,000 tonnes from the previous target of 520,000-580,000 tonnes.

S&P expects Ivanhoe to incur most of its mining costs over a relatively short period amid repair work conducted at Kakula. The seismic activity caused an increase in water flow levels in the eastern side of the mine, and the miner is working to resolve it by the end of 2025. The company has resumed operations at the western side.

"Combined with Ivanhoe's reduced cash flow generation in 2025, we now expect that its EBITDA margins and its adjusted FFO to debt for the year will be depressed," S&P said.

Ivanhoe's cash flow for 2026 and beyond is unlikely to be significant impacted by the events at Kakula due to its expansion plans at two other projects, S&P said.