• In January 2026, Ivanhoe Electric Inc. announced it had signed a definitive Collaboration and Exploration Agreement with Sociedad Quimica y Minera de Chile (SQM) to explore SQM’s 2,002 km² of copper-focused mining concessions in northern Chile, fully funded initially by SQM with a US$9 million commitment.
• The agreement gives Ivanhoe Electric the option to earn a 50% interest in any independently verified “Qualifying Copper Deposit,” while also putting its Typhoon geophysical system and CGI data inversion software at the center of a large-scale exploration push in the Atacama Desert.
• Next, we’ll examine how this SQM-funded copper exploration partnership, built around Ivanhoe Electric’s Typhoon technology, influences the company’s broader investment narrative.

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What Is Ivanhoe Electric's Investment Narrative?

To own Ivanhoe Electric, you have to believe in its technology led copper exploration story and its ability to turn partnerships into real projects, despite limited revenue and ongoing losses. The new SQM collaboration in Chile reinforces that narrative by putting Typhoon at the center of another large, third party funded program and slightly easing near term funding pressure via SQM’s initial US$9,000,000 commitment. At the same time, it adds another exploration front that could increase execution risk and capital needs if a qualifying deposit is found and a 50/50 joint venture is triggered. Near term, catalysts still revolve around progress at Santa Cruz, Saudi and the BHP alliance, with the SQM deal now sitting alongside them as a potentially meaningful but uncertain kicker.

However, investors should also be aware of how dilution and insider selling fit into this story. Our expertly prepared valuation report on Ivanhoe Electric implies its share price may be too high.

Exploring Other Perspectives

The Simply Wall St Community’s three fair value views range from just US$0.29 to US$22.08 per share, underscoring how differently people assess Ivanhoe Electric’s upside against its persistent unprofitability and funding risk. You can weigh those divergent opinions alongside the SQM collaboration, which adds upside optionality but also extends the timeline and complexity before any copper project might reach development.

Explore 3 other fair value estimates on Ivanhoe Electric - why the stock might be worth less than half the current price!

Build Your Own Ivanhoe Electric Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ivanhoe Electric research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.
• Our free Ivanhoe Electric research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ivanhoe Electric's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.