Ivanhoe Electric Inc. 10-Q

Item 1. Legal Proceedings. From time to time, we and our subsidiaries may become subject to various legal proceedings that are incidental to the ordinary conduct of our business. Although we cannot accurately predict the amount of any liability that may ultimately arise with respect to any of these matters, we make a provision for potential liabilities when we deem them probable and reasonably estimable. These provisions are based on current information and legal advice and may be adjusted from time to time according to developments. Our subsidiary Cordoba was the parent of two subsidiaries that are currently involved in two legal proceedings. The first is a criminal lawsuit filed by Cordoba’s subsidiary Minerales Cordoba S.A.S ("Minerales") in late 2018 and in January 2019 with the Colombian prosecutors against certain former legal representatives and management members of Minerales and Exploradora Cordoba S.A.S. ("Exploradora") alleging breach of director’s fiduciary duties, abuse of trust, theft and fraud. This proceeding is ongoing. In the second proceeding, Cordoba’s subsidiaries Minerales and Cobre Minerals S.A.S (along with the National Mining Agency, Ministry of Mines and Energy, the local environmental authority, the Municipality of Puerto Libertador and the State of Cordoba) were served with a class action claim by the Alacrán Community. Minerales timely filed: (i) a response to the lawsuit and statement of defense; and (ii) an opposition to the injunction requested by plaintiffs. The Court now should: (i) issue a decision on the injunction; and (ii) schedule date and time for the initial hearing. As a result of Cordoba’s sale of Cordoba Minerales S.A.S and Exploradora Cordoba S.A.S, effective March 5, 2026, we no longer have any interest in the Cordoba entities involved in the legal proceedings or any involvement in the legal proceedings.