Turquoise Hill to Restate Results After SouthGobi Reviews Sales

Turquoise Hill Resources Ltd. (TRQ), the Rio Tinto Group unit that produces copper in Mongolia, said it will restate three years of financial results after a subsidiary decided to change the way it recognizes revenue.

Turquoise Hill will restate results for 2010 through 2012 and part of this year, the Vancouver-based company said yesterday in a statement.

SouthGobi Resources Ltd. (SGQ), in which Turquoise Hill has a 58 percent stake, will resubmit financial statements for the last three years. It determined that some of its revenue was incorrectly classified after a review in conjunction with PricewaterhouseCoopers LLP and SouthGobi auditor Deloitte LLP, it said in a separate statement yesterday. Vancouver-based SouthGobi also said its third-quarter results will be delayed.

SouthGobi, which produces coal at the Ovoot Tolgoi mine in Mongolia, said some sales were booked after the commodity was delivered to the customer’s stockpile at the mine. The restatement will reflect the recognition of revenue after the coal is loaded onto the customer’s trucks.

SouthGobi dropped 11 percent to C$1.07 yesterday in Toronto while Turquoise Hill fell 3 percent to C$4.93.

Turquoise Hill, which operates the Oyu Tolgoi copper mine in Mongolia, is 51 percent-owned by London-based Rio, according to data compiled by Bloomberg.

To contact the reporter on this story: Gerrit De Vynck in Toronto at gdevynck@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Comments

Popular posts from this blog