NEW YORK (TheStreet) -- Turquoise Hill Resources (TRQ_) is tumbling after providing a gloomy update on its Oyu Tolgoi operations, a copper and gold mine located in Mongolia.
By midday, shares had unloaded 6.9% to $3.18. Year to date, the stock is down 3.6%.
The Vancouver-based miner said its Oyu Tolgoi mine would generate $55 million in gross revenues, or $26,400 tonnes of concentrate, over fiscal 2013. The company said these projections fall short of initial sales volumes projected, with some sales expected to be deferred into the second and third quarters of 2014.
The mine, which Turquoise and Mongolian government share a 66%:34% stake in, has seen production interruptions due to delays in negotiations on shareholder issues and financing projections.
"Further delays may occur if outstanding shareholder issues, including project finance, are not resolved before the expiration of lender commitments on existing project finance arrangements," the company said in a statement.
Production rates were also recently impacted by various post-commissioning issues, such as the failure of rake blades in the tailings thickeners. Management expects this to result in the shutdown of one line for up to eight weeks.
Turquoise Hill projects 2014 production of 150,000 to 175,000 tonnes of copper in concentrates and 700,000 to 750,000 ounces of gold in concentrates.
Mining giant Rio Tinto (RIO_) holds a 50.8% controlling interest in Turquoise Hill.