Ivanhoe Mines 2011 net loss widens, Mongolia project on track for Q3 startup
VANCOUVER - Ivanhoe Mines Ltd. reported a wider net loss for 2011 on Tuesday as it said its copper-gold mine in Mongolia remains on track to start up in the third quarter.
The 2011 loss of $570.4 million, or 83 cents per share, compared to a loss of $211.5 million, or 42 cents per share, in 2010.
Revenues increased to $179 million from $79.8 million a year earlier.
The company said its Oyu Tolgoi mine in southern Mongolia was about 73 per cent complete at the end of February, and is on track to start up during the third quarter. Commercial production is slated to begin during the first half of 2013.
Ivanhoe also said Tuesday talks with majority shareholder Rio Tinto over a financing plan for Oyu Tolgoi are progressing.
"Rio Tinto and Ivanhoe Mines exchanged proposals and have been working together in an attempt to reach agreement on a comprehensive financing approach that would accommodate their mutual interest of advancing Oyu Tolgoi's development," Ivanhoe said.
Ivanhoe said it has invested more than $5 billion in the project during the past decade, which has been financed through equity and short-term debt. A proposed major project-financing facility has been under negotiation for more than a year.
The 2011 loss of $570.4 million, or 83 cents per share, compared to a loss of $211.5 million, or 42 cents per share, in 2010.
Revenues increased to $179 million from $79.8 million a year earlier.
The company said its Oyu Tolgoi mine in southern Mongolia was about 73 per cent complete at the end of February, and is on track to start up during the third quarter. Commercial production is slated to begin during the first half of 2013.
Ivanhoe also said Tuesday talks with majority shareholder Rio Tinto over a financing plan for Oyu Tolgoi are progressing.
"Rio Tinto and Ivanhoe Mines exchanged proposals and have been working together in an attempt to reach agreement on a comprehensive financing approach that would accommodate their mutual interest of advancing Oyu Tolgoi's development," Ivanhoe said.
Ivanhoe said it has invested more than $5 billion in the project during the past decade, which has been financed through equity and short-term debt. A proposed major project-financing facility has been under negotiation for more than a year.
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