Turquoise Hill still in talks with Mongolia but Oyu Tolgoi mine still on track
Turquoise Hill Resources Ltd. (TSX:TRQ) says it's in no rush to start production at Oyu Tolgoi, its multibillion-dollar mine in southern Mongolia even though the project is near completion.
"Oyo Tolgoi is a multi-decade project," chief executive Kay Priestly told investors during a call Tuesday.
"It is important for us to invest time now to ensure an optimal plan is developed that balances capital costs and increased volumes."
On Monday, the Vancouver-based company, which keeps its books in U.S. dollars, reported a net loss of US$182.4 million or 18 cents per share in the fourth quarter, more than double its net loss of $85.8 million or four cents per share in the same period a year earlier.
Turquoise Hill reported revenue of $41.6 million, compared with revenue of $51 million in the same quarter in 2011.
The former Ivanhoe Mines Ltd. owns a 66 per cent interest in the Oyu Tolgoi copper-gold-silver mine located south of the capital city of Ulaanbaatar.
It says the first phase of construction of the mine is 99 per cent and that it's still on track to begin commercial production in the first half of 2013.
During the call, Priestly said by the end of February, the mine had stockpiled more than 12 million tonnes of ore.
In the meantime, she said the company, along with its majority shareholder, Rio Tinto (NYSE:RIO), are continuing discussions with the Mongolian government over the project's power agreement requirements.
The company previously agreed that it would source power from within Mongolia no later than four years after the start of commercial production but said it was still "exploring several options."
The final cost for Oyu Tologi, including development, equipment, plant and property costs, is expected to be $6.2 billion, which is within three per cent of the budget.
For the year, it said it experienced a net loss of $434.6 million, or 51 cents a share, compared with a net loss of $570.4 million or 76 cents a share in 2011.
In February, the company had announced it was selling its 50 per cent stake in Kazakhstan miner Altynalmas Gold Ltd. for US$300 million to Sumeru Gold BV. It had acquired an interest in the project in 1996 and its stake in Altynalmas in 2008. The transaction is expected to close in the second quarter of this year.
Turquoise Hill also owns a 58 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ) which owns the Ovoot Tolgoi mine. Operations for the mine resumed on March 22, with a target production expected to be 3.2 million tonnes of semi-soft coking coal for the rest of the year.
The international mining company focused on copper, gold and coal mines in the Asia-Pacific region, also has a 57 per cent interest in Ivanhoe Australia (TSX:IVA).
"Oyo Tolgoi is a multi-decade project," chief executive Kay Priestly told investors during a call Tuesday.
"It is important for us to invest time now to ensure an optimal plan is developed that balances capital costs and increased volumes."
On Monday, the Vancouver-based company, which keeps its books in U.S. dollars, reported a net loss of US$182.4 million or 18 cents per share in the fourth quarter, more than double its net loss of $85.8 million or four cents per share in the same period a year earlier.
Turquoise Hill reported revenue of $41.6 million, compared with revenue of $51 million in the same quarter in 2011.
The former Ivanhoe Mines Ltd. owns a 66 per cent interest in the Oyu Tolgoi copper-gold-silver mine located south of the capital city of Ulaanbaatar.
It says the first phase of construction of the mine is 99 per cent and that it's still on track to begin commercial production in the first half of 2013.
During the call, Priestly said by the end of February, the mine had stockpiled more than 12 million tonnes of ore.
In the meantime, she said the company, along with its majority shareholder, Rio Tinto (NYSE:RIO), are continuing discussions with the Mongolian government over the project's power agreement requirements.
The company previously agreed that it would source power from within Mongolia no later than four years after the start of commercial production but said it was still "exploring several options."
The final cost for Oyu Tologi, including development, equipment, plant and property costs, is expected to be $6.2 billion, which is within three per cent of the budget.
For the year, it said it experienced a net loss of $434.6 million, or 51 cents a share, compared with a net loss of $570.4 million or 76 cents a share in 2011.
In February, the company had announced it was selling its 50 per cent stake in Kazakhstan miner Altynalmas Gold Ltd. for US$300 million to Sumeru Gold BV. It had acquired an interest in the project in 1996 and its stake in Altynalmas in 2008. The transaction is expected to close in the second quarter of this year.
Turquoise Hill also owns a 58 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ) which owns the Ovoot Tolgoi mine. Operations for the mine resumed on March 22, with a target production expected to be 3.2 million tonnes of semi-soft coking coal for the rest of the year.
The international mining company focused on copper, gold and coal mines in the Asia-Pacific region, also has a 57 per cent interest in Ivanhoe Australia (TSX:IVA).
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