Ulaanbaatar, Mongolia – Oyu Tolgoi LLC, through its parent company Turquoise Hill Resources, announced today financial results for the second quarter ending 30 June 2014.
Oyu Tolgoi LLC Chief Financial Officer Steve Duggan said, “This quarter’s results demonstrate that our workforce continues to make encouraging progress towards establishing our open-pit mine as a safe, sustainable, profitable, and internationally competitive business.”.
Highlights include:
- An All Injury Frequency Rate of 0.51 per 200,000 hours worked and no fatalities for the first half of 2014.
- Net revenue of US$436.0 million on sales of approximately 202,500 tonnes of copper-gold concentrate. By metals in concentrates: approximately 51,600 tonnes of copper for US$285.4 million, approximately 126,000 ounces of gold for US$145.2 million and approximately 309,000 ounces of silver for US$5.4 million.
- Recognized cost of sales of US$379.1 million.
- Royalties of US$23.5 million to the Government of Mongolia on concentrate sales.
- Concentrate sales increased approximately 320 per cent over Q1’14 and exceeded production resulting in an inventory drawdown for the quarter.
- Q2’14 saw the strongest quarterly performance since production began in 2013, with 140,000 tonnes of copper-gold concentrate produced containing 36,200 tonnes of copper.
- Concentrate sales, which are expected to be strong throughout the second half of 2014, are scheduled to exceed production through the end of 2014.
- Sales contracts have been signed for 100 per cent of expected 2014 concentrate production and 92 per cent of 2015 planned production; 84 per cent of concentrate production has been contracted for up to eight years.
- Ore grades are expected to increase as the open pit deepens into a high-grade zone during the second half of 2014.
- Oyu Tolgoi continues to be expected to produce between 135,000 – 160,000 tonnes of copper and 600,000 – 700,000 ounces of gold in concentrates for 2014.
| Production Figures | Q2 2014 | Total 2014 (H1) |
|---|---|---|
| Ore Treated (‘000 tonnes) | 7,778 | 13,338 |
| Average mill head grades (grades of ore) | ||
| Copper(%) | 0.53 | 0.52 |
| Gold(g/t) | 0.60 | 0.55 |
| Silver (g/t) | 1.57 | 1.55 |
| Copper concentrates produced (‘000 tonnes) | 140.0 | 242.9 |
| Average concentrate grade (% Cu) | 25.8 | 25.3 |
| Total metals produced | ||
| Copper in concentrates (‘000 tonnes) | 36.2 | 61.5 |
| Gold in concentrates (‘000 ounces) | 113 | 179 |
| Silver in concentrates (‘000 ounces) | 229 | 391 |
| Sales of metals in concentrates | ||
| Copper in concentrates (‘000 tonnes) | 51.6 | 64.7 |
| Gold in concentrates (‘000 ounces) | 126 | 154 |
| Silver in concentrates (‘000 ounces) | 309 | 387 |
Further detail is available in the Turquoise Hill Resources financial results here: http://www.turquoisehill.com/i/pdf/news/2014-08-12_NR_2ygvAZr.pdf
About Oyu Tolgoi LLC (http://ot.mn/en)
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the Umnugobi, Oyu Tolgoi has commissioned Concentrator plant in December, 2012 and commenced shipments of copper concentrate in July of 2013. As the biggest single investment in Mongolian history, Oyu Tolgoi already is a major driver of the country’s economy.
Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. Oyu Tolgoi is developing a nationwide vocational training programme, regional infrastructure, and is committed to ensuring more than 90 per cent Mongolian national employment and a strong Mongolian supplier base. These programmes will help drive economic growth for generations to come.
Oyu Tolgoi’s core commitment is to a safe work place and setting a new standard in environmental care.
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