Turquoise Hill announces financial results and review of operations for the third quarter of 2019

Alleen voor leden beschikbaar, wordt daarom gratis lid!

Algemeen advies 13/11/2019 06:41
Turquoise Hill Resources today announced its financial results for the period ended September 30, 2019. All
figures are in U.S. dollars unless otherwise stated.
“Operationally, the third quarter of 2019 was another strong quarter for the Company from both a production
and safety perspective. Our Oyu Tolgoi team has continued to maximize the production from the open pit and
as a result, we have once again increased our 2019 gold production with the new target moving from 230,000
to 240,000 ounces,” stated Ulf Quellmann, Turquoise Hill’s Chief Executive Officer. “We also continued to build
on our excellent safety track record as Oyu Tolgoi achieved another strong All Injury Frequency Rate of 0.18
per 200,000 hours worked during the nine months ended September 30, 2019. As you know, safety is a top
priority for us and is at the heart of everything we do. Safely mining this deposit is central to who we are and
is critical to our continued success.”
“Turning to the Underground development, construction of Shaft 2 is now complete and has entered into the
final stages of commissioning. The service hoist transports 300 people per cage cycle versus a maximum of
60 people per cage cycle through Shaft 1, and enables us to accelerate the underground development and
monetize one of the best undeveloped ore bodies on the planet.”
HIGHLIGHTS
• Our Oyu Tolgoi team has continued to maximize the production from the open pit and as a result, we have
increased our 2019 gold in concentrates production guidance to 240,000 ounces from 230,000 ounces,
while lowering our 2019 C1 copper cash cost range to $1.5 - $1.70 from $1.75 – $1.95 per pound of copper
produced.
• Underground development progressed successfully during Q3’19, achieving 3.6 total equivalent
kilometres, our best quarterly result to date.
• Since the restart of underground development, 28.0 total equivalent kilometres and 22.1 kilometres of
lateral development has been completed. In September, a record 1,385m of lateral development metres were mined.
• The construction of Shaft 2 was completed in October and has entered the final stages of commissioning.

The shaft uses the world’s largest production hoist motor and can carry 300 people in the service hoist and lift 60 tonne skips in the production hoist. When operating at maximum capacity, the production hoist has the ability to lift 35,000 tonnes of material to the surface daily. This is a critical piece of infrastructure that also provides additional ventilation capacity and will enable the acceleration of underground
development.
• Shafts 3 and 4 pre sink work is complete with both shafts at 80 m below the shaft collar as of September
30, 2019. The sinking headframes and sinking stages for the Shafts are being assembled to enable the
hard rock sinking to commence over the coming months.
• A decision has been made to retain a mid-access drive only on the apex level of the mine design of Panel
0. This is one of a number of integral decision points in narrowing options to complete the final P0 mine
design, however it is too early to accurately determine the potential impact on the overall cost or schedule.
Decisions on other key underground infrastructure such as the location of the ore passes and options for
panel sequencing, and productivity will need to be completed before an update on the development capital
or schedule can be provided.
• Revenue of $209.2 million in Q3’19 decreased 15.1% from $246.5 million in Q3’18, reflecting the transition from mining Phase 4A to lower grade Phase 4B and stockpiles.
• Income for the period was $45.1 million compared with income of $15.2 million in Q3’18 with the increase primarily due to additional deferred tax assets recognized in Q3’19 compared to Q3’18, partly offset by lower gross margin driven by the reduced revenue. Income attributable to owners of Turquoise Hill in
Q3’19 was $71.7 million or $0.04 per share, compared with income of $53.2 million or $0.03 per share in Q3’18.
• Cost of sales was $2.44 per pound of copper sold, C1 cash costs were $2.14 per pound of copper produced, and all-in sustaining costs were $2.84 per pound of copper produced.
• Operating cash costs1 of $175.1 million in Q3’19, decreased 10.8% from $196.4 million in Q3’18. This was principally due to a decrease in mining and milling costs benefitting from cheaper fuel, lower freight costs and royalty costs driven by lower sales volumes and revenues.

• At the end of September 2019, Turquoise Hill has approximately $2.7 billion of available liquidity, split
between remaining project finance proceeds of $1.1 billion and $1.6 billion cash and cash equivalents. We
currently expect to have enough liquidity to fund our operations and underground development into Q1
2021.
• During Q3’19 underground development spend was $296.8 million, resulting in total project spend since
January 1, 2016 of approximately $3.2 billion.
OPERATIONAL OUTLOOK FOR 2019
2019 operational guidance for gold in concentrates has increased to 240,000 ounces from 230,000 ounces,
while copper in concentrates remains in the 125,000 to 155,000 tonnes range. Open-pit operations are
expected to continue to mine the lower grade Phase 4B ore and stockpiles through the remainder of 2019 with
mill throughput expected to be approximately 40 million tonnes. Average copper mill head grades are also expected to be lower over the remainder of the year, however, the company remains on track to achieve the
full year copper and increased gold production guidance.
Operating cash cost expectations for 2019 have decreased to approximately $800 million from an $800 million
to $850 million range.
For 2019 underground development, we continue to expect capital expenditures of $1.1 billion to $1.2 billion.
Capital expenditures for 2019 on a cash-basis for open-pit operations have decreased to a range of $140
million to $160 million from a range of $150 million to $180 million due to a lower capitalization of deferred
stripping costs and the deferral of certain project costs and equipment purchases. Open-pit capital is mainly
comprised of deferred stripping, equipment purchases, maintenance componentization and tailings storage
facility construction. Underground development capital includes both expansion capital and VAT.
C1 cash costs are now expected to be between $1.50 to $1.70 per pound of copper produced due to the
impact of the increase in the gold production guidance provided above, combined with the revised reduction
in operating cash cost guidance. The previous 2019 C1 cash cost guidance of $1.75 to $1.95 per pound of
copper produced had assumed the midpoint of expected 2019 copper and gold production ranges and a gold
price of $1,281 per ounce. Looking at Q3’19 in isolation, C1 cash costs of $2.14 per pound of copper produced
were above the full year expected range due to the impact of lower gold sales revenue driven by the 25,600
ounces of gold in concentrates produced in the third quarter of 2019 (against an expected full year production of up to 240,000 ounces).


1 Please refer to Section – NON-GAAP MEASURES – on page 19 of this MD&A for further information.

BUSINESS
Turquoise Hill is an international mining company focused on the operation and continued development of the Oyu Tolgoi copper-gold mine in Mongolia, which is the Company’s principal and only material mineral resource property. Turquoise Hill’s ownership of the Oyu Tolgoi mine is held through a 66% interest in Oyu Tolgoi LLC (Oyu Tolgoi); the remaining 34% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes), a Mongolian stateowned entity.
The Oyu Tolgoi mine is located approximately 550 kilometres south of Ulaanbaatar, Mongolia’s capital city,
and 80 kilometres north of the Mongolia-China border. Mineralization on the property consists of porphyrystyle copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of mineralization. Oyu Tolgoi has the potential to
operate for over 100 years from five known mineralized deposits. The first of those (the Oyut deposit) was put into production as an open-pit operation in 2013. A second deposit, Hugo North (Lift One), is under development as an underground operation.
The copper concentrator plant, with related facilities and necessary infrastructure, was originally designed to
process approximately 100,000 tonnes of ore per day from the Oyut open pit. However, since 2014, the concentrator has improved operating practices and gained experience, which has helped achieve a consistent throughput of over 105,000 tonnes per day. Concentrator throughput for 2019 is targeted at 110,000 tonnes per day and expected to be approximately 40 million tonnes for the year due to improvements in concentrator performance and ore characteristics.
At the end of Q3’19, Oyu Tolgoi had a total workforce (employees and contractors), including underground project construction, of approximately 14,500 of which 92% were Mongolians.

see & read more on
https://www.turquoisehill.com/site/assets/files/5074/2019-11-12_nr_rev_trq-revised.pdf



Beperkte weergave !
Leden hebben toegang tot meer informatie! Omdat u nog geen lid bent of niet staat ingelogd, ziet u nu een beperktere pagina. Wordt daarom GRATIS Lid of login met uw wachtwoord


Copyrights © 2000 by XEA.nl all rights reserved
Niets mag zonder toestemming van de redactie worden gekopieerd, linken naar deze pagina is wel toegestaan.


Copyrights © DEBELEGGERSADVISEUR.NL