TRQ Provides Operational & Corporate Update

Alleen voor leden beschikbaar, wordt daarom gratis lid!

Overig advies 22/08/2022 15:52
MONTREAL--(BUSINESS WIRE)-- Turquoise Hill Resources Ltd. (TSX: TRQ) (NYSE: TRQ) (Turquoise Hill or the Company), following the August 15th, 2022 decision of its Special Committee of independent directors regarding the privatization proposal received from Rio Tinto International Holdings Limited (Rio Tinto),today provided an update on operational and corporate developments in its business in all material respects.

Updated Integrated Mine Plan and Confirmation of Underground Project Capital

Updated Mine Plan

Mine planning activities are ongoing and will be incorporated into the updated integrated mine plan for all of Oyu Tolgoi in Q4’22. The Oyu Tolgoi management recently communicated to the OT Board that this work will not be available in Q3’22 and will be ready for the updated mine plan in Q4’22.

The updated mine plan will include minor refinements to both the Oyut open pit and Hugo North underground operations. At Oyut, the updated mine plan is being optimised to improve mid-term cash flow and value. At Hugo North, the updated mine plan will incorporate the results of the 2022 Cost and Schedule reforecast (the 2022 Reforecast) including the updated timing relating to Shafts 3 and 4 in addition to any outcomes from ongoing data collection and studies that are available, with the aim to minimise risk and maximise productivity. The update will not include changes to some areas of the Hugo North Lift 1 footprint where data collection, assessment and design improvements are yet to be finalised.

The metal production of the updated mine plan is not expected to be materially different from the 2020 Oyu Tolgoi Technical Report (2020 OTTR) over the life of the mine.

UG Project Capital Confirmed

The 2022 Reforecast, which was completed during Q2’22, reconfirmed total development capital expenditures of $7.06 billion for the underground project, incorporating known and future incremental COVID-19 costs of $227 million, escalation of $72 million, associated taxes and minor impacts of changes in labour laws.

The COVID-19 impacts incorporated in the 2022 Reforecast are based on a regime of reduced controls from July 1, 2022 and to date limited reintroduction of controls has been necessary to minimize COVID-19 impacts at site.

Underground Development Update

During Q2’22, the underground project achieved a significant milestone with the blasting of the first two drawbells in Panel 0 ahead of schedule. Drawbells continue to be completed ahead of schedule and broadly aligned with the 2020 OTTR with the third drawbell being fired on July 29, the fourth drawbell being fired on August 11, and the fifth drawbell forecast to be fired before the end of August 2022.

Sustainable production continues to be expected in H1’23 but continues to trend earlier in the half. It is anticipated that between 16 – 21 drawbells are required to achieve sustainable production, subject to the natural caving conditions encountered.

Implementation of Funding Heads of Agreement Update

The binding and comprehensive funding agreement between the Company and Rio Tinto as amended on May 18, 2022 (the Second Amended HoA) remains in effect, and the Company continues to expect to be able to access or avail itself of one or more of the funding elements under the Second Amended HoA on the timeframe as outlined in that agreement.

Equity Offering

Under the terms of the Second Amended HoA and as previously disclosed, TRQ is required to complete one or more equity offerings for aggregate gross proceeds of at least US$650 million by December 31, 2022.

Debt Re-profiling

The Company, in conjunction with Rio Tinto, continues to progress discussions with lenders and other stakeholders in relation to a rescheduling of the principal repayments of Oyu Tolgoi LLC’s existing debt (Re-profiling). While the Company continues to believe Re-profiling discussions can be concluded, and related approvals obtained, in advance of Oyu Tolgoi’s next scheduled principal repayment in December 2022, its ability to successfully deliver the Re-profiling, as well as the quantum of any associated reduction in the Company’s incremental funding requirement, remains to be determined.

Government relations

On August 15, 2022, at the request of the parties to the international tax arbitration initiated by Oyu Tolgoi LLC (OT LLC) in February 2020, the arbitral tribunal issued an order suspending the tax arbitration for a further twelve months (until August 12, 2023) or until 21 days from when the tribunal receives notice from OT LLC or the Government of Mongolia to terminate the suspension.

This follows the arbitral tribunal order dated February 11, 2022 that had initially suspended the tax arbitration for six months until August 11, 2022.

The Company continues to constructively work with the Government of Mongolia and Rio Tinto to finalise the remaining outstanding measures of Resolution 103, including the outstanding OT LLC Tax arbitration as outlined above and the finalisation of the formal termination of the Oyu Tolgoi Underground Mine Development and Financing Plan (UDP).



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