Turquoise Hill Resources Announces Fourth Quarter 2013 Production
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 15, 2014) -
Turquoise Hill Resources (NYSE:TRQ)(NASDAQ:TRQ)(TSX:TRQ) today
announced the fourth quarter 2013 production for Oyu Tolgoi.
Kay Priestly, Turquoise Hill Chief Executive Officer, said,
"Production at Oyu Tolgoi continues to progress. The team at Oyu
Tolgoi accomplished a great deal in their first year of operations,
which included meeting production guidance and achieving a strong
safety performance. The concentrator performed well during the
quarter and copper and gold recoveries continue to improve."
Oyu Tolgoi produced 76,700 tonnes of copper in concentrates in
2013, and copper and gold in concentrates were 8% and 18%
respectively higher in the fourth quarter compared to the third
quarter. Concentrator throughput in December 2013 was above
target.
Customers began to collect product during the fourth quarter and
by December 31, 2013, they had picked up 26,400 tonnes of
concentrate. Daily rates for shipments of concentrate are not yet
aligned with production rates as two of Oyu Tolgoi's receiving
smelters have experienced technical difficulties and consistent
customer delivery schedules have not yet been embedded. Some sales
volumes have been deferred into the second and third quarters of
2014 and inventories are expected to build during the first quarter
of 2014.
For 2014, Turquoise Hill expects Oyu Tolgoi to produce 150,000
to 175,000 tonnes of copper in concentrates and 700,000 to 750,000
ounces of gold in concentrates. Oyu Tolgoi is expected to return to
more normal inventory levels by the end of the year.
Oyu Tolgoi has signed contracts for 2014 delivery for the
majority of the inventory on hand at the end of 2013.
Turquoise Hill Production Data |
All data represents full production and sales
on a 100% basis |
|
|
|
1H 2013 |
3Q 2013 |
4Q 2013 |
12 Months 2013 |
Oyu Tolgoi |
|
|
|
|
Open pit material mined ('000 tonnes) |
37,925 |
12,151 |
21,956 |
72,032 |
Ore Treated ('000 tonnes) |
4,430 |
8,052 |
7,835 |
20,317 |
Average mill head grades: |
|
|
|
|
|
Copper (%) |
0.42 |
0.47 |
0.49 |
0.47 |
|
Gold (g/t) |
0.27 |
0.36 |
0.41 |
0.36 |
|
Silver (g/t) |
1.31 |
1.39 |
1.44 |
1.39 |
Copper concentrates produced ('000 tonnes) |
50.2 |
110.3 |
129.5 |
290.0 |
|
Average concentrate grade (% Cu) |
26.1 |
27.7 |
25.4 |
26.4 |
Production of metals in concentrates: |
|
|
|
|
|
Copper in concentrates ('000 tonnes) |
13.1 |
30.6 |
32.9 |
76.7 |
|
Gold in concentrates ('000 ounces) |
21 |
62 |
74 |
157 |
|
Silver in concentrates ('000 ounces) |
85 |
196 |
208 |
489 |
Sales of metals in concentrates: |
|
|
|
|
|
Copper in concentrates ('000 tonnes) |
- |
- |
6.1 |
6.1 |
|
Gold in concentrates ('000 ounces) |
- |
- |
10 |
10 |
|
Silver in concentrates ('000 ounces) |
- |
- |
36 |
36 |
Metal recovery (%) |
|
|
|
|
|
Copper |
73.2 |
81.7 |
86.4 |
81.6 |
|
Gold |
56.7 |
66.3 |
71.2 |
66.1 |
|
Silver |
47.8 |
54.9 |
57.2 |
54.2 |
|
|
|
|
|
About Turquoise Hill Resources
Turquoise Hill Resources (NYSE:TRQ)(NASDAQ:TRQ)(TSX:TRQ) is an
international mining company focused on copper, gold and coal mines
in the Asia Pacific region. The Company's primary operation is its
66% interest in the Oyu Tolgoi copper-gold-silver mine in southern
Mongolia. Turquoise Hill also holds a 56% interest in Mongolian
coal miner SouthGobi Resources (TSX:SGQ)(HK:1878).
Forward-looking
statements
Certain statements herein, including statements relating to
matters that are not historical facts and statements of the
Company's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation and "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements relate to future events
or future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "plan", "estimate", "will", "believe" and
similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to,
statements respecting anticipated business activities; planned
expenditures; corporate strategies; and other statements that are
not historical facts.
Forward-looking statements and information are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such statements or
information. Such statements and information are based on numerous
assumptions regarding present and future business strategies and
the environment in which the Company will operate in the future,
including the price of copper, gold and silver, anticipated capital
and operating costs, anticipated future production and cash flows,
the ability to complete the disposition of certain of its non-core
assets, the ability and timing to complete project financing and/or
secure other financing on acceptable terms, and the evolution of
discussions with the Government of Mongolia on a range of issues
including the implementation of the Investment Agreement, project
development costs, operating budgets, management fees and
governance and the existence or filing of legal proceedings against
the Company and its officers and directors. Certain important
factors that could cause actual results, performance or
achievements to differ materially from those in the forward-looking
statements and information include, among others, copper, gold and
silver price volatility, discrepancies between actual and estimated
production, mineral reserves and resources and metallurgical
recoveries, mining operational and development risks, litigation
risks, regulatory restrictions (including environmental regulatory
restrictions and liability), activities by governmental
authorities, currency fluctuations, the speculative nature of
mineral exploration, the global economic climate, dilution, share
price volatility, competition, loss of key employees, additional
funding requirements, capital and operating costs for the
construction and operation of the Oyu Tolgoi Project and defective
title to mineral claims or property. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements and information, there may
be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. All such forward-looking
information and statements are based on certain assumptions and
analyses made by the Company's management in light of their
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors
management believes are appropriate in the circumstances. These
statements, however, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information or statements.
With respect to specific forward-looking information concerning
the construction and development of the Oyu Tolgoi Project, the
Company has based its assumptions and analyses on certain factors
which are inherently uncertain. Uncertainties and assumptions
include, among others: the timing and cost of the construction and
expansion of mining and processing facilities; the impact of the
decision announced by the Company to delay the funding and
development of the Oyu Tolgoi underground mine pending resolution
of outstanding issues with the Government of Mongolia associated
with the development and operation of the Oyu Tolgoi Project and to
satisfy all conditions precedent to the availability of Oyu Tolgoi
Project Financing; the impact of changes in, changes in
interpretation to or changes in enforcement of, laws, regulations
and government practices in Mongolia; the availability and cost of
skilled labour and transportation; the availability and cost of
appropriate smelting and refining arrangements; the obtaining of
(and the terms and timing of obtaining) necessary environmental and
other government approvals, consents and permits; the availability
of funding on reasonable terms; the timing and availability of a
long-term power source for the Oyu Tolgoi Project; delays, and the
costs which would result from delays, in the development of the
underground mine (which could significantly exceed those projected
in the 2013 Oyu Tolgoi Technical Report); projected copper, gold
and silver prices and demand; and production estimates and the
anticipated yearly production of copper, gold and silver at the Oyu
Tolgoi Project.
The cost, timing and complexities of mine construction and
development are increased by the remote location of a property such
as the Oyu Tolgoi Project. It is common in new mining operations
and in the development or expansion of existing facilities to
experience unexpected problems and delays during development,
construction and mine start-up. Additionally, although the Oyu
Tolgoi Project has achieved commercial production, there is no
assurance that future development activities will result in
profitable mining operations. In addition, funding and development
of the underground component of the Oyu Tolgoi Project will be
delayed until matters with the Mongolian government can be resolved
and a new timetable has been established. These delays can impact
project economics.
The Company's MD&A also contain references to estimates of
mineral reserves and mineral resources. The estimation of reserves
and resources is inherently uncertain and involves subjective
judgments about many relevant factors. The mineral resource
estimates contained in the prospectus, including the documents
incorporated by reference therein, are inclusive of mineral
reserves. Further, mineral resources that are not mineral reserves
do not have demonstrated economic viability. The accuracy of any
such estimates is a function of the quantity and quality of
available data, and of the assumptions made and judgments used in
engineering and geological interpretation (including future
production from the Oyu Tolgoi Project, the anticipated tonnages
and grades that will be achieved or the indicated level of recovery
that will be realized), which may prove to be unreliable. There can
be no assurance that these estimates will be accurate or that such
mineral reserves and mineral resources can be mined or processed
profitably. In addition, see "Cautionary Note to United States
Investors" in the prospectus. Such estimates and statements are, in
large part, based on the following:
- Interpretations of geological data obtained from drill holes
and other sampling techniques. Large scale continuity and character
of the deposits will only be determined once significant additional
drilling and sampling has been completed and analyzed. Actual
mineralization or formations may be different from those predicted.
It may also take many years from the initial phase of drilling
before production is possible, and during that time the economic
feasibility of exploiting a deposit may change. Reserve and
resource estimates are materially dependent on prevailing metal
prices and the cost of recovering and processing minerals at the
individual mine sites. Market fluctuations in the price of metals
or increases in the costs to recover metals from the Company's
mining projects may render mining of ore reserves uneconomic and
affect the Company's operations in a materially adverse manner.
Moreover, various short-term operating factors may cause a mining
operation to be unprofitable in any particular accounting
period;
- Assumptions relating to commodity prices and exchange rates
during the expected life of production, mineralization of the area
to be mined, the projected cost of mining, and the results of
additional planned development work. Actual future production rates
and amounts, revenues, taxes, operating expenses, environmental and
regulatory compliance expenditures, development expenditures, and
recovery rates may vary substantially from those assumed in the
estimates. Any significant change in these assumptions, including
changes that result from variances between projected and actual
results, could result in material downward revision to current
estimates;
- Assumptions relating to projected future metal prices. The
prices used reflect organizational consensus pricing views and
opinions in the financial modeling for the Oyu Tolgoi Project and
are subjective in nature. It should be expected that actual prices
will be different than the prices used for such modeling (either
higher or lower), and the differences could be significant;
and
- Assumptions relating to the costs and availability of treatment
and refining services for the metals mined from the Oyu Tolgoi
Project, which require arrangements with third parties and involve
the potential for fluctuating costs to transport the metals and
fluctuating costs and availability of refining services. These
costs can be significantly impacted by a variety of industry
specific and also regional and global economic factors (including,
among others, those which affect commodity prices). Many of these
factors are beyond the Company's control.
Readers are cautioned not to place undue reliance on
forward-looking information or statements. By their nature,
forward-looking statements involve numerous assumptions, inherent
risks and uncertainties, both general and specific, which
contribute to the possibility that the predicted outcomes will not
occur. Events or circumstances could cause our actual results to
differ materially from those estimated or projected and expressed
in, or implied by, these forward-looking statements. Important
factors that could cause actual results to differ from these
forward-looking statements are included in the "Risk Factors"
section in the Company's Annual Information Form dated as of March
25, 2013 in respect of the year ended December 31, 2012 (the
"AIF").
Readers are cautioned that the list of factors enumerated in the
"Risk Factors" section of the AIF that may affect future results is
not exhaustive. When relying on our forward-looking information and
statements to make decisions with respect to the Company, investors
and others should carefully consider the foregoing factors and
other uncertainties and potential events. Furthermore, the
forward-looking information and statements contained in the
MD&A for the Company's third quarter results are made as of the
date of such document and the Company does not undertake any
obligation to update or to revise any of the included
forward-looking information or statements, whether as a result of
new information, future events or otherwise, except as required by
applicable law. The forward-looking information and statements
contained in the MD&A are expressly qualified by this
cautionary statement.
Turquoise Hill Resources Ltd.Jessica LargentInvestors+1 604 648
3957jessica.largent@turquoisehill.comTurquoise Hill Resources
Ltd.Tony ShafferMedia+1 604 648
3934tony.shaffer@turquoisehill.comwww.turquoisehill.com
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