SINGAPORE, SINGAPORE (NYSE: IVN)(NASDAQ: IVN) today announced
its results for the year ended December 31, 2007. All figures are
in US dollars unless otherwise stated.
HIGHLIGHTS
- A new NI 43-101 initial resource estimate at the Heruga
Discovery in Mongolia has added 13.4 million ounces of gold and 8
billion pounds of copper to the Oyu Tolgoi Project's total inferred
resources - and drilling is continuing to expand the discovery.
- Oyu Tolgoi's Shaft #1 has reached its total depth of 1,385
metres, allowing commencement of underground mine development of
the copper- and gold-rich Hugo Dummett North Deposit.
- The Oyu Tolgoi Project is awaiting an approved Investment
Agreement with Mongolia to begin full-scale construction.
- Ivanhoe's 81%-owned subsidiary, SouthGobi Energy Resources,
has raised $117.9 million and is preparing to open its first coal
mine in Mongolia.
- Ivanhoe Australia has significantly expanded its exploration
program, targetting major copper, gold and uranium discoveries in
northwest Queensland.
- Ivanhoe is advancing development plans to bring the Bakyrchik
Gold Mine in Kazakhstan into commercial production.
- Ivanhoe's 42%-owned subsidiary, Jinshan Gold Mines, has
started production from its first gold mine in China with an
initial target of 120,000 ounces per year.
- Ivanhoe incurred $304 million in exploration and mine
development expenses in 2007.
MONGOLIA: OYU TOLGOI COPPER-GOLD PROJECT
Underground development program advancing at high-grade Hugo
Dummett North Deposit in preparation for production
On January 27, 2008, the Oyu Tolgoi team celebrated the
completion of Shaft No. 1. The completed shaft is 6.7 metres in
diameter, concrete lined, with a final depth of 1,385 metres. It is
the deepest underground shaft in Mongolia. Lateral development
activities on the 1,300-metre level have commenced, which will
involve tunnelling into Oyu Tolgoi's Hugo Dummett North high-grade
underground copper and gold deposit, facilitating access for
exploration and initial production from the underground mine. The
shaft eventually will help to ventilate the deep mine.
The Oyu Tolgoi site infrastructure was significantly expanded in
2007, including the construction of a centralized camp and the
supply of power and other utilities. Site efforts also focused on
the sinking of Shaft No. 1, completion of sub-surface works at
Shaft No. 2 and the winterization of the camp.
Preliminary sub-surface work at Shaft No. 2 began in mid-2007
and, as planned, paused for winter in mid-December. Progress in
2007 included completing the concrete headframe to 14 metres below
grade and extending the conveyor gallery and ventilation system.
Shaft No. 2 is planned to be the initial, primary underground
production and service shaft at Oyu Tolgoi.
At year end, engineering of the Oyu Tolgoi concentrator had
reached 80% completion and site excavation work was approximately
25% complete. The focus for 2008 is to maintain procurement for the
concentrator equipment.
Infrastructure engineering was completed or commenced on 27
different packages, including a diesel power station, operations
water supply and a road to the border with China. The principal
activities included engineering for the diesel power station, which
will provide construction power to the project, and engineering on
the Gunii Hooloi bore field, which will serve as a long-term water
source for the mine. Engineering design is continuing in 2008 and
implementation options will be assessed.
The design contract for a coal-fired power plant was awarded in
2007 and engineering is underway, with the first phase expected to
be completed by May 2008. Operation of the power plant will support
the concentrator schedule.
The Oyu Tolgoi Project posted an outstanding health and safety
achievement, completing the entire year without a lost-time
incident (LTI) at the site and extending the LTI-free period from
December 18, 2006. Employees and contractors on site worked a total
of 3.4 million hours during 2007.
Oyu Tolgoi Project awaiting an approved Investment Agreement to
begin full-scale construction
During the fourth quarter of 2007, members of the Mongolian
National Parliament's Standing Committee on Economics visited
large-scale, international mining operations to gather information
about mining issues and approval processes that guide mine
developments in other countries. The committee had been given the
responsibility to review and report to parliament on the draft
Investment Agreement for Oyu Tolgoi that had been negotiated by
Ivanhoe Mines and its strategic partner, Rio Tinto, with the
Government of Mongolia's Working Group in April 2007. Mines owned
or operated by Rio Tinto were among those visited by the MPs.
While the committee's travel and review was underway, the
governing Mongolian People's Revolutionary Party (MPRP) voted to
replace its leader, resulting in the installation of a new Prime
Minister and formation of a new cabinet. The new government assumed
office on December 13, 2007. On the same day, new Prime Minister
Sanjaa Bayar said that any review and evaluation of the draft
Investment Agreement by the government would be more reliable if
the government retained the services of an internationally
recognized, independent financial organization to assist in
concluding a "world standard" agreement for Oyu Tolgoi. He withdrew
the draft Investment Agreement from Parliament to end what he said
was a legislative stalemate - and said that finalizing an agreement
to permit the construction of Oyu Tolgoi to proceed was one of his
government's priorities before the national general election
scheduled for June 29, 2008 (The MPRP currently holds a narrow
majority in the parliament, with 39 of 76 seats).
The government subsequently declared that it intended to make a
series of revisions to Mongolia's Minerals Law before attempting to
complete an agreement for Oyu Tolgoi. It now appears likely that
proposed amendments to the Minerals Law will be discussed in the
coming spring session of parliament that is set to begin April
7.
Ivanhoe Mines is monitoring the deliberations of parliament and
actions by the Government of Mongolia, and is continuing to assess
the implications for the Oyu Tolgoi development schedule. A final
Investment Agreement also remains subject to approvals by the
respective Boards of Directors of Ivanhoe Mines and Rio Tinto.
Ivanhoe Mines, with the encouraging support of its Mongolian
employees, suppliers and contractors, has expressed its concern to
all Members of Parliament, the government's Cabinet and the
President about the potential adverse impacts on the cost of, and
timing for, the Oyu Tolgoi Project that would result from any
further delays in the parliamentary review and approval process.
Without an approved Investment Agreement, further progress on the
project remains uncertain.
New gold- and molybdenum-rich Heruga Deposit discovered by
Ivanhoe on the Javkhlant concession of the Entree Gold-Ivanhoe
Mines' joint-venture property adjoining the southern boundary of
Oyu Tolgoi
Ivanhoe Mines completed approximately 64,000 metres of drilling
on the Oyu Tolgoi Project during 2007. This included 37,500 metres
specifically on the Heruga Deposit, located within the Javkhlant
concession of the Entree Gold-Ivanhoe Mines' earn-in joint-venture
property adjoining the southern boundary of Oyu Tolgoi. Heruga
remains open at both ends and, in part, on the southeastern side;
ongoing drilling is expanding the mineralization.
In March 2008, Ivanhoe Mines announced the first resource
estimate for the Heruga Deposit. The deposit is estimated to
contain an inferred resource of 760 million tonnes grading 0.48%
copper, 0.55 g/t gold and 142 ppm molybdenum, for a copper
equivalent grade of 0.91%, using a 0.60% copper equivalent cut-off
grade. Based on this initial estimate, the Heruga Deposit is
estimated to contain at least eight billion pounds of copper and
13.4 million ounces of gold. Using a higher cut-off grade of 1%
copper equivalent, Heruga contains inferred resources of 210
million tonnes grading 0.57% copper, 0.97 g/t gold and 145 ppm
molybdenum, totalling 2.6 billion pounds of copper and 6.4 million
ounces of gold.
Thirty-four drill holes (including daughter holes) on nine
sections spaced at 150-300-metre intervals, for a combined strike
length of 1,800-metres, were used in the resource estimate. The
deposit is open ended, with one rig currently drilling on the
northern-most section of the deposit, 150 metres south of the Oyu
Tolgoi boundary, in significant copper/gold mineralization.
Extending Heruga northward, the Induced Polarization (IP) data,
which have been a good indicator for the mineralization, suggest
that the mineralized block between the two Bor Tolgoi faults could
extend an additional 500 metres northeast onto the 100%
Ivanhoe-owned Oyu Tolgoi mining licence. Of even greater interest,
there are three northeast-trending, post-mineral fault structures
that cut across the northern end of the deposit. Ultimately, the
deposit may extend approximately four kilometres further north, to
the southern end of the Southwest and South Oyu deposits, which
abut a similar-aged, east-west fault referred to as the Solongo
Fault. The IP shows a broad zone of increased chargeability along
the four-kilometre trend.
The discovery of this new deposit attests to the potential of
the remaining Ivanhoe land area along the Oyu Tolgoi mineralized
trend that has yet to be explored by deep drilling.
The Oyu Tolgoi structural trend, as currently defined, now has a
total strike length in excess of 20 kilometres, encompassing Oyu
Tolgoi in the centre and extensions onto the joint Entree/Ivanhoe
Mines agreement area to the south and north. From the Heruga
Deposit in the south, the trend now extends through the Oyu Tolgoi
deposits to the Ulaan Khud, or Airport North Zone, located
approximately 10 kilometres north-northeast of the Hugo Dummett
Deposit.
The total Oyu Tolgoi Project resources, including those
contained on the adjoining Shivee Tolgoi and Javkhlant properties,
are as follows:
Total Oyu Tolgoi Project Resources March 2008(1)(2)
(based on a 0.60% copper equivalent cut-off)(3)
--------------------------------------------------------------------------
Contained Metal(5)
--------------------------------
CuEq CuEq
Resource Cu Au Mo (4) Cu Au (4)
Category Tonnes (%)(g/t)(ppm) (%) ('000 lbs) (ounces) ('000 lbs)
--------------------------------------------------------------------------
Measur-
ed 101,590,000 0.64 1.10 - 1.34 1,430,000 3,590,000 3,000,000
--------------------------------------------------------------------------
Indic-
ated 1,285,840,000 1.38 0.42 - 1.65 39,120,000 17,360,000 46,770,000
--------------------------------------------------------------------------
Measur-
ed +
Indic-
ated 1,387,430,000 1.33 0.47 - 1.63 40,680,000 20,970,000 49,860,000
--------------------------------------------------------------------------
Inferr-
ed 2,157,130,000 0.80 0.35 50 1.05 38,230,000 24,220,000 50,050,000
--------------------------------------------------------------------------
Notes:
(1) Mineral resources are not mineral reserves until they have demonstrated
economic viability based on a feasibility study or pre-feasibility
study. Mineral resources are reported inclusive of mineral reserves.
(2) This table includes estimated resources on Entree Gold's Hugo North
Extension Deposit and the Heruga Deposit. These Properties are owned By
Entree Gold but are subject to earn-in rights by Ivanhoe Mines. The
estimate includes indicated resources of 117,000,000 tonnes grading
1.8% copper and 0.61 g/t gold and inferred resources of 855,500,000
tonnes grading 0.53% copper and 0.52 g/t gold and a 142 ppm molybdenum
at a 0.6% cut-off grade on the combined Hugo North Extension and
Heruga deposits.
(3) The 0.6% CuEq cut-off has been used to enable comparison with previous
disclosures.
(4) CuEq has been calculated using assumed metal prices ($1.35/lb. for
copper and $650/oz for gold and $10/lb for molybdenum);
%CuEq. equals Cu+((Au x 18.98)+(Mo x 0.01586))/29.76. Mo grades outside
of Heruga are assumed to be zero for CuEq calculations. The equivalence
formula was calculated assuming that gold and molybdenum recoveries
would be 91% and copper recovery would be 72%.
(5) The contained gold and copper represent estimated contained metal in
the ground and have not been adjusted for the metallurgical recoveries
of gold and copper. Differences in measured and indicated totals relate
to rounding associated with tonnes and grade.
The current inferred resource estimate is based on a wide-spaced
pattern that Ivanhoe Mines believes has not fully delineated the
higher-grade gold-rich core. This may allow for a significant
increase in gold-rich resources as infill drilling is
undertaken.
In March 2008, Ivanhoe Mines advised Entree Gold that it had
incurred in excess of $27.5 million in exploration expenditures on
the Entree Gold-Ivanhoe Mines JV agreement areas and therefore has
earned a 60% interest in all minerals - including the Heruga
Deposit - on the Javkhlant exploration tenement and the northern
extension of the Hugo Dummett North Deposit on the Shivee Tolgoi
exploration tenement. Ivanhoe Mines intends to continue incurring
earn-in expenditures in accordance with the terms of the JV
agreement to increase its participating interest in the project.
Subject to Ivanhoe Mines spending a total of $35 million on
exploration and/or development on the JV properties prior to
November 2012, Ivanhoe Mines will earn a participating interest of
80% in all minerals extracted below a sub-surface depth of 560
metres on the optioned property and a 70% participating interest in
all minerals extracted from surface to a depth of 560 metres.
Ivanhoe Mines directly held approximately 14.8% of the issued
and outstanding share capital of Entree, in addition to the earn-in
rights, at December 31, 2007.
MONGOLIA: COAL PROJECTS
SOUTHGOBI ENERGY RESOURCES (80.5% owned)
1. SouthGobi Energy preparing to begin open-pit coal mining at
its Ovoot Tolgoi mine in Mongolia
SouthGobi Energy Resources expects to begin mining at its Ovoot
Tolgoi Coal Project in southern Mongolia in the second quarter of
2008. The first shipments of coal to markets in China are expected
during the third quarter of 2008.
SouthGobi has taken delivery of a fleet of surface-mining
equipment for the Ovoot Tolgoi Project. The equipment, valued at
approximately $16 million, is being used for pre-development
activities and will be used for mining at the open pit once
operations commence.
On September 11, 2007, SouthGobi received official notification
from the Government of Mongolia that it had been granted a mining
licence for its open-pit coal mine at Ovoot Tolgoi, which is
approximately 950 kilometres south-west of Ulaanbaatar and within
45 kilometres of the border with China. The mining licence for
Ovoot Tolgoi covers an area of 9,308 hectares encompassing the West
and Southeast pits, as well as the airport. A 30-year Mining
Licence Certificate, dated September 20, 2007, was received on
October 1, 2007. SouthGobi is expecting to receive the Permit to
Mine in the second quarter of this year.
Capital costs to start production at Ovoot Tolgoi are estimated
at approximately C$45 million. The engineering and design for a
permanent camp, maintenance facilities and offices has been
completed and construction is expected to start in the second
quarter of this year.
2. Initial resource estimate for SouthGobi's Tsagaan Tolgoi coal
project identifies a potential source of coal for a coal-fired
power plant at Oyu Tolgoi
In February 2008, SouthGobi announced that it had received an
initial, independent NI 43-101-compliant resource estimate for its
Tsagaan Tolgoi coal project in southern Mongolia. The project
contains initial measured plus indicated coal resources of 36.4
million tonnes, with an additional inferred coal resource of
approximately nine million tonnes.
The exploration work supporting the Tsagaan Tolgoi resource
estimate has successfully achieved its limited objective of
identifying coal resources of sufficient quality and quantity
(approximately 25 million tonnes) to support power generation for
the Oyu Tolgoi Project, 115 kilometres to the east. Further
exploration is planned in 2008.
SouthGobi Energy closes equity financings that have raised
C$117.9 million in 2008
SouthGobi has completed three private-equity financings in 2008
to raise a total of C$117.9 million. The proceeds from these
offerings will be used to finance initial development of an
open-pit coal mine at the Ovoot Tolgoi coal project and to finance
additional drilling and engineering focused on developing a
potential underground coal mine at Ovoot Tolgoi. Proceeds also will
be used to explore and develop SouthGobi's other coal and mineral
projects, to identify and investigate new projects and for general
corporate and administrative purposes.
Concurrent with the closing of the first and second placements,
Ivanhoe Mines converted its 25.6 million preferred shares and
convertible debt into common shares of SouthGobi. Ivanhoe Mines
currently owns approximately 80.5% of SouthGobi's issued and
outstanding share capital.
CHINA
1. Ivanhoe Mines
Exploration resumed in Northern China, focusing on high-quality
projects for acquisition
Reconnaissance field exploration re-commenced in March 2007,
focused on the western Gobi region of China's Inner Mongolia
Autonomous Region and surrounding provinces, and continued until
the end of the fourth quarter. The program consisted of the field
geological assessment of more than 50 licenced intrusive-related
and breccia-hosted gold, silver and copper deposits and involved
detailed data reviews, field traverses and systematic rock-chip and
channel sampling of all properties.
The aim of the program has been to identify high-quality,
semi-advanced projects for acquisition through joint-venture
formation with, or direct purchase from, the existing licence
holders.
2. Jinshan Gold Mines (42.0% owned)
Gold production commenced in 2007 at CSH 217 Mine
In July 2007, Jinshan Gold Mines announced the pouring of the
first 500-ounce gold dore bar at the CSH 217 Gold Mine in Inner
Mongolia, China. The pouring marked the start of pre-commercial
production at the mine.
Gold production totalled 29,900 ounces from the start-up on July
31, 2007, to the end of February 2008. During this period, gold
sales totalled $22.3 million, at an average, unhedged price of $798
per ounce. The mine is operating at approximately 50% of its design
capacity, with leaching slowed during start-up and through the
first winter of operation.
AUSTRALIA
Cloncurry IOCG Project expanding exploration
In 2007, Ivanhoe Mines spent $22.1 million on the Cloncurry
Project (compared to $2.2 million in 2006), having steadily
increased exploration efforts at the Cloncurry Project during the
year. Ivanhoe Mines is continuing to assess financing alternatives
for Cloncurry.
Styles of mineralization on the Cloncurry Project include
iron-oxide-copper-gold (IOCG) at Mt. Elliott; IOCG mineralization
with associated uranium at Amethyst Castle; and copper hosted in
shales and siltstones at Mt. Dore. Results, particularly at Mt.
Dore and Mt. Elliott, are very encouraging. Recent drilling has
indicated that mineralization at the Swan and Swell zones, and the
previously mined Mt. Elliott and Corbould zones, are all part of
the same mineralized system now referred to as the Mt. Elliott
system.
The Mt. Dore Project
Mt. Dore is the most advanced project on the property and
provides the earliest opportunity for copper production.
Significant non-NI 43-101-compliant mineral resources have been
previously declared at the prospect and vertical infill drilling to
re-establish a valid NI 43-101-compliant resource commenced in
Q3'07. This drilling program initially was planned to comprise 19
holes, but in Q4'07 was extended to 27 holes totalling 9,750
metres. A total of 4,290 metres (11 holes) was completed by the end
of 2007.
Secondary copper within this system is hosted within
east-dipping shales and siltstones overlain by granites. The
sediments are locally brecciated. Copper is mostly in the form of
chalcocite and chrysocolla. The zone of mineralization (defined
using a 0.25% copper cut-off) has a strike length of at least 600
metres and dips to the east at approximately 400. The central part
of the mineralized zone is thicker, wider and defined for at least
400 metres down-dip. The mineralized zone at surface in the central
part is generally from 25 to 50 metres thick, thickening to more
than 100 metres at depth. Mineralization remains open along strike
and at depth.
The Mt. Elliott Project
A total of 67 diamond drill-holes, totalling 59,029 metres, were
completed on the Mt. Elliott IOCG project in 2007. Drilling in
Q1'07 focused on extending the mineralization at the Swan Zone. By
Q2'07, there were six rigs at Mt. Elliott; work during this quarter
included testing the Swell Zone with a view to establishing its
relationships to the Swan and Elliott zones. There currently are
four rigs on site.
Extensive modelling of the Mt. Elliott drill data was carried
out in Q4'07, constructing shells using 0.25%, 0.5%, 1% and 2%
copper-equivalent cut-offs. This work indicated that the Swell Zone
is a relatively planar, northwest-striking zone that dips steeply
to the northeast. It is sub-parallel to, and located immediately
southwest of, the Mt. Elliott Zone. The Swan Zone, west of Swell
and about 750 metres west of the Mt. Elliott Zone, is flat-lying at
surface and dips steeply to the north. The deeper, steeply-dipping
section of the Swan Zone is northwest of, and along the projected
strike of, the Swell Zone. Swell remains open to the southeast,
while the steep-dipping Swan Zone remains open to the northwest.
Both zones are open at depth. Drilling at the Swan Zone has
indicated that the system extends to at least 1,200 metres below
surface. The Mt. Elliott system has a strike of at least 1.3
kilometres and covers an area of more than one square
kilometre.
In October 2007, Ivanhoe Mines announced the discovery of a
significant high-grade (above 2% copper-equivalent cut-off) zone of
copper and gold mineralization on the western margin of the Swan
Zone. More recent drilling and modelling indicates the Swan
high-grade zone (SHGZ) is an L-shaped feature comprising an
eastern, upper vertical zone connected to a larger, flat-lying
section of the high-grade zone. The flat-lying section of the SHGZ
is more than 300 metres long (from west to east), 40 metres high in
the central part and up to 70 metres across (north to south). The
top of the flat-lying section is located at about 550 metres below
surface.
The tenor and thickness of the high-grade mineralization at Swan
appears to be superior to that previously mined at the former Mt.
Elliott Mine and there is potential for further large, high-grade
mineralized zones in and around the Mt. Elliott system. Ivanhoe
Mines is conducting an aggressive drilling campaign to explore the
immediate area around the SHGZ to expand the size and to better
understand the structural controls of the mineralization. A pattern
of infill vertical drilling to achieve a mineral resource on this
zone is underway as a priority undertaking and will be completed in
2008.
KAZAKHSTAN
Progress on large-scale rotary-kiln technology demonstration
plant at Bakyrchik Gold Project
Ivanhoe Mines, which acquired a majority interest in the
Bakyrchik Gold Project in Kazakhstan in 1996, has reached agreement
with Kazakh partners, subject to government approval, to acquire
additional gold assets in Kazakhstan and advance the mine to
full-scale production. Ivanhoe Mines is continuing to assess
financing alternatives for the Bakyrchik Project.
Construction of a rotary-kiln technology demonstration plant
began in 2007 and is scheduled for completion early in Q3'08. The
demonstration plant will be capable of processing 100,000 tonnes of
ore per annum, using a 40-metre-long rotary kiln to oxidize the
ore, followed by conventional grinding and cyanidation. Bakyrchik
has a stockpile of approximately 100,000 tonnes of ore grading 8.17
grams of gold per tonne that will be run through the demonstration
plant to confirm metallurgical parameters.
Construction of the plant currently involves seven major on-site
contractors and 10 off-site equipment fabricators. Construction
activities have commenced on all major areas and infrastructure.
Most purchase orders for the major mechanical equipment have been
placed. It is expected that the demonstration plant will be
completed at the end of Q2'08, with commissioning commencing in
Q3'08. This is due largely to the competition for contracting
resources in Kazakhstan, which reflects strong economic growth and
high levels of construction activity. The work plan was revised and
submitted to the Ministry of Energy and Mineral Resources in
December for approval; the plan requested an additional year to
achieve the goal of a 900,000-tonne-per-annum industrial plant.
Discussions were initiated with a contractor that specializes in
underground mining. It is expected that the discussions will
continue to analyze the most cost-effective and efficient way to
commence mining activities in 2008.
FINANCIAL RESULTS
Ivanhoe Mines is engaged primarily in exploration activities,
although a significant portion of its expenditures relate directly
to development activities at its Oyu Tolgoi Project. Exploration
costs are charged to operations in the period incurred and often
constitute the bulk of Ivanhoe Mines' operating loss for that
period. It is expected that Ivanhoe Mines will commence
capitalizing Oyu Tolgoi development costs once an Investment
Agreement is finalized with the Government of Mongolia.
In 2007, Ivanhoe Mines recorded a net loss of $457.7 million (or
$1.22 per share), compared to a net loss of $198.7 million (or
$0.59 per share) in 2006, representing a $259.0 million increase.
Included in the 2007 net loss is $304.0 million in exploration
expenses, an increase of $91.0 million over 2006. Included in
exploration expenses are shaft sinking and engineering and
development costs for the Oyu Tolgoi Project that have been
expensed and not capitalized. Results for the year also were
affected by a $134.3 million write-down of an investment held for
sale, a $24.5 million write-down of asset-backed commercial paper,
offset by an $11.5 million increase in foreign exchange gains and a
$12.3 million increase in income from discontinued operations.
At December 31, 2007, consolidated working capital was $65.7
million, including cash of $145.7 million, compared with working
capital of $364.7 million and cash of $363.6 million at December
31, 2006.
SELECTED ANNUAL FINANCIAL INFORMATION
This selected financial information is in accordance with U.S. GAAP, as
presented in the annual consolidated financial statements.
($ in millions of U.S. dollars, except per share information)
Years ended December 31,
2007 2006 2005
--------------------------------------------------------------------------
Exploration expenses $ (304.0) $ (213.0) $ (133.3)
General and administrative (27.1) (28.2) (17.7)
Foreign exchange gains 11.9 0.4 7.8
Share of income from investment
held for sale 0.4 18.5 23.0
Write-down of carrying value
of investment held for sale (134.3) 0.0 0.0
Write-down of carrying value of
other long-term investments (24.5) 0.0 0.0
Net loss from continuing operations $ (489.6) $ (218.3) $ (125.7)
Net income from discontinued
operations 31.9 19.6 35.9
--------------------------------------------------------------------------
Net loss $ (457.7) $ (198.7) $ (89.8)
--------------------------------------------------------------------------
Net loss per share from
continuing operations $ (1.31) $ (0.65) $ (0.41)
Net income per share from
discontinued operations $ 0.09 $ 0.06 $ 0.12
--------------------------------------------------------------------------
Net loss per share $ (1.22) $ (0.59) $ (0.29)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total assets $ 530.2 $ 703.2 $ 396.8
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total long-term financial
liabilities $ 142.9 $ 5.1 $ 5.1
--------------------------------------------------------------------------
SELECTED QUARTERLY DATA
($ in millions of U.S. dollars, except per share information)
Quarter Ended Year Ended
---------------------------------------- ----------
Dec-31 Sep-30 Jun-30 Mar-31 Dec-31
2007 2007 2007 2007 2007
--------------------------------------------------------------- ----------
Exploration expenses ($96.6) ($74.8) ($79.1) ($53.5) ($304.0)
General and
administrative (9.0) (7.0) (5.9) (5.2) (27.1)
Share of income
from investment
held for sale - - - 0.4 0.4
Foreign exchange
gains (losses) 2.3 2.1 6.7 0.8 11.9
Net (loss) from
continuing
operations (265.5) (90.0) (78.7) (55.4) (489.6)
Income from
discontinued
operations 11.9 6.8 4.6 8.6 31.9
Net (loss) (253.6) (83.1) (74.2) (46.8) (457.7)
Net (loss) income
per share
Continuing
operations ($0.71) ($0.24) ($0.21) ($0.15) ($1.31)
Discontinued
operations $0.04 $0.02 $0.01 $0.02 $0.09
Total ($0.67) ($0.22) ($0.20) ($0.13) ($1.22)
--------------------------------------------------------------- ----------
--------------------------------------------------------------- ----------
Quarter Ended Year Ended
---------------------------------------- ----------
Dec-31 Sep-30 Jun-30 Mar-31 Dec-31
2006 2006 2006 2006 2006
--------------------------------------------------------------- ----------
Exploration expenses ($70.4) ($67.3) ($43.7) ($31.6) ($213.0)
General and
administrative (8.9) (6.9) (6.0) (6.4) (28.2)
Share of income
(loss) from
investment held
for sale 7.4 9.0 (2.4) 4.5 18.5
Foreign exchange
gains (losses) (3.7) (0.4) 4.7 (0.2) 0.4
Net (loss) from
continuing
operations (73.5) (68.0) (45.7) (31.1) (218.3)
Income from
discontinued
operations 4.8 1.5 5.4 7.9 19.6
Net (loss) (68.7) (66.5) (40.3) (23.2) (198.7)
Net (loss) income
per share
Continuing
operations ($0.21) ($0.20) ($0.14) ($0.10) ($0.65)
Discontinued
operations $0.01 $0.00 $0.02 $0.03 $0.06
Total ($0.20) ($0.20) ($0.12) ($0.07) ($0.59)
--------------------------------------------------------------- ----------
--------------------------------------------------------------- ----------
Ivanhoe Mines' results for the year ended December 31, 2007, are
contained in the audited Consolidated Financial Statements and
Management's Discussion and Analysis of Financial Condition and
Results of Operations, available on the SEDAR website at
www.sedar.com and Ivanhoe Mines' website at www.ivanhoemines.com.
Copies of Ivanhoe Mines' 2007 Annual Report containing the audited
financial statements, the AIF and the 40F are available at
www.ivanhoemines.com under the Investors Info page. Shareholders
also may request a hard copy of the Annual Report free of charge by
contacting our investor relations department by phone at
+1-604-688-5755 or by email at info@ivanhoemines.com.
Ivanhoe Mines shares are listed on the Toronto, New York and
NASDAQ stock exchanges under the symbol IVN.
QUALIFIED PERSONS
Disclosures of a scientific or technical nature in this release
and the Company's MD&A in respect of each of Ivanhoe Mines'
material mineral resource properties were prepared by, or under the
supervision of, the qualified persons (as that term is defined in
NI 43-101) listed below.
Relationship to
Project Qualified Person Ivanhoe Mines
-------------------------------------------------------------------------
Oyu Tolgoi Project Stephen Torr, P.Geo, Employee of the Company
Ivanhoe Mines
Ovoot Tolgoi Project Gene Wusaty, P. Eng, Officer of SouthGobi
SouthGobi
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of our
beliefs, intentions and expectations about developments, results
and events which will or may occur in the future, which 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 United
States Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements are typically identified
by words such as "anticipate", "could", "should", "expect", "seek",
"may", "intend", "likely", "plan", "estimate", "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; proposed acquisitions and
dispositions of assets; discussions with third parties respecting
material agreements; the expected timing and outcome of Ivanhoe
Mines' discussions with representatives of the Government of
Mongolia for an Investment Agreement in respect of the Oyu Tolgoi
Project; the estimated timing and cost of bringing the Oyu Tolgoi
Project into commercial production; anticipated future production
and cash flows; target milling rates; the impact of amendments to
the laws of Mongolia and other countries in which Ivanhoe Mines
carries on business; changes in mine plan contemplated thereunder;
the timing of commencement of full construction of the Oyu Tolgoi
Project; the completion of an updated mine plan for the Ovoot
Tolgoi Project; and other statements that are not historical
facts.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanhoe Mines' 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. Important factors
that could cause actual results to differ from these
forward-looking statements include those described under the
heading "Risks and Uncertainties" elsewhere in this release. The
reader is cautioned not to place undue reliance on forward-looking
information or statements.
This release also contains 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 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, 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. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Except as
required by law, the Company does not assume the obligation to
revise or update these forward-looking statements after the date of
this document or to revise them to reflect the occurrence of future
unanticipated events.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investors (604)
688-5755 Ivanhoe Mines Ltd. Bob Williamson Media (604) 688-5755
Email: info@ivanhoemines.com Website: www.ivanhoemines.com
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