Ivanhoe Mines Ltd. (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) today
announced its results for the third quarter that ended September
30, 2008. (Note: all figures are in U.S. dollars, unless stated in
another currency.)
Summary of significant achievements and developments since July
1, 2008
- Ivanhoe Mines remains focused on opportunities to advance the
company's flagship Oyu Tolgoi copper-gold project in Mongolia's
South Gobi Region. A start on construction of the planned mine at
Oyu Tolgoi has been delayed by a series of Mongolian political
events during the past year, including a national general election.
Ivanhoe Mines and its strategic partner, Rio Tinto, recently
reiterated to the Mongolian Government their readiness to
participate in a resumption of discussions to conclude an
Investment Agreement for Oyu Tolgoi. The new coalition government
has declared that the development of major mineral deposits,
including Oyu Tolgoi, is a matter of high priority.
- A Working Group of elected members of Mongolia's State Great
Hural (National Parliament) now has prepared two draft resolutions
that would direct the Government to speed up the process, begin
working with Ivanhoe Mines and Rio Tinto and submit a proposed
Investment Agreement to the Parliament to clear the way for
construction to start on the Oyu Tolgoi mining complex. The
resolutions also would end the year-long wait for possible changes
to Mongolia's Minerals Law and direct the Government to initiate
discussions with the investors based on the provisions of the
existing 2006 Minerals Law. Votes on the resolutions are expected
to be held in the near future.
- Exploration drilling in southern Oyu Tolgoi has discovered
high-grade gold and copper mineralization that is similar to the
earlier high-grade discoveries at the Hugo Dummett or Southwest Oyu
deposits. Assay results are pending. The discovery is in the
four-kilometre gap between the Heruga Deposit and Ivanhoe's
100%-owned Southern Oyu deposits that were delineated by Ivanhoe's
exploration several years ago. Drilling is continuing, with an
objective of establishing whether there is a continuous, high-grade
mineralized connection between the more recently discovered Heruga
Deposit and the major deposits to the north.
- Drilling at Oyu Tolgoi also has successfully extended the
Heruga Deposit approximately 200 metres to the north, onto ground
held 100% by Ivanhoe Mines. The bulk of Heruga identified to date
is on ground held in an 80%-20% joint venture between Ivanhoe Mines
and Entree Gold respectively.
- Ivanhoe Mines received $47.0 million from Rio Tinto on
September 30, 2008, for the purchase of large equipment to be used
in the construction of the Oyu Tolgoi copper and gold mining
complex in Mongolia, or elsewhere as Rio Tinto deems appropriate.
Ivanhoe Mines received a further $74.5 million on November 12,
2008, as part of the agreement, bringing the aggregate amount
received from the sale of the equipment to approximately $121.5
million.
- SouthGobi Energy Resources made the first deliveries on sales
of coal from its new Ovoot Tolgoi open-pit mine in southern
Mongolia - a major milestone as SouthGobi begins to establish
itself as a competitive producer in the Asian coal market.
SouthGobi, 78.9% owned by Ivanhoe Mines, also increased its working
interest in the Mamahak Coal Project in East Kalimantan, Indonesia,
from 56% to 85% for a consideration of $13.2 million, comprised of
$8.0 million in cash and 320,000 SouthGobi common shares.
- Ivanhoe Mines is continuing to seek opportunities to realize
its objective to daylight value for shareholders from mineral
resource projects that have been assembled within the company's
portfolio of assets over the years and supported through direct
investments.
- The A$125 million IPO of Ivanhoe Australia was successfully
completed and trading was initiated on the Australian Stock
Exchange on August 6th under the symbol IVA. A portion of the IPO
proceeds was used to repay an amount of A$38 million owed to parent
company Ivanhoe Mines as an inter-corporate loan that had been
advanced to fund Ivanhoe Australia's initial exploration program in
the state of Queensland. Ivanhoe Australia subsequently reported
mineral inventories at three of its Cloncurry district projects,
and new copper-gold and molybdenum discoveries from ongoing
exploration.
- In Kazakhstan, Ivanhoe Mines and three Kazakh strategic
partners - Sumeru, JSC AK Altynalmas and Medoro Partners -
completed an agreement on October 3, 2008, to form a new mining and
exploration company, Altynalmas Gold Ltd. The new venture
consolidates within Altynalmas Gold 100% ownership of the Bakyrchik
Gold Mine and also of the nearby, 15-kilometre-long Kryzyl Gold
Project - consisting of the Bakyrchik Venture's Kyzyl Shear Project
and Sumeru's Bolshevik Gold Project. The Bakyrchik Mining Venture
previously was 70% owned by Ivanhoe Mines and 30% owned by JSC AK
Altynalmas.
- The demonstration rotary-kiln roaster plant at the Bakyrchik
Gold Mine, in northeastern Kazakhstan, is being commissioned this
month and will enable the mine to resume gold production.
Ivanhoe Mines' President and Chief Executive Officer John Macken
said that Ivanhoe Mines is well positioned with quality assets and
a significant cash position of approximately US$460.8 million, on a
consolidated basis, at September 30, 2008.
"We believe that shares in soundly established companies that
have strong working capital positions, excellent project
portfolios, experienced partners and proven management teams, such
as Ivanhoe Mines, will hold very attractive upside appeal for
investors in coming months.
"We expect that the world's key economic drivers - including
major infrastructure investments, industrialization and
urbanization in China and India, for example - will resume higher
rates of growth and help to underpin strengthening demand for many
commodities, including copper and coal."
Mr. Macken said that Ivanhoe Mines, like other mining companies,
is evaluating the developments in capital markets that have added
new conditions and restraints on access to debt and equity
financing.
"We are reviewing our 2009 capital investment program in light
of the current and anticipated, global economic environment. We are
prepared to reconsider our projected pre-construction spending on
the Oyu Tolgoi Project and, if necessary, act decisively to further
curtail spending if sufficient progress is not made toward the
timely conclusion of an Investment Agreement with the Mongolian
Government."
MONGOLIA: Ivanhoe Mines' Oyu Tolgoi Copper-Gold Project
Completion of Oyu Tolgoi Investment Agreement declared a
priority by new Mongolian Government
A paramount priority for Ivanhoe Mines and its strategic
partner, Rio Tinto, is the completion of an acceptable Investment
Agreement with the Government of Mongolia to permit the investors
to proceed with full-scale construction of the Oyu Tolgoi mine and
ore-processing complex.
Since Mongolia's national general election in June 2008, Prime
Minister Sanjaa Bayar, members of the Cabinet and members of the
State Great Hural have publicly endorsed the objective of ensuring
that Oyu Tolgoi is placed into production as quickly as possible.
Speaking in September, the Prime Minister described his policy of
"accelerated development" of Oyu Tolgoi and other large mineral
deposits as an "historic" economic growth opportunity for
Mongolia.
The governing Mongolian People's Revolutionary Party (MPRP) won
a clear majority in the June election, gaining 58% of the 76 seats
in Parliament. (The winners of four seats have not yet been
officially declared). Following the election, the MPRP and
opposition Democratic Party (DP) agreed to formally establish a
joint government for the next four years. On September 19, the
Mongolian Parliament officially ratified all members of the new
coalition Government. Under terms of the joint-government
agreement, the MPRP holds 60% of the cabinet seats, with the
balance allocated to DP members. The terms of the joint-government
agreement include a commitment by Mongolia's two dominant political
parties to assign a high priority to putting "large strategic
mineral resource deposits...into economic circulation."
Senior management representatives of Ivanhoe Mines and Rio Tinto
met with Prime Minister Bayar in September to discuss the remaining
steps necessary to achieve a fair and equitable Investment
Agreement for Oyu Tolgoi. As part of a joint-company statement
issued on October 17, Bret Clayton, Rio Tinto's Chief Executive,
Copper & Diamonds, and a Director of Ivanhoe Mines, said that
the companies were "encouraged by the initial steps that have been
taken by the new Mongolian government and by the communications
that we have had with government representatives." Mr. Clayton also
added: "We are looking forward to engaging with the government as
soon as possible to complete a competitive Investment Agreement
that recognizes the realities of the current international
investment environment."
In October, an all-party Parliamentary Working Group was
established to make recommendations on proposed changes to the 2006
Minerals Law, based on a review of several proposed amendments that
had been before the previous Parliament but were not voted on
before the election in June. However, after discussions, MPs on the
Working Group have proposed an alternative approach. The Working
Group has circulated resolutions that would direct the Government
to initiate early discussions with Ivanhoe Mines and Rio Tinto for
an Oyu Tolgoi Investment Agreement that would be based on the
provisions of the existing 2006 Minerals Law. The resolutions would
scrap the proposed Minerals Law amendments from the previous
Parliament and establish guidelines for Investment Agreements to be
concluded for the development of Oyu Tolgoi, and also for the large
Tavan Tolgoi coal deposit.
Prime Minister Bayar has made it clear in public statements that
he believes an Investment Agreement for Oyu Tolgoi can be concluded
without the need for further consideration of amendments to the
2006 Minerals Law. The Parliamentary Working Group's intention,
subject to joint-government concurrence, is to present the draft
resolutions to the Parliament. When ratified, the resolutions would
provide a broad mandate to speed up the process to complete an
Investment Agreement and help to ensure that Oyu Tolgoi can begin
generating needed economic benefits for Mongolia. Votes on the
resolutions are expected to be held in the near future.
Ivanhoe Mines and Rio Tinto remain ready to restart the process
for completion of an Investment Agreement, given a reasonable basis
for negotiations. In the meantime, the companies are continuing to
assess the implications for the Oyu Tolgoi Project and its
development schedule as a result of the delays in approval that
have been experienced in Mongolia, the sharp declines in commodity
prices in recent months and continuing uncertainty in international
financial markets.
Oyu Tolgoi exploration concentrated on gap between Heruga and
Southern Oyu deposits
Exploration during Q3'08 was concentrated on deep
diamond-drilling into the four-kilometre gap between the Heruga and
Southern Oyu deposits. In Q3'08, two rigs completed 6,261 metres of
drilling in this area. Drilling was conducted on two target areas.
On one, 20 metres north of the Entree Joint Venture boundary inside
Ivanhoe Mines' Oyu Tolgoi Mining Licence, the Heruga Deposit
mineralization was extended approximately 200 metres to the north.
On the other, half-way between Heruga and the Southern Oyu
deposits, drilling discovered new, high-grade gold and copper
mineralization that is similar to the earlier high-grade
discoveries at the Hugo Dummett or Southwest Oyu deposits. Core
from this discovery is being assayed.
Underground development at Oyu Tolgoi
Good progress continued to be made during the first half of the
quarter on horizontal tunnelling between the bottom of Shaft No. 1
and an underground portion of the Hugo Deposit orebody at Oyu
Tolgoi. The tunnelling advanced a total of 199 metres during July
and early August. Geotechnical data are being continuously
collected as the development advances and specialized geotechnical
equipment has been installed in the first of three planned
monitoring stations.
On August 16, 2008, a portion of an empty fuel tank being
lowered down Shaft No. 1 broke loose from its hoisting harness at
the 205-metre level and fell approximately 1,100 metres to the
bottom of the shaft. Standard safety precautions routinely observed
during such operations ensured that no employees were in direct
danger from the falling equipment. The incident caused damage to
the shaft infrastructure, including ventilation ducting and
electrical cabling. Underground development tunnelling is expected
to resume before the end of 2008 following completion of
repairs.
Construction of underground infrastructure continued during
Q3'08. Work included the construction and commissioning of the
electrical sub-station and construction of the workshop and
permanent sump facilities. Concrete was poured in all areas
adjacent to the station at the 1,300-metre level to ensure that
adequate drainage and housekeeping standards are maintained as
workplace congestion increases in coming years.
Ivanhoe Mines received $47 million from Rio Tinto for purchase
of Oyu Tolgoi mining equipment
On September 30, 2008, Ivanhoe Mines received $47.0 million from
Rio Tinto for the purchase of large equipment to be used in the
construction of the Oyu Tolgoi copper and gold mining complex in
Mongolia.
The $47.0 million is the first tranche of funds under an
equipment-sale agreement that was executed in August 2008 between
Ivanhoe Mines and Rio Tinto. The agreement provides for Rio Tinto
to purchase certain project equipment already purchased or ordered
by Ivanhoe Mines while Ivanhoe Mines and RioTinto continue to
engage the Government of Mongolia in discussions on an acceptable
Investment Agreement. Ivanhoe Mines received a further $74.5 on
November 12, 2008, as part of the agreement, bringing the aggregate
amount received from the sale of the equipment to approximately
$121.5 million. Ivanhoe Mines will use these funds for future
development of Oyu Tolgoi. In addition, Rio Tinto can require
Ivanhoe Mines to purchase the equipment that has been sold to Rio
Tinto - and any other equipment purchased by Rio Tinto as part of
this agreement - if an acceptable Investment Agreement is reached
with the Government of Mongolia. Ivanhoe Mines also has a right of
first refusal to repurchase the equipment if Rio Tinto deems it
appropriate to use the equipment elsewhere.
Engineering and development advancing in readiness for mine
construction
During Q3'08, capital project work concentrated on the
progression of engineering, the ongoing construction of some site
infrastructure and planning for the start of full-scale
construction that is dependent on the completion of an Investment
Agreement with the Government of Mongolia. Approximately 600 people
were associated with engineering, construction and mining during
Q3'08.
Principal priorities remain overall management, engineering
support, accounting and all project-related commercial activities.
A core focus of the team in Q3'08 was forward planning for
construction release. This involves the refinement of detailed
schedules, updated costs estimates and construction execution
plans.
Engineering work on the concentrator, conducted mostly in North
America, is 72% complete and has addressed design requirements for
a larger facility. Contracts related to civil work and structural
steel designs, as well as bidding for the mechanical, electrical,
and piping package, have been evaluated.
Engineering is largely completed for the major infrastructure
components, with support from third-party engineering firms in
China and North America. Projects consist of a large-diameter water
pipeline to supply the concentrator and camp, an 80-kilometre road
to China, an airstrip, a temporary diesel-fuelled power station and
general site infrastructure. Detailed engineering on the key
packages is approaching completion; detailed design on most
packages is expected to be completed in late 2009.
The engineering and construction execution work for Shaft No. 2
continued in North Bay, Canada and is scheduled to be completed
Q1'09. Construction of the shaft at Oyu Tolgoi was suspended in
December 2006 and the site remains on care and maintenance. Most
long-lead equipment has been ordered and is awaiting manufacture.
Engineering for the coal-fired power plant, being conducted in
Beijing, is 30% complete.
Safety performance remained comparatively good on an industry
basis, but declined relative to the first two quarters. The site
recorded two lost-time injuries, one medical aid and two first-aid
treatments during the third quarter. A significant milestone in
August saw the drilling crews complete one full year without a
lost-time injury. A focus continues to be on safety awareness and
job training for the Mongolian underground crews.
Oyu Tolgoi strategic planning continuing on schedule
During the quarter, work continued on schedule on the
engineering for the Lift 1 underground block-cave at Oyu Tolgoi.
Emphasis was placed on finalizing the mine design and detailing the
rock-handling system to transport ore from the cave to the surface.
Work also continued on development scheduling, ventilation and
services.
In Q3'08, the Senior Underground Mine Engineer joined the
Strategic Production Planning Team based in Salt Lake City, Utah,
and began Phase 2 of the strategic production planning evaluations
for the Hugo North Deposit. The Phase 2 evaluations will test a
single-model approach for the two-lift design of Hugo North.
MONGOLIA
COAL PROJECTS
SOUTHGOBI ENERGY RESOURCES (78.9% owned)
First sales of coal from Ovoot Tolgoi Mine in Mongolia
The Ovoot Tolgoi coal mine is approximately 45 kilometres north
of the Mongolia-China border. The mine is operating 24 hours a day,
with four production crews.
During Q3'08, SouthGobi commenced initial sales of coal from the
Ovoot Tolgoi mine to customers in China. Three coal products have
been established for export from the Ovoot Tolgoi mine - thermal
coal, premium thermal coal and metallurgical coal. Coal trucks were
loaded at the Ovoot Tolgoi mine site and crossed the border into
China on September 22, 2008. This coal shipment is part of a
one-year contract, with 300,000 tonnes to be loaded at the Ovoot
Tolgoi mine gate in 2008. A second sales contract also is in place
for an additional 400,000 tonnes in 2008.
New coal discovery 10 kilometres from Ovoot Tolgoi Mine
On October 8, 2008, SouthGobi announced the discovery of a new
coal formation 10 kilometres southeast of the Ovoot Tolgoi mine.
The new occurrence was discovered through field reconnaissance
work. Two trenches approximately three metres deep have been
excavated and multiple seams have been uncovered, with up to 15
metres of apparent thickness. To date, the coal field has been
defined over a strike length of approximately 1,800 metres.
Based on the successful trenching results, a drilling program
has commenced. Initial results have identified multiple coal seams
up to 18 metres in apparent thickness. The goal of this initial
drilling program is to determine the coal structure, as well as
coal quality. Quality results are pending.
INDONESIA
COAL PROJECTS
SOUTHGOBI ENERGY RESOURCES (78.9% owned)
SouthGobi increased its working interest in Mamahak Coal
Project, Indonesia
In September 2008, SouthGobi announced that it had increased
working interest in the Mamahak Coal Project in East Kalimantan,
Indonesia, from 56% to 85% for consideration of $13.2 million,
comprised of $8.0 million in cash and 320,000 SouthGobi common
shares.
The Mamahak Project is ideally located to supply the Japanese,
Korean, Indian and Chinese coastal markets and complements
SouthGobi's established strategic advantage in Mongolia.
AUSTRALIA
IVANHOE AUSTRALIA (82.9% owned)
A$125 million IPO successfully completed; trading initiated on
the Australian Stock Exchange
On August 5, 2008, Ivanhoe Mines announced the completion of
subsidiary Ivanhoe Australia's initial public offering (IPO).
The IPO consisted of 62.5 million new shares at an offer price
of A$2.00 per share, raising gross proceeds of A$125.0 million.
Ivanhoe Australia plans to use a major portion of the IPO proceeds
to finance ongoing exploration and development activities on its
Cloncurry Project, in northwestern Queensland. Also, A$38.4 million
of the IPO proceeds was used to partially repay a portion of the
A$91.0 million inter-company loan from Ivanhoe Mines. The remaining
unsecured loan balance will mature in five years, with interest
accruing after 18 months at the rate of BBR (Bank Bill Rate) plus
2.50% per annum.
Ivanhoe Australia, now approximately 82.9% owned by Ivanhoe
Mines, began trading on the Australian Stock Exchange on August 6
under the symbol IVA.
Study of potential mine at Mount Elliott discovery planned in
2009
In September, Ivanhoe Australia issued JORC resource estimates
for three Cloncurry projects: Mount Elliott, the Starra Line and
Mount Dore.
Mount Elliott, the largest of the three projects to date, also
is one of the largest mineralized systems ever discovered in the
historic Cloncurry mining district. It is projected that Mount
Elliott could be developed with open pit, sub-level and
block-caving mining methods, using a conventional copper-gold
flotation recovery process. A scoping study to assess the viability
of developing Mount Elliott into a significant mining project is
planned following the completion of an updated JORC resource
estimate expected in early 2009.
The extensive Cloncurry inventory in a politically stable region
with a long history of mining and established infrastructure gives
Ivanhoe Australia a distinct advantage in the current economic
climate relative to many other development projects in less
developed regions.
Cloncurry IOCG Project reports ongoing discoveries
Ivanhoe Australia is exploring the eastern succession of the
Mount Isa Inlier for copper, gold and uranium. Ivanhoe Australia's
key projects are Mount Elliott, Mount Dore and the Starra Line.
In October, Ivanhoe Mines reported the discovery of a
significant extension to the Mount Dore sulphide zone and an
extremely high-grade, 40-metre-wide molybdenum intersection at
Mount Dore.
Ivanhoe Australia spent $17.0 million on the Cloncurry Project
in Q3'08, compared to $7.6 million in Q3'07. The increase of $9.4
million is largely due to the inclusion in Q3'08 of $7.0 million in
non-cash stock compensation expense for qualifying rights issued to
employees and directors of Ivanhoe Australia at the time of its
IPO.
Ivanhoe Australia currently holds 15 mineral exploration permits
and 20 mining leases that total 1,679 square kilometres.
Applications have been filed for five additional exploration
permits covering 636 square kilometres.
Work in Q3'08 continued to focus on in-fill drilling at Mount
Elliott and extensional drilling at Mount Dore.
KAZAKHSTAN
Bakyrchik Gold Mine to form part of new gold company with
Ivanhoe partners
On October 3, 2008, Ivanhoe Mines, which held a 70% interest in
the Bakyrchik Gold Project in north-eastern Kazakhstan, closed an
agreement with several Kazakh strategic partners to consolidate
100% ownership of the project, and other gold-mining assets in
Kazakhstan, in a new company: Altynalmas Gold Ltd. (Altynalmas
Gold). The final completion of the combination transaction is
subject to various regulatory approvals in Kazakhstan, which are
expected to be received in Q4'08. Altynalmas Gold initially will
focus on the development of its highly prospective Kyzyl Shear
assets. Ivanhoe Mines now owns 49% of Altynalmas Gold and will
account for its investment using the equity method for Q4'08.
Construction of the demonstration plant at the Bakrychik Gold
Project was completed at the end of Q3'08, with commissioning
commencing in Q4'08. The production ramp-up will commence in
November 2008, with the plant targeted to reach its planned
capacity of 100,000 tonnes per annum in Q1'09. The plant uses
roasting to oxidize the ore, followed by conventional grinding and
cyanidation. Bakyrchik has a stockpile of ore that will provide the
initial feed for the plant, with production of underground ore
planned to begin in Q3'09.
CHINA
Exploration continues in Northern China, focusing on
high-quality projects for acquisition
Reconnaissance field exploration in central Inner Mongolia and
surrounding provinces continued during Q3'08. The program initially
is targeting known unlicensed and licensed gold, silver, base
metal, copper and nickel-PGM occurrences and deposits. Work
involves detailed data reviews, field traverses and systematic
sampling of all occurrences and deposits. The program's purpose is
to identify high-quality, semi-advanced and grass-roots projects
for acquisition through licence-bidding application over unlicensed
targets and joint-venture formation with, or direct purchase from,
the existing licence holders.
FINANCIAL RESULTS (all figures are in U.S. dollars, unless
specified in another currency)
In Q3'08, Ivanhoe Mines recorded a net loss of $88.0 million (or
$0.23 per share), compared to a net loss of $83.1 million (or $0.22
per share) in Q3'07, representing an increase of $4.9 million.
Results for Q3'08 were affected by $59.7 million in exploration
expenses, $5.1 million in general and administrative expenses, $2.4
million in accretion expense and $4.1 million in interest expense
on the convertible credit facility, $20.0 million in mainly
unrealized foreign exchange losses, and $10.7 million in income
from discontinued operations.
Exploration expense of $59.7 million in Q3'08 decreased $15.1
million from $74.8 million in Q3'07. The $59.7 million in
exploration expenses consisted mainly of $37.9 million spent in
Mongolia for Oyu Tolgoi and Ovoot Tolgoi ($63.9 million in Q3'07).
Also included in Q3'08 exploration expense is $17.0 million in
costs incurred by Ivanhoe Australia ($7.6 million in Q3'07). The
increase of $9.4 million is largely due to $7.0 million in non-cash
stock compensation expense incurred in Q3'08 for qualifying rights
issued to employees and directors of Ivanhoe Australia at the time
of its IPO.
Liquidity and Capital Resources
Recent developments in capital markets have restricted access to
debt and equity financing for many companies. As a result, the
Company is reviewing its 2009 capital spending requirements. The
Company also is assessing its options for financing future capital
expenditures in light of prevailing conditions in international
credit markets.
At September 30, 2008, consolidated working capital was $426.7
million, including cash and cash equivalents of $460.8 million,
compared with working capital of $65.7 million and cash of $145.7
million at December 31, 2007. (At November 14, 2008, the company's
consolidated cash position was $428 million.) Included in the
September 30, 2008, cash and cash equivalents balance of $460.8
million was $38.6 million of SouthGobi's cash and cash equivalents
and $55.6 million of Ivanhoe Australia's cash and cash equivalents,
which were not available for Ivanhoe Mines' use.
The bulk of Ivanhoe Mines' expenditures can be deferred based on
the status of Ivanhoe Mines' cash resources. Based on Ivanhoe
Mines' financial position at September 30, 2008, Ivanhoe Mines
believes that its existing funds should be sufficient to fund its
minimum obligations, including planned Bakyrchik Project
obligations and general corporate activities, for at least the next
12 months.
SELECTED QUARTERLY DATA
($ in millions of U.S. dollars, except per share information)
Quarter Ended
--------------------------------------
Sep-30 Jun-30 Mar-31 Dec-31
2008 2008 2008 2007
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Exploration expenses ($59.7) ($67.3) ($57.3) ($96.6)
General and administrative (5.1) (7.5) (6.8) (9.0)
Share of income from investment
held for sale - - - -
Foreign exchange (losses) gains (20.0) (1.0) (1.3) 2.3
Gain on sale of long-term
investments - 201.4 - -
Net (loss) income from continuing
operations (98.7) 118.3 (69.6) (265.5)
Income from discontinued operations 10.7 9.2 6.0 11.9
Net (loss) income (88.0) 127.5 (63.6) (253.6)
Net (loss) income per share - basic
Continuing operations ($0.26) $ 0.32 ($0.19) ($0.71)
Discontinued operations $ 0.03 $ 0.02 $ 0.02 $ 0.04
Total ($0.23) $ 0.34 ($0.17) ($0.67)
Net (loss) income per share -
diluted
Continuing operations ($0.26) $ 0.29 ($0.19) ($0.71)
Discontinued operations $ 0.03 $ 0.02 $ 0.02 $ 0.04
Total ($0.23) $ 0.31 ($0.17) ($0.67)
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Quarter Ended
--------------------------------------
Sep-30 Jun-30 Mar-31 Dec-31
2007 2007 2007 2006
--------------------------------------------------------------------------
Exploration expenses ($74.8) ($79.1) ($53.5) ($70.4)
General and administrative (7.0) (5.9) (5.2) (8.9)
Share of income from investment
held for sale - - 0.4 7.4
Foreign exchange gains (losses) 2.1 6.7 0.8 (3.7)
Gain on sale of long-term
investments - - 1.0 2.7
Net (loss) from continuing
operations (90.0) (78.7) (55.4) (73.5)
Income from discontinued operations 6.8 4.6 8.6 4.8
Net (loss) (83.1) (74.2) (46.8) (68.7)
Net (loss) income per share - basic
Continuing operations ($0.24) ($0.21) ($0.15) ($0.21)
Discontinued operations $ 0.02 $ 0.01 $ 0.02 $ 0.01
Total ($0.22) ($0.20) ($0.13) ($0.20)
Net (loss) income per share -
diluted
Continuing operations ($0.24) ($0.21) ($0.15) ($0.21)
Discontinued operations $ 0.02 $ 0.01 $ 0.02 $ 0.01
Total ($0.22) ($0.20) ($0.13) ($0.20)
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Ivanhoe Mines' results for the three and nine months ended
September 30, 2008, are contained in the 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.
Ivanhoe Mines' shares are listed on the Toronto, New York and
NASDAQ stock exchanges under the symbol IVN.
Forward-looking statements
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; future coal sales from SouthGobi Energy's coal mines and
projects, the planned formation of a of new gold company with
Ivanhoe partners in Kazakhstan, the expected production of gold
from the rotary-kiln demonstration plant at the Bakyrchik Gold
Project, the success of the resource delineation and exploration
programs at Ivanhoe Australia's Cloncurry projects, the impact of
amendments to the laws of Mongolia and other countries in which
Ivanhoe Mines carries on business; 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
Website: www.ivanhoemines.com
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