Turquoise Hill Announces First Drawbell Firing
June 14 2022 - 5:00PM
Business Wire
Turquoise Hill Resources Ltd. (TSX: TRQ) (NYSE: TRQ) ("Turquoise
Hill" or the "Company") today announced that the first drawbell of
the Hugo North underground mine at Oyu Tolgoi (“OT”) is scheduled
to be fired on 17 June 2022. This is ahead of expectations and
represents continued progress in terms of caving related
milestones.
The Company is assessing any net positive impact that this may
have on timing of sustainable production of Panel 0 which is
currently forecast in the first half of 2023 and will update the
market as appropriate.
Forward-looking statements and forward-looking
information
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of the
Corporation’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 United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements and information relate to future events
or future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “likely,” “may,” “plan,” “seek,” “should,” “will” and
similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to,
statements and information regarding: the nature of the
Corporation’s ongoing relationship and interaction with the
Government of Mongolia with respect to the continued operation and
development of Oyu Tolgoi as and when the key agreements entered
into with the Government of Mongolia announced on January 24, 2022
(the “GoM Agreements”) are implemented along with the
implementation of Resolution 103, the resolution passed by the
Parliament of Mongolia in December 2021 to resolve the outstanding
issues among the Corporation, Rio Tinto and the Government of
Mongolia in relation to the implementation of Resolution 92, the
resolution passed by the Parliament of Mongolia in November 2019
mandating the Government of Mongolia to take necessary measures to
ensure the benefits to Mongolia of Oyu Tolgoi; the continuation of
undercutting in accordance with the mine plan and design; the
actual timing of first sustainable production as well as the
lifting of restrictions by the Government of Mongolia on the
ability of Oyu Tolgoi LLC (“OT LLC”) to incur any additional
indebtedness; the implementation and successful execution of the
updated funding plan that is the subject of the second amended and
restated heads of agreement entered into with RTIH on May 18, 2022
(the “Second Amended HoA”), as such agreement may be further
amended or restated, and the amount of any additional future
funding gap to complete the Oyu Tolgoi project and the availability
and amount of potential sources of additional funding required
therefor, all as contemplated by the Second Amended HoA, as well as
potential delays in the ability of the Corporation and OT LLC to
proceed with the funding elements contemplated by the Second
Amended HoA; liquidity, funding sources and funding requirements in
general, in particular until sustainable first production is
achieved, including the Corporation’s ability to reach agreement
with project finance lenders on the re-profiling of existing debt
payments in line with current cash flow projections, as well as the
Corporation (or a wholly-owned subsidiary) and OT LLC entering into
a pre-paid copper concentrate sale arrangement; the availability
and amount of potential sources of additional funding, including
the short-term secured advance to be provided by Rio Tinto to the
Corporation under the Second Amended HoA; the amount by which a
successful re-profiling of the Corporation’s existing debt would
reduce the Corporation’s currently projected funding requirements;
the timing and amount of future production and potential production
delays; statements in respect of the impacts of any delays on
achieving first sustainable production and on the Corporation’s
cash flows; expected copper and gold grades; the mine design for
Panel 0 of Hugo North Lift 1 and the related cost and production
schedule implications; the re-design studies for Panels 1 and 2 of
Hugo North Lift 1 and the possible outcomes, content and timing
thereof; the timing of the sinking of Shafts 3 and 4 and any delays
in that regard in addition to previously announced delays;
expectations regarding the possible recovery of ore in the two
structural pillars, to the north and south of Panel 0; the
continuing impact of COVID-19, including any restrictions imposed
by health or governmental authorities relating thereto on the
Corporation’s business, operations and financial condition, as well
as delays and the development cost impacts of delays caused by the
COVID-19 pandemic; the Corporation’s ability to operate
sustainably, its community relations and its social licence to
operate in Mongolia; capital and operating cost estimates,
including inflationary pressures thereon resulting in cost
escalation; mill and concentrator throughput; anticipated business
activities, planned expenditures, corporate strategies; supply
disruptions of oil and gas to the Oyu Tolgoi project caused by the
ongoing Russia-Ukraine conflict, 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
Corporation to be materially different from future results,
performance or achievements expressed or implied by such statements
or information. There can be no assurance that such statements or
information will prove to be accurate. Such statements and
information are based on numerous assumptions regarding present and
future business strategies, local and global economic conditions,
and the environment in which the Corporation will operate in the
future.
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 Turquoise Hill’s 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 Turquoise Hill’s Annual Information Form for the year
ended December 31, 2021 (the “AIF”), as supplemented by the “Risks
and Uncertainties” section of Turquoise Hill’s Interim Management’s
Discussion and Analysis for the first quarter ended March 31, 2022
(“Q1’22 MD&A”).
Readers are further cautioned that the list of factors
enumerated in the “Risk Factors” section of the AIF and in the
“Risks and Uncertainties” section of the Q1’22 MD&A that may
affect future results is not exhaustive. When relying on Turquoise
Hill’s forward-looking statements and information to make decisions
with respect to Turquoise Hill, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Furthermore, the forward-looking statements
and information contained herein are made as of the date of this
document and Turquoise Hill does not undertake any obligation to
update or to revise any of the included forward-looking statements
or information, whether as a result of new information, future
events or otherwise, except as required by applicable law. The
forward-looking statements and information contained herein are
expressly qualified by this cautionary statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20220614005740/en/
Vice President Investors Relations and Communications Roy
McDowall roy.mcdowall@turquoisehill.com
Follow us on Twitter @TurquoiseHillRe
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