Turquoise Hill Announces Financial Results

Base Metals Investing

Turquoise Hill Resources today announced its financial results for the quarter ended March 31, 2018.

Turquoise Hill Resources (NYSE:TRQ,TSX:TRQ) today announced its financial results for the quarter ended March 31, 2018.

As highlighted in the press release:

Oyu Tolgoi achieved a strong All Injury Frequency Rate of 0.21 per 200,000 hours worked for the three months ended March 31, 2018.
Underground development achieved record-level monthly progress during Q1 18, with 2.6 equivalent kilometres completed during the quarter.
In March 2018, the underground team experienced their highest development month to date.
Since the restart of development, a total of 10.3 equivalent kilometres of lateral development has been completed.
Sinking of shaft 2 was completed in January 2018 and sinking of shaft 5 was completed in March 2018.
During Q1 18, underground expansion spend was US$270.5 million, resulting in total project spend since January 1, 2016 of approximately US$1.4 billion.
Production from first draw bell remains planned for mid-2020 and sustainable first production in 2021.
During Q1 18, Oyu Tolgoi produced 38,800 tonnes of copper and 42,000 ounces of gold.
Revenue of US$245.6 million in Q118 increased 3.4 percent over Q1 17 reflecting higher copper and gold prices partly offset by lower concentrate sales volumes.
For Q1 18, the company recorded income of US$79.7 million and net income attributable to owners of Turquoise Hill of US$85.7 million or US$0.04 per share.
Turquoise Hill generated cash flow from operating activities before interest and taxes of US$14.7 million in Q1 18.
For Q1 18, Oyu Tolgoi’s cost of sales was US$2.23 per pound of copper sold, C1 cash costs were US$1.76 per pound of copper produced and all-in sustaining costs were US$2.07 per pound of copper produced.
Operating cash costs of US$176.6 million in Q1 18 increased 4.9 percent over Q1 17 reflecting higher open pit and concentrator maintenance costs.