Turquoise Hill Resources Reports Q3 Results

Turquoise Hill Resources (TSX:TRQ) reported its third quarter financial results. Highlights included revenues of $431.7 million for the quarter, on sales of 226,000 tonnes of concentrate.
As quoted in the press release, further highlights included:

• Turquoise Hill reported income from continuing operations attributable to shareholders of $44.0 million.
• In Q3’15, a non-cash charge of $76.4 million was recorded within operating expenses for provision against non-current ore stockpile inventory.
• Turquoise Hill generated operating cash flow before interest and taxes of $171.7 million during Q3’15.
• Oyu Tolgoi’s Q3’15 mine production was at record levels while concentrate produced and contained copper were on par with Q2’15 even considering the planned concentrator shutdown in July 2015.
• During Q3’15, mined production increased 8.5% over Q2’15 due to shorter hauling routes and ongoing productivity initiatives.
• Copper in concentrates for Q3’15 increased 1.3% due to higher head grades while gold in concentrates decreased 48.3% over Q2’15 due to slower than anticipated access to gold-rich ore.
• Increased copper and gold production is expected in Q4’15 compared to Q3’15 as higher-grade ore is accessed in the open pit.
• Turquoise Hill continues to expect Oyu Tolgoi to produce 175,000 to 195,000 tonnes of copper and 600,000 to 700,000 ounces of gold in concentrates in 2015.
• In August 2015, Oyu Tolgoi filed revised schedules for the 2015 Oyu Tolgoi Feasibility Study with the Mongolian Minerals Council.
• Underground pre-start activities are underway in parallel with an update to the feasibility study capital estimate, which is expected to be completed in Q1’16.
• Turquoise Hill continues to expect signing of project financing by the end of 2015 and the decision for underground construction in early Q2’16.
• Capital expenditure for 2015 is now expected to be approximately $120 million, of which approximately $115 million relates to sustaining capital, due to operational efficiencies, changes to the mine plan during the year and capital optimization.
• Operating cash costs for 2015 are now expected to be approximately $900 million reflecting operational improvements throughout the year and excluding one-time costs related to the May 2015 underground agreement as well as pre-start costs for underground development.
• Sales contracts have been signed for more than 80% of Oyu Tolgoi’s expected 2016 concentrate production.
• In September 2015, Oyu Tolgoi surpassed 1.5 million tonnes of concentrate shipped.
• Turquoise Hill’s cash and cash equivalents at September 30, 2015 were $1.3 billion.

Click here for the full press release.