Ivanhoe Announces Q3 Operational and Financial Results

Ivanhoe Mines (TSX:IVN) announced its financial and operational results for the three and nine months ended September 30 2014. Highlights from the quarter included the activation of a mining right for Ivanhoe’s Platreef project. The company recorded a loss of $38.6 million for Q3.

As quoted in the press release:

The company’s total comprehensive loss for Q3 2014 of $38.6 million was $19.4 million lower than for the same period in 2013 ($58.0 million). The decrease mainly was as a result of the mark-to-market gain on the revaluation of warrants of $12 million and the legal settlement expense in 2013 that amounted to $10 million.

The company’s share-based payment expense amounted to $7.1 million, compared to $1.9 million for the same period in 2013. The final allocations of the Platreef Project’s B-BBEE transaction were completed on September 3, 2014, and resulted in a share-based payment expense of $5.0 million being recognized in Q3 2014, with the remaining $2.0 million (Q3 2013: $1.9 million) being the expense for options granted to employees recognized over the vesting period.

Exploration and project expenditures for the three months ending September 30, 2014, were $6.4 million less than for the same period in 2013. Expenditure at the Kamoa Project decreased by $4.8 million compared to the same period in 2013; however, the costs directly attributable to the construction of the Kamoa box cut were capitalized as development costs and therefore do not form part of the expensed amount.

Expenditure at the Platreef Project decreased to $6.9 million in the quarter (Q3 2013: $8.0 million) as Ivanhoe awaited the execution of the project’s mining right, while expenditure at the Kipushi Project increased by $0.5 million compared to the same period in 2013 as a result of the drilling program that is underway.

Click here to read the Ivanhoe Mines (TSX:IVN) press release