Media
Press release

Oyu Tolgoi - 2014 Third Quarter Results

Ulaanbaatar, Mongolia,

Oyu Tolgoi LLC, through its parent company Turquoise Hill Resources, announced today financial results for the third quarter, ending 30 September, 2014.

Oyu Tolgoi LLC Chief Financial Officer Steve Duggan said, "The third quarter's results show once again the steady progress we are making in safely optimizing production and ramping up sales from the open-pit mine.".

Highlights include:

  • An All Injury Frequency Rate of 0.50 per 200,000 hours worked and no fatalities for the nine months ended 30 September, 2014.
  • Net revenue of US$466.1 million on sales of approximately 220,300 tonnes of copper-gold concentrate. By metals in concentrates: approximately 53,600 tonnes of copper for US$302.6 million, approximately 144,000 ounces of gold for US$158.5 million and approximately 323,000 ounces of silver for US$5.0 million.
  • Recognised cost of sales of US$380.0 million.
  • Royalties of US$25.4 million to the Government of Mongolia on concentrate sales.
  • Concentrate sales increased approximately nine per cent over Q2'14 with sales exceeding production resulting in a planned inventory drawdown for the quarter.
  • Production of 134,100 tonnes of copper-gold concentrate, containing 36,600 tonnes of copper.
  • As Oyu Tolgoi's open pit deepens into the high-grade zone in Q4'14 and Q1'15, copper and gold head grades are expected to increase.
  • Oyu Tolgoi is expected to produce between 135,000 – 150,000 tonnes of copper and 550,000 – 600,000 ounces of gold in concentrates for 2014.
Oyu Tolgoi Production Figures Q3 2014 9 Months 2014
Ore Treated ('000 tonnes) 7,029 20,367
Average mill head grades (grades of ore)
Copper(%) 0.59 0.55
Gold(g/t) 0.80 0.64
Silver (g/t) 1.64 1.58
Copper concentrates produced ('000 tonnes) 134.1 377
Average concentrate grade (% Cu) 27.3 26
Total metals produced
Copper in concentrates ('000 tonnes) 36.6 98.2
Gold in concentrates ('000 ounces) 132 311
Silver in concentrates ('000 ounces) 216 608
Sales of metals in concentrates
Copper in concentrates ('000 tonnes) 53.6 118.3
Gold in concentrates ('000 ounces) 144 298
Silver in concentrates ('000 ounces) 323 710

Further details are available in the Turquoise Hill Resources financial results here: http://www.turquoisehill.com/i/pdf/Turquoise-Hill-announces-financial-results-and-review.pdf

About Oyu Tolgoi LLC (www.ot.mn)

Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.

For more information, connect with us on Facebook and Twitter.