Turquoise Hill announces second quarter 2018 production and completion of Shaft 5
17 July 2018 - 7:00AM
Turquoise Hill Resources (NYSE:TRQ) (TSX:TRQ) today announced
second quarter 2018 production for Oyu Tolgoi as well as the
completion of Shaft 5.
Luke Colton, interim Chief Executive Officer of
Turquoise Hill, said, “During the second quarter, Oyu Tolgoi
continued processing Phase 4A ore resulting in improved gold
grades, production and recovery. This trend is expected for the
remainder of the year. Mill throughput during the quarter benefited
from high intensity blasting, which was introduced in 2017. Oyu
Tolgoi continues to make good underground development progress, as
evidenced by the completion of Shaft 5.”
Mill throughput increased 6.3% over Q1’18 due to
higher utilization rates and the positive impact of high intensity
blasting. Copper production in Q2’18 increased 1.5% over Q1’18 as a
result of higher mill utilization rates offset by slightly lower
grades from the depletion of Phase 6 ore. Gold production increased
19.0% over Q1’18 due to stronger mill utilization rates, higher
grades from Phase 4A and increased recovery. Sales in Q2’18
benefited from improved logistics as inventory accumulated during
the Q1’18 force majeure worked its way through the system.
Oyu Tolgoi is expected to produce 125,000 to
155,000 tonnes of copper and 240,000 to 280,000 ounces of gold in
concentrates for 2018. Due to the positive impact of high intensity
blasting, mill throughput for 2018 is expected to be approximately
40 million tonnes.
Shaft 5 completion
Oyu Tolgoi has achieved an important underground
development milestone with the completed commissioning of Shaft 5,
which is 1,178 metres deep and 6.7 metres in diameter. There is
expected to be a step-up in underground activities with the
increased ventilation capacity from Shaft 5. The Company continues
to expect the first draw bell in mid-2020 and sustainable first
production in 2021.
Oyu Tolgoi Production DataAll
data represents full production and sales on a 100% basis
|
2Q2017 |
3Q2017 |
4Q2017 |
1Q2018 |
2Q2018 |
1H2018 |
1H2017 |
Full Year2017 |
|
|
|
|
|
|
|
|
|
|
|
Open pit
material mined (‘000 tonnes) |
25,193 |
27,466 |
28,929 |
23,131 |
22,792 |
45,923 |
49,527 |
105,921 |
|
Ore
treated (‘000 tonnes) |
9,637 |
10,615 |
10,838 |
9,561 |
10,164 |
19,725 |
19,724 |
41,177 |
|
Average
mill head grades: |
|
|
|
|
|
|
|
|
|
Copper
(%) |
0.51 |
0.48 |
0.53 |
0.51 |
0.48 |
0.50 |
0.51 |
0.51 |
|
Gold
(g/t) |
0.16 |
0.18 |
0.20 |
0.25 |
0.26 |
0.25 |
0.15 |
0.17 |
|
Silver
(g/t) |
1.38 |
1.34 |
1.54 |
1.32 |
1.17 |
1.24 |
1.34 |
1.39 |
|
Concentrates produced (‘000 tonnes) |
171.0 |
170.0 |
205.4 |
177.3 |
178.8 |
356.1 |
347.0 |
722.5 |
|
Average
concentrate grade (% Cu) |
21.8 |
21.7 |
22.0 |
21.9 |
22.0 |
22.0 |
21.7 |
21.8 |
|
Production of metals in concentrates: |
|
|
|
|
|
|
|
|
|
Copper
(‘000 tonnes) |
37.2 |
36.9 |
45.3 |
38.8 |
39.4 |
78.2 |
75.3 |
157.4 |
|
Gold
(‘000 ounces) |
24 |
31 |
35 |
42 |
50 |
92 |
49 |
114 |
|
Silver
(‘000 ounces) |
236 |
239 |
285 |
221 |
225 |
446 |
450 |
974 |
|
Concentrate sold (‘000 tonnes) |
182.0 |
176.6 |
175.5 |
163.1 |
220.0 |
383.1 |
372.2 |
724.3 |
|
Sales of
metals in concentrates: |
|
|
|
|
|
|
|
|
|
Copper
(‘000 tonnes) |
37.3 |
36.9 |
35.7 |
34.3 |
46.1 |
80.4 |
76.7 |
149.3 |
|
Gold
(‘000 ounces) |
23 |
29 |
27 |
31 |
51 |
82 |
55 |
111 |
|
Silver
(‘000 ounces) |
222 |
229 |
205 |
206 |
250 |
456 |
427 |
860 |
|
Metal
recovery (%) |
|
|
|
|
|
|
|
|
|
Copper |
74.6 |
73.5 |
78.0 |
79.5 |
79.7 |
79.6 |
74.7 |
75.4 |
|
Gold |
47.7 |
51.2 |
50.5 |
55.0 |
59.8 |
57.6 |
48.3 |
49.7 |
|
Silver |
53.9 |
52.8 |
53.0 |
54.6 |
58.4 |
56.4 |
52.9 |
52.9 |
|
|
|
|
|
|
|
|
|
|
|
ContactInvestors and Media
Tony Shaffer+ 1 604 648
3934tony.shaffer@turquoisehill.com
Follow us on Twitter @TurquoiseHillRe
Forward-looking
statementsCertain statements made herein, including
statements relating to matters that are not historical facts and
statements of the Company’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
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harbor” provisions of the United States Private Securities
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but are not limited to, statements about anticipated business
activities, planned expenditures, corporate strategies, 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 Company 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 Company will
operate in the future, including the price of copper, gold and
silver, anticipated capital and operating costs, anticipated future
production and cash flows, and the status of the Company’s
relationship and interaction with the Government of Mongolia on the
continued operation and development of Oyu Tolgoi and Oyu Tolgoi
LLC internal governance. Certain important factors that could cause
actual results, performance or achievements to differ materially
from those in the forward-looking statements and information
include, among others, copper; gold and silver price volatility;
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; development
plans for processing resources; matters relating to proposed
exploration or expansion; mining operational and development risks;
litigation risks; regulatory restrictions (including environmental
regulatory restrictions and liability); Oyu Tolgoi LLC’s ability to
deliver a domestic power source for the Oyu Tolgoi project within
the required contractual time frame; communications with local
stakeholders and community relations; activities, actions or
assessments, including tax assessments, by governmental
authorities; events or circumstances (including strikes, blockages
or similar events outside of the Company’s control) that may affect
the Company’s ability to deliver its products in a timely manner;
currency fluctuations; the speculative nature of mineral
exploration; the global economic climate; dilution; share price
volatility; competition; loss of key employees; cyber security
incidents; additional funding requirements, including in respect of
the development or construction of a long-term domestic power
supply for the Oyu Tolgoi project; capital and operating costs,
including with respect to the development of additional deposits
and processing facilities; and defective title to mineral claims or
property. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements and information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. All such forward-looking statements and information are
based on certain assumptions and analyses made by the Company’s
management in light of their experience and perception of
historical trends, current conditions and expected future
developments, as well as other factors management believes are
appropriate in the circumstances. These statements, however, are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements or
information.
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 the Company’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 the Company’s Annual Information Form dated as of March
15, 2018 in respect of the year ended December 31, 2017 (the
“AIF”).
Readers are further cautioned that the list of
factors enumerated in the “Risk Factors” section of the AIF that
may affect future results is not exhaustive. When relying on the
Company’s forward-looking statements and information to make
decisions with respect to the Company, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events.
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