- Write by:
-
Thursday, August 1, 2019 - 3:02:20 PM
-
987 Visit
-
Print
Mining News Pro - Rio Tinto-controlled Turquoise Hill Resources said an impairment charge at the cash-generating unit of its Oyu Tolgoi copper mine in Mongolia led to the company missing estimates for second-quarter profit on Wednesday.
Turquoise Hill, which owns 66% of the mine, reported a loss of $736.7 million, or 22 cents a share, in the three months ended June 30, compared with a profit of $204 million, or 9 cents, a year earlier. That compared with analyst expectations for earnings of 3 cents a share.
Oyu Tolgoi’s underground expansion has been beset by delays, cost overruns and political squabbles
Oyu Tolgoi, operated by Rio Tinto PLC and expected to become one of the mining company’s most lucrative properties, produced 39,156 tonnes of copper and 71,825 ounces of gold during the quarter.
That came at an all-in sustaining cost of $1.54 per pound of copper produced, compared with $2.42 a year earlier.
Oyu Tolgoi’s underground expansion has been beset by delays, cost overruns and political squabbles, prompting the government of Mongolia, which owns 34% of the mine, to set a vote for August to cancel parts of an investment agreement with Rio Tinto. This would reduce the company’s future profits while benefiting Mongolia.
Turquoise Hill shares have slumped 46% since it said this month it could spend as much as $1.9 billion more than the $5.3 billion previously announced on the underground expansion of Oyu Tolgoi, and that first production would be delayed by up to 30 months.
The impairment causing its quarterly loss was related to that increase in expected spending and delays, the company said on Wednesday.
Turquoise Hill, which is also listed on the New York Stock Exchange, said its share price decline to below $1 meant it is no longer in compliance with the exchange’s listing rules, and that it intends to “pursue measures to cure the share price non-compliance.”
Turquoise Hill spent $292 million on the expansion during the quarter, bringing total expenditure on the underground project since January 1, 2016, to $2.9 billion.
Turquoise Hill posted revenue of $382.7 million, down from $341.7 million a year ago and compared with analysts’ expectations of $307.5 million.
Short Link:
https://www.miningnews.ir/En/News/405858
Rio Tinto on Wednesday announced a deal to buy power from a new solar farm in Queensland as it seeks to green its ...
Mining News Pro - Rio Tinto has completed the acquisition of PanAmerican Silver’s stake in Agua de la Falda.
Mining News Pro - Rio Tinto has signed an initial agreement with the Yindjibarndi people and Philippines’ ACEN to look ...
Mining News Pro - Rio Tinto reported a 1.2% rise in its third-quarter iron ore shipments on Tuesday, as the ...
Mining News Pro - Rio Tinto reported a 1.2% rise in its third-quarter iron ore shipments on Tuesday, as the ...
Mining News Pro - Rio Tinto has once again cut production targets for its iron ore operations in Canada, citing extended ...
Mining News Pro - Damage caused to an Aboriginal rock shelter by mining giant Rio Tinto in August underscores the need ...
Mining News Pro - Rio Tinto has been solely funding preparatory work at the blocks it holds at Simandou, one of the ...
Mining News Pro - Rio Tinto (ASX: RIO) announced Wednesday it has reached an agreement with the government of Madagascar ...
No comments have been posted yet ...