VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/25/13 -- Turquoise Hill Resources (TSX: TRQ)(NYSE: TRQ)(NASDAQ: TRQ) today announced its financial results for the quarter ended December 31, 2012. All figures are in US dollars unless otherwise stated.
-- Following the signing of the binding power purchase agreement in November 2012, electrical transmission lines to Oyu Tolgoi were energized and operational.-- Phase-one construction at Oyu Tolgoi reached 99% completion at the end of 2012.-- Underground lateral development continued during Q4'12 with approximately 1,500 metres achieved by the end of 2012.-- Construction of the concentrator was completed in Q4'12 and a commissioning ceremony was held on December 27, 2012. First ore was fed into the semi-autogenous grinding mill on January 2, 2013.-- First concentrate was produced at Oyu Tolgoi on January 31, 2013, and commencement of commercial production is expected by the end of June 2013 subject to the resolution of the issues being discussed with the Mongolian Government.-- Turquoise Hill and Rio Tinto continue to have productive discussions with the Mongolian Government on a range of issues related to the implementation of the Investment Agreement and all parties have agreed to continue discussions with a goal of resolving matters in the near term.-- Project financing for Oyu Tolgoi continues to progress with the boards of the European Bank of Reconstruction and Development and the International Finance Corporation approving their respective participation in late February. Bids have been received from a number of banks that would allow the Company to achieve its project financing target and discussions are ongoing with the lenders to finalize the terms of those offers.-- Turquoise Hill anticipates the closing of final binding documentation and project financing funding to occur in the first half of 2013.-- On March 25, 2013, Turquoise Hill filed an updated Oyu Tolgoi Technical Report.-- As of the end of December 2012, the Oyu Tolgoi mine had a workforce of approximately 13,000, which included over 11,000 Mongolians.-- Operations at SouthGobi's Ovoot Tolgoi mine resumed on March 22, 2013 after being curtailed during the second half of 2012.-- Following the commencement of production in February 2012, Ivanhoe Australia's Osborne operations produced more than 50,000 tonnes of copper-gold concentrate and completed four concentrate shipments by the end of 2012.-- Turquoise Hill's consolidated cash position was $1.2 billion at December 31, 2012 and approximately $710 million at March 25, 2013.
In 2012, Turquoise Hill recorded a net loss of $434.6 million ($0.51 per share), compared to a net loss of $570.4 million ($0.76 per share) in 2011, which was a decrease of $135.8 million. Results for 2012 included $133.8 million in revenue; $19.5 million in interest income; $7.2 million in foreign exchange gains; $194.7 million change in the fair value of the derivative on the 2012 rights offering; a $39.5 million change in the fair value of SouthGobi's embedded derivatives and $146.9 million of net loss attributable to non-controlling interests. These amounts were offset by $208.1 million in cost of sales; $169.0 million in exploration and evaluation expenses; $159.9 million in other operating expenses; $154.5 million in general and administrative expenses; $16.2 million write-down of current assets; $11.9 million in interest expense; $164.4 million in financing costs; and a $32.9 million share of loss of significantly influenced investees.