VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/13 -- Turquoise Hill Resources (TSX: TRQ)(NYSE: TRQ)(NASDAQ: TRQ) today announced its financial results for the quarter ended March 31, 2013. All figures are in US dollars unless otherwise stated.
-- Construction of the Oyu Tolgoi open-pit mine and concentrator complex was complete at the end of Q1'13 and mine infrastructure was substantially complete.-- As commissioning at Oyu Tolgoi progressed during Q1'13, concentrator production rates have progressively increased and have recently achieved daily run rates of up to 60% of capacity.-- By the end of June 2013, it is anticipated that the concentrator will be consistently running at production rates of 70% of nameplate capacity and shipments of concentrate will have begun.-- During Q1'13, underground lateral development at Hugo North advanced an additional 1,319 metres and construction of Shaft #2 reached 82% of its final depth. Sinking activity for Shaft #5 commenced in April 2013.-- Turquoise Hill and Rio Tinto continue to have productive discussions with the Government of Mongolia and all parties have agreed to ongoing talks with a goal of resolving matters in the near term.-- Oyu Tolgoi project financing timetable is well advanced with the signing of final documents expected by the end of Q2'13.-- As at April 30, 2013, Oyu Tolgoi had approximately 11,750 employees - 89% Mongolian nationals - and is on track to meet its 90% Mongolian workforce commitment.-- SouthGobi resumed operations on March 22, 2013 and expects to produce 3.2 million tonnes of semi-soft coking coal in 2013.-- During Q1'13, Ivanhoe Australia's Osborne copper-gold complex milled approximately 255,000 tonnes of ore and produced approximately 14,700 dry metric tonnes of concentrate.-- Turquoise Hill's consolidated cash position was $580.6 million at March 31, 2013 and approximately $361.4 million at May 13, 2013.
Commenting on first quarter results, Kay Priestly, Turquoise Hill Chief Executive Officer, said, "Full-scale operations at Oyu Tolgoi are on the near-term horizon. Commissioning at Oyu Tolgoi continues to progress with the concentrator recently achieving daily run rates of up to 60% of capacity. By the end of June 2013, we expect production rates at the concentrator to be consistently running at 70% of capacity and to have started shipping concentrate. Additionally, the project financing timetable is well advanced and we anticipate the signing of final documents by the end of the second quarter 2013."
In Q1'13, Turquoise Hill recorded a net loss of $50.7 million ($0.05 per share), compared to a net loss of $80.6 million ($0.10 per share) in Q1'12, which was a decrease of $29.9 million. Results for Q1'13 included $44.0 million in revenue; $8.2 million in interest income; a $0.7 million change in the fair value of SouthGobi's embedded derivatives and $31.2 million of net loss attributable to non-controlling interests. These amounts were offset by $68.8 million in cost of sales; $18.1 million in exploration and evaluation expenses; $14.6 million in other operating expenses; $15.8 million in general and administrative expenses; $5.0 million in interest expense; $1.9 million in foreign exchange losses and a $1.3 million share of loss of significantly influenced investees.