VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/12/13 -- Turquoise Hill Resources (TSX: TRQ)(NYSE: TRQ)(NASDAQ: TRQ) today announced its financial results for the quarter ended June 30, 2013. All figures are in US dollars unless otherwise stated.
-- Commissioning of the Oyu Tolgoi mine's concentrator progressed during Q2'13, and by the end of Q2'13 the concentrator had consistently achieved throughput above 70%.-- The concentrator is now consistently achieving throughput rates above 80% of design capacity.-- Concentrator production is in stabilization and optimization phase and is expected to reach full capacity in the second half of 2013.-- On July 9, 2013, Oyu Tolgoi commenced shipping concentrate to customers in China with an initial sale of approximately 5,800 tonnes of concentrate.-- As of June 30, 2013, Oyu Tolgoi held 50,200 tonnes of concentrate inventory and is expected to produce between 75,000 and 85,000 tonnes of copper in concentrates for 2013.-- On August 7, 2013, the Company signed a binding term sheet with Rio Tinto for a new funding package.-- Funding and development of the Oyu Tolgoi mine's underground will be delayed until matters can be resolved with the Mongolian Government and a new timetable has been agreed.-- Turquoise Hill and Rio Tinto continue to work with the Mongolian Government to reach a common understanding and satisfactorily resolve a range of outstanding issues.-- Currently, approximately 89% of Oyu Tolgoi's employees are Mongolian nationals and the number of Mongolian nationals in senior leadership roles is increasing.-- Underground lateral development at Hugo North continued during Q2'13 with approximately 1,400 metres achieved; sinking of Shafts #2 and #5 progressed during Q2'13.-- In Q2'13, SouthGobi produced approximately 170,000 tonnes of raw coal with a strip ratio of 15.55.-- Production at Inova's Starra 276 mine continued to ramp up during Q2'13 with over 59,000 tonnes of ore produced during June 2013, the expected monthly mining rate.-- On August 6, 2013, $235 million was advanced to the Company in connection with the sale of its 50% stake in Altynalmas.
Commenting on second quarter results, Kay Priestly, Turquoise Hill Chief Executive Officer, said, "The production ramp-up at Oyu Tolgoi is progressing and the concentrator in now consistently achieving throughput rates above 80% of capacity. The commencement of concentrate shipments from Oyu Tolgoi was a significant operational milestone and the mine is currently delivering concentrate to customers. We continue to work with Rio Tinto and the Government of Mongolia on project financing as well as a range of other issues in order to reach a common understanding and successfully resolve matters."
In Q2'13, Turquoise Hill recorded a net loss of $105.3 million ($0.10 per share), compared to a net loss of $285.9 million ($0.35 per share) in Q2'12, which was a decrease of $180.6 million. Results for Q2'13 included $46.9 million in revenue; $4.4 million in interest income; a $3.3 million change in the fair value of SouthGobi's embedded derivatives and $76.9 million of net loss attributable to non-controlling interests. These amounts were offset by $82.5 million in cost of sales; $13.1 million in exploration and evaluation expenses; $60.8 million in other operating expenses; $17.0 million in general and administrative expenses; $6.9 million write-down of materials and supplies inventory; $31.6 million in write-down of property, plant and equipment; $7.7 million in interest expense; $2.1 million in foreign exchange losses and a $1.3 million share of loss of significantly influenced investees.