08/04/2022 | Press release | Distributed by Public on 08/04/2022 15:11
•
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Oyu Tolgoi surface operations1 and underground workforce posted an AIFR of 0.21 per 200,000 hours worked for the six months ended June 30, 2022.
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•
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In Q2'22, Oyu Tolgoi produced 30.6 thousand tonnes of copper in concentrate and 47.6 thousand ounces of gold in concentrate.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
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Mill throughput of 9.69 million tonnes in Q2'22 was 1% higher than Q1'22 and 3% higher than Q2'21 in line with expectations due to higher mill availability.
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•
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Copper production guidance for 2022 remains within the range of 110,000 to 150,000 tonnes while 2022 gold production guidance has been revised from a range of 135,000 - 165,000 ounces to 150,000 - 170,000 ounces.
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•
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On-site concentrate inventory has returned to target levels.
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•
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Drawbells continue to be completed ahead of schedule with the first 2 drawbells successfully fired in Q2'22 and the third drawbell subsequently fired on July 29. Sustainable production continues to trend earlier than expected. It is anticipated that between 16 - 21 drawbells are required to achieve sustainable production, subject to the natural caving conditions encountered.
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•
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Turquoise Hill currently estimates its base case incremental funding requirement to be $3.6 billion (March 31, 2022: $3.4 billion).
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As at June 30, 2022, Turquoise Hill had $0.5 billion of available liquidity in the form of cash and cash equivalents, which under current projections is expected to meet the Company's requirements, including funding of underground capital expenditures, into November 2022, after which the Company is able and would be required to rely on funding available under the Funding HoA2 (see - Funding of OT LLC by Turquoise Hill) to provide it with sufficient liquidity and resources to meet its minimum obligations for a period of at least 12 months from the balance sheet date of June 30, 2022.
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•
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Revenue of $402.0 million in Q2'22 increased 21.9% from $329.8 million in Q2'21 due to an 89.3% increase in concentrate sales with the easing of COVID-19 related restrictions at the border and use of double trailers to ship concentrate and due to a 3.1% increase in average gold prices. Onsite concentrate inventory levels returned to target levels in Q2'22. Higher concentrate volumes were partially offset by a 1.8% decrease in average copper prices and by lower copper and gold head grades from the planned transition of mining to the next phase of operations and processing lower grade stockpile material.
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•
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Income for the period was $93.3 million in Q2'22 versus $127.8 million in Q2'21 as higher revenue and tax benefits were more than offset by the impact of higher cost of sales as the higher volumes of concentrate shipped contained lower metal in concentrate following the planned transition of mining from higher to lower grade areas of the open pit. Cost of sales has also been impacted by inflation and higher input prices. A $9.8 million tax benefit was recorded in Q2'22 versus $19.0 million charge in Q2'21. The recognition in Q2'22 was largely due to an increase in temporary differences on property, plant and equipment. Income attributable to owners of Turquoise Hill in Q2'22 was $82.6 million ($0.41 per share) versus $102.9 million ($0.51 per share) in Q2'21.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
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Cost of sales in Q2'22 was $2.82 per pound of copper sold3 and C1 cash costs were $1.31 per pound of copper produced4. All-in sustaining costs were $2.63 per pound of copper produced4.
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•
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Total operating cash costs5of $229.6 million in Q2'22 increased 7.6% from $213.4 million in Q2'21 largely due to inflationary pressures on prices for critical supplies including fuel, power, explosives and higher shipment and royalty costs from increased volumes following the easing of COVID-19 related restrictions at the border. This was partially offset by higher deferred stripping due to the planned transition of mining from Phase 4B to Phase 5A. Ore mining had been prioritised in Q2'21 due to the impact of COVID-19 related restrictions on manning and equipment usage.
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Expenditures on property, plant and equipment6 in Q2'22 were $260.9 million, which included $218.2 million of capital expenditures on the underground project7 Capital expenditures on the underground project7included $85.9 million of underground sustaining capital expenditures7. At June 30, 2022, total capital expenditures on the underground project7 since January 1, 2016 was $5.8 billion, including $0.5 billion of underground sustaining capital expenditures7.
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•
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Net cash generated from operating activities of $229.1 million and cash generated from operating activities before interest and tax of $315.4 million were $10.7 million and $10.6 million higher, respectively, than in Q2'21 due to the impact of higher shipment volumes and prices on cash receipts, partially offset by inflationary pressures on operating expenditures from higher prices for critical supplies including fuel, power, explosives and higher shipment and royalty costs.
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Oyu Tolgoi has continued to progressively increase on-site personnel numbers with the workforce in Q2'22 approaching full capacity.
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The 2022 cost and schedule update for the underground project has been completed and incorporates the known, incremental COVID-19 cost impacts, associated taxes and an estimate of further COVID-19 management costs over the remaining development schedule, confirming total development capital expenditure expectations of $7.06 billion.
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Oyu Tolgoi continued to build on its relationship reset in Mongolia, with the Oyu Tolgoi Board approving a $50 million, five-year funding programme to support the long-term, sustainable development of Khanbogd town, our neighbouring host community in the South Gobi region.
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The special committee of independent directors (the Special Committee) continues to consider the unsolicited non-binding proposal from Rio Tinto International Holdings Limited (Rio Tinto) received on March 13, 2022 to acquire the approximately 49% of the outstanding shares of Turquoise Hill held by the Company's minority shareholders for cash consideration of C$34.00 per share (the Proposal).
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Three months ended
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Six months ended
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($ in millions, unless otherwise noted)
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2Q
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2Q
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Change
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2Q
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|
2Q
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|
Change
|
||||||||||||||
2022
|
2021
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%
|
2022
|
2021
|
%
|
|||||||||||||||||||
Restated (6)
|
Restated (6)
|
|||||||||||||||||||||||
Revenue
|
402.0
|
329.8
|
21.9
|
%
|
804.7
|
856.3
|
(6.0
|
%)
|
||||||||||||||||
Income for the period
|
93.3
|
127.8
|
(27.0
|
%)
|
487.6
|
460.0
|
6.0
|
%
|
||||||||||||||||
Income attributable to owners of Turquoise Hill Resources Ltd
|
82.6
|
102.9
|
(19.7
|
%)
|
357.9
|
339.6
|
5.4
|
%
|
||||||||||||||||
Basic and diluted earnings per share attributable to owners of Turquoise Hill Resources Ltd
|
0.41 |
0.51 | (19.6 |
%) |
1.78 | 1.69 | 5.3 | % | ||||||||||||||||
Revenue by metals in concentrates
|
||||||||||||||||||||||||
Copper
|
266.4
|
197.0
|
35.2
|
%
|
556.9
|
530.7
|
4.9
|
%
|
||||||||||||||||
Gold
|
130.5
|
129.7
|
0.6
|
%
|
238.6
|
317.9
|
(24.9
|
%)
|
||||||||||||||||
Silver
|
5.1
|
3.1
|
64.5
|
%
|
9.3
|
7.7
|
20.8
|
%
|
||||||||||||||||
Cost of sales
|
219.4
|
85.5
|
156.6
|
%
|
394.4
|
241.2
|
63.5
|
%
|
||||||||||||||||
Production and delivery costs
|
174.8
|
64.3
|
171.9
|
%
|
310.4
|
167.7
|
85.1
|
%
|
||||||||||||||||
Depreciation and depletion
|
44.6
|
21.2
|
110.4
|
%
|
84.1
|
73.4
|
14.6
|
%
|
||||||||||||||||
Capital expenditures on cash basis (2)
|
260.9
|
227.4
|
14.7
|
%
|
490.8
|
477.6
|
2.8
|
%
|
||||||||||||||||
Underground development capital expenditures
|
132.3
|
158.6
|
(16.6
|
%)
|
251.4
|
339.7
|
(26.0
|
%)
|
||||||||||||||||
Underground sustaining capital expenditures
|
85.9
|
49.9
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72.1
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%
|
170.6
|
110.8
|
54.0
|
%
|
||||||||||||||||
Capital expenditures on surface operations
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42.7
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18.9
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125.9
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%
|
68.8
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27.2
|
152.9
|
%
|
||||||||||||||||
Royalty expenses
|
28.4
|
22.5
|
26.2
|
%
|
53.4
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45.2
|
18.1
|
%
|
||||||||||||||||
Total operating cash costs (3)
|
229.6
|
213.4
|
7.6
|
%
|
458.5
|
414.7
|
10.6
|
%
|
||||||||||||||||
Unit costs ($)
|
||||||||||||||||||||||||
Cost of sales (per pound of copper sold) (4)
|
2.82
|
1.98
|
42.4
|
%
|
2.74
|
1.87
|
46.5
|
%
|
||||||||||||||||
C1 (per pound of copper produced) (5)
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1.31
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0.85
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54.1
|
%
|
1.49
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0.43
|
246.5
|
%
|
||||||||||||||||
All-in sustaining (per pound of copper produced) (5)
|
2.63
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1.55
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69.7
|
%
|
2.67
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0.96
|
178.1
|
%
|
||||||||||||||||
Mining costs (per tonne of material mined) (5)
|
2.42
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2.71
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(10.7
|
%)
|
2.34
|
2.27
|
3.1
|
%
|
||||||||||||||||
Milling costs (per tonne of ore treated) (5)
|
6.58
|
7.09
|
(7.2
|
%)
|
6.84
|
6.66
|
2.7
|
%
|
||||||||||||||||
G&A costs (per tonne of ore treated) (4)
|
2.75
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4.98
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(44.8
|
%)
|
3.23
|
4.21
|
(23.3
|
%)
|
||||||||||||||||
Net cash generated from operating activities
|
229.1
|
218.4
|
4.9
|
%
|
351.4
|
85.2
|
312.4
|
%
|
||||||||||||||||
Cash generated from operating activities before interest and tax
|
315.4
|
304.8
|
3.5
|
%
|
438.0
|
553.0
|
(20.8
|
%)
|
||||||||||||||||
Interest paid
|
84.8
|
84.5
|
0.4
|
%
|
85.6
|
111.0
|
(22.9
|
%)
|
||||||||||||||||
Total assets
|
14,791
|
13,903
|
6.4
|
%
|
14,791
|
13,903
|
6.4
|
%
|
||||||||||||||||
Total non-current financial liabilities
|
3,766
|
4,407
|
(14.5
|
%)
|
3,766
|
4,407
|
(14.5
|
%)
|
(1)
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All financial information in this press release should be reviewed in conjunction with the Company's consolidated financial statements for the reporting periods indicated.
|
(2)
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Capital expenditures on a cash basis is split between underground development capital expenditures and underground sustaining capital expenditures and capital expenditures on surface operations, all supplementary financial measures. Please refer to the Section titled - "Non-GAAP and Other Financial Measures" on page 21 of this press release for further information.
|
(3)
|
Total operating cash costs is a non-GAAP financial measure. Please refer to the Section titled - "Non-GAAP and Other Financial Measures" on page 21 of this press release for further information.
|
(4)
|
Cost of sales per pound of copper sold and General & Administrative (G&A) costs per tonne of ore treated are supplementary financial measures. Please refer to the Section titled - "Non-GAAP and Other Financial Measures" on page 21 of this press release for further information.
|
(5)
|
C1 cash costs per pound of copper produced, all-in sustaining costs per pound of copper produced, mining costs per tonne of material mined, and milling costs per tonne of ore treated are non-GAAP ratios which are not standardised financial measures and are not intended to replace measures prepared in accordance with IFRS. Please refer to the Section titled - "Non-GAAP and Other Financial Measures" on page 21 of this press release for further information.
|
(6)
|
Prior year comparatives have been restated for adoption of the IAS16 amendment to Property, Plant and Equipment: Proceeds before intended use. Please refer to the Section titled "Recent Accounting Pronouncements" on page 24 of the Company's Q2 2022 MD&A for further information.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
|
Revenue of $402.0 million in Q2'22 increased 21.9% from $329.8 million in Q2'21 due to an 89.3% increase in concentrate sales with the easing of COVID-19 related restrictions at the border and use of double trailers to ship concentrate and due to a 3.1% increase in average gold prices. Onsite concentrate inventory levels returned to target levels in Q2'22. Higher concentrate volumes were partially offset by a 1.8% decrease in average copper prices and by lower copper and gold head grades from the planned transition of mining to the next phase of operations and processing lower grade stockpile material.
|
•
|
Income for the period was $93.3 million in Q2'22 versus $127.8 million in Q2'21 as higher revenue and tax benefits were more than offset by the impact of higher cost of sales as the higher volumes of concentrate shipped contained lower metal in concentrate following the planned transition of mining from higher to lower grade areas of the open pit. Cost of sales has also been impacted by inflation and higher input prices. A $9.8 million tax benefit was recorded in Q2'22 versus a $19.0 million charge in Q2'21. The recognition in Q2'22 was largely due to an increase in temporary differences on property, plant and equipment. Income attributable to owners of Turquoise Hill in Q2'22 was $82.6 million ($0.41 per share) versus $102.9 million ($0.51 per share) in Q2'21.
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•
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Cost of sales of $219.4 million in Q2'22 increased from $85.5 million in Q2'21 due to an 89.3% increase in concentrate volumes with the easing of COVID-19 related restrictions at the border and inflationary pressures on input prices and other costs. Onsite concentrate inventory levels have returned to target levels in Q2'22.
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•
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Expenditures on property, plant and equipment were $260.9 million in Q2'22 versus $227.4 million in Q2'21, comprised of $218.2 million (Q2'21: $208.5 million) in capital expenditures on the underground project11, including $85.9 million (Q2'21: $49.9 million) in underground sustaining capital expenditures11 as well as $42.7 million (Q2'21: $18.9 million) in capital expenditures on surface operations11.
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•
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Total operating cash costs12of $229.6 million in Q2'22 increased 7.6% from $213.4 million in Q2'21, largely due to inflationary pressures on prices for critical supplies, including fuel, power, explosives and higher shipment and royalty costs from increased volumes following the easing of COVID-19 related restrictions at the border. This was partially offset by higher deferred stripping due to the planned transition of mining from Phase 4B to Phase 5A. Ore mining had been prioritised in Q2'21 due to the impact of COVID-19 related restrictions on manning and equipment usage.
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•
|
Cost of sales of $2.82 per pound of copper sold13 in Q2'22 increased 42.4% from $1.98 per pound of copper sold in Q2'21, reflecting higher operating cash costs and an increase in unit fixed costs from lower metal production and copper head grades.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
|
Oyu Tolgoi's C1 cash costs of $1.31 per pound of copper produced14 in Q2'22 increased from $0.85 per pound of copper produced in Q2'21 due to higher operating cash costs and lower copper produced due to the planned transition of mining to the next phase of operations.
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•
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All-in sustaining costs of $2.63 per pound of copper produced14 in Q2'22 increased from $1.55 per pound of copper produced in Q2'21. All-in sustaining costs were impacted by the same factors as C1 cash costs as well as a $23.8 million increase in capital expenditures on surface operations due to higher maintenance componentisation, higher deferred stripping from the planned change in mine sequence and commencement of the Gashuun Sukhait (GSK) road.
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•
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Mining costs of $2.42 per tonne of material mined14in Q2'22 decreased 10.7% from $2.71 per tonne of material mined in Q2'21. The decrease was mainly driven by higher material mined in Q2'22 with higher haul truck usage in the open pit as the lifting of COVID-19 restrictions increased manning levels.
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•
|
Milling costs of $6.58 per tonne of ore treated14 in Q2'22 decreased 7.2% from $7.09 per tonne of ore treated in Q2'21 due to the higher mill throughput and lower costs. The decrease in costs was mainly due to an improvement in the quality of grinding media lowering the amount of reagents used in processing concentrate and a higher proportion of softer ore in the mill feed.
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•
|
G&A costs of $2.75 per tonne of ore treated15 in Q2'22 decreased 44.8% from $4.98 per tonne of ore treated in Q2'21. The decrease is mainly due to reduced COVID-19 related costs with the lifting of restrictions and changes to the testing and quarantine regimes.
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•
|
Net cash generated from operating activities of $229.1 millionand cash generated from operating activities before interest and tax of $315.4 millionwere $10.7 million and $10.6 million higher, respectively, than in Q2'21 due to the impact of higher shipment volumes and prices on cash receipts, partially offset by inflationary pressures on operating expenditures from higher prices for critical supplies including fuel, power, explosives and higher shipment and royalty costs.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
2Q
|
|
2Q
|
|
Change
|
1H
|
|
1H
|
|
Change
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||||||||||
Open pit material mined ('000 tonnes)
|
25,550
|
15,829
|
61.4
|
%
|
49,936
|
38,417
|
30.0
|
%
|
||||||||||||||||
Ore treated ('000 tonnes)
|
9,685
|
9,401
|
3.0
|
%
|
19,266
|
19,214
|
0.3
|
%
|
||||||||||||||||
Average mill head grades:
|
||||||||||||||||||||||||
Copper (%)
|
0.40
|
0.47
|
(14.9
|
%)
|
0.40
|
0.51
|
(21.6
|
%)
|
||||||||||||||||
Gold (g/t)
|
0.26
|
0.50
|
(48.0
|
%)
|
0.29
|
0.59
|
(50.8
|
%)
|
||||||||||||||||
Silver (g/t)
|
1.15
|
1.19
|
(3.4
|
%)
|
1.20
|
1.24
|
(3.2
|
%)
|
||||||||||||||||
Concentrates produced ('000 tonnes)
|
146.0
|
173.2
|
(15.7
|
%)
|
290.3
|
375.1
|
(22.6
|
%)
|
||||||||||||||||
Average concentrate grade (% Cu)
|
20.9
|
21.2
|
(1.4
|
%)
|
21.0
|
21.9
|
(4.1
|
%)
|
||||||||||||||||
Production of metals in concentrates:
|
||||||||||||||||||||||||
Copper ('000 tonnes)
|
30.6
|
36.7
|
(16.6
|
%)
|
60.8
|
82.2
|
(26.0
|
%)
|
||||||||||||||||
Gold ('000 ounces)
|
48
|
113
|
(57.5
|
%)
|
107
|
259
|
(58.7
|
%)
|
||||||||||||||||
Silver ('000 ounces)
|
201
|
235
|
(14.5
|
%)
|
412
|
490
|
(15.9
|
%)
|
||||||||||||||||
Concentrate sold ('000 tonnes)
|
175.3
|
92.6
|
89.3
|
%
|
323.6
|
278.9
|
16.0
|
%
|
||||||||||||||||
Sales of metals in concentrates:
|
||||||||||||||||||||||||
Copper ('000 tonnes)
|
35.3
|
19.6
|
80.1
|
%
|
65.2
|
58.6
|
11.3
|
%
|
||||||||||||||||
Gold ('000 ounces)
|
68
|
73
|
(6.8
|
%)
|
125
|
183
|
(31.7
|
%)
|
||||||||||||||||
Silver ('000 ounces)
|
224
|
106
|
111.3
|
%
|
403
|
313
|
28.8
|
%
|
||||||||||||||||
Metal recovery* (%)
|
||||||||||||||||||||||||
Copper
|
81.4
|
79.7
|
2.1
|
%
|
79.8
|
83.4
|
(4.3
|
%)
|
||||||||||||||||
Gold
|
59.1
|
69.3
|
(14.7
|
%)
|
59.3
|
71.0
|
(16.5
|
%)
|
||||||||||||||||
Silver
|
57.8
|
62.5
|
(7.5
|
%)
|
56.0
|
64.0
|
(12.5
|
%)
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Milestone
|
2020 OTTR
|
Q1 2022 MD&A
|
Actual or Currently
Projected Dates(3)
|
Start Undercut blasting
|
July 2021
|
January 2022 (Actual)
|
January 2022 (Actual)
|
MHS 1 (including Crusher 1) commissioning
|
Q4'21
|
February 2022 (Actual)
|
February 2022 (Actual)
|
First drawbell blasted (1)
|
May 2022
|
Q3'22
|
June 2022 (Actual)
|
Sustainable Production
(sustainable cave propagation)
|
February 2023
(~30 drawbells active(2))
|
H1'23
(~21 drawbells active(2))
|
H1'23
(~21 drawbells active(2))
|
Shaft 3 commissioned
|
H1'22
|
H1'24(3)
|
H1'24(3)
|
Shaft 4 commissioned
|
H1'22
|
H1'24(3)
|
H1'24(3)
|
First drawbell Panel 2
|
Q4'24
|
H1'26
|
H1'26(4)
|
First drawbell Panel 1
|
H2'26
|
H1'27
|
H1'27(4)
|
(1)
|
Despite an approximate 6-month delay to Undercut commencement, first drawbell timing remained broadly in line with the 2020TR.
|
(2)
|
Design refinements identified that a minor modification to undercut sequence following additional geotechnical assessment of cave initiation conditions, changed the estimated number of drawbells to reach critical hydraulic radius, which is the point at which sustainable production is anticipated to commence. Critical hydraulic radius is an estimated factor, based on the best available data but some variability in the exact number of drawbells needed to reach critical hydraulic radius could occur, with the potential for the requirement to be between 16 and 21 drawbells.
|
(3)
|
Shaft 3 and 4 progress continues to be closely monitored against the 2022 schedule update.
|
(4)
|
The impact of the additional shaft delays on the commencement of Panel 1 and Panel 2 is under assessment and expected to be known during Q3'22.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
|
A commitment by the Company to conduct one or more equity offerings for aggregate proceeds of at least US$650 million (the Initial Equity Offering) by December 31, 2022;
|
•
|
A commitment by Rio Tinto to provide additional short-term bridge financing directly to the Company by way of one or more secured advances of up to US$400 million (Early Advance) expected to be made available to the Company subject to satisfaction or waiver of certain conditions precedent, and which is to be repaid out of the proceeds of the Initial Equity Offering;
|
•
|
Given that Rio Tinto had not publicly withdrawn the Proposal prior to June 30, 2022, the condition that the Company have completed the Initial Equity Offering prior to drawing the short-term secured advance of up to US$300 million (RT Advance) provided for was automatically removed in the Funding HoA. Previously, Rio Tinto had committed to provide the RT Advance directly to the Company to be available during the debt funding restriction period identified in Resolution 103 and to be indirectly repaid out of the proceeds of the $750 million Co-Lending Facility;
|
•
|
Pursuing the rescheduling of principal repayments of existing debt (Re-profiling) to potentially reduce the base case incremental funding requirement by up to $1.7 billion;
|
•
|
Seeking to raise up to $500 million of additional senior supplemental debt (SSD); and
|
•
|
A commitment by Rio Tinto to provide a co-lending facility (Co-Lending Facility), incremental to the Re-profiling and the SSD, of up to $750 million to be made available once sustainable production has been achieved.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
|
Successful implementation of the Funding HoA;
|
•
|
Changes in commodity prices and other market-based assumptions (including LIBOR and inflation);
|
•
|
Surface operations performance as well as the successful implementation (or otherwise) of ongoing optimisation efforts;
|
•
|
Any further changes to underground mine cost and schedule in addition to those identified in the 2022 Reforecast;
|
•
|
Further and/or unanticipated impacts on operations and underground development related to the COVID-19 pandemic as well as the economic, commercial and financial consequences thereof;
|
•
|
Further and/or unanticipated impacts on operations and underground development related to global supply chain issues;
|
•
|
Rio Tinto's Proposal to acquire the outstanding shares of the Company it does not already own; and
|
•
|
The outcomes of Turquoise Hill's and Rio Tinto's ongoing engagement with various Mongolian governmental bodies as the Mongolian Government implements Resolution 103, as discussed in the "Renewed Partnership with Government of Mongolia" section of this press release below.
|
•
|
Metal price assumptions for copper and gold over the incremental funding period, as delineated in the table below;
|
•
|
The 2022 Reforecast;
|
•
|
The current forecast of sustainable production for Panel 0;
|
•
|
The current forecast of delays to Shafts 3 and 4 (for further information, see the "Surface Operations and Hugo North Underground" section of this press release above); and
|
•
|
Any updates or changes to the mine plan of either the open pit or underground mines (for further information, see the "Surface Operations and Hugo North Underground" section of this press release above).
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Year
|
Copper ($ / pound)
|
Gold ($ / troy ounce)
|
2022
|
3.64
|
1,857
|
2023
|
4.06
|
1,789
|
2024
|
3.96
|
1,768
|
•
|
Any potential further revisions to the amount of underground development capital required or revisions to schedule;
|
•
|
The timing of sustainable production and ramp-up profile and their impact on cash flows including any further COVID-19-related delays (for further information, see the "Surface Operations and Hugo North Underground" section of this press release above);
|
•
|
The outcomes of Turquoise Hill's and Rio Tinto's ongoing engagement with various Mongolian governmental bodies to resolve remaining outstanding items relating to the Government of Mongolia's implementation of Resolution 103 as discussed in the "Renewed Partnership with Government of Mongolia" section of this press release below;
|
•
|
Changes to the amount of cash flow expected to be generated from open-pit operations, net of underground and open-pit sustaining capital requirements;
|
•
|
Further and/or unanticipated impacts on operations and underground development related to the COVID-19 pandemic as well as the economic, commercial and financial consequences thereof; and
|
•
|
Changes in expected commodity prices, LIBOR, inflation and other market-based assumptions (upside and downside pricing sensitivities would have, respectively, a favourable or unfavourable impact on the base case incremental funding requirement).
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
•
|
Turquoise Hill agreeing to waive in full the US$2.4 billion carry account loan of Erdenes. See the section "Funding of OT LLC by Turquoise Hill" in this press release;
|
•
|
Improved cooperation with Erdenes in monitoring the Oyu Tolgoi underground development and enhancing environment, social and governance (ESG) matters;
|
•
|
The approval of the Electricity Supply Agreement entered into by OT LLC (the ESA); and
|
•
|
The establishment of a funding structure at OT LLC that does not incur additional loan financing prior to sustainable production for Panel 0 (expected in the first half of 2023).
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Consolidated working capital
|
June 30,
|
December 31,
|
||||||
(Stated in $000's of dollars)
|
2022
|
2021
|
||||||
Inventories (current)
|
293,298
|
290,017
|
||||||
Trade and other receivables
|
12,853
|
16,119
|
||||||
Trade and other payables:
|
||||||||
- trade payables and accrued liabilities
|
(336,951
|
)
|
(320,791
|
)
|
||||
- payable to related parties
|
(118,061
|
)
|
(54,153
|
)
|
||||
(148,861
|
)
|
(68,808
|
)
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
(Stated in $000's of dollars)
|
Project Finance
Facility
|
Purchase
obligations
|
Other Obligations
|
Power
commitments
|
Lease
liabilities
|
Decommissioning obligations
|
||||||||||||||||||
Commitments (MD&A)
|
4,240,316
|
528,488
|
440,769
|
129,001
|
24,633
|
389,889
|
||||||||||||||||||
Cancellable obligations (net of exit costs)
|
-
|
(477,940
|
)
|
-
|
(65,017
|
)
|
-
|
-
|
||||||||||||||||
Accrued capital expenditure
|
-
|
(26,362
|
)
|
26,362
|
-
|
-
|
-
|
|||||||||||||||||
Discounting and other adjustments
|
(116,901
|
)
|
-
|
-
|
-
|
(4,955
|
)
|
(218,485
|
)
|
|||||||||||||||
Financial statement amount
|
4,123,415
|
24,186
|
467,131
|
63,984
|
19,678
|
171,404
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
C1 costs (Stated in $000's of dollars)
|
June 30, 2022
|
June 30, 2021
|
June 30, 2022
|
June 30, 2021
|
||||||||||||
(Restated)(1)
|
(Restated)(1)
|
|||||||||||||||
Cost of sales
|
219,416
|
85,511
|
394,427
|
241,155
|
||||||||||||
Cost of sales: $/lb of copper sold
|
2.82
|
1.98
|
2.74
|
1.87
|
||||||||||||
Depreciation and depletion
|
(44,582
|
)
|
(21,223
|
)
|
(84,067
|
)
|
(73,417
|
)
|
||||||||
Change in inventory
|
(10,384
|
)
|
72,576
|
11,548
|
102,873
|
|||||||||||
Other operating expenses
|
58,407
|
73,276
|
123,413
|
129,764
|
||||||||||||
Less:
|
||||||||||||||||
- Inventory (write-down) reversal
|
115
|
(1,522
|
)
|
(189
|
)
|
3,604
|
||||||||||
- Depreciation
|
(498
|
)
|
(593
|
)
|
(1,042
|
)
|
(1,195
|
)
|
||||||||
Management services payment to Turquoise Hill
|
7,159
|
5,400
|
14,412
|
11,878
|
||||||||||||
Total operating cash costs
|
229,633
|
213,425
|
458,501
|
414,662
|
||||||||||||
Total operating cash costs: $/lb of copper produced
|
3.40
|
2.63
|
3.41
|
2.29
|
||||||||||||
Adjustments to total operating cash costs(2)
|
(5,485
|
)
|
(11,302
|
)
|
(11,179
|
)
|
(11,510
|
)
|
||||||||
Less: Gold and silver revenues
|
(135,628
|
)
|
(132,789
|
)
|
(247,834
|
)
|
(325,668
|
)
|
||||||||
C1 costs ($'000)
|
88,520
|
69,334
|
199,488
|
77,484
|
||||||||||||
C1 costs: $/lb of copper produced
|
1.31
|
0.85
|
1.49
|
0.43
|
||||||||||||
All-in sustaining costs (Stated in $000's of dollars)
|
||||||||||||||||
Corporate administration
|
13,376
|
8,525
|
28,996
|
21,568
|
||||||||||||
Asset retirement expense
|
3,423
|
1,388
|
5,855
|
2,983
|
||||||||||||
Royalty expenses
|
28,415
|
22,462
|
53,352
|
45,202
|
||||||||||||
Ore stockpile and stores write-down (reversal)
|
(115
|
)
|
1,522
|
189
|
(3,604
|
)
|
||||||||||
Other expenses
|
1,025
|
552
|
2,199
|
806
|
||||||||||||
Sustaining cash capital including deferred stripping
|
42,738
|
21,804
|
68,833
|
30,100
|
||||||||||||
All-in sustaining costs ($'000)
|
177,382
|
125,587
|
358,912
|
174,539
|
||||||||||||
All-in sustaining costs: $/lb of copper produced
|
2.63
|
1.55
|
2.67
|
0.96
|
(1)
|
Prior year comparatives have been restated for adoption of the IAS16 amendment to Property, Plant and Equipment: Proceeds before intended Use. Please refer to the Section titled "Recent Accounting Pronouncements" on page 24 of the Company's Q2 2022 MD&A for further information.
|
(2)
|
Adjustments to total operating cash costs include: treatment, refining and freight differential charges less the 5% Government of Mongolia royalty and other expenses not applicable to the definition of C1 cash cost.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
i.
|
Capital expenditures on surface operations
|
ii.
|
Capital expenditures on the underground project
|
a.
|
Underground sustaining capital expenditures
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
b.
|
Underground development capital expenditures
|
iii.
|
Underground development capital incurred
|
iv.
|
Underground development capital committed
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
($ in millions, except per share information)
|
|
Quarter Ended
|
||||||||||||||
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
|||||||||||||
2022
|
2022
|
2021
|
2021
|
|||||||||||||
Restated (b)
|
Restated (b)
|
|||||||||||||||
Revenue
|
402.0
|
402.7
|
522.3
|
662.1
|
||||||||||||
Income for the period
|
93.3
|
394.3
|
221.6
|
54.4
|
||||||||||||
Income attributable to owners of Turquoise Hill Resources Ltd
|
82.6
|
275.2
|
165.8
|
55.7
|
||||||||||||
Basic and diluted earnings per share attributable to owners of Turquoise Hill Resources Ltd (a)
|
0.41
|
1.37
|
0.82
|
0.28
|
||||||||||||
|
|
Quarter Ended | ||||||||||||||
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
|||||||||||||
2021
|
2021
|
2020
|
2020
|
|||||||||||||
Restated (b)
|
Restated (b)
|
|||||||||||||||
Revenue
|
329.8
|
526.5
|
405.1
|
283.0
|
||||||||||||
Income for the period
|
127.8
|
332.1
|
241.6
|
177.8
|
||||||||||||
Income attributable to owners of Turquoise Hill Resources Ltd
|
102.9
|
236.7
|
159.9
|
139.2
|
||||||||||||
Basic and diluted earnings per share attributable to owners of Turquoise Hill Resources Ltd (a)
|
0.51
|
1.18
|
0.79
|
0.69
|
(a)
|
Basic and diluted earnings per share has been recalculated pursuant to the share consolidation completed on October 23, 2020 for all periods presented.
|
(b)
|
Comparatives have been restated for adoption of the IAS16 amendment to Property, Plant and Equipment: Proceeds before intended Use. Please refer to the Section titled "Recent Accounting Pronouncements" on page 24 of the Company's Q2 2022 MD&A for further information.
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
TURQUOISE HILL RESOURCES LTD.
|
Consolidated Statements of Income
|
(Stated in thousands of U.S. dollars, except share and per share amounts)
|
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
June 30, |
June 30,
|
|||||||||||||||||||
Note
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||
Restated -
Note 2 (c)(i)
|
Restated -
Note 2 (c)(i)
|
|||||||||||||||||||
Revenue
|
4
|
$
|
402,037
|
$
|
329,800
|
$
|
804,688
|
$
|
856,346
|
|||||||||||
Cost of sales
|
5
|
(219,416
|
)
|
(85,511
|
)
|
(394,427
|
)
|
(241,155
|
)
|
|||||||||||
Gross margin
|
182,621
|
244,289
|
410,261
|
615,191
|
||||||||||||||||
Operating expenses
|
6
|
(58,407
|
)
|
(73,276
|
)
|
(123,413
|
)
|
(129,764
|
)
|
|||||||||||
Corporate administration expenses
|
(13,376
|
)
|
(8,525
|
)
|
(28,996
|
)
|
(21,568
|
)
|
||||||||||||
Other expenses
|
19
|
(24,445
|
)
|
(14,610
|
)
|
(22,769
|
)
|
(27,787
|
)
|
|||||||||||
Income before finance items and taxes
|
86,393
|
147,878
|
235,083
|
436,072
|
||||||||||||||||
Finance items
|
||||||||||||||||||||
Finance income
|
7
|
1,165
|
607
|
1,887
|
1,897
|
|||||||||||||||
Finance costs
|
7
|
(4,017
|
)
|
(1,596
|
)
|
(6,748
|
)
|
(3,231
|
)
|
|||||||||||
(2,852
|
)
|
(989
|
)
|
(4,861
|
)
|
(1,334
|
)
|
|||||||||||||
Income from operations before taxes
|
83,541
|
146,889
|
230,222
|
434,738
|
||||||||||||||||
Income and other taxes
|
13
|
9,801
|
(19,047
|
)
|
257,420
|
25,253
|
||||||||||||||
Income for the period
|
$
|
93,342
|
$
|
127,842
|
$
|
487,642
|
$
|
459,991
|
||||||||||||
Attributable to owners of Turquoise Hill Resources Ltd.
|
$
|
82,646
|
$
|
102,859
|
$
|
357,864
|
$
|
339,574
|
||||||||||||
Attributable to owner of non-controlling interest
|
10,696
|
24,983
|
129,778
|
120,417
|
||||||||||||||||
Income for the period
|
$
|
93,342
|
$
|
127,842
|
$
|
487,642
|
$
|
459,991
|
||||||||||||
Basic and diluted earnings per share attributable to owners of Turquoise Hill Resources Ltd. | $ | 0.41 | $ | 0.51 | $ | 1.78 | $ | 1.69 | ||||||||||||
Basic weighted average number of shares outstanding (000's)
|
201,231
|
201,231
|
201,231
|
201,231
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
TURQUOISE HILL RESOURCES LTD.
|
Consolidated Statements of Comprehensive Income
|
(Stated in thousands of U.S. dollars)
|
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Restated -
Note 2 (c)(i)
|
Restated -
Note 2 (c)(i)
|
|||||||||||||||
Income for the period
|
$
|
93,342
|
127,842
|
$
|
487,642
|
459,991
|
||||||||||
Other comprehensive income:
|
||||||||||||||||
Items that will not be reclassified to income:
|
||||||||||||||||
Changes in the fair value of marketable securities at FVOCI
|
(3,595
|
)
|
2,631
|
162
|
4,887
|
|||||||||||
Other comprehensive income for the period (a)
|
$
|
(3,595
|
)
|
$
|
2,631
|
$
|
162
|
$
|
4,887
|
|||||||
Total comprehensive income for the period
|
$
|
89,747
|
$
|
130,473
|
$
|
487,804
|
$
|
464,878
|
||||||||
Attributable to owners of Turquoise Hill
|
79,051
|
105,490
|
358,026
|
344,461
|
||||||||||||
Attributable to owner of non-controlling interest
|
10,696
|
24,983
|
129,778
|
120,417
|
||||||||||||
Total comprehensive income for the period
|
$
|
89,747
|
$
|
130,473
|
$
|
487,804
|
$
|
464,878
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
TURQUOISE HILL RESOURCES LTD.
|
Consolidated Statements of Cash Flows
|
(Stated in thousands of U.S. dollars)
|
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
June 30, |
June 30,
|
|||||||||||||||||||
Note
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||
Restated -
Note 2 (c)(i)
|
Restated -
Note 2 (c)(i)
|
|||||||||||||||||||
|
||||||||||||||||||||
Cash generated from operating activities before interest and tax
|
16
|
$
|
315,376
|
$
|
304,767
|
$
|
438,010
|
$
|
553,003
|
|||||||||||
Interest received
|
920
|
678
|
1,469
|
1,853
|
||||||||||||||||
Interest paid
|
(84,771
|
)
|
(84,511
|
)
|
(85,580
|
)
|
(111,022
|
)
|
||||||||||||
Income and other taxes paid
|
18
|
(2,461
|
)
|
(2,525
|
)
|
(2,477
|
)
|
(358,648
|
)
|
|||||||||||
Net cash generated from operating activities
|
$
|
229,064
|
$
|
218,409
|
$
|
351,422
|
$
|
85,186
|
||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Expenditures on property, plant and equipment
|
$
|
(260,941
|
)
|
$
|
(227,356
|
)
|
$
|
(490,807
|
)
|
$
|
(477,643
|
)
|
||||||||
Purchase of commodity put options
|
-
|
-
|
-
|
(29,907
|
)
|
|||||||||||||||
Proceeds from pre-production revenues
|
-
|
-
|
-
|
-
|
||||||||||||||||
Other investing cash flows
|
(1
|
)
|
62
|
(1
|
)
|
62
|
||||||||||||||
Cash used in investing activities
|
$
|
(260,942
|
)
|
$
|
(227,294
|
)
|
$
|
(490,808
|
)
|
$
|
(507,488
|
)
|
||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Repayment of project finance facility
|
$
|
(41,826
|
)
|
$
|
(21,744
|
)
|
$
|
(41,826
|
)
|
$
|
(21,744
|
)
|
||||||||
Proceeds from bank overdraft facility
|
-
|
-
|
-
|
8,500
|
||||||||||||||||
Repayment of bank overdraft facility
|
-
|
(8,500
|
)
|
-
|
(8,500
|
)
|
||||||||||||||
Payment of lease liability
|
(2,740
|
)
|
(166
|
)
|
(5,152
|
)
|
(295
|
)
|
||||||||||||
Cash used in financing activities
|
$
|
(44,566
|
)
|
$
|
(30,410
|
)
|
$
|
(46,978
|
)
|
$
|
(22,039
|
)
|
||||||||
Effects of exchange rates on cash and cash equivalents
|
(116
|
)
|
(165
|
)
|
470
|
(207
|
)
|
|||||||||||||
Net decrease in cash and cash equivalents
|
$
|
(76,560
|
)
|
$
|
(39,460
|
)
|
$
|
(185,894
|
)
|
$
|
(444,548
|
)
|
||||||||
Cash and cash equivalents - beginning of period
|
$
|
584,962
|
$
|
718,533
|
$
|
694,296
|
$
|
1,123,621
|
||||||||||||
Cash and cash equivalents - end of period
|
$
|
508,402
|
$
|
679,073
|
$
|
508,402
|
$
|
679,073
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
TURQUOISE HILL RESOURCES LTD.
|
Consolidated Balance Sheets
|
(Stated in thousands of U.S. dollars)
|
(Unaudited)
|
June 30,
|
December 31,
|
|||||||||||
Note
|
2022
|
2021
|
||||||||||
Restated -
Note 2 (c)(i)
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
8
|
$
|
508,402
|
$
|
694,296
|
|||||||
Inventories
|
9
|
293,298
|
290,017
|
|||||||||
Trade and other receivables
|
12,853
|
16,119
|
||||||||||
Prepaid expenses and other assets
|
86,524
|
120,715
|
||||||||||
901,077
|
1,121,147
|
|||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment
|
10
|
12,630,001
|
12,049,958
|
|||||||||
Inventories
|
9
|
47,517
|
60,711
|
|||||||||
Prepaid expenses and other assets
|
18
|
315,192
|
348,671
|
|||||||||
Deferred income tax assets
|
13
|
879,557
|
602,862
|
|||||||||
Other financial assets
|
17,341
|
16,818
|
||||||||||
13,889,608
|
13,079,020
|
|||||||||||
Total assets
|
$
|
14,790,685
|
$
|
14,200,167
|
||||||||
Current liabilities
|
||||||||||||
Borrowings and other financial liabilities
|
11
|
$
|
713,424
|
$
|
397,421
|
|||||||
Trade and other payables
|
12
|
467,131
|
384,488
|
|||||||||
Deferred revenue
|
172,231
|
149,368
|
||||||||||
1,352,786
|
931,277
|
|||||||||||
Non-current liabilities
|
||||||||||||
Borrowings and other financial liabilities
|
11
|
3,429,669
|
3,785,358
|
|||||||||
Deferred income tax liabilities
|
13
|
164,585
|
145,434
|
|||||||||
Decommissioning obligations
|
14
|
171,404
|
153,662
|
|||||||||
3,765,658
|
4,084,454
|
|||||||||||
Total liabilities
|
$
|
5,118,444
|
$
|
5,015,731
|
||||||||
Equity
|
||||||||||||
Share capital
|
$
|
11,432,122
|
$
|
11,432,122
|
||||||||
Contributed surplus
|
1,555,774
|
1,555,774
|
||||||||||
Accumulated other comprehensive income
|
4,525
|
4,363
|
||||||||||
Deficit
|
(3,881,793
|
)
|
(2,840,896
|
)
|
||||||||
Equity attributable to owners of Turquoise Hill
|
9,110,628
|
10,151,363
|
||||||||||
Attributable to non-controlling interest
|
15
|
561,613
|
(966,927
|
)
|
||||||||
Total equity
|
$
|
9,672,241
|
$
|
9,184,436
|
||||||||
Total liabilities and equity
|
$
|
14,790,685
|
$
|
14,200,167
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
TURQUOISE HILL RESOURCES LTD. |
Consolidated Statements of Equity
|
(Stated in thousands of U.S. dollars)
|
(Unaudited)
|
Six Months Ended June 30, 2022
|
Attributable to owners of Turquoise Hill
|
|||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
other
|
Non-controlling
|
|||||||||||||||||||||||||||
Contributed
|
comprehensive
|
Interest
|
||||||||||||||||||||||||||
Share capital
|
surplus
|
income
|
Deficit
|
Total
|
(Note 15)
|
Total equity
|
||||||||||||||||||||||
Opening balance
|
$
|
11,432,122
|
$
|
1,555,774
|
$
|
4,363
|
$
|
(2,840,895
|
)
|
$
|
10,151,364
|
$
|
(966,927
|
)
|
$
|
9,184,437
|
||||||||||||
Income for the period
|
-
|
-
|
-
|
357,864
|
357,864
|
129,778
|
487,642
|
|||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
162
|
-
|
162
|
-
|
162
|
|||||||||||||||||||||
Waiver of non-recourse loans (Note 15)
|
-
|
-
|
-
|
(1,398,762
|
)
|
(1,398,762
|
)
|
1,398,762
|
-
|
|||||||||||||||||||
Closing balance
|
$
|
11,432,122
|
$
|
1,555,774
|
$
|
4,525
|
$
|
(3,881,793
|
)
|
$
|
9,110,628
|
$
|
561,613
|
$
|
9,672,241
|
|||||||||||||
Six Months Ended June 30, 2021
|
Attributable to owners of Turquoise Hill
|
|||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
other
|
Non-controlling
|
|||||||||||||||||||||||||||
Contributed
|
comprehensive
|
Interest
|
||||||||||||||||||||||||||
Share capital
|
surplus
|
income
|
Deficit
|
Total
|
(Note 15)
|
Total equity
|
||||||||||||||||||||||
Opening balance
|
$
|
11,432,122
|
$
|
1,558,834
|
$
|
1,418
|
$
|
(3,415,601
|
)
|
$
|
9,576,773
|
$
|
(1,148,820
|
)
|
$
|
8,427,953
|
||||||||||||
Impacts of change in accounting policy Note 2(c)(i)
|
-
|
-
|
-
|
13,630
|
13,630
|
7,022
|
20,652
|
|||||||||||||||||||||
Opening balance (Restated)
|
$
|
11,432,122
|
$
|
1,558,834
|
$
|
1,418
|
$
|
(3,401,971
|
)
|
$
|
9,590,403
|
$
|
(1,141,798
|
)
|
$
|
8,448,605
|
||||||||||||
Income for the period (Restated Note 2(c)(i))
|
-
|
-
|
-
|
339,574
|
339,574
|
120,417
|
459,991
|
|||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
4,887
|
-
|
4,887
|
-
|
4,887
|
|||||||||||||||||||||
Employee share plans
|
-
|
(53
|
)
|
-
|
-
|
(53
|
)
|
-
|
(53
|
)
|
||||||||||||||||||
Closing balance (Restated)
|
$
|
11,432,122
|
$
|
1,558,781
|
$
|
6,305
|
$
|
(3,062,397
|
)
|
$
|
9,934,811
|
$
|
(1,021,381
|
)
|
$
|
8,913,430
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|