BRITISH COLUMBIA

Turquoise Hill reports $182.4M Q4 loss, attributed to new Mongolia mine

03/25/2013 07:26 EDT | Updated 05/25/2013 05:12 EDT
VANCOUVER - Turquoise Hill Resources (TSX:TRQ) is reporting a net loss of $182.4 million in the fourth quarter, more than double its net loss of $85.8 million in the same period a year earlier.

The Vancouver-based company, formerly known as Ivanhoe Mines Ltd., says the loss, which amounts to 18 cents per dilluted share in Q4 of this year, compared to four cents in 2011, is largely attributed to non-controlling interests.

Its primary operation is a 66 per cent interest in the Oyu Tolgoi copper-gold-silver mine in southern Mongolia, which is expected to begin commercial production in the first half of 2013.

The company says the first phase of the construction of the mine, located south of the capital city of Ulaanbaatar, is 99 per cent complete.

The final cost for Oyu Tologi, including development, equipment, plant and property costs, is expected to be $6.2 billion, which is within three per cent of the budget.

In the fourth quarter, Turquoise Hill reported revenue of $41.6 million, compared with revenue of $51 million in the same quarter in 2011.

The Vancouver-headquartered company is majority owned by Rio Tinto (NYSE:RIO).

In February, the company had announced it was selling its 50 per cent stake in Kazakhstan miner Altynalmas Gold Ltd. for US$300 million to Sumeru Gold BV.

Turquoise Hill had acquired an interest in the project in 1996 and acquired its stake in Altynalmas in 2008.

It also owns a 58 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ) and 57 per cent interest in copper-gold miner Ivanhoe Australia (TSX:IVA).

On the Toronto Stock Exchange, Turquoise Hill shares down 17 cents, or 2.56 per cent, at $6.46 on Monday. It reported its earnings after markets had closed.