Turquoise Hill reports US$40-million third quarter profit, raises gold guidance

TORONTO — Turquoise Hill Resources Ltd. says if Rio Tinto's proposal to take the company private does not go ahead its immediate priority will be to address the company's liquidity concerns.

The company says it will implement all elements of its binding funding heads of agreement with Rio Tinto, which holds a majority stake in the company, to provide it with the needed liquidity and resources to meet its obligations as it works to expand its Oyu Tolgoi copper and gold mine in Mongolia.

Turquoise Hill, which keeps its books in U.S. dollars, made the comments as it reported a profit of US$40 million or 23 cents per diluted share for the quarter ended Sept. 30 compared with a profit of US$54.4 million or 28 cents per diluted share in the same quarter last year. Revenue for the quarter totalled US$391.1 million, down from US$662.1 million a year earlier.

In its outlook, the company maintained its copper production guidance within a range of 110,000 to 150,000 tonnes, while it raised its 2022 gold production guidance to between 165,000 and 185,000 ounces, up from 150,000 to 170,000 ounces.

Turquoise Hill has postponed a shareholder meeting to vote on Rio Tinto's plan to acquire the 49 per cent stake in the company it does not already hold as it works to resolve concerns including those from Quebec's securities regulator about a deal Rio Tinto made with a pair of shareholders who had opposed the purchase.

The company owns a 66 per cent stake in Oyu Tolgoi. Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34 per cent interest.

This report by The Canadian Press was first published Nov. 14, 2022.

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The Canadian Press