OT concentrate production was at peak last quarter

Economy | Mining
en_montsameuser@montsame.mn
2015-09-09 11:30:54

Ulaanbaatar /MONTSAME/ Oyu Tolgoi announced August 6 an update on its performance for the second quarter of the fiscal, ending June 30, 2015.

The highlights are as follows: Oyu Tolgoi achieved a solid safety performance with an All Injury Frequency Rate of 0.22 per 200,000 hours worked for the first half of 2015; Oyu Tolgoi recorded revenue of USD 421.3 million in Q2’15 on sales of 189,800 tonnes of concentrate, a 1.2% reduction over Q1’15, reflecting lower gold prices partially offset by higher concentrate sales; Concentrate production for Q2’15 increased 64.6% over Q1’15 due to a 20.1% increase in concentrator throughput and higher head grades; Concentrate production and throughput in Q2’15 were the best Oyu Tolgoi has experienced since operations began; Copper and gold in concentrates for Q2’15 increased 64.6% and 176.7% respectively over Q1’15; Oyu Tolgoi began accessing higher-grade material in Q2’15 and mining and processing of higher-grade ore is expected to continue into the second half of 2015 and Turquoise Hill Resources continues to expect Oyu Tolgoi to produce 175,000 to 195,000 tonnes of copper and 600,000 to 700,000 ounces of gold in concentrates in 2015.

On July 9, Oyu Tolgoi marked the second anniversary of its first shipment of concentrate.

Safety continues to be a major focus throughout Oyu Tolgoi’s operations and the mine’s management is committed to reducing risk and injury. Oyu Tolgoi achieved a solid safety performance with an All Injury Frequency Rate of 0.22 per 200,000 hours worked for the first half of 2015, the report says.

Revenue in Q2’15 decreased by 1.2 per cent over Q1’15. Lower revenues reflect a fall in gold prices, partially offset by higher volumes of copper-gold concentrate sales. The Q2’15 mix of revenue by metals is the result of inventory with lower contained gold drawn down during the quarter from concentrate produced in Q1’15. Gross margin at 46.4 per cent for the quarter increased from 39.5 per cent in Q1’15, due to the combined effect of higher overall volumes sold and cost improvements, as Oyu Tolgoi continued to optimize operations, which offset the impact of lower gold sales.

Andrew Woodley, President and CEO of Oyu Tolgoi,said: “Alongside a solid safety performance - our key measure of success - we achieved record production in Q2’15. However, global market conditions remained challenging, underscoring the need for us to maintain our focus on optimising cost and improving productivity to ensure we are globally competitive as a business. This is a key imperative as we progress on the important and complex task of developing the underground mine.”

Oyu Tolgoi began accessing higher-grade material in Q2’15. Concentrate production for Q2’15, the highest Oyu Tolgoi has seen since operations commenced, increased 64.6 per cent over Q1’15 due to a 20.1 per cent increase in concentrator throughput and higher head grades. Throughput for Q2’15 was the best Oyu Tolgoi has experienced since operations began. Copper and gold in concentrates increased 64.6 per cent and 176.7 per cent respectively over Q1’15, reports Oyu Tolgoi.

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