Turquoise Hill Resources today announced its financial results for the quarter ended March 31, 2018. All figures are in
U.S. dollars unless otherwise stated.
HIGHLIGHTS
 Oyu Tolgoi achieved a strong All Injury Frequency Rate of 0.21 per 200,000 hours worked for the three months ended
March 31, 2018.
 Underground development achieved record-level monthly progress during Q1’18, with 2.6 equivalent kilometrescompleted during the quarter.
 In March 2018, the underground team experienced their highest development month to date.
 Since the restart of development, a total of 10.3 equivalent kilometres of lateral development has been completed.
 Sinking of Shaft 2 was completed in January 2018 and sinking of Shaft 5 was completed in March 2018.
 During Q1’18, underground expansion spend was $270.5 million, resulting in total project spend since January 1, 2016
of approximately $1.4 billion.
 Production from first draw bell remains planned for mid-2020 and sustainable first production in 2021.
 During Q1’18, Oyu Tolgoi produced 38,800 tonnes of copper and 42,000 ounces of gold.
 Revenue of $245.6 million in Q1’18 increased 3.4% over Q1’17 reflecting higher copper and gold prices partly offset by
lower concentrate sales volumes.
 For Q1’18, the Company recorded income of $79.7 million and net income attributable to owners of Turquoise Hill of
$85.7 million or $0.04 per share.
 Turquoise Hill generated cash flow from operating activities before interest and taxes of $14.7 million in Q1’18.
 For Q1’18, Oyu Tolgoi’s cost of sales was $2.23 per pound of copper sold, C1 cash costs were $1.76 per pound of
copper produced and all-in sustaining costs were $2.07 per pound of copper produced1
.
 Operating cash costs1
of $176.6 million in Q1’18 increased 4.9% over Q1’17 reflecting higher open pit and
concentrator maintenance costs.
FINANCIAL RESULTS
Income in Q1’18 was $79.7 million compared with $29.7 million in Q1’17. The increase mainly reflects the impact of
higher copper prices, reduced depreciation and depletion and lower finance costs due to higher amounts of interest
capitalized to property, plant and equipment, partially offset by reduced sales volumes. Cash generated from operating
activities in Q1’18 was $19.4 million compared with $86.3 million in Q1’17. This reduction was primarily driven by
significant movements in working capital, partly offset by higher copper prices. Capital expenditure on property, plant and
equipment was $285.7 million on a cash basis in Q1’18 compared to $147.9 million in Q1’17, attributed principally to
underground ($270.5 million) with the remainder related to open-pit capital activities.
Turquoise Hill’s cash and cash equivalents at March 31, 2018 were approximately $1.5 billion.

Please review the full report at turquoisehill.com

Published Date:2018-05-10