Turquoise Hill Resources today announced its financial results for the year ended December 31, 2018. All figures are in U.S. dollars unless otherwise stated.
“Oyu Tolgoi delivered strong operational results in 2018,” said Ulf Quellmann, Turquoise Hill’s Chief Executive Officer. “For the year, Oyu Tolgoi achieved an industry-leading safety performance and benefitted from processing higher-gold grade ore, which resulted in us exceeding copper and gold production guidance. Increased gold production, along with higher average copper prices for the year, led to a more than 25% increase in revenue and more than 11% increase in operating cash flow over 2017.
“Underground development continued to progress during 2018 with more than 10 equivalent kilometres completed by year end. As can occur in a project of this size and complexity, mine manager Rio Tinto has identified challenges with the location of some ore passes on the footprint. We acknowledge Rio Tinto’s proactive approach to maintaining the highest level of infrastructure stability by reviewing the location of these ore passes. The impact of these changes will be reflected in the definitive estimate review, which is expected to be complete towards the end of the year.
“Oyu Tolgoi is a world-class asset with a best-in-class workforce. Turquoise Hill is a tremendous opportunity to invest in a copper and gold producer with a direct participation in the world’s next Tier 1 copper asset.”
HIGHLIGHTS
Full year 2018
 Oyu Tolgoi achieved an industry-leading All Injury Frequency Rate of 0.16 per 200,000 hours worked for the year ended December 31, 2018.
 On December 31, 2018, Oyu Tolgoi and the Government of Mongolia signed the Power Sector Framework Agreement providing a pathway forward for a Tavan Tolgoi-based power plant.
 Copper production of 159,100 tonnes for 2018 increased 1.1% over 2017 and exceeded guidance by 2.6%.
 Gold production of 285,000 ounces in 2018 increased 150.0% over 2017 and exceeded guidance by 1.8%.
 Mill throughput for 2018 decreased 5.9% over 2017 due to increased processing of harder Phase 4 ore throughout
the year.
 Revenue of $1.2 billion in 2018 increased 25.6% over 2017 due to the significant increase in gold sales, a 5.0%
increase in copper sales volumes and the impact of higher average copper prices.
 For 2018, income of $394.3 million increased 255.4% over 2017 reflecting the significant increase in gold revenue and reduced unit costs of production driven by higher head grades and recoveries.
News Release
March 14, 2019
Turquoise Hill announces financial results and review of
operations for 2018
Turquoise Hill Resources Ltd. Suite 354-200 Granville Street Vancouver, BC, Canada V6C 1S4
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 For 2018, Oyu Tolgoi’s cost of sales was $2.25 per pound of copper sold ($2.32: 2017), C1 cash costs of $1.59 per
pound of copper produced ($1.92: 2017) and all-in sustaining costs of $2.20 per pound of copper produced ($2.39:
2017)1
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 For 2018, mining costs1 per tonne were $2.13 ($1.51: 2017), milling costs1 per tonne were $7.11 ($6.36: 2017) and G&A costs per tonne were $3.03 ($2.93: 2017).
 Total operating cash costs1 of $817.1 million for 2018 increased 14.8% over 2017 due to higher freight and royalty costs, a reduction in costs capitalized as deferred stripping as well as higher fuel and power costs.
 During 2018, underground lateral development advanced 10.3 equivalent kilometres, a 68.9% increase over 2017.
 Underground expansion capital for 2018 was $1.2 billion, meeting the upper-end of the Company’s guidance.
 During 2018, Oyu Tolgoi completed the sinking and commissioning of Shaft 5

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Published Date:2019-03-15