On November 4, Oyu Tolgoi (OT) released its financial results and performance for the third quarter of 2016, which ended on September 30.

OT reported that it had recorded revenue of 226.3 million USD in Q3, a decrease of 31.4 percent compared to Q2. This decrease was attributed to a decrease in gold sales due to lower gold production resulting from lower grades from the completion of major mining activities in Phase 2. OT also noted that at the end of Q3’16, they had spent 105.8 million USD on underground expansion capital and had commitments of more than 750 million USD. The underground workforce was approximately 1,600 by the end of Q3, and is expected to reach 2,400 employees by the end of 2016.

It was reported in October that OT had set an all-time high in Q3’16 for quarterly material mined in excess of 25 million tons. In terms of operational outlook, sales contracts have been agreed upon for 100 percent of Oyu Tolgoi’s expected 2016 and 2017 concentrate production.

According to the report, OT’s total in-country spending had reached 5.9 billion USD at the end of Q3, with 210 million USD in national procurement spent and 171.5 million USD in taxes paid over the quarter.

Regarding the ongoing underground development project, OT stated, “Good progress continued on underground development, including ongoing contractor mobilization and the signing of an additional contract for the sinking of Shafts 2 and 5. Work began for Shaft 5 sinking and the convey-to-surface box cut excavation while construction of critical on-site facilities continued.”

Oyu Tolgoi also reported an All Injury Frequency Rate of 0.13 (injuries per 200,000 hours worked including open-pit operations and the underground project) for the first three quarters of 2016.

OT’s Managing Director, Armando Torres, said, “The business continued to deliver strong safety performance over the past quarter, and at the same time achieving record material mined and continuing underground development.”

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