Turquoise Hill Resources announced 2016 production and financial guidance.
Oyu Tolgoi is expected to produce 175,000 to 195,000 tonnes of copper and 210,000 to 260,000 ounces of gold in concentrates for 2016. Open-pit operations are expected to mine in phases 2, 3 and 6 during the year as well as begin stripping for phase 4. In addition, stockpiled ore will be processed during the year. The reduction in gold compared to 2015 is the result of mining in lower-grade gold areas and processing lower-grade stockpiled ore. The majority of 2016 gold production is expected in the first half of the year.
Operating cash costs for 2016 are expected to be approximately $800 million. The reduction compared to expected 2015 operating cash costs is mainly related to additional capitalization of phase 4 deferred stripping costs.
Capital expenditures for 2016 on a cash-basis, excluding underground development, are expected to be approximately $300 million, of which approximately $280 million relates to sustaining capital. Sustaining capital reflects increased capitalization of phase 4 deferred stripping costs.
For underground development, Turquoise Hill will provide capital guidance for 2016 once a final ‘notice to proceed’ decision is confirmed.
About Turquoise Hill Resources
Turquoise Hill Resources (NYSE, NASDAQ & TSX: TRQ) is an international mining company whose primary operation is its 66% interest in the Oyu Tolgoi copper-gold-silver mine in southern Mongolia.
Source: Turquoise Hill Resources
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