Turquoise Hill revenue surprise lifts shares 6%

Oyundelger 2017-05-17 03:05

Mining

Shares in Turquoise Hill rose sharply on Tuesday after the company announced better than expected revenues amid declining production at its massive Oyu Tolgoi copper and gold mine in Mongolia.

Turquoise Hill revenue surprise lifts shares 6%. Shares in Turquoise Hill rose sharply on Tuesday after the company announced better than expected revenues amid declining production at its massive Oyu Tolgoi copper and gold mine in Mongolia. By the close in New York Turquoise Hill stock went up 6.2% on the day, bringing its year-to-date gains to more than 21%. The Vancouver-based company said in a statement copper production at Oyu Tolgoi fell 16.3% during the first quarter compared to the final quarter 2016 while gold production declined 49%. Turquoise Hill said the drop was expected due to lower grade and recoveries at the lower end of the grade recovery curve. Nevertheless, the sales went up and the company recorded revenue of $237.5 million in Q1 which was 5.7% higher than Q4 last year reflecting a higher average selling price for copper and higher volumes of copper in concentrates sold. Oyu Tolgoi is expected to be world's third-largest copper mine at peak production in 2025 with the output of over 550,000 tonnes per year.