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Form 20-F-____
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Form 40-F- X
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TURQUOISE HILL RESOURCES LTD.
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Date: October 17, 2022
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By:
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/s/ Dustin S. Isaacs
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Dustin S. Isaacs
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Corporate Secretary
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Q3’22 Copper production of 36.3 thousand tonnes of copper in concentrate, a decrease of 13% vs Q3’21 and an increase of 19% vs Q2’22
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Q3’22 Gold production of 42.7 thousand ounces of gold in concentrate, a decrease of 67% vs Q3’21 and a decrease of 10% vs Q2’22
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Copper production guidance for 2022 remains within the range of 110,000 to 150,000 tonnes
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Gold production guidance for 2022 has been revised from a range of 150,000 – 170,000 ounces to 165,000 – 185,000 ounces. The higher gold
guidance reflects more reliable grade performance from mining of Phase 5 during Q3’22 with correlating higher recoveries. This builds on the higher gold production from completion of Phase 4B in H1’22.
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Expenditures on property, plant and equipment for 2022 remains within the guidance range of $140 million to $170 million for surface operations.
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Capital expenditures on the underground project1 are now expected to be $1.0 billion to $1.1 billion for 2022 compared to previous guidance of $1.1 billion to
$1.3 billion as a result of improvements to construction productivity and the slower ramp-up of on-site construction resources that continued during Q3’22.
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Turquoise Hill Resources Ltd.
turquoisehill.com
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Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
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Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
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info@turquoisehill.com
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Total Operating Cash Costs2 for 2022 are now expected to be in the range of $855 million to $910 million compared to
previous guidance of $850 million to $925 million, which is largely due to deferral of non-critical activities to contain inflationary pressures for key inputs, including fuel and ammonium nitrate.
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Mill throughput of 10.68 million tonnes in Q3’22 was 14% higher than Q3’21 and 10% higher than Q2’22, which is in line with expectations due to higher mill availability.
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Continued good progress in underground on-footprint construction and blasting saw firing of the 7th drawbell during Q3’23 and commencement of commissioning of
the second truck chute.
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Turquoise Hill Resources Ltd.
turquoisehill.com
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Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
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Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
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info@turquoisehill.com
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Milestone
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2020 OTTR
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Q1 2022 MD&A
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Actual or Currently
Projected Dates(3)
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Start Undercut blasting
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July 2021
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January 2022 (Actual)
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January 2022 (Actual)
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MHS 1 (including
Crusher 1) commissioning
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Q4’21
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February 2022 (Actual)
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February 2022 (Actual)
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First drawbell blasted (1)
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May 2022
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Q3’22
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June 2022 (Actual)
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Sustainable Production
(sustainable cave propagation)
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February 2023
(~30 drawbells active(2))
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H1’23
(~21 drawbells active(2) )
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Q1’23
(~16-21 drawbells active(2))
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Shaft 3 commissioned
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H1’22
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H1’24(3)
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H1’24(3)
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Shaft 4 commissioned
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H1’22
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H1’24(3)
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H1’24(3)
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First drawbell Panel 2
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Q4’24
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H1’26
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H1’26(4)
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First drawbell Panel 1
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H2’26
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H1’27
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H1’27(4)
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1.
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Despite an approximate 6-month delay to Undercut commencement, first drawbell timing remained broadly in line with the 2020TR.
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2.
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Design refinements identified that a minor modification to undercut sequence following additional geotechnical assessment of cave initiation conditions,
changed the estimated number of drawbells to reach critical hydraulic radius, which is the point at which sustainable production is anticipated to commence. Critical hydraulic radius is an estimated factor, based on the best available
data but some variability in the exact number of drawbells needed to reach critical hydraulic radius could occur, with the potential for the requirement to be between 16 and 21 drawbells.
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3.
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Shaft 3 and 4 progress continues to be closely monitored against the 2022 schedule update.
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4.
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A preliminary assessment of the impact of the previously announced shaft delays on the commencement of Panel 1 and Panel 2 is included in these updated milestones.
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Turquoise Hill Resources Ltd.
turquoisehill.com
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Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
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Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
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info@turquoisehill.com
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Turquoise Hill Resources Ltd.
turquoisehill.com
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Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
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info@turquoisehill.com
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3Q
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4Q
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1Q
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2Q
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3Q
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9 months
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9 months
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Full Year
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2021
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2021
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2022
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2022
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2022
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2022
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2021
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2021
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Open pit material mined (‘000 tonnes)
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22,588
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23,979
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24,386
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25,550
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26,102
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76,038
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61,005
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84,983
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Ore treated (‘000 tonnes)
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9,336
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10,573
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9,581
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9,685
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10,685
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29,951
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28,550
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39,124
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Average mill head grades:
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Copper (%)
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0.53
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0.46
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0.40
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0.40
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0.42
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0.41
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0.52
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0.50
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Gold (g/t)
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0.63
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0.38
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0.32
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0.26
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0.22
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0.27
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0.60
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0.54
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Silver (g/t)
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1.29
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1.27
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1.25
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1.15
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1.32
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1.24
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1.26
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1.26
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Concentrates produced (‘000 tonnes)
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191.9
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182.7
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144.3
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146.0
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173.6
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463.9
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567.0
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749.6
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Average concentrate grade (% Cu)
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21.9
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21.3
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21.0
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20.9
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20.9
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20.9
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21.9
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21.7
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Production of metals in concentrates:
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Copper (‘000 tonnes)
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41.9
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38.9
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30.3
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30.6
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36.3
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97.1
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124.1
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163.0
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Gold (‘000 ounces)
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131
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79
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59
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48
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43
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150
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390
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468
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Silver (‘000 ounces)
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249
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238
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211
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201
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256
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668
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739
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977
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Concentrate sold (‘000 tonnes)
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224.4
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165.9
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148.3
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175.3
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211.1
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534.7
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503.3
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669.2
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Sales of metals in concentrates:
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Copper (‘000 tonnes)
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46.4
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34.4
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29.9
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35.3
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41.8
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107.0
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105.0
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139.4
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Gold (‘000 ounces)
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149
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102
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57
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68
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56
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181
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333
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435
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Silver (‘000 ounces)
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278
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192
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179
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224
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282
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684
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591
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783
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Metal recovery* (%)
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Copper
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83.9
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80.1
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78.1
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81.4
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80.9
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80.2
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83.6
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82.8
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Gold
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68.7
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59.3
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59.0
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59.1
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56.6
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58.6
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70.3
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68.4
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Silver
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64.1
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55.1
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54.3
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57.8
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57.0
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56.4
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64.0
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61.6
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Turquoise Hill Resources Ltd.
turquoisehill.com
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
info@turquoisehill.com
|
Turquoise Hill Resources Ltd.
turquoisehill.com
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
info@turquoisehill.com
|
Turquoise Hill Resources Ltd.
turquoisehill.com
|
Suite 3680 1 Place Ville-Marie
Montreal, Quebec, Canada
H3B 3P2
|
Telephone + 1 514 848 1567
Toll Free + 1 877 589 4455
|
info@turquoisehill.com
|