Turquoise Hill Resources (NYSE:TRQ)-1.7% post-market after adding $1.2B to its estimated funding requirement for the Oyu Tolgoi mine in Mongolia, citing delays in underground mining and open-pit metal deferring.
Oyu Tolgoi, one of the world's largest copper-gold-silver mines, is now forecast to cost $3.6B, after the company in July had guided for $2.4B.
The company also expects the deferral of some open-pit metal to beyond 2024, due to previously disclosed open-pit geotechnical events as well as ongoing impacts of on-site COVID-19 restrictions that have resulted in delayed waste movement.
Q3 copper production from Oyu Tolgoi rose 16% Y/Y to 41.9K metric tons, while gold output soared 256% to 130.8K oz.
Full-year copper and gold production guidance remains within the ranges of 150K-180K mt and 400K-480K oz., respectively.
Turquoise Hill, 50.8% owned by Rio Tinto (NYSE:RIO), owns 66% of Oyu Tolgoi, with the rest held by the Mongolian government.