The latest update that came from Turquoise Hill Resources Ltd (NYSE:TRQ) was about its performance in the third quarter. The company posted net income of $21.2 million or $0.01 per share, which was in-line with the analysts’ estimates. The net income was comparable with the net loss of $94 million or ($0.05) per share posted in the previous year’s corresponding quarter.
Third quarter earnings
The operating cash flows of the company before interest and taxes came in at $171.7 million versus $256.3 million in Q3 2014. The difference in operating cash flows was due to lower commodity prices attained on the sales revenue. At the end of September 30, 2015, the company’s cash and cash equivalents stood at $1.3 billion.
Meanwhile, Turquoise Hill Resources Ltd (NYSE:TRQ) stated that its revenue increased 2.5% quarter-over-quarter to $431.7 million from $421.3 million. However, the same figure showed a decline of 12.2% year-over-year. The company cited that the higher sales of copper-gold concentrate were offset by lower copper prices. The gross margin of the company fell to 41.6% in the third quarter from 46.4% in the second quarter due to weak copper prices.
Oyu Tolgoi mine
Turquoise Hill projects its Oyu Tolgoi mine to produce copper concentrate in the range of 175,000 to 195,000 tonnes in 2015. At the same time, it expects production of gold concentrates in the range of 600,000 to 700,000 ounces for 2015. Moreover, the company highlighted that it has already signed sales contracts for more than 80% of Oyu Tolgoi’s expected concentrate production in 2016.
Apart from this, Turquoise’s parent company, Rio Tinto plc (ADR) (NYSE:RIO), has announced that it is likely to take a decision on $4 billion expansion plan of Oyu Tolgoi copper mine in Mongolia. Rio Tinto is expected to take a final call by early next year.
The stock of Turquoise Hill Resources Ltd (NYSE:TRQ) closed the previous session 0.39% lower at $2.56.